Australia has recently announced a cap on international student enrolment, limiting the number to 2,70,000 for 2025. This decision is part of the government’s broader strategy to manage record migration levels that have significantly contributed to rising home rental prices and strained infrastructure. The cap comes amid growing concerns about the impact of international students on the housing market and the overall economy, making it a critical issue ahead of the upcoming elections.
According to media reports, Education Minister Jason Clare has stated that there are about 10% more international students in Australian universities today than before the pandemic and approximately 50% more in private vocational and training providers.The reforms are intended to create a better and fairer international student sector, ensuring sustainability for the future. While international education contributed A$36.4 billion to the economy in 2022-2023, concerns over the impact on the housing market could influence the upcoming election.
Australia previously did not impose a strict numerical cap on international student enrollment. Instead, the government managed the influx of students through quality assurance measures and visa regulations, ensuring a balanced and sustainable approach to international education.
The recent move is expected to have profound implications for countries like India, which has historically been one of the largest sources of international students in Australia. The number of Indian students enrolling in Australian institutions has declined in 2024 in comparison to the previous year, driven by a combination of factors such as rising costs, housing challenges, and increased competition from other countries. The newly imposed cap on student enrolments could further accelerate this trend, raising questions about the future of Indian students aiming to study in Australia.
Trends in Indian student enrolment in Australia (2019-2024)
According to the data published by the Department of Education, Australian Government, the number of Indian students enrolling for studies in Australia has shown fluctuations over the past few years. In 2019, there were 1,15,107 Indian students pursuing education in Australia. The figure slightly decreased in 2020, with 1,14,842 students. This decline continued into 2021, where the number dropped to 99,227 students, likely impacted by the global pandemic and its associated travel restrictions. The year 2022 also didn’t see a significant increase with the number stabilising at 99,374 students. However, the next year, 2023, saw a noticeable jump in the number of Indian students, reaching 126,487, reflecting a renewed interest in Australian education as borders reopened and restrictions eased. In 2024, the numbers experienced a dip again, with 1,18,109 students enrolling in Australian institutions.
2023 vs. 2024: Factors contributing to the decline of Indian students in Australia
Australia experienced a significant drop in Indian student enrollment during 2020 and 2021, largely due to the Covid-19 pandemic. Beyond those years, another decrease occurred in 2024. While 1,26,487 Indian students were studying in Australia in 2023, the number fell to 1,18,109 in 2024. Several factors have driven this decline. Here’s a closer look at them.
Increased Competition from Other Countries: Countries like Canada and the UK have become increasingly attractive to Indian students due to more favourable immigration policies, lower tuition fees, and stronger post-graduation work opportunities.
Rising Costs: The cost of education in Australia has risen significantly, including tuition fees, living expenses, and the recently increased visa fees. This has made Australia a less affordable option for many Indian families.
Housing Crisis: The surge in migration has led to a severe housing shortage in Australia, driving up rental prices and making it difficult for students to find affordable accommodation.
Post-Pandemic Recovery: The aftermath of the Covid-19 pandemic has seen a shift in global student mobility patterns, with many students preferring to stay closer to home or opting for countries that handled the pandemic more effectively.
Stricter Visa Regulations: The Australian government has tightened visa regulations, making it more challenging for students to extend their stay and pursue post-study work opportunities.
Indian students likely to eye new destinations in 2025
While Australia has long been a preferred choice among Indian and international students for studying abroad, the new policy is likely to prompt them to consider newly emerging options. Countries in Asia, such as Japan and South Korea are increasingly attractive due to affordable education, government scholarships, and initiatives to internationalise campuses. According to media reports, Japan aims to attract 4,00,000 international students by 2033, and South Korea is actively working to enhance its global education appeal by offering multiple government scholarships.
European nations like France and Germany are also seizing the opportunity to attract more international students by offering compelling benefits. According to media reports, France, with its streamlined visa process and multicultural environment, plans to host 30,000 Indian students by 2030. Germany, known for its low-cost education and strong academic reputation, has experienced a 107% increase in Indian student enrolments over the past four years. Ireland, too, has seen significant growth, tripling its international student population from 2010 to 2020, suggest media reports. These countries are positioning themselves as strong alternatives not only to Australia but also to traditionally popular choices such as the US, UK and Canada.
International students in Australia: Trends between 2019 and 2024
The total number of international students enrolled in Australian institutions has seen notable changes from 2019 to 2024. In 2019, Australia hosted 756,737 international students, a number that dipped to 687,032 in 2020 and further decreased to 572,274 in 2021, largely due to the impact of the COVID-19 pandemic and its associated restrictions. However, as conditions improved, the numbers rebounded, reaching 617,803 in 2022 and surging to 786,891 in 2023. By 2024, the total stood at 717,587, reflecting the ongoing adjustments and recovery within the global education landscape. Here is a look at the fluctuations in the total number of international students in Australia from various countries between 2019 and 2024.
According to media reports, Education Minister Jason Clare has stated that there are about 10% more international students in Australian universities today than before the pandemic and approximately 50% more in private vocational and training providers.The reforms are intended to create a better and fairer international student sector, ensuring sustainability for the future. While international education contributed A$36.4 billion to the economy in 2022-2023, concerns over the impact on the housing market could influence the upcoming election.
Australia previously did not impose a strict numerical cap on international student enrollment. Instead, the government managed the influx of students through quality assurance measures and visa regulations, ensuring a balanced and sustainable approach to international education.
