Report on market for “Higher Education Abroad”

Report on market for
“Higher Education
Abroad”

Education is a key determinant of the quality
of one’s life. But the varying quality and
scope that it brings make a larger difference.
Over the centuries, the system of imparting
knowledge has evolved. But traveling
to foreign destinations in the pursuit of
knowledge has been prevalent since the reign
of Kings.
Today it is no different. An increasing number
of students travel to different countries to
pursue various courses, driven by better
quality, higher scope, global exposure, and
opportunities that inevitably contribute to a
better quality of life.
However, student flows are greatly impacted
by the current geopolitical complexity and
dynamic international relations. Other factors
like finance, travel, and regulations also play a
key role here.
Besides these, the students who intend
to travel often struggle with the process.
Starting from research of the universities to
applications and documentation for travel,
the process is quite tedious and time-
consuming.
While the aspirants who aim to go abroad
have been steadily increasing, these
processes have hardly been streamlined.
They remain fragmented, creating an
additional burden for aspiring students. In the
coming years, this space will likely see more
integrated offerings to cater to the students,
as it is bound to see significant demand.
This study looks into the individual elements
to showcase the scope of the opportunity
in India, which has a very young population.
The number of Indian students going abroad
has witnessed phenomenal growth over the
last decades and is expected to develop into
a lucrative market moving forward. Hope you
find it insightful and interesting.
Anil Kumar
Founder & CEO, RedSeer
Preface
2
“Higher Education Abroad”

CONTENTS
Executive Summary 4
Section 1
Student Outflow and key drivers 6
Section 2
Country deep dive 25
Section 3
Student Journey and External
Touchpoints 40
3

Executive Summary
Students opting for Higher Education abroad from India are
increasing rapidly and their growth outpaced the domestic student
growth by >6x in the last three years to reach ~770k in 2019.
This is further expected to grow >2x till 2024 to reach ~1.8 M
students who would be spending USD 75-85 Bn overseas. Most of
the students are opting for Postgraduate courses in Anglophone
destinations and are expected to maintain the trend. Much of the
increase in the market is driven by:
• Better educational quality and outcomes abroad - The popular
destinations have the highest-rated universities in the world and
have robust teaching pedagogy. This enables students to attain
valuable and marketable skills which often leads to attractive
placements.
• Higher standards of living - Popular destinations have high
GDP per Capita, low crime rates, and international exposure
amongst other benefits.
• Gaps in the Indian education system leading to supply-demand
imbalance
India has supply-side constraints in education infrastructure
(especially for specialized and advanced courses) which acts as a
strong motivator for students going abroad.
Also, there is a dearth of quality educational institutes in India
and there is a high demand for the same from the young Indian
populace. This results in a highly competitive environment
for the students, and they are often forced to turn abroad for
quality education and associated outcomes.
• Upward income mobility of Indian households - There has
been a massive increase in incomes in India over the past two
decades that has translated into a growing spend on Post K-12
education. Additionally, the populace is becoming more aware
of the benefits of studying abroad and Indians have a rising
diaspora in popular destination countries which is stoking
applications abroad and student outflows.
Canada has emerged as the most preferred country for Indian
students abroad replacing the USA over the last 3-5 years. This
growth is owing to the increasingly liberal immigration policies
coupled with high standards of education and living. While the
growth of students going to the USA for higher education was
4

dampened in the past years due to more restrictive policies, student
outflows are expected to rebound within the forecast period as the
USA is facing an acute shortage of skilled labor currently.
Similar to the USA, student flows to the UK were tempered in
the last few years because of the restrictive immigration policies.
However, the UK is expected to be the fastest-growing destination
country for students till 2024 as it has re-introduced Post Study
Work Visa programs and offer more intensive and economical
one-year master’s programs compared to peers. It is currently
benefitting from the redirected inflows of students previously going
to Australia before it closed off its borders.
Student outflows to Australia are expected to resume after it opens
up borders as it has been witnessing a healthy rise in incoming
Indian students over the last decade. Outgoing Indian students are
typically attracted to the academic and professional opportunities in
Australia and generally find it easier to integrate with the domestic
populace driven by shared interests and culture. Apart from these
top destinations, students are increasingly showing interest in
countries like Germany, New Zealand, and the Philippines owing to
robust educational systems, standards of living, and professional
opportunities for graduates.
While student outflows and spend are growing swiftly, presently
there is a dearth of integrated offerings in the Indian ecosystem.
Students typically have an arduous journey wherein they have
to interact with multiple stakeholders before securing their trip
abroad. Students chiefly use external guidance while preparing for
the tests and applying to colleges owing to unfamiliarity with the
processes and relevant preparation material. Online emerges as the
dominant channel for availing these services (particularly due to the
growing demand from Tier 2+ cities). Most students struggle with
securing finance for their study abroad and often rely on College
Apprenticeships, scholarships, and Banks/ NBFCs. However, the
student support ecosystem has evolved rapidly over the last 4-5
years and many internet-first companies are entering into the
market with integrated services. These are acting as disrupters
in a previously traditionally entrenched market and have instilled
new efficiencies through technology. With the advent of AI-driven
processes, neo banks, and a rising mentor base amongst others, this
market is poised for expansion and is expected to reward investors
and companies alike.
5

Student
Outflow and
key drivers
SECTION 1
6

Growth in Indian students studying abroad for
Higher Education had outpaced domestic student
growth by >6x in 2016-19 to reach ~ 770k
~ 770k
2016
~ 440k
2019
+20 %
37Mn
9
1
0
2
6
1
0
2
40Mn
+3 %
~1.2% ~1.9%
% of Indian
Higher Ed.
Students>>
Indian Higher Education Students - Domestic
Mn Students, 2016 and 2019
Indian Higher Education Students - International1
‘000 Students, 2016 and 2019
The growth of students going abroad has been phenomenal, as they have outpaced domestic
student growth by >6x during the period of 2016-2019 to reach approximately 770,000 in
the last 3 years. This trend has been observed in India since the 2000s as students flock to
international destinations for global exposure and quality education. However, in the more
recent years, an “experience-seeking” student cohort is emerging in India who are typically
concentrated at an undergraduate level or non-STEM disciplines. These students generally
belong to high-income households and are relatively less concerned with immediate work
opportunities. This is providing an upward push to the total student outflows.
Notes:
1. OPT students in the USA included in calculating the students abroad
Source(s): AISHE Report 2019, MEA, RedSeer Analysis, RedSeer IP
7

These students are concentrated in anglophone
countries and collectively spend more than USD 28 Bn
on an annual basis
Indian Higher Ed. Summary by Destination Country
‘2019
Anglophone countries have emerged as the most popular destination countries for students in
India owing to the aspirational needs of Indian students for better learning outcomes and access
to global opportunities. These countries have also progressively institutionalized the journey for
international students to obtain permanent residency in their countries while simultaneously
marketing their institutions and learning outcomes. This acts as a strong motivator for students
moving abroad while increasing awareness of the benefits of study within the larger populace.
Popular destination countries often have growing international student inflow targets to meet
their labor and economic needs and enjoy sustained interest from students over time.
Source(s): Desk Research MEA, RedSeer, Analysis, RedSeer IP
Country #Enrolments
Student
Expenditure Popular Universities
~143,000
~220,000
~27,500
~202,000
USD 5 Bn
USD 9 Bn
USD 1 Bn
USD 9 Bn
Canada
United Kingdom
United States
of America
Australia
8

