Indian students’ overseas education preferences are undergoing a significant realignment in 2025, as policy shifts and visa hurdles in traditional destinations prompt a wider exploration of opportunities in Europe.

While the US, UK, Canada, and Australia—the so-called “Big Four”—remain the top choices, nearly half of prospective students are now deferring US admissions or considering alternative destinations. “Since January 2025, there has been a notable shift in Indian students’ preferences regarding travel, study, or migration destinations,” said Manisha Zaveri, Joint Managing Director of Career Mosaic. “While the Big Four continue to be popular, approximately 50% of students are now exploring alternatives, particularly European nations.”

Germany, France, and Ireland are leading this surge, with Germany alone registering a 20% rise in Indian student visa applications during the first quarter of 2025. Austria, Spain, and Portugal are emerging as attractive, affordable options offering English-taught programs, competitive tuition fees, and clearer post-study work opportunities.

The trend reflects growing discontent with US visa delays and stricter scrutiny, which Zaveri estimates have caused a 70–80% decline in Indian arrivals for the Fall 2025 semester. Many students are either deferring to 2026 or choosing countries with faster, more predictable visa systems.

The UK has regained momentum after signing the India-UK Free Trade Agreement (CETA) in July 2025, which streamlines student visas, extends post-study work to three years, and ensures mutual recognition of qualifications. Australia remains competitive with strong residency pathways and plans to expand its international student cap by 9% in 2026, adding nearly 25,000 new seats. In contrast, Canada has slipped following a 31% drop in study permits after capping new commencements at 270,000.

Zaveri highlighted three persistent challenges for Indian applicants in 2025:

stricter documentation requirements

longer visa processing times

frequent policy changes affecting work rights.

These uncertainties are driving students to seek professional guidance and diversify their choices. A secondary migration trend is also evident, with students and graduates using one country as a stepping stone to another—such as studying in Canada while targeting career opportunities in the US, or moving within Europe for better employment prospects. Australia continues to be a preferred fallback destination.

This shift fits into a broader pattern of Indian migration. Between 1990 and 2024, the Indian emigrant population nearly tripled, from 6.5 million to 18.5 million, raising India’s share of global out-migrants from 4% to 6%. According to Zaveri, this reflects the priorities of a globally mobile Indian workforce seeking clearer job pathways, stable residency options, and secure environments for both career advancement and family life.