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India’s Gen Z Outlook 2026 report, based on a survey of 1,010 respondents aged 15 to 28 across major Indian cities, found that 48 per cent of respondents who had considered studying abroad reported lower interest than a year ago.

Cost emerged as the biggest factor behind the shift, cited by 37 per cent of respondents, followed by visa and immigration complexities (26 per cent) and safety concerns (24 per cent).

Read | India first, study abroad later: Why more students are choosing to stay home for college

The trend is particularly pronounced among students considering the USA. As many as 42 per cent of respondents who were considering the America said their interest had declined over the past year. Among them, 41 per cent cited tuition costs as a deterrent, while 34 per cent pointed to stricter visa policies.

Despite the decline in enthusiasm for moving overseas, the survey suggests that Indian students’ appetite for international education remains strong. Rather than abandoning the idea of a global degree, many are exploring ways to access international academic programmes while reducing the financial and logistical risks associated with studying abroad.

According to the report, 68 per cent of respondents said they were likely or extremely likely to pursue a programme offered in India by an international university.

Among students transitioning from undergraduate studies to postgraduate education or preparing for further studies, 69 per cent said they preferred an India-based international programme specifically to avoid visa uncertainty.

The survey also found growing interest in hybrid or pathway models that combine study in India with an overseas component. Preference for such models, which can include semester exchanges or partial study abroad, rose from 27 per cent among pre-college students to 39 per cent among students transitioning to higher education.

For postgraduate-bound students, 50 per cent said they would consider a fully on-campus international programme in India, with 38 per cent describing it as their first choice.

Affordability is another factor influencing the shift. As many as 72 per cent of respondents viewed international university programmes delivered in India as offering greater affordability while retaining global teaching standards and academic quality.

The report describes the change as a move from aspiration-driven decisions to a more pragmatic assessment of the returns from an overseas degree. Students are increasingly weighing factors such as cost, career opportunities, professional networks and long-term employment prospects alongside the reputation of an institution.

The findings come at a time when Indian students are navigating a more uncertain international education environment, marked by higher education costs, tighter immigration policies and changing geopolitical conditions in major study destinations.

The report indicates that while the appeal of international education remains intact, the route to obtaining it is changing, with students increasingly looking for options that balance global academic exposure with affordability, flexibility and lower migration-related risks.