Source: Desk Research, RedSeer Analysis, RedSeer estimates
~27K ~145k
~200k ~180k
~220K
20%
29%
13%
71%
87%
13%
80%
21%
79%
87%
UG
PG
~ $ 9 Bn ~ $ 5 Bn
~ $ 1 Bn
~ $ 9 Bn ~ $ 5 Bn
32%
85%
68%
UG 12%
70%
15% 19%
81%
88%
30%
PG
Total
~770k
Total
~ $ 29 B
100% 100%
80%
60%
0% 40%
20%
Others
Australia1
Canada
UK
USA1
80%
60%
0% 40%
20%
Others
Australia1
Canada
UK
USA1
Most of the students abroad are enrolled in
Postgraduate courses
Indian Higher Ed. students by Country and
Degree Type
‘000 students, 2019
Market Split by Country and Degree Type
USD Bn, 2019
Notes:
1. Significant contribution of OPT and VET students in the USA and Australia respectively
Research indicates that most of the students
have been enrolled for postgraduate courses.
This trend is seen for a few reasons:
Postgraduate courses are typically more
professionally oriented which aids in easier
integration with the workforce. Furthermore,
they make the understanding of the country
and the corporate culture comparatively easier
which aids in settling down.
Additionally, recent studies have pointed
towards an increasing preference for advanced
degrees for people joining the workforce.
The emergence of new professions and
functions requires continuous updating and the
deepening of previously acquired knowledge
and skills is one of the primary drivers for
the same. Popular destination countries like
the USA, Canada, etc. are showcasing a high
preference for advanced degrees currently and
are expected to maintain the upward trend.
9

Students from states like Andhra Pradesh,
Punjab, and Maharashtra have migrated
abroad over a long period and have established
communities in the top destination countries.
They are also more aware of the processes for
obtaining permanent residency in the countries
and have access to better job opportunities
as placements abroad are typically driven
through networks rather than institutions.
Students from these states benefit from their
extended family abroad which reduces their
living expenses at times which in turn mitigates
the financial barrier for going abroad. Owing
to these benefits, the outflow of students from
these states remains robust and is expected to
grow in the future.
Much of the student outflow is from states like Andhra
Pradesh, Punjab and Maharashtra which are amongst the
richest states in India with possibly high awareness of
the educational benefits
Indian Higher Ed. Students Abroad by State of origin
‘000 students, 2016 and 2019
~ 770k
2016
~440k
2019
7%
5%
Tamil Nadu
45%
46%
Gujarat
Andhra Pradesh
Maharashtra
Punjab
ROI
Karnataka
11%
7%
5%
13%
10%
12%
12%
12%
8%
7%
+20%
10

The Indian economy has grown rapidly in the
past 2 decades which has materially increased
the GDP/ capita of the populace and their
education spends. Also, there has been growing
awareness of the benefits of going abroad for
higher education and many top destination
countries already have a thriving Indian
community which is enabling easier integration
in international societies. Additionally, long-
term migration has made the citizens of the
host countries sensitive to India’s culture
and lifestyle, stoking acceptance within the
society at large. Indians living in Anglophone
destinations often have access to Indian
supermarkets, cuisine, communal groups et al
which enable them to maintain their lifestyles
abroad. These are some of the key drivers for
the steep rise in applications abroad.
~ 230k
2016 2019
~ 420k
+22 %
Indian Higher Education Outflow - International1
‘000 Students, 2016, 2019 and 2024F
Highlights
In terms of applications, ~420k student head out
every year, with total number of applicants being
~1.7x
There has been a steep rise in
the GDP/ Capita in India over the
past 2 decades leading to greater
consumption + awareness of
education courses abroad
Owing to the prevalence of English
in India, there is a strong culture
of students studying abroad in
anglophone destinations.
Over the years, an Indian diaspora
has emerged which has helped
attract more students
These factors have led to a rapid
increase in the number of the
students applying for higher
education abroad and is expected to
maintain its pace despite affects of
COVID
Notes:
1. As a % of students applied
Students Applied ~ 400k ~ 700k
Student Outflow1
~ 57% ~ 60%
Source: Desk Research, RedSeer estimates
11

The high outflows for international education are
driven by aspiration for access to quality higher
education and better standard of living in these
destination markets
Better quality of
education and outcomes
Gaps in India’s education
infrastructure
Supply demand
imbalance in India
Upward income mobility
of Indian households
Higher standards of living
abroad
12

The rapid rise in student outflows to international locations is driven by:
Better quality of education and outcomes-
Top destination countries are home to the highest-ranked universities in the world and have
robust teaching pedagogy which is often research-oriented. This materially increases the
learning quality and outcomes of the students. For instance, many courses require practical
fieldwork or job experience which is not mandatory in India. Quality education from reputed
universities inevitably garners more attention from global firms with better salary packages
which is another reason for students to opt for international education.
Higher standards of living abroad-
It is no secret that compared to India, the overall quality of life in other countries is higher
owing to higher GDP per capita, lower crime rates, better benefits like international exposure,
higher scope, and better job opportunities, among others. These act as strong pull factors for
the growing aspirational middle-class population in India who often face challenges in accessing
quality services in the country.
Gaps in the Indian education system:
Indian education system is relatively traditionally entrenched and there is a lot of room for
improvement in the flexibility of specialization. Additionally, the supply for quality educational
institutions for niche/ advanced courses is extremely low with only select institutions providing
quality education and outcomes for the students. This limits the options available for domestic
students especially in research-oriented technical subjects which acts as a strong motivator for
students going abroad.
Supply-demand imbalance in India-
India has a young demographic with the majority of its current populace belonging to the
millennials and Generation Z which leads to intense competition for the limited opportunities
available in the country. Further, competition for courses that lead to lucrative careers is intense
and a lot of academically sound students are unable to secure admissions in the top universities.
Upward income mobility of Indian households-
India’s per capita income has increased by 30% over the last 6 years resulting in higher
discretionary spending – like on entertainment, travel, outside food, etc. The spending on
education has increased in tandem over the years as it culturally remains one of the primary
focus areas for most Indian households. This is owing to the potential for upward social
mobility and increased social acceptance in India through education wherein a large part of the
population is academically oriented.
13

