Germany, UAE replace US as top study destinations for Indian students

upGrad's 2024-25 report shows 13% drop in US-bound student applications; Germany rises to 32.6%, UAE hosts 42% of Indian international students

The US is no longer the default dream destination for Indian students. New data from upGrad’s Transnational Education (TNE) Report 2024–25 shows that the focus has shifted from “Where can I go?” to “What will this degree give me?”, a shift driven by career-first thinking, cost concerns, and growing confidence in digital and hybrid learning formats.

 

The report, based on inputs from over one lakh Indian respondents, found that applications to US universities dropped 13 per cent year-on-year. Meanwhile, destinations like Germany and the UAE have seen a dramatic rise in interest. Germany’s share jumped from 13.2 per cent in 2022 to 32.6 per cent in 2024–25, overtaking both Canada and the US. The UAE now hosts a large share of Indian students, with 42 per cent of its international student population coming from India.

 

 

Top cities and age groups

 

The survey captured responses from a wide age spread:

 

• 47 per cent were between 20–24 years

• 27.3 per cent between 25–29 years

• 11.7 per cent between 15–19 years

• 8.6 per cent between 30–34 years

• 3.4 per cent between 35–39 years

 

The top contributing cities included Bengaluru, Hyderabad, Delhi, Mumbai, Pune, Chennai, Kolkata, Jaipur, Lucknow and Indore.

 

Germany overtakes the US and Canada

 

Germany has emerged as the new leader among Indian study-abroad aspirants, thanks to lower tuition fees, visa-friendlier processes, and strong career pathways. According to the Federal Statistical Office of Germany, the number of Indian students rose from 49,500 in 2023 to nearly 60,000 in 2025.

 

In contrast, Canada’s share dropped from 17.85 per cent to 9.3 per cent, and the UK, though still popular, has seen an 11 per cent decline in student visas issued to Indians between June 2024 and June 2025 (from 110,000 to 98,000), according to the UK Home Office.

 

The US saw a surge in 2023, reaching nearly 60 per cent, but dropped to 47 per cent the following year. Multiple factors are at play—rising tuition fees, the weakening rupee, and apprehension over a possible return of Trump-era visa restrictions.

 

UAE and the Gulf gain traction

 

The Middle East is quickly positioning itself as a cost-effective and culturally accessible region for Indian students. Dubai and Qatar’s Education City now host campuses of major global institutions like Georgetown, Carnegie Mellon, Johns Hopkins, and Weill Cornell. UK universities such as the University of Birmingham and Heriot-Watt have also opened campuses in Dubai, offering identical degrees at a lower cost.

 

“Indian students today are far more intentional about their education choices—driven by geopolitical awareness, cost consciousness, and the realities of stricter visa regimes and uncertain post-study pathways,” said Praneet Singh, associate vice president – university partnerships at upGrad Study Abroad. “The traditional ‘Big Four’ destinations are no longer the default; instead, Europe, the Middle East, and APAC are emerging as smarter, future-ready alternatives.”   

 

Career outcomes now take priority

 

Only 19.9 per cent of students now cite permanent residency as their top motivation. In contrast, 45.7 per cent focus on better career outcomes, showing a clear shift from immigration-led to outcome-led planning.

 

• 86.5 per cent prefer master’s degrees

• MBA and management courses rose from 30 per cent to 55.6 per cent in three years

• STEM fields now account for 38.6 per cent of choices

 

Within STEM, the most popular fields are:

 

Computer science, IT and data science: 28.7 per cent

Engineering: 9.9 per cent

Healthcare and pharma: 5.8 per cent

 

Courses in robotics, AI, fintech, cloud computing, and biotechnology are gaining traction, with students looking to tap into industries shaped by Industry 4.0.

 

What Indian students are studying and where

 

Most preferred fields by destination (Master’s level):

 

Germany: MBA/management, engineering, computer science

USA: Data science, AI, MBA (STEM)

UK: Data science & AI, MBA, finance

Dubai: Data analytics, project management, smart cities 

 

Top Study destinations for Indian students

 

Germany: Computer science, business administration, engineering

USA: Computer science, data science & AI, engineering

UK: Data science & AI, MBA, finance

Dubai: Engineering, business administration, computer science

Australia: Information technology, business analytics, commerce & accounting

 

Engineering and commerce lead academic backgrounds

 

Among those heading abroad, 44 per cent hold engineering degrees, followed by 19 per cent from commerce. The remaining 37 per cent come from science and arts backgrounds.

 

While postgraduate studies dominate, a growing number of students are heading overseas straight after school. Parents are increasingly supporting undergraduate study abroad, seeking early exposure to global environments.

 

What’s the budget and how are they paying?

 

Budget remains a key driver in decision-making:

 

• 40 per cent of students work with a ₹10–20 lakh budget

• 34 per cent are in the ₹20–30 lakh range

• 15 per cent fall in the ₹30–40 lakh bracket

• 11 per cent are willing to spend above ₹40 lakh

 

To fund their education:

 

• 33 per cent take loans

• 28 per cent rely on scholarships

 

Cost is seen less as a deterrent and more as an investment—as long as it offers clear return in the form of employability. 

 

Hybrid learning gaining acceptance

 

Over 70 per cent of Indian students surveyed are now open to hybrid learning formats. This is driven by both cost-saving considerations and digital fluency, especially among younger cohorts.