Migration and the Economy
Student Migration
Why millions of students study abroad, the economics for students and host countries, and India's role as a leading source of international students.
Millions of students leave their home countries each year to study abroad. Student migration is a growing part of global migration and has major economic effects.
The numbers
UNESCO data show that the number of internationally mobile students has grown to over 6 million. India and China are the largest sources. India’s government has reported well over a million Indian students studying abroad in recent years, with the United States, Canada, the United Kingdom, Australia and Germany among top destinations.
Why students go abroad
- Quality and reputation of foreign universities.
- Limited places in top institutions at home.
- Career prospects, including jobs abroad after graduation.
- Post-study work visas and pathways to permanent residence.
Economics for host countries
International students bring large economic benefits to host countries:
- Tuition fees: international students often pay higher fees, which subsidise universities.
- Spending on housing, food and services.
- Skilled workers who may stay after graduating.
In countries like the UK, Australia and Canada, international education is a major export sector.
Economics for students
Studying abroad can be very expensive, often financed by family savings and education loans. The return depends on finding good jobs, either abroad or at home. Changes in visa rules can significantly affect this calculation.
Policy changes
In 2024, Canada and Australia introduced caps on international student numbers, citing housing pressures. The UK restricted dependants for most students. U.S. visa policies also tightened in 2025. These changes affected many Indian students.
An Indian student takes an education loan to study a master's degree abroad, expecting to work there afterwards to repay it. If post-study work rules become stricter and she must return home sooner, the higher foreign salary she counted on may not materialise, making the loan harder to repay. Policy changes can turn a good investment into a risky one.
Many students return home with skills and networks, and those who stay abroad often send remittances and build links that benefit their home countries. Student migration can bring both brain drain and brain gain.
- Over 6 million students study outside their home countries, with India and China the largest sources.
- Students seek quality education, career prospects and post-study work opportunities.
- Host countries gain tuition revenue, spending and skilled workers.
- Recent caps and visa changes in Canada, Australia, the UK and the U.S. have affected students.
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