Education Quality Abroad
Destinations such as AUS, CAN, UK and US have a higher
concentration of institutions, which attract students from
across the world
12
20
22
39
92
16
23 22
62
105
Engineering & Technology schools in Top 500
# of institutions, 2019
Business Management schools in Top 500
# of institutions, 2019
US, UK and Canada are the top destinations for further studies majorly due to the established
universities which are ranked highly. Access to top universities results in exposure to top global faculty
along with a robust professional network. The degrees allow the students to compete for global
opportunities and coveted roles primarily in STEM and business, acting as a robust platform for their
academic and professional aspirations. The students enjoy the benefits of the same throughout their
lives which materially improves their quality of life.
Source: QS Rankings, Desk Research, RedSeer Analysis
14

Education Quality Abroad
Additionally, superior educational outcomes related to
aspects like placements and salaries serve as a strong
motivator
Bentley
University
Northeastern
University
Leeds Metropolitan
University
Southampton
University
Curtin University
University of
Ottawa
Bond University
Delhi University
Tezpur University
~ 6-9k
~ 70-80k
~ 65-75k
~ 75-85k ~ 80-90k
~ 85-95k
~ 80-90k
~ 90-100k
~ 5-7k
Average Salary (Select Institutions)
USD/ Year, 2019
The US, which has over 4,000 universities
across the country, offers the highest
salary followed by the UK and then Canada.
This is a major factor for students while
evaluating which country to choose for
studies as that easily leads to finding more
career opportunities and a larger social
circle, among others. Furthermore, these
universities offer research and training
opportunities at the graduate level. A
student can assist a professor by being
their Teaching Assistant which also helps
in funding their studies and also helps in
the broadening of their knowledge and skill
set. These universities are also allocated
higher funding amounts which give better
infrastructure and leads to more scope
for research. In India, this is available in
limited institutions. Along with all this, these
students have a higher cultural exposure
which is an important factor for global
companies.
Source: HBS Recruitment Stats, Top Universities website, Rothman Employment % Salary Report, QS Rankings, PGP Placement Report, RedSeer Analysis
15

Living Standards Abroad
8 13 16 17
131
6996
48484 50510 52203
65298
HDI Ranking1
Rank, 2019
GDP Per Capita2
USD, 2019
Highlights
High standards of living, higher incomes and access to
global opportunities are some of the key drivers for
moving abroad
Indian students primarily travel to
the developed countries owing to
higher standard of living and better
employment opportunities
Countries like Canada have been
aggressive in welcoming skilled
immigrants with the prospects of
lucrative jobs
Furthermore, graduates who’ve
chosen to study internationally have
global exposure and often display
cultural awareness/ sensitivity which
increases their employability in top
companies
Some of the key drivers to move abroad:
High standard of
living-
Access to better
infrastructure and
opportunities abroad
remain key reasons
for students and
other youngsters to
move abroad.
Access to global opportunities-
With the global companies mostly being
headquartered in these countries, the
opportunities and the learnings in those
countries are comparatively much
higher than in India which becomes quite
lucrative for aspiring students and young
professionals.Additionally, their courses
have more flexibility. For instance, a student
can take a degree in economics and STEM.
They also offer early specialization which
benefits the students.
Higher incomes-
Moreover with the
developed countries
having a stronger
economy, the income
flow is bound to increase
compared to the
opportunities available
in India. This also
provides better future
opportunities in terms of
employment.
Source(s) : 1.UN Data 2. World Bank, RedSeer Analysis, RedSeer IP
16

44% 22% 15% 80%
16%
Strongly Agree
Somewhat Agree
84%
33%
17%
6%
22%
27%
30%
25%
34%
22% 58%
80%
77%
Access to better
employment
opportunities
Access to better
quality colleges/
education
To gain
international
exposure
To pursue niche/
specific study areas
Importance of going abroad
% repsondents
Q.
Is a foreign education going to make a significant
impact in the academic/ professional career?
Q.
What was the primary motivator for applying
abroad for higher education? (Rank)
Primary Motivators for going abroad
% respondents
Our consumer surveys have further validated
the drivers and most students believe that
going abroad will result in a significant impact
in their academic and professional careers.
The primary reasons to go abroad for studies
include better employment opportunities,
better education, specialised courses and
better exposure.
The above has also been validated through our consumer
surveys wherein access to employment and educational
institutions emerge as key student motivators
Source(s): RedSeer analysis on surveys conducted between13th April 2021 and 23rd April 2021.
17

Results from our customer surveys are also in
line with the findings of this study. Students
across the cohorts believe that moving
abroad for higher education will provide a
massive advantage over their peers owing to
the quality of education and access to better
job opportunities along with the promise
of higher standards of living. Furthermore,
access to specialized/ advanced courses acts
as a strong motivator for student scholars
who have limited options within India to
pursue and excel in their preferred courses.
13 %
40 %
43 %
Yes – Definitely
Yes – Likely
At par
No – Likely not
No – Definitely not
1 %
3 %
% repsondents
Q. Do you feel Students who go abroad for higher education are at
a general advantage compared to Indians? Students Speak
“The benefits of a global education
are many, but higher standard of
living and education are the most
important to me as the options are
quite limited in India. ”
- Aspiring Student from Andhra Pradesh
“My extended family is already settled
abroad and have much greater access
to opportunities. They have advised
me to study for easier immigration
and access to quality jobs.”
- Aspiring Student from Punjab
Source(s): RedSeer analysis on surveys conducted between 13th April 2021 and 23rd April 2021
Even students who did not go abroad to study are aware
of the benefits of education abroad and aspire to migrate
in the near future
18

India Supply Gaps
There are supply side constraints of educational
institutions offering specialized and advanced courses in
India…
(includes STEM, Nursing,
Fine arts, Tourism etc.)
Undergraduate
Diploma/Cerficate
Integrated
Advanced Degrees5
Postgraduate
Others4
~40 Mn
Colleges
General3
Students
(1%)
Shortage of institutes offering specialized courses Only ~11% of the students are pursuing graduate courses
(83%)
(80%)
(8%)
(1%)
(11%)
39,931
(12%)
(5%)
Speacialized courses2
No. of Colleges1
and Student Enrolments in Higher Education
Numbers, 2019
Notes:
1. Colleges/Institutions which are not empowered to provide degree in its own name and therefore are affiliated/recognized with Universities.
2. Specialized courses include Computer Application, Nursing , Fine arts % Tourism etc.
3. General courses include Arts, Commerce, Hotel % Tourism etc.
4. Others include Sanskrit, Science, Fine Arts and Languages
5. Advanced Degrees include PhDs, M.Phil. etc.
Source: Government of India Employment Statistics, NASSCOM, AISHE, RedSeer Analysis
19

