The American dream for Indian students might have shifted across the Atlantic. Indian students are increasingly looking beyond the US and are instead choosing European universities as stricter American immigration policies, rising costs of living, and new opportunities are reshaping education choices.

For decades, the US was the first choice for Indian students seeking higher education and career opportunities overseas. However, tighter visa rules, uncertainty about post-study prospects, and rising expenses in the US are prompting students and parents to reassess their choices.

According to the Reuters report, education consultants and European Officials (EU) are witnessing growing interest in Europe, with countries like Germany, France, the Netherlands and Italy emerging as alternatives to the US, Canada, and the UK.

This shift has been on for some time now. There are already around 120,000 Indian students across the EU, according to a report in The Hindu. Between 2015 and 2023, the number of Indian students migrating to Europe surged by 45%, with enrolments growing by 68.33% in countries like Germany, France, Italy, and Ireland, according to the report. In sharp contrast, according to data from the Indian education-fintech platform GyanDhan the percentage of Indian students choosing the US fell from 54% in 2023 to 26% in 2024 and just 20% in 2025.

Since then, Europe has become an increasingly popular choice for Indian students, with Germany, France, and Spain emerging as major hubs. In 2024, Germany alone hosted over 43,000 Indian students, a number projected to rise significantly by 2030. According to data from the overseas education consultancy, upGrad Study Abroad, Europe emerged as the second-largest study-abroad destination in 2025, with Germany and France leading year-on-year growth.

Reuters cited the case of one such student choosing the EU over the US. A 22-year-old engineering graduate based in Chennai decided to pursue a post-graduation course in Germany instead of following his family's preference for the US.

Let us look into each of the factors influencing the choices of the students.

INDIA-EU TRADE DEAL CREATED OPPORTUNITIES FOR STUDENTS

According to the Reuters report, the conclusion of the India-EU trade deal back in January has resulted in more and more students being interested in universities in the continent.

Among the many provisions within the trade deal were those which aimed to make it easier for both students and workers to move to Europe through easier visa pathways, clearer post-study work routes and improved recognition of Indian qualifications.

"The EU-India mobility framework is part of a broader set of initiatives aiming to make the EU a global magnet for attracting and retaining talent, including for Indian students and talent," an unnamed EU official was quoted as saying by Reuters.

Anav Kumar, co-founder of the study-abroad platform, Leap, told Reuters that the agreement represents a major change in how the EU looks at Indian talent. "For the first time, a major economic bloc is saying, 'We want Indian talent at scale'," Kumar was quoted as saying by Reuters, forecasting a 60% to 70% jump in student and worker flows over three to five years.

LOWER COSTS ADD TO EUROPE'S APPEAL AMONG INDIAN STUDENTS

Affordability is another significant factor driving the shift. According to education consultancy KC Overseas, tuition fees at EU-based universities are typically 50% to 80% lower than their American counterparts, while the cost of living is more manageable in Europe.

For many Indian families, the financial burden of studying abroad has been seeing a steady increase, thanks to a combination of the rising cost of living in the West, as well as the decline in the purchasing power of the Indian rupee vis a vis other currencies like the dollar, sterling pound, and the euro. India Today Digital has documented how this financial strain forces many Indian students abroad to cut back on essentials like skipping meals, walking instead of using public transport, and taking up part-time or odd jobs to make ends meet.

Sivaraman Pandian, director of education consultancy Europe Study Centre, told Reuters that Europe had become a major attraction for families discouraged by rising costs and stricter immigration rules elsewhere. "Europe is the red-hot destination," he said, noting that enquiries had risen by 25% to 30% after the India-EU deal.

Similarly, Mayank Maheshwari, co-founder and COO of University Living, a student accommodation platform, told the news outlet BBC that, "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."

Students are also increasingly choosing destinations based on career goals. Reuters reported that Germany is attracting engineering students due to its industrial base, the Netherlands for work-life balance, France for management programmes and Portugal for affordable postgraduate research opportunities.

HOW TIGHTER RESTRICTIONS IN THE US ARE MAKING STUDENTS CONSIDER EUROPEAN UNIVERSITIES

While affordability and the new opportunities created by the India-EU trade agreement have made Europe more attractive, much of the shift can also be traced to immigration and education policies introduced by the Trump administration since returning to office in January 2025.

Since taking office, the administration has steadily tightened the environment for international students. The US Department of Homeland Security is finalising a rule that would replace the current "duration of status" system with fixed visa validity periods for international students, exchange visitors and foreign media representatives, increasing uncertainty over how long students can remain in the country.

The visa proposal is part of a broader immigration crackdown that has unsettled prospective students. The administration has expanded social media vetting for student visa applicants, increased scrutiny of visa renewals, stepped up enforcement against universities over compliance issues, and warned that students who violate visa conditions could face expedited removal.

It has also sought to revoke visas for some foreign students over campus activism and other alleged violations, signalling a tougher approach towards international enrolments.

Together, these measures have made the US appear less predictable and unattractive as a study destination. India's overseas student outflow fell to about 626,000 in 2025 from more than 908,000 in 2023, government data showed. That's because students were wary of tougher visa rules and rising costs in the US and other popular study destinations such as Australia and the UK, according to experts.

EUROPEAN UNIVERSITIES REPORT RISING INDIAN INTEREST, BUT CHALLENGES REMAIN

Universities within the European Union are already reporting heightened interest from Indian students in the form of rising applicants and Indian enrolments. According to the Reuters report, Indian enrolments in the Netherlands have risen from 2,630 in 2019-19 to around 3,700 in 2025-2026, making Indian students one of the largest non-EU student groups in the country.

Institutions including the Eindhoven University of Technology and Leiden University have also reported increased interest from Indian applicants, while Italy's University of Padua told Reuters that partner agencies in India were seeing growing demand from India, including from regions that traditionally sent students to the US.

Spain, which has historically not been a prevalent choice among Indian students, has also become a preferred study destination. According to the European Student Landscape Report by University Living, there are a total of 1,087 students from India. This is thanks in part to the country's low cost of living compared to the rest of Europe, student-friendly visas, as well as a growing number of courses taught in English.

Nevertheless, challenges remain. Education consultants warned that studying in Europe does not automatically guarantee employment, with students needing specialised skills and local adaptability.

"If somebody says you will get a job in this country, don't blindly believe it," Sivaraman Pandian told Reuters. "Just because you studied in that country, it does not entitle you to get a job. You study, and you develop a skill-set; your doors are open."

Students interviewed by Reuters also highlighted concerns over language barriers, housing shortages in cities such as Amsterdam, competition for jobs and adapting to unfamiliar environments.

Some students have also expressed concerns about the rise of far-right political parties and tougher attitudes towards foreigners in parts of Europe. However, with lower costs, expanding English-language programmes and clearer migration pathways, the EU is increasingly positioning itself as a serious alternative to traditional markets like the US, Canada and the UK for Indian students seeking global opportunities.

- Ends

Published On:

Jul 21, 2026 12:35 IST