The recent move is expected to have profound implications for countries like India, which has historically been one of the largest sources of international students in Australia. The number of Indian students enrolling in Australian institutions has declined in 2024 in comparison to the previous year, driven by a combination of factors such as rising costs, housing challenges, and increased competition from other countries. The newly imposed cap on student enrolments could further accelerate this trend, raising questions about the future of Indian students aiming to study in Australia.
Trends in Indian student enrolment in Australia (2019-2024)
According to the data published by the Department of Education, Australian Government, the number of Indian students enrolling for studies in Australia has shown fluctuations over the past few years. In 2019, there were 1,15,107 Indian students pursuing education in Australia. The figure slightly decreased in 2020, with 1,14,842 students. This decline continued into 2021, where the number dropped to 99,227 students, likely impacted by the global pandemic and its associated travel restrictions. The year 2022 also didn’t see a significant increase with the number stabilising at 99,374 students. However, the next year, 2023, saw a noticeable jump in the number of Indian students, reaching 126,487, reflecting a renewed interest in Australian education as borders reopened and restrictions eased. In 2024, the numbers experienced a dip again, with 1,18,109 students enrolling in Australian institutions.
2023 vs. 2024: Factors contributing to the decline of Indian students in Australia
Australia experienced a significant drop in Indian student enrollment during 2020 and 2021, largely due to the Covid-19 pandemic. Beyond those years, another decrease occurred in 2024. While 1,26,487 Indian students were studying in Australia in 2023, the number fell to 1,18,109 in 2024. Several factors have driven this decline. Here’s a closer look at them.
Increased Competition from Other Countries: Countries like Canada and the UK have become increasingly attractive to Indian students due to more favourable immigration policies, lower tuition fees, and stronger post-graduation work opportunities.
Rising Costs: The cost of education in Australia has risen significantly, including tuition fees, living expenses, and the recently increased visa fees. This has made Australia a less affordable option for many Indian families.
Housing Crisis: The surge in migration has led to a severe housing shortage in Australia, driving up rental prices and making it difficult for students to find affordable accommodation.
Post-Pandemic Recovery: The aftermath of the Covid-19 pandemic has seen a shift in global student mobility patterns, with many students preferring to stay closer to home or opting for countries that handled the pandemic more effectively.
Stricter Visa Regulations: The Australian government has tightened visa regulations, making it more challenging for students to extend their stay and pursue post-study work opportunities.
Indian students likely to eye new destinations in 2025
While Australia has long been a preferred choice among Indian and international students for studying abroad, the new policy is likely to prompt them to consider newly emerging options. Countries in Asia, such as Japan and South Korea are increasingly attractive due to affordable education, government scholarships, and initiatives to internationalise campuses. According to media reports, Japan aims to attract 4,00,000 international students by 2033, and South Korea is actively working to enhance its global education appeal by offering multiple government scholarships.
European nations like France and Germany are also seizing the opportunity to attract more international students by offering compelling benefits. According to media reports, France, with its streamlined visa process and multicultural environment, plans to host 30,000 Indian students by 2030. Germany, known for its low-cost education and strong academic reputation, has experienced a 107% increase in Indian student enrolments over the past four years. Ireland, too, has seen significant growth, tripling its international student population from 2010 to 2020, suggest media reports. These countries are positioning themselves as strong alternatives not only to Australia but also to traditionally popular choices such as the US, UK and Canada.
International students in Australia: Trends between 2019 and 2024
The total number of international students enrolled in Australian institutions has seen notable changes from 2019 to 2024. In 2019, Australia hosted 756,737 international students, a number that dipped to 687,032 in 2020 and further decreased to 572,274 in 2021, largely due to the impact of the COVID-19 pandemic and its associated restrictions. However, as conditions improved, the numbers rebounded, reaching 617,803 in 2022 and surging to 786,891 in 2023. By 2024, the total stood at 717,587, reflecting the ongoing adjustments and recovery within the global education landscape. Here is a look at the fluctuations in the total number of international students in Australia from various countries between 2019 and 2024.
| Country | Number of students in 2019 | Number of students in 2020 | Number of students in 2021 | Number of students in 2022 | Number of students in 2023 | Number of students in 2024 |
| China | 212,001 | 191,556 | 172,601.00 | 156,858 | 166,420 | 153,504 |
| India |
115,107 |
114,842 |
99,227.00 |
99,374 |
126,487 |
118,109 |
| Nepal | 53,527 | 52,320 | 45,385.00 | 56,601 | 62,379 | 57,010 |
| Brazil | 27,335 | 21,484 | 14,638 | 19,039 | 24,985 | 19,688 |
| Vietnam | 26,005 | 24,235 | 20,700 | 22,497 | 32,948 | 33,765 |
| Malaysia | 24,322 | 20,247 | 15,637 | 15,372 | 16,429 | 14,551 |
| Korea, Republic of (South) | 21,144 | 18,235 | 13,856.00 | 12,882 | 13,133 | 11,749 |
| Colombia | 20,715 | 18,835 | 14,650.00 | 22,597 | 39,724 | 30,124 |
| Indonesia | 18,059 | 17,484 | 15,697.00 | 16,912 | 21,267 | 20,098 |
| Thailand | 17,483 | 14,591 | 10,513.00 | 19,366 | 25,887 | 21,592 |
| Philippines | 17,323 | 17,257 | 14,356 | 17,887 | 35,589 | 35,678 |
| Pakistan | 15,139 | 15,085 | 13,760.00 | 15,704 | 23,379 | 21,573 |
| All Countries |
756,737 |
687,032 |
572,274 |
617,803 |
786,891 |
717,587 |
Data Source: Department of Education, Australian Government
