Over the past two decades, India has been a top source market for international students in the United States. In 2021, Indian students accounted for 18% of all international students in America, second only to China (35%).1 In 2020, Indian students accounted for 16% of higher education receipts in the US by contributing almost $6.2 billion to the education sector.
Let’s dive into the growth of India in the US’s international education sector by taking a look at the impressive increase of the Indian market, what Indian students are studying in the US, and what the US can do to support Indian students moving forward.
Key Insights at a Glance
- In 2021, Indian students accounted for 18% of all international students in America, second to China (35%).
- Nearly 32% of international students in Arizona came from India in 2020/21.
- In 2020/21, Math and Computer Science was the most popular field of study for Indian students, with 35% of Indian students choosing this field of study.
This is the second article in our new series looking at source market trends in the US. Previously, we looked at China’s growth in the US. Stay tuned for articles on South Korea and Saudi Arabia in the coming months.
The US’s Reliance on Indian Enrollment
The number of Indian students in the US has doubled since 2012/13. In 2017/18, numbers peaked with just over 196,000 Indian students in the US. This was an increase of 5.4% from the previous year. There was a slight decrease in 2020/21, with 167,000 Indian students in the US. However, Indian students still accounted for almost one in five of all international students in the US.
As the number two source market for international education in the US, India’s student population trended upwards and its share of the international student market increased six percentage points from 12% in 2013/14 to 18% in 2020/21.
Why Canada Poses Stronger Competition for the US
Home to more than 167,000 Indian students in 2020/21, the US is clearly a popular destination market in India. How does this compare to other destination markets?
According to Immigration, Refugees and Citizenship Canada (IRCC), Canada trended ahead of the US, with a total of just under 213,000 study permit holders from India, while the US had just over 167,000 students working and studying in the US in 2021.
The number of international students enrolled in US institutions dropped prior to the COVID-19 pandemic, with enrollment increasing for Canadian institutions. According to a recent analysis from the National Foundation for American Policy (NFAP), Indian graduates in STEM are more likely to choose Canada over the US to stay, posing stiff competition for US institutions.2 This is largely attributed to Canada’s friendly immigration laws, particularly the opportunity for international students in Canada to gain temporary work visas and permanent residence.
Indian students contributed $6.2 billion to the American international education sector in 2020/2021, representing nearly 16% of the sector’s economy that year. Given its reliance on India as a source for students, the US should pay close attention to the rising competitiveness of Canada moving forward.
Where Are Indian Students Studying in the US?
Arizona had the highest rate of Indian students in the US. In 2020/21, nearly 32 percent of international students in Arizona came from India. In comparison, just under 28 percent of students in Arizona were from China, the top source market for international students in the US.
Many institutions in Arizona are taking advantage of these increasing numbers, including ApplyBoard partner schools Northern Arizona University, Arizona State University, the University of Arizona, and Trine University.
Texas was the second US state where India was the top source market, with 22% of international students in Texas coming from India. Representing 4% of Texas’s total student population, international students have established strong communities and cultural hubs.
What Do Indian Students Study in the US?
Graduate studies have long been the most popular study level for Indian students in the US. The growth at this level has increased since 2015/16. However, in 2021, graduate studies fell by 19 percentage points, just behind Optional Practical Training (OPT). In 2021, OPT decreased by nine percent, four percentage points more than undergraduate studies.
The chart below shows the number of Indian students across the different study levels of the US’s higher education market since 2015/16:
The non-degree sector has been on a downward trajectory since 2018/19. In 2020/21, the non-degree sector dropped by more than 20%.
More Indian Students are Entering Math and Computer Science
In the chart below, we see that STEM continues to be the dominant field of study Indian students choose to enter in the US.
STEM3 accounted for more than 77% of Indian students in the US in 2020/21 and is by far the most popular field of study for Indian students in the US. Math and Computer Science, particularly, was the most popular STEM field for Indian students, surpassing Engineering in 2017/18 and accounting for 35% of Indian students in 2020/21.
Optional Practical Training (OPT) allows students to find off-campus employment or internships in their field of study. Eligible students can receive up to 12 months of OPT employment, with an opportunity to apply for an OPT extension for students who have earned a degree in certain STEM fields for up to 24 months. The STEM extension is a strong driver of why Indian students are choosing STEM in the US.
Looking Forward
The US has long been a popular destination market for Indian students due to its highly regarded institutions and its reputation for offering plentiful job opportunities with higher pay compared to other countries. However, during the Trump administration and the COVID-19 slowdown, Indian students were motivated to look elsewhere after being alienated by unfriendly immigration policies. The Canadian market’s increased competitiveness should be of particular concern for the American education sector, given the US’s growing reliance on the Indian market.
We’re looking forward to continuing to work with our many dedicated recruitment partners in India, and to continuing to help Indian students access high-quality education around the world.
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FOOTNOTES:
1.All figures include undergraduate, graduate, and non-degree programs, as well as students enrolled in the Optional Practical Training (OPT) program. All enrollment numbers are calculated based on academic year. US data courtesy of the Institute of International Education (IIE) Open Doors Report.
2.National Foundation for American Policy (NFAP), Analysis of US and Canadian International Student Data.
3. The STEM field of study consists of engineering, health professions, math and computer science, and physical and life sciences.
