Indian students are increasingly opting for destinations such as Spain, Germany, Singapore, the UAE and South Korea because of their affordable and high quality education, according to a report.
While destinations like the US, Canada, the UK and Australia continue to remain highly desirable, especially the US for STEM courses, Indian students are also actively diversifying their choices to other countries, the report by education-focused NBFC Auxilo Finserve said.
This shift is influenced by factors including affordability, quality of institutions, visa norms, internship and employment opportunities, and student safety.
2 March 2026
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“Indian students today are far more pragmatic and Return on Investment (ROI)-driven in their approach to overseas education.
“Countries like Spain, Germany and New Zealand are witnessing strong demand as they are offering high-quality education, affordability, clearer visa pathways and better alignment between education and employment outcomes, especially for postgraduate and Science, Technology, Engineering, and Mathematics (STEM) programmes,” Auxilo Finserve CBO - Overseas Loan, Shweta Guru said.
Several non-traditional European destinations have recorded strong and sustained growth between 2023 and 2025.
According to the report, the total course cost in these destinations is ₹18–40 lakh per year against ₹60-90 lakh per year in legacy destinations like the UK. Time to employment in emerging destinations like Germany, Spain and others is 6–9 months against 9–15 months in legacy destinations, the average starting salary is ₹25–45 lakh against ₹45–75 lakh.
The data indicates a growing acceptance of these markets as first-choice destinations by Indian students, the report added.
The evolving study-abroad landscape indicates a more mature, research-driven decision-making process, where emerging destinations are no longer considered fallback options but strategic first choices for a growing segment of Indian students, said the report.
“We expect the trend to continue strongly this year as well," added Guru.
Auxilo said it has enabled education financing for over 18,000 students across more than 1,600 universities in over 30 countries.