India Supply Gaps
Outbound Students
(includes STEM , Fine arts,
Tourism, advanced
degrees etc.)
General Course
Domestic Students
~40 Mn ~0.77 Mn
Specialised Course1
84%
16%
~70%
~30%
Student Enrolments in Higher Education
# of students (Mn), 2019
Highlights
…and ~70% of outbound students are opting for
specialized/ advanced courses abroad
Specialized courses in India are
offered in select institutes resulting
in high competition and relatively
lower quality of the education
Lack of funding is one of main issues
which limits the potential of Indian
universities to offer specialized
offerings, especially in STEM where
programs are cost intensive
There is a larger diversity of advanced
courses that students can enroll in
abroad like MiM, M.Res. Etc.
Furthermore, education programs
abroad are more flexible with the
subjects’ students can opt for at an
UG level allowing incoming students
to specialize earlier
Notes:
1. Specialized courses include Computer Application, Nursing , Fine arts % Tourism etc. along with
advanced degrees i.e. ,Postgraduate, M.Phil., PhD etc.
Source: Desk Research, Expert inputs, RedSeer Analysis, RedSeer IP
There is a dearth of institutions in India that
offer advanced and specialized courses.
Opportunities for availing courses in cutting-
edge disciplines like AI, Biotechnology,
etc. are largely still not available in India.
Research shows that a mere 11% of the
students are pursuing post-graduate courses
and above while there is a major lag in the
availability of specialized courses in India.
It is seen that of 770,000 students who
go abroad, ~ 70% of the students avail
Specialized or advanced courses. Lack of
institutional funding is one of the major
constraints that Indian institutions face -
especially in the research-oriented courses
in STEM. Hence, it comes as no surprise that
STEM courses are the most popular abroad
wherein the USA, Germany, and Canada are
some of the top destinations for the same.
20

India Supply-Demand Imbalance
The acceptance rates in Indian universities
are much lower when compared to global
peers even though the quality of education is
lower in India. Top institutions in India (IITs,
IIMs, etc.) have abysmally low acceptance
rates of ~1% and the options of accessing
quality education outside premium
institutions in India are limited. A lot of
academically sound students are unable to
secure admission in reputed universities as a
result, which cripples their career ambitions.
This is a significant reason why students opt
for international universities.
Additionally, acceptance rates in India are relatively low
compared to top-ranked universities abroad making
foreign options attractive
University
of Leeds
University of
Western Australia
University of
Western Ontario
Uni. of
California - SB
Babson
College
Christ
University
Delhi
Technological Uni.
Tezpur Uni.
47%
38%
31%
30%
26%
15%
5%
5%
Student acceptance rates (Selected colleges)
% accepted, 2019
Source: Desk Research, RedSeer Analysis, RedSeer IP
21

India’s Rising Income
Over the past two decades, there has been
a significant increase in GDP and per capita
income in India which has resulted in the
steep rise in Post K12 spend on education.
This has been mirrored in the increasing
student outflows for higher education
abroad and resulted in a growing Indian
populace in the top countries who are aware
of the systems and processes of integrating
into the foreign communities. This in turn
has encouraged other aspiring students to
take the same path as there is an increase in
awareness and lowering of resistance which
is giving a rise to an overall culture of going
abroad.
Lastly, there has been a massive upward mobility in
terms of income which has led to a rise in expenditure
in post K-12 education in India
2000 2005 2010 2015 2019
2016
~ USD 1000
~ USD 1350
~ USD 2100
2019 2024F
1.400
1.600
1.800
2.000
2.200
200
0
600
400
800
1.000
1.400
1.200
+9.3%
Notes:
1. 2024 Forecasts are Pre-Covid effect
2. 1 USD =70 INR
3. Includes course fee, utilities (books, stationaries, uniform), transport, private
coaching, and related expenditures
4. Excludes government expenditure on education
India GDP/ Capita
USD, 2000 to 2019
Per Capita Post K12 Expenditure – India
USD , 2016, 2019 and 2024F
Source: World Bank Data, NSO, Desk Research, RedSeer IP
22

Driven by the above factors, the Indian student
stock who are studying abroad is expected to
reach ~1.8 M by 2024 resulting in a massive
market for associated companies. The flow of
students has dampened in the wake of COVID
but the interest in moving abroad for better
education and opportunities is still intact for
aspirants. There has been renewed interest in
countries like the UK and the USA driven by
the re-introduction of favorable immigration
policies. Owing to the current latent demand of
aspirants, there is expected to be tremendous
growth in Student outflows after the effects of
COVID are mitigated.
~ 540k
~ 770k
~ 1,800k
~ 700k
2016 2019 2024F
2020F
+20 %
-10 %
+25 %
Indian Higher Education Students - International1
‘000 Students, 2016, 2019 and 2024F
Experts Speak
“While COVID has acted as a barrier
for the students planning to study
abroad, their interest has been
growing. This is owing to a growing
aspirational middle class in India”
- Student Counsellor
“Student interest has remained
resilient during COVID driven by
increasingly easier immigration
(PSW provided for online students in
Canada) and better opportunities.”
- Team Leader: Study Abroad Consultancy
Notes:
1. OPT students in USA included in calculating the students abroad
Student
Outflows
~ 230k ~ 420k ~ 360k ~1,200k
Source(s):MEA, Destination country statistics, RedSeer Analysis, RedSeer IP
Supported by tailwinds, the total stock of Indian
students studying abroad is expected to reach ~1.8M
by 2024F
23

Notes:
1. Pre-Enrollment includes. Test Prep, Admissions Counseling, Test fees (e.g., GMAT, IELTS) and College application fee
2. Post admission Expenses includes VISA, Travel and Health Insurance, Housing and Miscellaneous Expenses like food, commute
In line with the rising Indian stock of students
studying abroad, the overall student
expenditure is poised to reach USD 75-85
Bn by 2024F which is more than twice the
market revenue from 2019. This can mostly be
attributed to an increase in college tuition apart
from expenses like enrollment, living expenses,
among others. As Indians become more
comfortable in going abroad, the acceptance
rates in top universities keep on increasing
which generally results in higher college tuition
spend. Furthermore, with growing household
incomes and “experience-seeking” student
cohorts, there is expected to be a steady rise in
the living expenses of students abroad.
Student expenditure is rising rapidly in tandem and is
poised to reach USD ~75-85 Bn by 2024 jumping 2X from
2019
Pre
enrollment1
8-13
15-20
0.5-1.5
25-35
2016
10-20
75-85
2019 2024F
College
Tuition
Post Admission
expenses2
Total
Expenditure
25-35
+26%
+23%
Indian Student spend on Higher Ed abroad
USD Bn, 2019
Indian Student spend on Higher Ed abroad
USD Bn, 2016, 2019 and 2024F
24

Country deep
dive
SECTION 2
25

Canada has replaced US as the top destination for Indian
students enrolling in Higher Education by 2019 and is
expected to maintain momentum
2016 2019 2024F
CAGR
2016 – 2024
38%
4%
18%
26%
24%
24%
4%
29%
18%
19%
23%
5%
~1,800k
15%
~770k
38%
(17%)
~440k
19%
16%
31%
24%
9%
Others
Australia
Canada
UK
USA
+18%
+20%
Outbound Students1
‘000 students, 2016, 2019 and 2024F
Notes:
In recent years, Canada has replaced the US as
the top destination for Indian students and is
likely to maintain momentum in the near future.
Canada has liberal immigration policies and a
growing Indian diaspora (especially from states
like Punjab) which is stoking student inflows
from India. Additionally, with more scope and
growing jobs, this country becomes a popular
destination.
Moreover, there has been a growing interest
in pursuing education from countries like
Germany, New Zealand, and the Philippines.
The number of Indian students enrolled in
Germany has doubled over the last 5 years
with 70% of the students opting for courses in
engineering followed by natural sciences and
maths. This growth is partly due to the free
tuition that a lot of German institutes offer for
STEM courses which acts as a strong driver for
typically value-conscious Indian students. New
Zealand is also emerging as a top destination
due to its excellent education system,
internationally accredited qualifications, ample
research opportunities, and quality of life.
The Philippines has always been a popular
destination for Indian medical students and
has witnessed an increase in student interest in
their courses in recent years.
26

