Rising aspirations, globalism fuelled by social media and lack of opportunities in India are pushing a large number of students to educational institutes in advanced countries which has also become a surefire way to find work after education and ultimately seek citizenship in the foreign country. Since 2012, the number of Indian students going to study abroad has grown eightfold to nearly 1.5 million.
But many of the ideal study-abroad destinations of Indian students are now losing their sheen where many students might experience extreme economic distress. As their economies sag under the weight of growing immigration, steep rise in cost of living can become unaffordable for many Indian students. ET has reported how the housing shortage in Australia is crushing the study-abroad dream of Indian students.
When the dream turns sour
Some of the Indian students expecting to land in an advanced country with better amenities and infrastructure might get a shock when they find even the basics can be beyond their reach. Last year, 50 to 100 students, mostly Indian, at Canadore College in North Bay, Ontario, Canada, found themselves homeless since they were unable to find accommodation they could afford. They had to sleep in tents on the roadside outside their college.
A food bank in Ontario started turning away international students looking for free food meant for the poor. The board president of a food bank in Brampton, Ontario, had told National Post in November last year that her facility had become so overrun with international students seeking free food that she had to put up a sign telling them to stay away.
She added that what started as one to two students a day in September soon escalated to three or four. “And now we’re literally seeing five to 10 in groups coming every day," she said. "And it’s happening with a lot of the other food banks. And I’m getting calls now not only from food banks, but churches in Brampton, saying that they’re running out of supplies, because they have this influx of students coming.”
High cost of living in Canada has even forced many students to return home. The dream of making it big in Canada is turning into a battle for survival for many immigrants due to the high cost of living and rental shortages, as rising emigration numbers hint at newcomers being forced to turn their back on a country that they chose to make their adopted home, Reuters reported a few months ago. Prime Minister Justin Trudeau has made immigration his main weapon to blunt Canada's big challenge of an aging and slowing population, and it has also helped fuel economic growth. That drove Canada's population up at its fastest clip in more than six decades this year, Statistics Canada said. But now a reversal of that trend is gradually taking hold. In the first six months of 2023 some 42,000 individuals departed Canada, adding to 93,818 people who left in 2022 and 85,927 exits in 2021, official data show.
Canada has more than doubled the cost-of-living financial requirement for incoming international students from January 1. Canada has also limited the intake of international students as a growing number of immigrants has hiked housing prices and general cost of living. Canada’s new cap on international study permits is aimed at slowing the increase in demand for rental units from foreign students by about half this year. It is also making getting permanent residency difficult. Lower costs and easier permanent residency were the key attractions for Indian students opting for Canada.
Australia is another dream destination for Indian students seeking to study abroad which is turning inhospitable for international students. Rising accommodation costs in Australia fuelled by a housing shortage is crushing the study-abroad dreams of many Indian students, half a dozen study-abroad consultants have told ET.
Accommodation prices in Australia have shot up nearly 15% for shared rooms or dormitories in the last quarter, according to latest data shared exclusively with ET by University Living, a global student housing marketplace. With 120,000 students, India makes up the second-largest cohort of international students in Australia.
Latest rules in Australia have made it mandatory to maintain a certain amount in a student’s bank account towards living expenses which is creating more problems for students.
“The prices of shared rooms or dorms in Australia has increased by 14.6% to AUD 329 per week over the last one year,” Mayank Maheshwari, chief operating officer and co-founder, University Living, has told ET. Australia’s net immigration was expected to have peaked at 510,000 in 2022-23. With the new announcement, it now aims to lower the annual intake to 250,000 – in line with pre-pandemic levels – by mid-2025.
“Countries like the US, New Zealand, and the UK have similar housing issues that could potentially impact international students,” Amit Singh, founder of ASL (UniScholars, UniCreds & UniAcco), has told ET.
Search for alternative study destinations
While a large number of Indian students are still headed to the traditional study-abroad destinations such as Canada and Australia, enrolment numbers have been growing at schools in countries such as Lithuania, Estonia, Chile, Turkey, Malta, Taiwan and South Korea among others — not education destinations that readily spring to mind.
More Indian students are heading to these nations this year, executives at study-abroad platforms and strategy consultant Redseer have told ET recently.
There are multiple reasons for the lack of interest, as per industry executives. Post-Brexit UK is suffering from a poor economy and a worsening attitude to migrants. Canada has an accommodation crisis and a cap on international students, apart from a troubled diplomatic relationship with India. The US is and always has been highly expensive with little to offer by way of employment prospects for most.
According to the Redseer findings, 75-80% of Indian students going abroad for education two years ago opted for the Big 4 destinations — the US, UK, Canada, and Australia & New Zealand.
“2022 was one of the best years for the Big4. But 2024 will be the year for alternative destinations,” said Kushal Bhatnagar, associate partner, Redseer. “With stringent regulations imposed by Canada and the UK, the market is expected to shift towards alternative countries like Germany, Singapore, Ireland, the Netherlands and South Korea.”
“For the first time across the last six months, we have had the percentage of students who are enquiring about study destinations outside the Big 4 significantly increase, from 8% to a 21% high last week,” Akshay Chaturvedi, founder and CEO, LeverageEdu, Fly Finance & Fly Homes, told ET recently.
However, the US still remains a hot destination due to the quality of education and career prospects. American universities enroll nearly 269,000 students from India, AP reported last month, with that number soaring, including a 35% increase in the 2022-23 academic year, India is on the verge of replacing China as the largest international presence on US college campuses.
