From US to Germany: Indian students eye ‘new-age’ study hotspots as strict visa rules, weak rupee spoil US, UK dream

Stricter visa requirements, immigration crackdowns, a weakening Indian currency, and bleak job prospects — all these factors have prompted many Indian students to reconsider studying abroad, especially in the US and Europe. The question many now ask is: Is it even worth it to burden oneself with hefty student loans, which may take forever to repay?

"The market is clearly showing signs of slowing down. We've already seen enrolments to the UK and US fall by 20 percent over the last two years, and I expect another 10-15 percent decline from those levels going forward," Sushil Sukhwani, founder of Edwise International, which sends thousands of Indian students to universities abroad each year, told the BBC.

Notably, in the UK, 76 percent of universities reported a decline in Indian student enrolments for the January intake, while in the US, enrolments fell by nearly 7 percent between February 2025 and February 2026.

Strict visa requirements take toll

Strict visa requirements in the UK and the US have already taken a toll.

India's Ministry of External Affairs had cited data in the Rajya Sabha in April this year to flag the "decline of about 6.9% in overall student enrolments in US academic institutions."

The ministry confirmed that visa "rule-breaking", increased scrutiny, and compliance requirements have had an impact on the number of US student visas issued to Indian nationals.

Meanwhile, a survey by the British Universities International Liaison Association (BUILA) released in April claimed that 70 percent of UK universities reported a fall in the number of international students starting postgraduate courses in January 2026.

“The findings suggest that the decline is being driven in part by universities taking proactive recruitment decisions ahead of tighter visa compliance measures, but there are also concerns that the Home OOice is refusing visas for reasons outside the control of higher education institutions,” the study stated.

Sharp fall in the rupee

The sharp fall in the rupee has posed a challenge to both prospective students and those already studying overseas.

"Many students who are already abroad have paid part of their tuition fees, but are now having to refinance loans and arrange additional funding to cover future instalments, with the rupee down more than 10 percent against the US dollar in the last year," Sukhwani told BBC.

According to his calculations, the Indian rupee has depreciated by between 35% and 47% against the currencies of major study destinations since 2019.

The BBC report shed light on the dilemma faced by students who aspire to study abroad in the hope of a more certain, secure future.

The report mentions the ordeal of one Pragati Priya, a 29-year-old content creator from Jharkhand, who decided to enrol in a master's programme abroad this year in hope that it will open the door to better professional opportunities in Europe

However, what makes her anxious is the amount she needs to borrow for her programme. The cost has risen sharply because of the steep decline in the value of the Indian rupee against a basket of currencies, including the euro, over the past few months.

"It has kept me up at night. I don't want to burden myself with a student loan that [I] will never finish [repaying]," Priya told the BBC over phone.

"I considered dropping my plans, but my parents and sister promised to support me. That's the only reason I'm able to take this risk," Priya added.

Impact on students: Hope for skilled job, but end up working in gig economy

The report added that while incomes have risen for some graduates who have got jobs and stayed overseas, climbing onto the career ladder is becoming increasingly difficult for many international students.

Sudhanshu Kaushik, founder of the North America Association of Indian Students in Washington, explained how the students' perspective towards jobs has changed over the years,

"They arrive hoping to secure skilled jobs in the fields they are trained for and end up working in the gig economy. Earlier, that work helped fund their education. Now many are graduating and doing it full-time," he was quoted as saying.

This, he said, is affecting the risk appetite of upper-middle-class Indian families, particularly as the weaker rupee has made an overseas education more expensive than ever.

Indian students have alternatives: ‘New-age’ study destination emerge

Despite these factors, the BBC report claimed, overall demand for foreign education remains strong.

More than 12 lakh (1.2 million) Indian students were studying in Universities/Tertiary Institutions as of January 2025, the Ministry of External Affairs' data revealed. India has also overtaken China as the leading source of international students.

Meanwhile, the Global Student Flows Report 2026 claimed that Indian student enrolments in the US, UK, Canada and Australia — often referred to as the "big four" destinations — are forecast to decline by an average of 0.5% annually through 2030.

But at the same time, interest in alternative destinations is growing.

"Countries such as Germany, Ireland, Italy and several other European destinations are attracting increasing interest from Indian students because of lower tuition costs, favourable post-study work pathways, strong employment prospects and a more attractive overall value proposition," said Mayank Maheshwari, co-founder and COO of University Living, a student accommodation platform.

Sukhwani reportedly said his company has also shifted its focus towards these "new-age destinations" in response to growing student interest.

What do statistics reveal? Top 10 study destinations for Indian students (2016-2024)

A NITI Aayog's discussion paper titled ‘International Student Mobility: A Global and Indian Temporal Overview’ revealed a changing trend in the top study destinations for Indian students from 2016 to 2024.

As per the analysis, the USA consistently remained a top destination, leading with 4.24 lakh Indian students in 2016, 1.68 lakh in 2020 and 3.38 lakh in 2024.

Canada showed a remarkable increase of 350 percent in popularity, climbing from 94,240 students in 2016 to the top position in both 2020 and 2024, hosting 1.79 lakh and 4.27 lakh students respectively.

Australia held third place in both 2016 with 78,103 students and 2020 with 1.15 lakh students, but slipped to fourth despite a modest increase to 1.22 lakh students in 2024.

At the same time, the UK witnessed a dramatic rise in Indian student numbers, growing from just 16,559 in 2016 to 90,300 in 2020 and further to 1.85 lakh by 2024.

However, the ‘emerging’ destination Germany experienced consistent growth in Indian student numbers, with 10,820 students in 2016 to 35,147 students in 2020, reaching 42,997 by 2024.

Globally, though their relative rankings declined, Germany and France showed consistent yet slower growth, hosting over 3.68 and 4.12 lakh students respectively by 2024.

The NITI Aayog report claimed its data reflected changing geopolitical dynamics, immigration policies and students’ evolving priorities regarding affordability, post-study work opportunities and quality of education.

Shashi Tharoor: ‘Red carpet for Indian students in Germany and France’

In September 2025, Congress MP Shashi Tharoor spoke about US plans to limit student visas and tax remittances — moves that could affect Indian students as Europe and others open doors.

His statement after US President Donald Trump imposed a $100,000 fee on H-1B work visas — which was recently termed unlawful by a US federal judge.

He noted the "decline in student applications for the current academic year" and told The Wire, "You will be certain that when the final numbers come in, Indian students in America in the current academic year, that is, September 2025 to June 2026, will be significantly lower than the cohort that went to America in September 2024...That will be low already."

Tharoor added that once the new H-1B visa rules are implemented, "it'll [student application] drop even further."

Tharoor observed that "if the H-1B itself is no longer accessible to most of them, they would have to come back...or move to other countries."

Tharoor told The Wire in an interview last September that he doesn't believe this "is such a big blow to the Indian student community because "those who want to go abroad have other options."

"It's very, very interesting the way in which Europe is rolling out the red carpet for Indian students in Germany and France, as well as other countries like Australia, Canada and New Zealand and even Ireland is attracting Indian students," Tharoor said.