Source: 1. WES, Expert Inputs, Desk Research, RedSeer Analysis, RedSeer IP
The UK is expected to witness the steepest rise in Indian
student inflows backed by the liberalization of migration
policies and short term courses
Country wise Indian Inbound Student Growth outlook
Descriptive, CAGR - # of students
Student Drivers
Canada
USA
UK
Australia
25%
10%
28%
13%
Growth outlook
Student detractors
CAGR
(2019
-24)
• Migration policies – Work
while studying, permanent
residency after 1 year of
work
• World class institutes and
scholarship availability
• Large population of Indian
settlers
• Top tier institutes in the
world with heavily funded
research facilities
• High availability of
scholarships for Indian
students
• High student satisfaction
(95% satisfied1
)
• Migration policies – Post-
study-work programs
introduced in 2019
• Shorter and more intensive
courses provide an edge in
career
• Top tier institutes with
research focus
• Migration policies – Post-
study-work programs
introduced in 2019
• Shorter and more intensive
courses provide an edge in
career
• Top tier institutes with
research focus
• Contraction in H1-B
visa permits
• Anti-immigration
policies of last govt.
including immigration
suspension
• Student concerns over
Brexit
• Incidences of student
violence in the past
• Poor academic
conduct of some
students leading to
stricter policies
Robust growth outlook
owing to ease of entry
and culture assimilation
in Canada (owing to
significant migrant
population)
Expected to rebound
under the new
government while
growth was muted in
2016-19
Expected to increase
owing to more liberal
policies and top rated
universities. Primary
beneficiary of the border
lock down of Australia
Expected to sustain
momentum of incoming
students however,
growth stunted in 2020-
21 as they are closing
their borders
27

2016 2019 2024F
~76k
~220k
~670k
+42%
+25%
2016 2019 2024F
3
9
34
+50%
+31%
Indian Higher Education Students in Canada
‘000 students, 2016, 2019 and 2024F
Indian Student Spend on Higher Education in Canada
USD Bn, 2016, 2019 and 2024F
Canada has seen a steep rise in the inflow
of Indian students owing to their favorable
migration policies and premium institutions
Source(s): Immigration, Refugees and Citizenship Canada (RSCC) Canada, Desk Research, RedSeer
Analysis, Experts Inputs, RedSeer estimates
28

They are expected to dominate in the forecast
period as they now have a significant Indian
diaspora and continue to ease their immigration
process
Source(s): Immigration, Refugees and Citizenship Canada (RSCC) Canada, Desk Research, RedSeer
Analysis, Experts Inputs, RedSeer estimates
Key Trends:
• Canada has recently announced plans to welcome ~1.2 M new permanent
residents to the country by 2023 which is positive signal for the aspiring students
as they benefit from clear government pathways to immigration
• Most Indian students are value conscious and search for economic courses and
city center campuses, so that they can optimize costs of education and earn
while they work
Work Policies during Study:
• International Students care allowed to work on-campus or off-campus for up
to 20 hours during university semesters and full-time during breaks such as the
winter or summer holidays, without the need for a work permit
• Foreign students who are studying in a program that requires work experience
such as through a co-op or internship program are also authorized to work
VISA and Eligibility:
• Student must be a graduate from UGC or AICTE recognised university with
minimum 50% score
• In case there are any backlogs or year back, the student has to apply for an
exemption
• Students will require to provide references, proof of financial funds, study
permits English proficiency etc before moving to Canada
Post Study benefits:
• Students with course duration 2 years are eligible for a post-graduation work
permit of equivalent duration as the course
• If the student pursues 2 years course (masters or diploma), he/she is eligible for
a post-graduation work permit of 3 years
• A foreign national on a study visa in Canada can bring their spouse and
dependent children to Canada. The spouse can also apply for an open work
permit.
29

Among the popular Anglophone destination
countries, Canada has emerged at the top
owing to their favorable migration policies
along with relatively lower cost of education.
Canada has been enthusiastic in welcoming
immigrants as they have an aging population
and require young and skilled workers.
In 2019, foreign-born people make up
about one-fifth (21% in 2019) of Canada’s
population—one of the highest ratios for
industrialized Western countries. Apart from
these, the country provides multicultural
experiences, quality education from highly
ranked universities, global opportunities and
many more benefits. Canada heavily relies on
foreign students to fill the void in skills and
labor to improve their productivity and has
initiatives such as Global Skills Strategy to
increase inflows from highly skilled workers.
Most Indian students enroll in Business
or STEM courses in Canada (especially
Computer Science, IT and Engineering) and
compete for jobs in Project Management,
Software engineering, Civil engineering,
Asset management etc. Students also
typically search for economic courses and
city center campuses while working part
time to optimize their costs. Canada has set
the new 3-year immigration target at 1.2 M
till 2022 which is expected to attract a lot of
Indian aspirants in the forecast period.
30

2016 2019 2024F
6
9
16
+14%
+12%
2016 2019 2024F1
~165k
~200k
~325k
+7%
+10%
Indian Higher Education Students in the USA1
‘000 students, 2016, 2019 and 2024F
Indian Student Spend on Higher Education in the USA
USD Bn, 2016, 2019 and 2024F
The growth of the Indian students in the USA
has been lagging behind its peers due to lack of
student-friendly policies and stringent visa norms
in the past..
Source(s): Open Doors USA, Desk Research, RedSeer Analysis, Experts Inputs, RedSeer estimates
Notes:
31

Source(s): Open Doors USA, Desk Research, RedSeer Analysis, Experts Inputs, RedSeer estimates
..however, the student flow is expected to rebound
as the USA is facing an acute shortage in skilled
labor presently
Key Trends:
• Student growth to the US previously had been mitigated under the “America
First” Trump administration. However, the powerful US Chamber of Commerce
has urged the govt to double the H1B visa quotas and eliminate per country
quota for green card to combat the shortage of skilled labor it currently faces.
• Also, the cultural sentiment of studies in the USA has remained intact with
student applications rebounding under the new govt.
• There has also been growing interest in pursuing undergraduate courses for the
“experience-seeking” student cohort to the US
• International Students are allowed to work on-campus or off-campus for up to 20
hours during university semesters and full-time during breaks such as the winter
or summer holidays, without the need for a work permit
• For off-campus employment, students require some form of written
authorization issued by either the USCIS or OISS
Visa and Eligibility:
• Student must meet the minimum eligibility criteria in the course applied either
general (F1 Visa) or vocational (M1 Visa)
• Course requirements typically include English proficiency tests, entrance exams
(GMAT, GRE etc), SOPs, academic record et al
• Additionally, students will require to provide references, proof of financial funds,
study permits etc before moving to the USA
• F1 visa holders are eligible for up to 12 months of OPT (optional practical
training) on completion of graduation allowing students to work for a year after
they finish their studies
• M1 visa holders can apply for work from within the campus (under certain
restrictions)
32

