Explained: Where are Indian students headed, how much do they spend abroad?

India and China are the top two sources of students going abroad for education and accounting for close to 40% of the total international higher education expenditure, according to a study by brokerage Anand Rathi.  While these two countries have the maximum students outbound for studies abroad every year, they also have the maximum students (more than a million) studying abroad across various undergraduate and post graduate courses.

In 2023, India topped the total overseas higher education expenditure at a whopping $60 billion, followed by China at $40 million. 

The cost of studying abroad has been steadily increasing over the years, driven by factors such as inflation, currency fluctuations, rising tuition fees at foreign institutions, and increasing living expenses in popular study destinations.

 

Spend on Overseas education by international students ( $ Bn)

Source: Anand Rathi

Total overseas education expenditure Split (%)

The split is explained in %

Others include: Miscellaneous other incidental expenses like electronics, insurance, and other living expenses

In 2023, India was the top source country, continuing to contribute upwards of 1.3 million students to the global study abroad market. 

Top 10 Source Countries in CY23

China and India are the top two source countries, contributing 1,170,000 and 1,300,000 students respectively to the total number of students studying abroad in CY23 (H1).

Percentage Breakdown: Together, China and India account for approximately 19% (India) + 14% (China) = 33% of the total study abroad student population in CY23 (H1).

Where are Indians going to study abroad?

The United States (USA) and Canada are the most preferred destinations, attracting 1,180,000 and 1,057,188 students respectively.

Percentage Breakdown:  Collectively, the top 5 destinations (USA, Canada, UK, Australia, and France) account for roughly 70% of all international students enrolled in these countries during CY23 (H1)

• USA & Canada: 34% (combined)
• UK: 13%
• Australia: 12%
• France: 7%

Top 10 Destination Countries in CY23

Point to note: India and China made up 46% of all International Students in CY22

 Prefer USA due to advanced infrastructure, extensive R&D opportunities, and employment opportunities.

Students studying in USA (country wise) (in 000’s)

Expenses, Visa requirements, Financing & Scholarships for the US: 

Top courses in demand in the US
 

Computer Science, Business Administration and Management, Information Sciences, Electrical Engineering Mechanical and Engineering Management Science are the top courses opted for by students going overseas.

Global Relevance: CS skills are in high demand across the globe, not just in traditional technology sectors. This means graduates can find jobs in various industries, including:

• Technology (software engineering, data science, machine learning)
• Finance
• Healthcare
• And many more!

Attraction of Tech Hubs:

Silicon Valley Dream: Anand Rathi mentions Silicon Valley in California, USA, as a prime example. This region is a global hub for technology innovation and entrepreneurship. Many international students might dream of working in such a dynamic environment, motivating them to pursue a CS degree.

Jobs in Demand in USA

Employment laws in the US

•  Optional Practical Training (OPT) allows F-1 students to work in their field of study for up to 12 months after completing their program. 
•  Curricular Practical Training (CPT) permits students to work off-campus as part of their academic curriculum. 
• STEM degree F-1 visa students can extend OPT with startup employment provided there is compliance with training plan, good standing in E-Verify, and fair compensation

Immigration Laws

• F-1 and M-1 students must maintain a foreign residence, demonstrating temporary stay.
•  One must maintain valid F1 status, one can work up to 20 hours per week while school is in session.
•  Student can work full-time on campus during holidays and vacation periods if he intends to register for the next
• academic semester.

Here are the outbound and inbound trends across 34 global countries 
 

1) North America (US, Canada, Mexico):  Major Host Continent housing top-tier universities, providing a high standard of living, and exceptional educational opportunities;
 

2) Europe (UK, Ireland, France, Germany, Italy, Spain): Major Host Continent due to its comparatively lenient visa policies, prestigious universities, multicultural environment, abundant scholarship opportunities, and high-quality education system
 

3) BRICS (Brazil, Russia, India, China, South Africa): Leading Source Region leveraging its position as the most populous continent and the quest for enhanced opportunities beyond native borders.
 

4) MENA (Bahrain, Jordan, Egypt, UAE): Major Host Region fostering cultural richness, economic diversity, and educational opportunities within its borders.
 

5) ASEAN (Vietnam, Thailand, Philippines, Singapore, Indonesia, Malaysia): Major Source Continent largely driven by its young population and developing economies
 

6) Rest of World (Australia, New Zealand, Pakistan, Kenya, Japan, Bangladesh, South Korea, Morocco, Ghana, Cameroon): A mix of being both Host and Source countries, they contribute significantly to the study abroad market.