Australia now top choice for Indian students; visa, cost concerns persist

Business Standard

02-05-2025

Australia has cemented its place as the top study destination for Indian students, overtaking the United States, while Canada's popularity continues to dip, according to a survey conducted by international education specialist IDP Education in March 2025.
Australia accounted for 28% of first-choice preferences among students surveyed, compared to 22% for the United States and 21% for the United Kingdom. Canada fell sharply to 13%, a six per cent decline compared with March 2024.
'Despite the rise in visa and tuition fees, Australia continues to see strong interest from Indian students. Many families approach it as a long-term investment, weighing factors like academic quality, post-study work rights, safety, and the overall student experience,' Piyush Kumar, Regional Director - South Asia, Canada and Latin America at IDP Education told Business Standard.
The Emerging Futures Seven – Voice of the International Student research, based on over 6,000 responses worldwide including nearly 1,400 from India found that Australia's appeal has been helped by its strong showing in global rankings, with 15 universities placed among the top 200 in the QS World University Rankings 2025. Students also benefit from extended post-study work rights through the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA), making it easier for graduates to build careers after completing their degrees.
The United States also remains a strong choice for students, holding a 22% share of first-choice preferences. Students favour the US for quality education, graduate employment opportunities, and post-study work visa policies.
'A post-study work visa is very important. Employers don't want to waste resources training someone who may not be able to stay. So, they set a prerequisite: you must have the legal right to work here before they are willing to invest in training you. Otherwise, everyone who joins is a beginner, and they can't afford to train just anyone,' said an IDP student from China.
Rising costs and visa hurdles weigh on student decisions
Even as Australia and the United States surge ahead, concerns about affordability remain front and centre for Indian students planning to study abroad.
According to the survey, 66% of students have identified cost and finances as their biggest concern. Visa challenges are the next most common worry, mentioned by 47% of respondents.
'Financial factors like tuition costs and savings requirements are top of mind for Indian students — and we're starting to see how that is shaping their decisions. More than half of Indian students say their choice of study destination would change based on the availability of scholarships (55%) and part-time work opportunities (54%),' said Kumar.
In addition, housing costs (43%) and balancing work and studies (39%) were flagged as major challenges by international students surveyed.
Career development opportunities are driving choices
Career development remains the leading motivation behind the decision to study abroad. According to the survey, 77% of Indian students pursue international education for career advancement, including better employability and higher earnings.
'We know that international students choose their study destination based on factors that help them become job ready, with access to post-study employment visas being the key influence. Students leaving India to embark on their global journeys are no different,' said Simon Emmett, Chief Partner Officer at IDP Education.
Job outcomes after graduation are particularly important:
< 70% of Indian students ranked access to work placements as the top academic factor when selecting an institution.
< 69% cited job outcomes from the institution as the top non-academic factor, which is nine per cent higher than the global average.
The research also found that nearly half (45%) of current Indian students and 43% of prospective or applied students intend to work in their destination country after completing their studies.
Academic quality and reputations still matter
While jobs dominate the conversation, academic factors continue to influence decisions too. The study found that:
< 67% of Indian students cited education quality as a key reason to pursue an international qualification.
< 56% chose acquiring global knowledge as a major motivation.
< 50% valued earning reputable qualifications, while 47% pointed to broader education options available abroad.
Students' perception of what defines 'high quality education' has also shifted. Graduate employment rate is now the top indicator students use to judge an institution's quality, ahead of traditional markers like university rankings or the reputation of academic staff.
When asked about what mattered most:
Graduate employment rate ranked first.
Institution ranking came second.
Facilities available to students placed third.
Quality of academic staff came fourth.
Cost of tuition fees was ranked fifth.
Which country do students now prefer?
< The United Kingdom scored highest in international student policies.
< The United States and Australia led in perceived quality of education, value for money, graduate employment opportunities, and post-study work visa policies.
Reflecting on the importance of work rights, an IDP student from China shared, 'A post-study work visa is very important. Employers don't want to waste resources training someone who may not be able to stay.'
First-choice destinations over time
The survey tracked how student preferences have changed over time:
Australia: 28% (+5% compared to 2024)
United States: 22% (+1%)
United Kingdom: 21% (-2%)
Canada: 13% (-6%)
New Zealand: 5% (+3%)
Other destinations: 11%
Key numbers from the report
< 66% cited cost and finances as their top concern.
< 47% pointed to visa challenges.
< 77% of Indian students pursue international education for career advancement.
< 70% prioritise access to work placements at institutions.
< 69% value job outcomes after graduation when selecting an institution.
< 45% of current students and 43% of prospective students intend to work in the destination country after graduating.