Tier II and III Cities Driving India’s Next Wave of International Education Aspirants: Macquarie University Director

Traditionally, global institutions have focused their student recruitment efforts on major metropolitan areas like Mumbai, Delhi NCR, Bangalore, Chennai, and Hyderabad.

India’s Tier II and III cities are fast emerging as key recruitment hubs for foreign universities, according to Abizer Merchant, Director (India and Sri Lanka) at Macquarie University, Australia. Traditionally, global institutions have focused their student recruitment efforts on major metropolitan areas like Mumbai, Delhi NCR, Bangalore, Chennai, and Hyderabad. These cities have long been preferred due to higher income levels, better English communication skills, and students’ aspirations for international exposure.

However, Merchant notes that cities such as Ahmedabad, Chandigarh, Jaipur, and Kolkata have also seen consistent outbound student traffic, owing in part to the presence of visa application centres and diplomatic missions. Yet the most significant shift in recent years has been the growing contribution of Tier II and III cities to the international student landscape.

“Over the past 10 to 15 years, and consistent with India’s economic growth, there is growing demand for international education from Tier II and III cities,” says Merchant. “In fact, for some foreign universities, these cities provide larger student volumes than the Tier I cities identified above.”

One of the major enablers of this trend is improved connectivity. Many smaller Indian cities now have operational airports, with some offering direct international flights. Cities like Pune, Amritsar, and Kochi, for instance, are now more accessible to representatives from foreign universities, allowing for deeper engagement and outreach.

Moreover, universities from countries such as the US, Canada, Australia, and across Europe have begun to realise that Indian Tier II and III cities, despite their classification, often house populations ranging from 2 to 8 million—comparable to major cities in their own home countries. “From their perspective, these are not small markets,” Merchant explains.

The shift is also being driven by a confluence of socio-economic and educational factors:

Limited access to top-tier higher education locally – Students in smaller cities often lack proximity to high-quality institutions, prompting them to look abroad.

Aspirational youth – Many students from these cities are eager to participate in India’s growth story by acquiring global credentials that enhance employability and entrepreneurial potential.

Migration motives – A sizeable segment of students from these cities also pursue international education as a pathway to better quality of life and long-term migration, inspired by the achievements of the Indian diaspora.

Rising quality of school education – Enhanced school-level instruction has led to improved English language skills, helping students better meet entry requirements for foreign universities.

For newer entrants in the Indian education recruitment landscape, Tier II and III cities offer fertile ground. “Students in these cities may be more open to exploring newer destinations and institutions as compared to their Tier I counterparts, who often have entrenched preferences influenced by existing alumni networks,” Merchant points out.

Despite slightly lower average income levels compared to metropolitan regions, students from smaller cities are increasingly demonstrating both the willingness and the ability to invest in high-quality international education.

“From brand-building to enrolment growth, the opportunity in India’s non-metro cities is immense,” Merchant concludes. “Foreign universities that adapt to this shift and engage with these emerging markets strategically will be best positioned to tap into India’s expanding education potential.”