The USA has been one of the top destinations
for Indians since the beginning of the
century and more than 50% of students
were traveling to the USA in the early 2000s.
These flows were affected by the economic
crisis over the past 2 decades and more
recently, student travel aspirations dwindled
with the “American First” sentiment of the
Trump administration. However, immigrants
still represent 25%+ of their overall
population and are seen as an important
economic engine for the nation’s prosperity
as it has an aging population.
Owing to the long-term migration of Indian
students to the USA, it has a significant
Indian diaspora (lagging behind only China
and Mexico) which allows relatively easier
integration for the students moving to the
US. The USA is home to the top educational
institutions in the world which radically
increases the likelihood of upward socio-
economic mobility for the aspirants.
Furthermore, the powerful US Chambers
of Commerce has urged the government
to double the H1B quota and remove per
country restrictions to green cards to
address the acute shortage of skilled and
professional workers in the country. Catching
tailwinds, the student flow to the USA is
expected to increase rapidly in the forecast
period.
Students in the USA typically opt for
courses in STEM and business. There is also
an increasing demand for undergraduate
courses powered by “experience-seeking”
student cohorts who are less concerned
with immediate work opportunities after
graduation. The student expenditure in the
USA is rising as a result and is expected to
maintain momentum.
33

~ 95k
~ 17k
~ 27k
+18 %
+28 %
2024F
2019
2016
2024F
2019
2016
0.7
1.2
4.9
+22 %
+33 %
Indian Higher Education Students in UK
‘000 students, 2016, 2019 and 2024F
Indian Student Spend on Higher Education in UK
USD Bn, 2016, 2019 and 2024F
The UK witnessed a decline in Indian students
previously owing to stricter Post study work policies
but has rebounded rapidly in 2016-19 owing to change
in the same
Source(s): Higher Education Statistics Agency UK, Desk Research, RedSeer Analysis, Experts Inputs,
RedSeer estimates
34

Source(s): Higher Education Statistics Agency UK, Desk Research, RedSeer Analysis, Experts Inputs,
RedSeer estimates
Currently, there is a steep student growth
expected in the UK as it has recently re-introduced
PSW visas and are relaxing immigration laws
Key Trends:
• The UK witnessed a steep decline in Indian students in 2011-2016 owing to stricter
immigration policies under the Theresa May government, however, the inflow has
rebounded aggressively in the recent years as policies relax
• They have currently benefited massively from the closure of Australian borders
and are witnessing high interest from Indian students owing to top ranked
universities and shorter duration of courses
• Degree-level students or above (Bachelor’s, Master’s etc.) are permitted to work
a min. of 20 hours per week during the term-time.
• Students below degree-level (Diploma or certificate course) are permitted to
work a max of 10 hours every week during term-time.
• However, students are permitted to work full-time during holidays (like
Christmas, Easter and vacations after completion of exams)
• Students must have an offer document called a Confirmation of Acceptance of
Studies (CAS) from a Tier 4 approved university or college for a Tier 4 (General)
student visa
• Additionally, students are typically required to provide references, proof of
financial funds, study permits, entrance tests etc
• For short term VISA, students must show an intention to leave UK within 30 days
after completion of course
• The UK post-study work visa allows students to live and work in the UK for up to
two years after Masters and three years after PhD
• The government has already gone on record to say that the 2 years PSW could be
made 4 years which is further stoking student interest across the globe
35

Similar to the USA, the UK also witnessed
a drop in the Indian students, especially
in the period 2011-2016, due to stricter
immigration rules and policies. However,
there has been a massive resurgence of
students applying to the UK in recent years
as it has reintroduced post-Study work Visa
for the graduates. Furthermore, under the
new ambitious Research and Development
Roadmap by Boris Johnson they aim to
attract and retain top talent in the STEM
courses from all over the world. This is a
positive signal for the STEM focused Indian
student cohort who have limited access to
world-class educational institutions within
the country. They have further published
plans to increase the length of PSW from 2
to 4 years, garnering a lot of student interest.
The UK typically provides a shorter and
more intensive master’s program which
results in a relatively lower cost for price
conscious students which further adds to its
attractiveness.
The UK has also benefited from the closing
down of Australian borders in the wake of
COVID as many aspirants are now going
to pursue their studies in the UK instead.
This is evidenced by the increasing student
flows to the UK in 2020-21. With top ranked
universities, study-work visa and with an
average increase in salary, the UK remains
one of the top destinations for higher
education and is geared to be the fastest
growing destination country for Indian
students in the forecast period.
36

2016 2019 2024F
2
5
11
+27%
+18%
2016 2019 2024F
~78k
~140k
~260k
+22%
+13%
Indian Higher Education Students in Australia
000 students, 2016, 2019 and 2024F
Indian Student Spend on Higher Education in USA
USD Bn, 2016, 2019 and 2024F
Australia has seen a steady growth in the influx of
Indian students owing to their liberal policies and
access to global opportunities
Source(s): Department of Education and Training Australia, Desk Research, RedSeer Analysis,
Experts Inputs, RedSeer estimates
37

However, growth was stunted in 2020-21 as they
have closed borders to combat COVID and is
expected to regain momentum as the ban is lifted
Key Trends:
• Australia has been growing in attractiveness with most students preferring city
campuses as they are more economic offerings
• Most Indians reside in the top cities i.e., Melbourne and Sydney which houses a
significant Indian population
• Australia has decided to tackle COVID by closing borders in 2020-21 resulting in
erosion of their student base currently, however, they are expected to rebound
aggressively as borders open
• International students are permitted to work 20 hours/ week during the
Semester and full-time during breaks
• For students working as an academic assistant there is no limit to the days they
may work. Hence, it is a popular route for research-oriented students
• Students are not allowed to be self employed or freelancers
• Student must be enrolled in a course of study in Australia and obtain Electronic
Confirmation of Enrolment (eCoE) certificate
• Students must have hold Overseas Student Health Cover (OSHC), or fall in one of
the exemption categories
• Additionally, students will require to provide references, proof of financial funds,
GTE statement etc
• Post-Study Work stream of Temporary Graduate (subclass 485) are offered to
students pursuing degree courses and allows them to work in the country for 2 to
4 years
• Graduate work stream allows a student to work for 18 months in Australia if they
have obtained the skills necessary for occupation which features in the Medium
and Long-term Strategic Skills List (MLTSSL)
38

