Direct spending on study abroad by Indian students has been pegged at US$47 billion for 2022. That figure includes tuition spending as well as housing and other living expenses, and it is projected to reach as high as US$70 billion by 2025, based on current growth rates. The forecast comes from a new analysis of Indian student mobility produced by University Living. Indian Student Mobility Report 2023 projects a corresponding increase in outbound student numbers from the massive Indian market. The report estimates the number of Indian students abroad was just over 1 million as of 2019 and, if current growth rates hold, that total could reach between 1.5 and 2 million by 2025.
ICEF Monitor, a dedicated market intelligence resource for the international education industry, carrying excerpts from the report states that outbound mobility is highly concentrated in the “big four” destinations of the United States, Canada, the United Kingdom, and Australia. The authors estimate that there were roughly 850,000 Indian students enrolled across those four host countries in 2023, with a combined student of just under US$34 billion this year. That total spending breaks down roughly into half for tuition fees and the balance on housing and living expenses.
The data highlights the growing attractiveness of these countries as premier educational destinations”, says the report, adding that the underlying data also reveals, “the considerable expenses incurred by Indian students to pursue their academic dreams. These findings not only shed light on the economic impact of Indian student mobility but also underscore the need for targeted financial support and scholarships.
While the big four destinations remain very popular, issues around affordability and demand for financial support may be contributing to a wider range of destinations for Indian students as well. Traditionally Indian students have preferred countries like US, Canada, UK and Australia. However, recently other countries have also emerged as preferred destinations, including Germany, Kyrgyzstan, Ireland, Singapore, Russia, Philippines, France, and New Zealand.
The authors point to a “quality and quantity mismatch” in Indian higher education as a primary driver of outbound mobility, noting the lack of top-ranked institutions within the country but also a lack of capacity to accommodate the growing number of students graduating from secondary schools. The following graphic illustrates some of the other important drivers of demand for study abroad.
The report explores in depth the available housing stock for students in leading study destinations and, not surprisingly, finds significant issues with supply across all host countries. Many of its recommendations and key findings are concerned with improving housing options for students, through which it essentially recommends a multi-stakeholder approach to address this persistent pain point in planning for study abroad.
