Why 43% of Indian students are dropping overseas education plans; and where the rest are going | Education News
Indian students are becoming more outcome-focused and selective while choosing overseas education destinations, according to an IDP report titled ‘Emerging Futures’. The report notes that among the biggest deciding factors lie career returns, affordability, and visa certainty.
The report shows that business-related programmes remain the most preferred field of study among student respondents globally, with 24% choosing Business and Administrative Studies. Engineering and Technology followed closely at 20%, while 18% preferred Health and Medicine programmes. Computer and Mathematical Sciences accounted for 15% of student interest.
Nearly 65% of respondents said they preferred globally ranked universities, significantly higher than those choosing polytechnics or community colleges (12%), unranked universities (11%), or vocational and trade institutions (6%).
Only 3% expressed interest in pathway or foundation providers, while another 3% remained undecided.
Across all destinations globally, 32% of respondents said securing career outcomes after graduation was the most important measure of value for money. This was followed by high-quality teaching and academic support at 28%, and gaining industry-aligned skills and knowledge at 22%. Another 21% prioritised building professional networks and career connections, while an equal proportion valued access to scholarships and financial support.
Among Indian students, these priorities were even more visible, the report notes. According to the IDP data, 41% of Indian respondents considered career outcomes the leading indicator of value, ahead of teaching quality (31%) and industry-aligned learning (27%).
The report also noted that Indian students continue to associate overseas education with global career mobility, international industry exposure, and stronger return on investment. Confidence levels in overseas education outcomes also remained high. However, confidence levels varied sharply across destinations.
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The UK emerged as the most trusted destination in terms of skill development outcomes, with 85% of students expressing confidence in the country’s ability to prepare them for future careers. Canada followed at 84%, while Australia recorded 83%. The US and New Zealand stood at 82% each.
Confidence levels dropped significantly for emerging destinations. Germany recorded 64% confidence, China 61%, and France 58%. The UAE registered the lowest confidence levels among listed destinations at 47%.
The report also highlighted destination-specific strengths shaping student preferences. Indian students considering the UK placed greater importance on high-quality teaching and academic support, with 39% associating the destination with academic quality. Australia was more strongly linked to industry-aligned skills and strong graduate outcomes, with 42% of Indian respondents associating the country with strong career prospects after graduation.
Meanwhile, Canada, the United States and New Zealand were viewed more favourably for employability and post-study opportunities. Canada was associated strongly with course-related work opportunities, while the US stood out for career connections and networking potential. New Zealand emerged as the destination most associated with post-study work rights and graduate employment outcomes.
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Despite strong confidence in overseas education, affordability pressures continue to reshape student decisions. Among students who were no longer planning to study abroad, 50% globally said tuition costs had moved beyond their financial reach. Another 35% cited the rising cost of living as a major deterrent. Student visa costs were considered too expensive by 27% of respondents.
Visa-related concerns are also intensifying. About 26% of respondents globally said obtaining a student visa had become too difficult.
For Indian students specifically, affordability concerns remained substantial. The report stated that 43% of Indian respondents who dropped plans for overseas education cited tuition costs as unaffordable, while 32% pointed to rising living expenses. Visa difficulties were identified as a major challenge by 28% of Indian students.
At the same time, the report suggests Indian students are becoming more decisive earlier in the application process. The proportion of students considering only one destination country rose from 19% to 22%, indicating a sharper and more focused decision-making pattern compared to previous years.
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Traditional destinations continue to dominate global preference rankings, with Australia, the UK, Canada, and the US remaining the top study-abroad choices overall. Australia, in particular, retained a strong advantage among Indian students, emerging as the first-choice destination for 41% of respondents because of its reputation, employability outcomes and established international education ecosystem.
Institutions and destination countries that can demonstrate employability outcomes, clearer visa systems, and financial accessibility are likely to remain competitive in the evolving international education landscape.