Indian Students Reshape Study Abroad Landscape: Germany Surges as Top Choice Amidst Growing Reliance on Loans

EduNE Bureau

New Delhi: A recent report from upGrad Study Abroad reveals a significant transformation in how Indian students approach overseas education, with Germany emerging as the preferred destination, surpassing traditional favorites like the United States and Canada.

The Transnational Education (TNE) Report 2024-25 highlights a growing reliance on education loans, a shift towards career-centric motivations, and an increasing enrollment from smaller Indian towns.

Shift in Destinations:

Germany’s popularity has soared, with its share of Indian students rising dramatically from approximately 13% in 2022 to 32.6% in 2024–25, making it the top global choice for Indian students. This surge comes as applications to U.S. universities dropped by 13% year-on-year, and Canada saw a steep decline from 17.85% to 9.3% in the same period.

The report also identifies the UAE as a rising star, with Indians comprising 42% of its international student population. Other European and APAC regions are also gaining traction as “smarter, future-ready alternatives,” with countries like Ireland (3.9%) and France (3.3%) experiencing growth. This shift indicates that language is no longer a significant barrier for Indian students, as evidenced by the rise of non-Anglophone destinations like Germany and France.

Evolving Motivations & Course Preferences:

The primary motivation for Indian students studying abroad has notably shifted from permanent residency (PR) to career prospects. Only 16.6% to 19.9% of respondents now cite PR as their main goal, while a substantial 45.7% to 48.2% prioritize securing better jobs.

This career-first consciousness is also influencing course choices, with 86.5% of aspirants preferring master’s degrees. Management and MBA programs have seen a dramatic increase in popularity, nearly doubling from 30% to 55.6% in the past three years, and STEM fields continue to attract a strong 38.9% of students. In 2024, over 7.6 lakh Indians pursued higher studies abroad, reflecting a steady rise in outbound mobility.

Funding Landscape and Demographics:

Debt has become the single-largest funding source, with 33% of Indian students now relying on education loans to finance their overseas studies. Another 28% depend on scholarships, while the remaining students rely on self-funding or parental support. The majority of students, nearly three-quarters, operate within budgets of up to Rs 30 lakh, with 40% in the Rs 10–20 lakh range and 34% in the Rs 20–30 lakh bracket. A significant demographic trend is the increasing enrollment from tier 2 and 3 towns, which now account for 57% of enrolled students, despite a majority of aspirants still originating from metro cities. This mismatch in aspirations and typical household incomes from smaller towns contributes to the growing reliance on loans.

The Enabling Role of Technology:

Technology is playing an increasingly vital role in shaping study abroad programs. It offers easier access to information about universities and programs, facilitates admission processes through online applications and AI chatbots, and enriches classroom learning with virtual reality and artificial intelligence.

Technology also aids in seamless scheduling, provides abundant learning resources like videos and digital books, and helps students adapt to new cultures through prior research. Furthermore, the rise of hybrid learning options, combining online and on-campus study, offers flexibility to students.

Indian Government’s Support for Students:

The Indian government actively supports students pursuing international education through various initiatives. This includes a wide array of scholarships such as the Fulbright-Nehru Fellowships, Commonwealth Scholarships, Dr. Manmohan Singh Scholarship, JN Tata Endowment Loan Scholarships, and the National Overseas Scholarship for SC/ST students, along with various state-specific scholarships.

The government also offers loans at subsidized interest rates. Beyond financial aid, the Ministry of External Affairs (MEA) provides services through its Student Registration Portal (SRP) and a network of Indian Missions/Posts abroad to assist students in finding programs, navigating the application process, and preparing for cultural adjustment via programs like the Pre-Departure Orientation Program (PDOP) and Indian Cultural Centers. ( With additional inputs from National News Papers)