India’s smaller cities fuel Germany’s popularity as students rethink study abroad

“According to a recent TerraTern survey of more than 2,800 students and early-career professionals across smaller Indian cities, Germany emerged as the most preferred destination, with 75% selecting it as their top choice, followed by the US (68%), UK (62%), Australia (55%) and Canada (50%). While nearly 79% of respondents expressed aspirations to study abroad, 55% identified cost and job prospects as the biggest barriers, while 69% said post-study employment outcomes heavily influenced their decisions. Responses were collected across tier-II and III cities including Jaipur, Chandigarh, Lucknow, Surat, Indore and Coimbatore. “Students from non-metro India are far more cost-sensitive and tend to evaluate study abroad as a financial decision first,” stated Divyansh Chaudhari, founder of TerraTern, adding that many families in smaller cities self-fund or take education loans against modest assets. “A program where tuition is negligible and living costs are manageable is a far easier conversation at the dinner table than an Ivy League dream requiring the liquidation of savings,” he said. According to Chaudhari, the shift towards Germany appears particularly pronounced in smaller cities, where overseas education is increasingly viewed as a long-term financial and migration decision rather than simply an aspirational milestone. “Germany offers globally respected degrees without the $60,000–$100,000 debt load associated with the US or UK, which fundamentally changes the risk calculus for a middle-income family,” he stated. The trend comes at a time when rising tuition costs, visa uncertainty and changing post-study work policies in destinations such as Canada, Australia, the UK and the US prompt more Indian students to reassess where and why they want to study overseas. For many students, Germany’s attraction now lies as much in predictability as affordability. “Unlike the US or Canada, Germany’s pathway from student visa to job-seeker visa, EU Blue Card and eventually permanent residency is unusually transparent,” said Chaudhari, arguing that this predictability matters disproportionately to first-generation overseas students who cannot rely on family networks abroad if things go wrong. Germany offers globally respected degrees without the $60,000–$100,000 debt load associated with the US or UK, which fundamentally changes the risk calculus for a middle-income family Divyansh Chaudhari, TerraTern Similar shifts are also becoming visible in how students from smaller Indian cities approach financing and destination choices. “Indian students today are becoming far more outcome-oriented in their approach to overseas education,” said Yogesh Rawat, chief business officer – student lending international at Avanse Financial Services . “We are witnessing a clear shift from destination loyalty to career-goal loyalty, where students are evaluating destinations based on post-study work opportunities, stable policy environment and overall return on investment rather than just popularity.” Rawat said Germany was also reshaping how students approached financing, with many now seeking support for non-tuition expenses rather than tuition itself due to the country’s low-cost public university system. “Since tuition fees in Germany are relatively affordable, students are increasingly seeking financing for non-tuition expenses such as living expenses, health insurance, travel costs and blocked accounts,” stated Rawat, noting that students are now required to maintain roughly €11,904 annually in blocked accounts to demonstrate financial sufficiency. Germany’s expanding range of English-taught programmes has also broadened its appeal beyond traditional engineering-focused applicants. DAAD India says this shift is no longer confined to metropolitan hubs such as Delhi, Mumbai, Bengaluru or Chennai. “Cities such as Indore, Jaipur, Chandigarh, Kochi, Nagpur, Bhubaneswar and Coimbatore are showing much stronger engagement today,” according to Apoorv Mahendru, head of marketing at DAAD regional office, New Delhi. Mahendru noted that conversations with applicants had become “much more mature compared to earlier years”, with students increasingly asking detailed questions around employability, internships, programme fit and long-term career prospects. “Germany today has one of the highest retention rates of international students globally, alongside Canada,” Mahendru added. “Among Indian students specifically, around 46% are still in Germany 10 years after beginning their studies. This reflects the strong long-term academic and professional opportunities available to international graduates in Germany.” Previous reporting by The PIE News highlighted that Germany recently surpassed 400,000 international students, with India now the country’s largest source market at nearly 59,000 students enrolled. Among Indian students specifically, around 46% are still in Germany 10 years after beginning their studies Apoorv Mahendru, DAAD regional office, New Delhi However, recruiters say many first-time applicants from smaller Indian cities continue to approach Germany with misconceptions around affordability, admissions and language requirements. “I do see a growing interest in Germany in smaller cities, no doubt,” stated Matthias Dünnwald, student recruitment manager at Navitas , noting that agencies and counsellors traditionally focused on destinations such as the UK, US and Australia were now increasingly promoting Europe. “Even Indians who are not well aware of Germany as a country might have heard that Germany offers quality education at an affordable price,” he noted, adding that many applicants still approach Germany with unrealistic expectations around scholarships and costs. “Then my job is to counsel them and explain that Germany is not giving 100% scholarship to all students.” APS processing, visa timelines and academic eligibility also remain recurring concerns among students and counsellors, particularly following recent tightening measures. “The government is really trying to restrict the flow of students, especially students with lower academic profiles,” stated Dünnwald, referring to Germany’s recent APS-related changes and longer visa processing timelines. Language also remains a major consideration, especially outside multinational workplaces and major urban centres. “Students often express their concerns that they won’t be able to survive without knowing German,” stated Dünnwald. “Some are even surprised when they realise it’s possible to study an English taught course in Germany.” While awareness of English-taught programmes has improved significantly, many applicants now also recognise German language skills remain important for internships and part-time work. At the same time, growing interest in English-taught degrees is also reshaping adjacent parts of the study abroad ecosystem, including testing demand and student financing. According to Karan Lalit, executive director – South Asia at ETS , the organisation has seen “significant growth” in TOEFL registrations from tier-II and III regions over the past 18-24 months as more students pursue English-taught programmes in Germany. “We are seeing a noticeable rise in demand for English proficiency testing, particularly among students from tier-II and tier-III cities in India,” stated Lalit. “Hyderabad and Gujarat have emerged as key markets driving this growth, reflecting the increasing interest in studying abroad, especially in Germany.” However, Lalit noted misconceptions around English proficiency requirements still remain common among applicants. “The most common one is the assumption that if a program is taught in English, there is no need to formally prove proficiency,” he explained. “In reality, most German universities, particularly at the graduate level, require a recognised English test score as part of the admissions process.” Germany’s growing popularity also comes as the country looks to retain more international talent amid mounting labour shortages, with DAAD-commissioned research showing international students contribute significantly more to public finances over their lifetimes than the state spends on their education. Still, stakeholders argue Germany’s long-term appeal among Indian students will depend less on low tuition alone and more on how effectively the country addresses integration, support systems and graduate outcomes as student numbers continue to rise. “Students today are asking much more informed questions around labour market demand, internships, practical exposure, skills shortages and long-term career pathways,” stated Mahendru. “Overall, conversations today are noticeably more detailed, research-oriented and career-focused than in earlier years.” The post India’s smaller cities fuel Germany’s popularity as students rethink study abroad appeared first on The PIE News .

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