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    Study Abroad

    Indian students make a beeline for the American dream despite rising cost

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    Indian students make a beeline for the American dream despite rising cost
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    A record number of Indian students headed to American universities for higher studies in 2022-23. This was despite foreign degrees becoming more expensive.

    Over 750,000 Indians migrated for education in 2022 compared to 586,337 in 2019. Of the overall number of students studying abroad, a majority have chosen the United States, shows data from the Ministry of External Affairs. About 35 per cent of the 1.32 million Indians studying abroad in calendar 2022 are in the US followed by 14 per cent in Canada and 12 per cent in the United Arab Emirates (chart 1).

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    Of the 1.06 million foreign students in the US, China continues to remain the top country of origin. What has changed, though, is that the number of Indians on US campuses is increasing, and it touched an all-time high in 2022-23, according to the Open Doors 2023 Report on International Educational Exchange.

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    The US has issued a significantly higher number of student visas to Indians in the past five years. In FY22, Indians accounted for one-third of all F1 student visas compared to a little over one-tenth in FY18. In 2022 alone, Indians were granted 115,000 student visas. At the same time, there has been a discernible downturn in the allocation of student visas to the Chinese (chart 2).

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    As a result, the number of Indian students in the US is catching up with those from China. One in four foreign students in the US is now of Indian origin. Students from South Korea, Canada and Japan also have significant presence in the US (chart 3).

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    This is even as the cost of education in America has increased. The average tuition fees for an undergraduate degree in all US institutions increased by 13.4 per cent – from $12,612.9 in FY18 to $14,307.3 in FY22 (for which data is last available). In public institutions, it increased by 11.6 per cent to $7,869.3 during the same period. Private institutions continue to cost more, though the increase in their tuition fees was less compared to public institutes, rising by 6 per cent to $15,546 in FY22 (chart 4). Most Indians (66 per cent) are going to public institutions.

    While Indian students mostly migrate for courses in science, technology, engineering and mathematics (STEM), data shows that there is a significant shift in the academic levels being pursued. Over 60 per cent of students opted for graduate courses in 2022-23 compared to 45 per cent five years ago. The share of students choosing optional practical training, undergrad courses or migrating for non-degree courses has contracted in the same period (chart 5).

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    Also, a larger share of Indian students is opting for STEM courses when compared to the Chinese (chart 6). 

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