As reported by India’s Ministry of External Affairs, over 1.33 million Indian citizens were studying abroad as of 2024; however, independent data estimate that this figure is much closer to 1.8 million once short-term and pathway programs are added in by 2025. Through this, India has now surpassed China as the largest exporter of international students globally. This significant increase in the number of Indian students going abroad will be detailed in the 2025 NITI Aayog report that covers globalisation in higher education; it also serves as an example of both achieving ambitions and highlighting domestic gaps in educational capacity.
Where They Go
Canada has become the most sought-after destination for Indian students over the last 10 years, with approximately 427,000 currently studying there. Reasons that many Indian Nationals are looking to go to Canada are largely due to the ability to get a post-study work permit (PSWP), more easily get a permanent residency (PR) in Canada and have more options for study at a private college. Both the US and UK are also popular destinations for Indian nationals, but they do not compare to Canada. The US has an estimated 363,019 students enrolled for the academic year 2024-25. In addition, the US was able to see an increase of about 10% in enrolments for Indian prefixes from the 2023-2024 academic year. However, the UK has experienced some negative consequences because of the more stringent dependent visa requirements that went into effect in January 2024.
Aside from Canada, the US, and the UK, there are many new countries where Indian students are studying. A record number of over 49,000 Indian students are currently enrolled in Germany, making it the largest non-English-speaking location for Indian students. In addition, there are several smaller or less-expensive markets, such as Georgia, Uzbekistan, Kyrgyzstan, and the Philippines, where tens of thousands of students are studying for affordable medical degrees, with this growth due to the lack of MBBS seats available to Indian students in India. Other than Australia, the Gulf States are the next two popular destinations, with more than 85 countries currently listed as popular destinations. Indian aspiration has clearly moved towards globalisation and the opportunity to pursue higher education.
Where They Leave
The reasons for the growth of demand in higher education are not one-dimensional. With the largest number of enrolments in higher education in the world, India has an 18-to-23 gross enrolment ratio of only 29%, indicating that there is huge unmet demand and that, by 2026, India will have over 120 million people aged between the ages of 18 and 23. At the same time, there are still many candidates vying for access to the most prestigious institutions (IITs, IIMs, and central universities), and the growth in demand for postgraduate research-based education has not kept up with the aspirations of a rapidly growing, English-speaking, affluent middle class.
Family decision-making regarding whether or not to invest in a child’s education is partially based on anticipated returns, as well as access issues. It is commonly believed that a degree obtained from a globally recognised institution is an “efficient” pathway to well-paying, secure employment, particularly in the fields of technology, engineering, business, and healthcare. Postgraduate work visas (working in Canada on a work permit, Graduate Route in the UK and Optional Practical Training in the United States) will further strengthen the case for many families, offering them about a one-year ‘trial period’ of paid foreign employment before deciding whether or not they will permanently settle there.
What India Gains
In just a recent academic year, these individuals contributed approximately $7.6 billion to the U.S. economy. Additionally, Indian families currently living abroad spend tens of billions of dollars each year on their education and living expenses. Although some of this money has left the country temporarily, much of it makes its way back in remittances and continues to support India’s economy and provide for some of the most impoverished members of society. As one of the largest recipients of remittances globally, India’s economy benefits significantly from those who leave the country, return and contribute to the economy as a result of their higher education. There is an increasing preference among policymakers for the “brain circulation” model rather than the traditional “brain drain” model. This model suggests that individuals who leave to study will often return or will provide support for India from abroad. These contributions help develop India’s start-up ecosystem, build a tradition of philanthropy within India’s diaspora and increase India’s soft power in ways that could never be achieved in an insular system.
What India Loses
There is an asymmetry on the inbound side of the equation: for every international student who chooses to study in India (even after the launch of the “Study in India” program in 2018). Furthermore, the continued outflow of exceptionally talented young researchers creates a talent gap for India’s innovation economy and exacerbates reliance upon imported technologies; thus, constraining India’s ability to solve problems that are unique to India using solutions developed in the country.
The Way Forward
Internationalisation is identified as a priority area in the National Education Policy 2020. In support of this, foreign universities are encouraged to set up campuses within India, joint or twin degree programmes are being promoted, and what officials describe as ‘internationalisation at home’ is being pursued – providing students with a global standard of quality education in India rather than exporting them overseas.
There have been initial signs of progress, with foreign universities establishing campuses in India and scholarships being expanded; however, due to the huge gap between India’s research capacity and funding (currently estimated to be approximately 2.7% of GDP versus the NEP 2020 target of closer to 6%), major reductions in the outflow of Indian students to overseas universities are unlikely in the near future.
For Indian students studying in foreign countries, the journey is not just a tale of either fleeing their home country or achieving success: it is that of an ambitious, developing country coming to the realisation that its greatest asset, its people, are also its greatest export and who, as a country, continue to work towards ensuring that all exports will ultimately return to India, whether by way of capital, knowledge or opportunities.
References:
Ministry of External Affairs, Government of India, cited in “Top Global Study Destinations for Indian Students in 2026,” TerraTern, December 2025.
https://terratern.com/news/canada-us-uk-top-choices-indian-students-abroad/
NITI Aayog, Internationalisation of Higher Education in India: Prospects, Potential, and Policy Recommendations, December 2025, reported in ETV Bharat.
https://www.etvbharat.com/en/bharat/brain-drain-or-global-gain-niti-aayog-report-urges-urgent-push-to-make-india-a-global-higher-education-hub-enn25122204419
“International Student Statistics 2026,” Student-Insurance.com, April 2026.
https://www.student-insurance.com/blog/international-student-statistics-2026/
“Market report India 2026,” Education Fair, February 2026.
https://www.educationfair.net/market-reports/asia/india/
“From Loss to Leverage: Reframing India’s Strategy on International Student Migration,” Observer Research Foundation, March 2026.
https://www.orfonline.org/research/from-loss-to-leverage-reframing-india-s-strategy-on-international-student-migration
“Brain drain’ is real: For every 1 foreign student, 25 Indians go abroad for studies, says NITI Aayog,” The Print, December 2025.
https://theprint.in/india/education/brain-drain-is-real-for-every-1-foreign-student-25-indians-go-abroad-for-studies-says-niti-aayog/2811088/
“How India’s brain drain and foreign students dip led to $6 billion deficit,” Business Standard, July 2024.
https://www.business-standard.com/amp/economy/news/how-india-s-brain-drain-and-foreign-students-dip-led-to-6-billion-deficit-124071600859_1.html
“How India Can Save Forex Through Education Reform,” Nitin https://www.nitinpotdar.com/business-policy/india-five-year-plan-for-education/
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