UK tops overseas education share among Indian students in 2026 YTD, says report- Moneycontrol.com

Indian students are diversifying study-abroad choices, with the UK leading. Here’s how families are managing the growing financial cost of studying abroad.

August 31, 2026 / 18:03 IST

Indian students’ overseas education preferences have witnessed a dramatic shift over the last few years. The UK remains the top study-abroad destination for three consecutive years despite its overall share falling in 2026 (year-to-date), according to a GyanDhan report.

At the same time, the US still holds its study-abroad appeal, while Canada is seeing a sharp drop. Australia, Germany, and Ireland are increasingly becoming preferred overseas education destinations due to lower tuition fees and student-friendly visa regimes.

The illustration below shows each destination’s share of total application volume on GyanDhan, an ed-tech platform headquartered in Mumbai.

According to Ankit Mehra, CEO of GyanDhan, “Families are becoming more intentional—looking beyond familiar destinations and weighing education quality, total investment, course duration, employment outcomes, and repayment capacity before making a decision.”

A further analysis of overseas education trends among Indian students shows that no destination among the seven listed countries accounts for more than 26 percent of application volume.

The UK remains the top overseas education destination, but its lead has narrowed. Its share fell from 36 percent in 2025 to 26 percent in 2026 YTD, returning to its 2022 level.

The US and Canada remain structurally lower. Together, they account for 17 percent of overall applications in 2026 YTD, versus 50 percent in 2022. Canada alone has fallen from 21 percent to 3 percent during the period.

Australia and Germany have sustained their gains. Australia’s share has doubled from 6 percent to 12 percent, while Germany has risen from 6 percent to 10 percent. Meanwhile, Ireland is at 5 percent and the UAE at 2 percent.

“The more significant shift is not from one traditional destination to another, but beyond the traditional four altogether. The US, UK, Canada, and Australia — which accounted for 87 percent of our applications in 2022 — now have a combined share of 57 percent,” Mehra said.

How Indian families are funding overseas education

As more Indian students prefer to study abroad, the Reserve Bank of India’s latest Liberalised Remittance Scheme (LRS) data points to a rise in overseas education-related forex demand.

Indian students’ remittances for overseas education rose to $96 million in June, up from $92 million in May, while total outward remittances surged 20 percent to $2.5 billion.

Travel related to overseas education surged 15.4 percent month-on-month to $488.32 million in June from $422.97 million in May 2026.

“This increase is closely linked to the September intake cycle, as tuition fees for students heading abroad are typically paid during the June to August period,” Pavan Kavad, Managing Director, Prithvi Exchange, said.

What adds to this expense is the financial support parents need throughout the year.

Kavad explains that for most Indian families, overseas education often turns into a multi-year foreign-currency commitment for the family, rather than a one-time remittance.

Their financial exposure is no longer limited to tuition fees alone. A significant amount of spending goes towards settling the student in the initial days, which includes airfare, accommodation, and day-to-day living expenses.

Unlike tuition, which has a fixed amount payable on a yearly basis and a timeline attached to it, living expenses, accommodation, travel, and other recurring requirements are exposed to both changes in the student’s spending and fluctuations in the exchange rate.

“Therefore, families now need to look beyond just arranging tuition fees and plan their forex needs for the entire academic year. This can help them manage the impact of exchange-rate movements and avoid treating each remittance as a separate expense,” Kavad said.

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