Australia has been relaxing its policies
over the years which in turn is increasing
the count of students entering the island.
It is also a country with ample career
opportunities and is home to some of the
largest corporations in the world which is
a major reason why professionals look to
settle there as well. Overall, Indian students
tend to integrate well in the Australian
campuses as they often have shared
values, cultural tradition, and sporting
preferences. Also, a lot of Australians are
cognizant and welcoming of Indian culture
and its manifestation like Bollywood, Yoga,
meditation etc. Apart from these, the
country has a pleasant climate with a friendly
and welcoming culture.
But currently the country has temporarily
stopped the inflow of foreign nationals at the
wake of the Covid scenario in hand which is
also impacting on the students’ prospects.
However, the situation is expected to be
mitigated going forward.
39

Student Journey
and External
Touchpoints
SECTION 3
40

Students interact with multiple intermediaries stakeholders
Notes: 1. One-time expenses include expenses like GIC in Canada; 2. Other Living expenses include expenses on housing, food, commute, entertainment, leisure etc.
Source: Desk Research, Student interactions, RedSeer IP
Student Journey
Journey Step, (Stakeholders involved/ Avenues of guidance available)
Pre enrollment Tuition Post Admission Expenses
Exploratory Research –
(Friends/ Family, internet,
College fairs, magazines etc.)
College Tuition –
(Banks/ NBFC, scholarship,
college
admin, Mentors, Family etc.)
VISA Travel -
(Govt., Banks/ NBFC, college
admin, Mentors, Family,
External agencies etc.)
Test Preparation –
(External agencies, Friends,
Mentors, magazines etc.)
Health Insurance –
admin, external agencies
etc.)
Admission Counseling –
Mentors, magazines, college
counsellors, internet etc.)
One Time Expenses1
–
admin, external agencies
etc.)
College Appl./ Interviews
–
Mentors, magazines, college
counsellors, internet etc.)
Other living expenses2
(Banks/ NBFC, college,
Family etc.)
After a student finds a job and settles down abroad, his life looks quite easy from the outside. However,
the individual goes through multiple hassles even before reaching the destination. Starting from research
on courses, universities, taking tests and moving to visa, insurance, housing, food, commute, and other
expenses, one needs to solve all the challenges before starting the new chapter. While several third
parties help these students with processes, only very few have an end-to-end presence. Owing to the
fragmented intermediaries, it creates a lot of back and forth for the applicants.
41

Pre-enrollment
Apart from doing online research, research through friends, family who have settled abroad and
professional counsellors, remain the most common ways to find out about the particular place.
Understanding from mentors and institutions and webinars, are some of the other ways to find out.
Friends/ Family and Professional counselors emerge as
the most popular modes of research for students going
abroad across the phases
21%
57%
50%
76%
49%
85%
46 %
74%
67%
49%
32%
32%
55%
46%
24%
48%
16%
48%
46%
13%
39%
15%
47%
28%
12%
Test Prep Initial Shortlisting Applications VISA Finance Travel, Acco, Insurance etc.
30%
27%
29%
26%
9%
Banks/ NBFCs and College
websites are one of the most
popular modes of research in
the Finance and Applicaons
phase respecvely
Institution
Webinars
Mentors
Internet
Research
Professional
Counsellor
Friends/
Family
Primary Research Channels
% respondents
Q. Primary mode of research for each of the stages?
42

Pre-enrollment
0%
25%
43%
32%
41% 42% 43%
Search
Exploration
7-8
Neutral
9-10
Promoters
0-6
Detractors
Test Prep Applications Visa Process Finance Travel,
Accommodation,
Insurance, etc.
56%
75%
1% 1% 1% 1% 1%
65%
57% 56% 55%
NPS
56%
57%
58%
66%
57%
75%
Inputs from mentors have been the most helpful in the Search
Exploration Applications phase
Student Reliance on Mentors
% respondents
Q.
For all external services opted for, how helpful have the inputs from the mentors (Past students) been
in the process? Rate between 1-10.
NPS = % Promoters – % Detractors
Apart from doing online research, research
through friends and family who have settled
abroad, and professional counselors, remain
the most common ways to find out about
the particular place. This is especially true
for the Anglophone destinations with a high
representation of Indian populace owing to
long term migration. Friends and Family are
also cognizant of the pathways of integration
for an Indian student in the destination
country and hence are able to provide
real time guidance to the students abroad.
Furthermore, in the typically network
driven work placements in these countries,
a student benefits from the personal and
professional relationships it creates through
his friends/ family abroad.
Learning from the experience of mentors,
institutions and webinars are alternate ways
that students educate themselves of the
requirements for moving abroad. However,
their inputs have been found to be helpful
typically in the initial stages of the journey
i.e., search/ exploration and applications. In
the later stages, students typically rely on
the inputs of external sources and friends/
family.
43

Pre-enrollment
No – can do
on own
No – can do
on own and
personal network
Yes – external
assistance is ideal
but not necessary
Yes – external
assistance is
absolutely
required
Test Prep Applications Initial
Shortlisting
Visa Finance Travel,
Accommodation,
Insurance, etc.
47% 48%
36%
20%
5%
34% 36%
27%
48%
35%
30%
19% 16%
36% 31%
54% 65%
6% 3% 100%
1% 1%
2%
Outbound students are inclined towards external support
during the application phase and Test preparation…
Inclination of availing external support
% respondents
Q. Would you be willing to take external support in the following phases?
44

Pre-enrollment
…and most students avail paid external support in the
Test preparation phase driven by unfamiliarity with test
pattern and prep. material
Incidence of availing Paid External Support
% respondents
External Guidance triggers
% respondents
Notes:
1. N 300 as there are overlaps in respondents who are availing external support amongst the various phases
2. Counselling includes students availing external support in Search and Application phase
3. Others includes students availing external support n Travel, Accommodation, Visa etc
Q.
Have you taken help of an external agency
in the following phases?
Q.
What are the key triggers for opting for paid
external guidance?
32%
73%
51%
40%
21%
Increase chances
of entry
Lack of info on courses
and Uni.
Lack of clarity on aspirations.
Lack of process clarity
48%
Test Prep
Others3
Counselling2
20%
59%
56%
35%
35%
5%
Access to world-class services
Constant feedback from mock tests
Unfamiliarity with Test
Lack of clarity on prep. material
Difficulty of test. ‘
60%
44%
40%
8%
Affordability
Faster turnaround
Reduce operational hassles
Lack of process clarity
Most students interact with agencies in the
test preparation phase as they are typically
unfamiliar with the requirements and do not
have access to preparation material. These tests
are generally different from the exams that
Indian students are acclimated with and hence
guidance is required to ensure results.
Indian students are also typically unaware
of the plethora of educational options that
foreign destinations provide along with the
associated financial requirements and personal
fit. Hence, counselors in the exploration and
application phase emerge as the next most
popular intermediary as they aid students to
decide upon the relevant countries and courses
which match their profiles. Only select students
avail external support for visa, travel, and
accommodation as they are typically handled
in-house.
45

