India is witnessing one of the most significant transformations in global higher education, with more than 1.8 million Indian students studying abroad in 2025—up from 1.3 million just two years ago. This surge positions India as the world’s second-largest source of international students after China, and the fastest-growing. Behind the numbers lies a deeper shift driven by changing aspirations, global policy movements and the evolving economics of overseas education.
For years, the US, UK, Canada and Australia dominated as preferred destinations for Indian students. While they remain major hubs, a clear diversification is taking shape. The US now hosts more than 331,000 Indian students, marking a 23% rise in a single year. Countries such as Germany, Ireland, France and New Zealand are also seeing rapid growth, buoyed by affordable tuition, English-taught programmes and strong industry integration. Even non-traditional destinations like Uzbekistan, Kazakhstan and Georgia are drawing Indian students with sector-specific offerings and lower costs.
This shift reflects a growing return-on-investment mindset, with students asking which countries offer the best combination of quality education, affordability, employability and long-term opportunities.
The mobility trend is being powered by both domestic “push” factors and global “pull” factors. Limited seats and infrastructure gaps in premier Indian institutions continue to propel students outward. Simultaneously, smaller cities across India are emerging as major contributors to outbound demand. Internationally, clearer post-study work pathways, attractive scholarships and enhanced student services—from accommodation to wraparound support—are compelling students to choose foreign universities with greater confidence.
Preparation for studying abroad is also changing. Students are planning earlier than before, budgeting not just for tuition but for applications, visas, deposits and housing. This has created a rising need for integrated digital platforms that support everything from remittances and forex to emergency assistance and accommodation payments.
The movement of students is reshaping economies as well. Indian families are expected to spend $70 billion on overseas higher education in 2025, an amount nearly equivalent to India’s annual education budget and more than a quarter of inward remittances. This makes overseas education one of India’s largest invisible exports after IT services. The outflow is also driving demand for more seamless and transparent cross-border financial services, making fintech a crucial part of the global education journey.
Looking ahead, student mobility will be defined not just by volume but by experience. Countries are actively competing for Indian students, shaping immigration rules and creating targeted scholarships. Hybrid learning models, dual degrees and AI-driven platforms are expected to further transform global education, expanding choices but also increasing complexity.
As India’s outbound student numbers rise, the challenge will be to enhance affordability, employability and wellbeing. Meanwhile, initiatives like “Study in India” and the entry of foreign campuses into the country may eventually bring some balance to the flow.
For fintech platforms, the shift represents an opportunity to support the global Indian student by ensuring simple, secure and reliable financial solutions throughout their overseas journey.
— Vinay Bagri, Co-founder & CEO, Niyo