Harvard to Hamburg: Indian students dump the US for Europe - a 63% slide in just 2 years

For years, the United States reigned as the undisputed destination of choice for Indian students seeking higher education abroad. Now, that dominance appears to be slipping.

New data from education loan platform GyanDhan shows that the share of Indian students heading to the United States plunged from 54 percent in 2023 to just 20 percent in the fall of 2025 — a 63 percent decline in two years, as per a Moneycontrol report. In their place, European nations are rapidly gaining favor, reshaping the global education landscape.

While American universities have long touted global prestige and post-study opportunities, recent headwinds appear to be dampening enthusiasm. Students and education consultants cite tightening immigration rules, rising costs and uncertainty around work permits as key deterrents.

Policy shifts, visa delays, recent hikes in H-1B visa fees and ongoing reviews of the Optional Practical Training program, which grants foreign graduates temporary work authorization, are signs of waning welcome.

Canada, once considered a more accessible alternative to the US, is seeing a similar decline. Its share of Indian students in GyanDhan’s data dropped from 11 percent to 2.33 percent over the same period, the report stated.

As North America falters, Europe is emerging as the new frontier. Germany, Ireland and France — traditionally secondary options — are seeing sharp upticks in interest, aided by lower tuition fees and clearer post-study work pathways.

Germany’s share more than doubled, from 4 percent in 2023 to 9 percent in 2025. Ireland saw a 1.5-fold increase, rising from 3 percent to 7.6 percent, buoyed by booming tech and finance sectors anchored by Google, Microsoft and other multinationals. Graduates there can stay for up to two years under generous post-study work schemes.

The United Kingdom recorded one of the sharpest surges. Its share of Indian students in GyanDhan’s dataset climbed 143 percent, capturing 39 percent of outbound applicants in 2025.

Australia, meanwhile, held steady at 7 percent.

What was once a leap of faith has become a calculated investment.

Affordability, employability and policy predictability now outweigh brand prestige. Countries like Germany, Ireland, Japan and South Korea are capitalizing, rolling out student-friendly visa regimes and education models tied directly to employment.

Unless the United States and Canada address concerns around visas and post-study work, they risk ceding ground in a race they once led handily. For now, Europe is winning.