Australia Top Study Destination for Indian Students, Surpassing US and UK in 2025

Australia has officially unseated the United States to become the number one study destination for Indian students, according to a March 2025 global survey conducted by international education expert IDP Education. The findings, drawn from over 6,000 student responses globally — including nearly 1,400 from India — show a clear shift in preference, as Australia overtakes US as top study destination for Indian students.

The numbers speak for themselves: 28% of Indian students now rank Australia as their first choice, a significant five-point jump from the previous year. The United States holds second place at 22%, while the United Kingdom trails close behind at 21%. Canada, once a major contender, plummeted to 13%, marking a dramatic six-point fall from March 2024.

Australia’s Winning Formula: Quality, Career, and Post-Study Prospects

Despite rising tuition fees and tighter visa regulations, Australia has continued to climb the ranks. According to Piyush Kumar, Regional Director – South Asia, Canada, and Latin America at IDP Education, the enthusiasm for Australia stems from more than academics. “Indian families view overseas education as a long-term investment. Australia offers not just strong academics but excellent post-study work rights, a safe environment, and a globally recognized student experience,” he explained in a recent interview with Business Standard.

Australia’s educational clout is further strengthened by its strong performance in global university rankings. The 2025 QS World University Rankings listed 15 Australian institutions in the top 200. Additionally, the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) has enabled smoother pathways for Indian graduates to stay and work, making Australia even more attractive.

The US Still Stands Tall, But Edged Out

While the United States continues to be a strong contender, especially for those focused on research and career progression, it could not hold its top position this year. Its 22% share reflects a modest 1% gain compared to 2024. For many Indian students, the draw lies in its robust education system, graduate employment rates, and flexible post-study visa policies.

But work rights are the real game-changer. As one IDP student from China remarked, “A post-study work visa is very important. Employers don’t want to invest in someone who might not stay. If you can’t work legally, they won’t train you.”

Canada’s Decline: Policy Fatigue and Cost Burdens

Canada’s waning popularity is perhaps the most notable trend in the report. Once a preferred option for affordability and multiculturalism, it has seen its first-choice preference drop to just 13%, down from 19% last year.

According to Kumar, growing concerns over housing shortages, stricter visa policies, and rising living expenses have turned many Indian students away. “Finances are a major concern. Many students now base their choices on scholarship availability (55%) and opportunities for part-time work (54%),” he noted.

Housing costs were flagged by 43% of respondents, while 39% expressed concerns over managing both work and studies simultaneously — an increasingly difficult balance in Canada’s competitive job market.

Career First: The Dominant Motivator

Career advancement remains the top reason why Indian students pursue international education. The survey found that 77% of respondents aim to enhance their employability and earning potential through overseas study.

“Students want more than a degree; they want job readiness,” said Simon Emmett, Chief Partner Officer at IDP Education. “Access to work placements and real-world job outcomes is now central to their decision-making process.”

Key stats supporting this trend:

• 70% of Indian students consider access to work placements the most important academic factor.

• 69% rank graduate employment outcomes from an institution as their top non-academic consideration — 9% higher than the global average.

• 45% of current students and 43% of prospective students plan to stay and work in their destination country after graduation.

Academic Quality Still Counts — But It’s Being Redefined

While jobs are a top priority, academic excellence remains a key driver. The study revealed:

• 67% of Indian students seek quality education.

• 56% aim to gain global knowledge.

• 50% value internationally recognized qualifications.

• 47% are drawn to the variety of educational programs abroad.

Interestingly, students are redefining what “quality education” means. No longer are rankings and faculty reputations enough. Graduate employment rate is now the number one metric used to judge an institution’s value, followed by:

1. Institution ranking

2. Campus facilities

3. Academic staff quality

4. Tuition fee affordability

Where Do Other Countries Stand?

While Australia and the US lead in perceived value and quality, the UK scored highest in terms of student-friendly policies, though its popularity dropped by 2% since last year. Meanwhile, New Zealand gained momentum, rising to 5% in first-choice preferences — a modest yet noticeable 3% increase.

The Global Shift in Indian Student Choices: By the Numbers

• Australia: 28% (+5% YoY)

• United States: 22% (+1%)

• United Kingdom: 21% (-2%)

• Canada: 13% (-6%)

• New Zealand: 5% (+3%)

• Other destinations: 11%

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