The United States is no longer the default coveted destination for Indian students as they radically reshape global education choices, largely fueled by financial pragmatism, digital confidence, and career-first consciousness, according to a new report.

The striking shift is revealed in the latest Transnational Education (TNE) Report 2024-25 released Thursday by upGrad, one of Asia’s largest integrated skilling majors. In the latest edition, based on insights from over 100,00 respondents, the central question for Indian aspirants has flipped – from “Where can I go?” to “What immediate career outcomes will this degree give me?”

Applications to U.S. universities dropped by 13% YoY, while European destinations like Germany (up from 13.2% in 2022 to 32.6% in 2024-25) and the UAE (where 42% of international students are Indian) are witnessing unprecedented traction, according to the report.

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The respondent base was diverse in age, with 47% between 20-24 years, 27.3% between 25-29 years, 11.7% between 15-19 years, 8.6% between 30-34 years, and 3.4% between 35-39 years. The top 10 contributing cities included Bengaluru, Hyderabad, Delhi, Mumbai, Pune, Chennai, Kolkata, Jaipur, Lucknow, and Indore.

Other key findings Include:

Germany emerges on top: Student share jumped from 13.2% in 2022 to 32.6% in 2024–25, overtaking Canada and the U.S.

Decline in traditional destinations: Canada fell from 17.85% to 9.3%; USA fell by 13%.

ROI over Permanent Residency (PR): Only 19.9% prioritize permanent residency, while 45.7% focus on career outcomes.

Funding education: 33% rely on loans, 28% on scholarships, underscoring a financially pragmatic outlook.

Preferred programs: 86.5% opt for master’s degrees, with management & MBA programs doubling from 30% to 55.6% in three years; STEM having risen to nearly 38.9%.

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Commenting on the findings, Praneet Singh, Associate Vice President – University Partnerships, upGrad Study Abroad, said: “Indian students today are far more intentional about their education choices – driven by geopolitical awareness, cost consciousness, and the realities of stricter visa regimes and uncertain post-study pathways.”

“The traditional ‘Big Four’ destinations are no longer the default; instead, Europe, the Middle East, and APAC are emerging as smarter, future-ready alternatives. Our Study Abroad report sets a clear call for universities, platforms, and policymakers to meet the next generation of Indian students at the intersection of ambition and affordability.”

Additionally, the skilling major also analyzed data from its study abroad enrolled learner base and found that 57.2% of the FY25 batch of enrolled learners come from Tier 2 cities.

upGrad has most recently unveiled a new podcast series The Lighthouse, featuring real learners who’ve enrolled for global pathways — capturing their journeys from early apprehension towards bold and audacious global leaps. The series is available on the brand’s website, social media channels, and Spotify.