Shift in Student Preferences
A growing number of Indian students are reconsidering the United States as their default destination for higher education, drawn instead to European universities by lower costs, a landmark trade agreement, and expanding post-study work opportunities. Shrinikheathan, a 22-year-old engineering graduate from Chennai, is among them. Rather than follow family members who studied in the US, he is learning German and preparing for a language proficiency test as he applies for master's programmes in Germany, attracted by the country's affordable fees and its deep ties with the engineering industry.
"The world is becoming more multi-polar. Earlier, the U.S. was all that everyone was talking about," Shrinikheathan said, noting he was relieved to have options beyond the "wildly more expensive" United States and Canada.
EU-India Deal Opens Structured Pathways
According to Reuters, his shift in thinking mirrors a broader trend. India's total outflow of overseas students fell to approximately 626,000 in 2025 from more than 908,000 in 2023, according to government data, as tighter visa policies and rising living costs in the US, Australia and the UK made traditional destinations less attractive. Washington moved last week to further restrict the duration of visas for foreign students, part of an immigration overhaul that began when Donald Trump returned to office in January 2025.
The EU-India trade agreement signed earlier this year has added impetus to the European option. The deal includes provisions for clearer visa pathways, structured post-study work routes, and better recognition of Indian qualifications. India and the EU are set to work over five years on social security agreements with member states, starting with a tech-focused office to assist Indian students and professionals.
"For the first time, a major economic bloc is saying, 'We want Indian talent at scale'," said Arnav Kumar, co-founder of study-abroad platform Leap. He forecasts a 60% to 70% increase in student and worker flows within three to five years once the framework is fully operational. An EU official confirmed the bloc's intent: "The European Union has become a leading destination for Indian students. Indian students bring entrepreneurial spirit, cultural richness, and research excellence."
Rising Enrolment and Lower Costs
Education consultancy Europe Study Centre has recorded a 25% to 30% jump in enquiries since the trade deal was announced, with director Sivaraman Pandian describing Europe as the "red-hot destination" for families deterred by conditions elsewhere. European tuition fees are generally 50% to 80% lower than those in the US, according to education consultant KC Overseas.
More than 121,000 Indians currently study across the EU, roughly half the number enrolled in the US. In the Netherlands alone, Indian enrolment rose to about 3,700 in 2025/26 from 2,630 in 2018/19, making Indians the third-largest non-EU student group in the country. Germany attracts engineers with low fees and deep industry connections.
Real Challenges Remain
Consultants caution that the shift is not without complications. Language barriers, housing shortages in cities such as Amsterdam, stiff competition in job markets, and concerns about the rise of far-right political movements in parts of Europe are factors students must weigh carefully. "If somebody says you will get a job in this country, don't blindly believe it. Just because you studied in that country, it does not entitle you to get a job," Pandian said.
T. Suthir, a Chennai-based engineer currently exploring colleges in the Czech Republic and Italy, said family attitudes had visibly shifted since the deal was announced: "Earlier, before the deal was finalised, my family was saying Europe is not good. Now, they are saying it's good." Whether rising interest converts into sustained enrolment growth will depend largely on how effectively the new EU-India mobility framework is put into practice.