Pre-enrollment
Online emerged as the most popular mode
for availing external support, driven partly by
COVID-induced lockdowns. Online has also
received an upward push as there has been a
rapid increase in online-first companies in the
space providing more options for the aspiring
students. This is because there is a growing
interest from students in the Tier 2 and 3 cities
with the rise in incomes and aspirations for a
big education jump. Prevalence of online mode
in test preparation, application, and visa phase
is the highest while students typically avail
offline support for the later stages. With the
advent of COVID many online companies have
reported 5-10X in user base and revenues for
their services.
However, online platforms have room for
improvement in providing better quality
services but are generally priced more
competitively compared to offline which is
stoking student adoption. As the ecosystem
evolves with more integrated offerings, online
is expected to dominate in the forecast period
with higher quality services and greater student
awareness of their outcomes.
Online emerges as the most popular mode for availing
support (especially in Test Prep and Application phase) –
However, there is room for improvement in the quality of
the online services
16% 18%
48%
29%
47%
High Price
Lack of clarity
about the process.
Long process
64%
58%
84% 82%
52%
71%
25%
14%
75%
86%
52%
45%
34%
25%
Quality of services
Lack of guidance
High Price
Authenticity of
websites
Lack of Alternatives
Quality of services 47%
44%
Test
Prep
Online
Offline
Search/
exploration
phase
Visa Others –
Travel,
Acco etc
Finance
Applications
Mode of external support
% respondents
Customer pain points for online services
% respondents
Q.
What form of external assistance did you avail in
the following phases ?
Q.
What are the key pain points from online/
offline offerings?
46

Pre-enrollment
Agencies in Test Preparation and Applications
phase enjoy the highest customer NPS amongst
all the phases
External Agency Satisfaction1
% respondents
Q.
For all external services opted for, how willing are you to recommend to a friend (NPS question), Rate
between 1-10.
NPS = % Promoters – % Detractors
Among the various phases, agencies that
provide support in the test preparation and
applications phase, have garnered the highest
net promoter score (NPS) compared to their
peers. Students report significant improvement
in learning outcomes and increased chances of
international mobility owing to the support of
these agencies as they are typically unfamiliar
with the requirements in these phases. One-to-
one guidance sessions with the counsellors and
availability of world-class preparation materials
from the leading agencies are the main drivers
for student satisfaction.
Search
Exploration
Test Prep Applications Visa Process Finance
Travel,
Accommodation,
Insurance, etc.

7-8
Neutral

9-10
Promoters
0-6
Detractors
26%
74%
74%
88%
88%
12%
22%
78%
78%
44%
56%
56%
50%
50%
50%
38%
62%
62%
47

Tuition
It is no secret that studying abroad requires
big pockets. Hence, the most popular
means of funding include self-finance and
scholarships. Scholarships have recently risen
in prominence as the number of available
scholarships has increased rapidly within the
last decade. Currently, students can avail
multiple scholarships in the popular destination
countries which completely absorbs the cost of
education at times.
Part-time work is also a popular option for
meeting the high cost of international education
- especially in countries like Australia and
Canada. This followed by availing education
loans from Banks/ NBFCs which is a growing
market with a high potential upside owing to
easier loan disbursals and competitive interest
rates.
Securing the required funding for education
abroad is the major deterrent for aspirants and
financial institutions are expected to mitigate
the same in the future leading to greater
student outflows.
Self finance and Scholarships are the most popular ways
of funding education abroad, followed by apprenticeship
and loans
Rank 1 Rank 2 Rank 3
43%
28%
6%
9%
12%
2%
12%
16%
26%
25%
8%
14%
10%
18%
26%
15%
17%
15% 30%
64%
38%
57%
62%
48%
Self
Scholarships
Education
loan – Bank

Personal loan
Friends/ family
Apprenticeship
on campus
Sources of Finance
% respondents
Q.
How did you fund/ plan to fund the abroad education? (Rank)
48

Tuition
Lack of funds is the primary hurdle for the students
unable to go abroad and ~84% of respondents likely to go
abroad if they have access to the same
Rank 1 Rank 2 Rank 3
Did not get
preferred
discipline
Wanted to stay
in India only
Did not get into
the preferred
college
Lack of funds/
Loan concerns
52%
23%
10%
10%
5%
18%
7%
13%
5%
16%
2%
2%
59%
46%
33%
25%
5 %
6 %
13 %
9 %
8 %
12 %
11 %
41 %
33 %
33 %
43 %
37 %
44 %
Family/
relative
abroad
Funds
not an
issue
3 %
Yes –
Likely
Work VISA
not an issue
Yes –
Definitely
At par
No –
Not Likely
No –
Definitely
not
100%
2 %
% repsondents
Key reasons for not going abroad
% repsondents
Q.
Despite intent/ willingness to go, What was the
biggest hurdle that prevented you from going
abroad for higher education?
Q.
If Funds/ Family or friends abroad/VISA was
not an issue, will you have considered higher
education abroad?
49

Appendix
Methodology
50

Project Methodology Details
Study Focus Identify key consumer behavior along the Higher Education abroad
funnel
Sample Size - Target Group A: International higher education Aspirers/ Admitted/
Recent graduates – 300
- Target Group B: Non-aspirers, Non-admitted aspirers – 100
Respondent Students + Working professionals with 5 years experience
Mode of surveys Online Surveys
Controlled variables - Split by City Tier 1, Tier 2+ (Tier 2 and Tier 3)
- Split by aspiring destination country UK, USA, Canada, Australia
What’s not controlled
(soft quotas)
- Income Groups
- Gender
51

Target Group A: Aspirers/ Admitted/ Recent graduates
Income
Yearly HH Income (N=300)
Age (N=300) Gender (N=300)
City Tier (N=300) Destination Country (N=300)
City Tier Dest. Country
20+ LPA
10-20 LPA
5-10 LPA
Canada
The UK
The USA
Metro
Tier 3
Tier 2
Tier 1
62
(21%)
238
(79%)
112
(37%)
188
(63%)
100
(33%)
100
(33%)
100
(33%)
159
(53%)
123
(41%)
18
(6%)
147
(49%)
79
(26%)
2
(1%)
72
(24%)
Female
Male
25-30 years
20-25 years
Age Gender
Respondent Demographics
Tier 1 City : Densely populated relatively higher living expenses. International airports, Industry Hospital
52

Target Group B: Non-aspirers, Non-admitted aspirers
Gender (N=100)
Age (N=100)
City Tier (N=100)
Income
Age Gender
City Tier
Yearly HH Income (N=100)
20+ LPA
10-20 LPA
5-10 LPA
Tier 2+
Female
25-30 years
20-25 years
Male
Metro + Tier 1
38
(38%)
42
(42%)
56
(56%)
44
(44%)
62
(62%)
38
(38%)
19
(19%)
81
(81%)
20
(20%)
Respondent Demographics
Tier 1 City : Densely populated relatively higher living expenses. International airports, Industry Hospital
Inclination of availing external support
% respondents, N = 300
Q. Would you be willing to take external support in the following phases?
53

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