56% of Indian students going abroad now come from state boards, leave CBSE behind

Students from state boards are emerging as the largest group among Indians exploring overseas education, accounting for 56 per cent of aspirants compared with 40 per cent from the CBSE, according to the Transnational Education (TNE) Report 2026 by edtech company upGrad.

The report indicates a shift in the profile of students considering international education, with state board students, many of them first-generation applicants, increasingly looking at overseas degrees for their career and economic prospects rather than institutional familiarity alone.

The report is based on insights from 53,800 aspirants counselled between January 2025 and June 2026. Of these, 65.8 per cent were freshers, while nearly 60 per cent came from tier II and tier III cities. Read | Australian universities urge government for cheaper housing, travel as student rents soar 40% Better job opportunities emerged as the biggest motivation for studying abroad, with 49 per cent of aspirants citing it as their primary reason.

Quality of education was the second-largest factor at 24 per cent, followed by permanent residency pathways at 15 per cent and better lifestyle at 11 per cent. The findings also suggest that Indian students are increasingly evaluating overseas education on return on investment, employment opportunities and long-term career outcomes rather than the reputation of an institution or destination alone.

Germany has emerged as the preferred destination in 2026, chosen by 48 per cent of aspirants, compared with 20 per cent for the US. Preference for Germany has nearly doubled since 2023, rising to 92 per cent, according to the report.

The report attributed the growing interest in European destinations to rising costs and tighter immigration policies in traditional destinations such as the US, UK, Canada and Australia. Germany, Finland, Spain and France are gaining attention for their affordability, industry alignment and employment-linked pathways.

Affordability is another major factor shaping these choices. Seven in 10 aspirants said they planned to pursue overseas education with a total budget of less than Rs 30 lakh. The report said interest in the Rs 20-30 lakh budget segment has increased between 2024 and 2026, alongside growing demand from tier II and tier III cities.

The report also revealed that AI-related skills are increasingly influencing programme choices. AI, data science, analytics and machine learning have emerged among the fastest-growing programme categories across partner universities, amid growing employer demand for AI literacy across sectors.

"The study abroad landscape is undergoing a significant shift, with Indian students increasingly prioritising future employability, career outcomes and affordability. Europe's growing appeal reflects this evolving mindset, as learners seek destinations that combine quality education with strong workforce opportunities," said Praneet Singh, Vice President, University Partnerships, upGrad Study Abroad.