Student demand from South Asia continues to shape international education in 2025, although policy shifts across major destinations are recalibrating flows. The world hosted an estimated 6.9 million international students in 2022, a long climb from 2.5 million in 2002, and South Asia’s role in that growth is unmistakable. India alone had about 1.33 million students abroad as of January 1, 2024, according to a government reply in Parliament.
Demand is Shifting Across Major Destinations
In the U.S., international enrollments reached an all-time high of 1,126,690 in academic year 2023-24. India became the top place of origin with 331,602 students, while Bangladesh and Nepal also hit records at 17,099 and 16,742, respectively. Pakistan rose to 10,988.
The U.K. shows a mixed picture. For the year ending June 2025, the Home Office reports 431,725 sponsored study visas granted, down from the peak two years earlier. The ban on most student dependents that took effect in January 2024 sharply reduced dependent applications by 84% in the year to January 2025. Yet underlying student demand appears to be stabilising, with Q1 2025 showing a 27% year-over-year rise in study visas issued and an unchanged issuance rate, suggesting renewed momentum in the core market.
National patterns also shifted. Chinese students were the largest cohort with 99,919 visas, followed closely by 98,014 for Indian nationals, both down year over year.
Canada’s two-year cap remains a defining story in 2025. Ottawa has set a national allocation of 437,000 study permits for 2025, a further 10% trim on the 2024 ceiling, following a steep contraction in new study permits issued in 2024. The latest IRCC data supplied to industry shows 267,890 new permits were issued last year, roughly 48% fewer than in 2023, with ripple effects most visible among major South Asian cohorts.
Doug Watters, Head of International Recruitment of Abertay University Scotland Said, At Abertay, we have seen how students from South Asia enrich our academic community with their talent, determination, and global perspective. Those perspectives contribute immensely to campus life, adding great value to the experience of our overall student body. Recent policy shifts across traditional study destinations have created some uncertainty for students, yet their aspirations remain unchanged, and their resilience remarkable, in continuing to seek personalised, high-quality education and outstanding career outcomes. We see our responsibility at Abertay to provide pathways that help them thrive, in academia and in their career – whatever their chosen field.”
Australia is in a deliberate cooling cycle. Official data show commencements down 15% year-to-date to May 2025, and the source mix remains concentrated, China 23%, India 17%, Nepal 8%, Vietnam 5%, Philippines 4% of all international students. New national planning levels will continue to guide volume, while visa fees and integrity measures remain under review.
“Students are reading policy signals more closely than ever,” says Sanjay Laul, founder of global education platform MSM Unify. “South Asian families are carefully evaluating the overall cost of tuition, living expenses, post-graduation opportunities, and reliability of the application process. If study opportunity becomes less viable, students quickly pivot to alternative options that meet their academic goals and financial needs.”
What the South Asian Senders Signal
India continues to anchor regional demand. Its status as the leading source in the US reflects strong growth in graduate study and practical training, even as students respond to evolving work rules in other destinations. Bangladesh’s momentum is notable, with a record US tally in 2023-24 that puts it among the top risers. Pakistan has inched up in the US and remains a substantial U.K. market, supported by postgraduate pathways.
Nepal stands out for intensity rather than absolute size. Multiple analyses place its outbound mobility ratio at about 19% in 2021, which means roughly one in five tertiary students studied overseas. That ratio is far higher than in India or China. Nepal’s footprint is visible in Australia, about 8% of international students for the year-to-date May 2025, and in the U.S. record noted above.
Macro forces will shape the next stretch. A British Council-commissioned study with Oxford Economics suggests that links between GDP growth and outbound mobility imply slower aggregate growth through 2030 compared with the previous two decades. Providers are responding by diversifying pipelines and sharpening affordability offers.
“Policy signals now do more than marketing,” Laul notes. “Clear visa settings, credible post-study options, and honest information about costs and outcomes, these shift student choices across borders in real time.”