Key facts
- Indian students are increasingly choosing domestic institutions over foreign ones.
- Stricter immigration rules, rising costs, and job uncertainty abroad are key drivers.
- F-1 student visa issuances in the U.S. for Indian students dropped by 67% in mid-2025 compared to the previous year.
- The U.K. has implemented tighter financial requirements and visa restrictions for dependents.
- Global hiring, particularly in the tech sector, has become less accommodating, impacting entry-level roles.
Indian students are increasingly reconsidering their plans to study abroad, with a notable shift towards domestic higher education institutions. This trend is largely attributed to a confluence of factors including tighter student and work visa regulations in major destinations like the U.S., U.K., Canada, and Australia, coupled with escalating costs and growing uncertainty about post-graduation employment opportunities.
Official and private surveys indicate a significant decline in F-1 student visa issuances for Indian nationals in the U.S. during mid-2025, a stark contrast to the previous year. The U.S. has also seen increased uncertainty and expense for corporations sponsoring H-1B visas, creating an unclear post-study work pathway for students. Similarly, the U.K. has raised entry barriers, particularly for students' dependents, and implemented more stringent financial requirements for students.
Students like Abhiprit Saha, who pursued Environmental and Resource Economics in the U.S., and Bhavya Amin, who completed an MS in Finance in the U.K., have chosen to return to India due to unpredictable immigration policies, rising living costs, and reduced opportunities for foreign graduates. The founder of an education consultancy firm noted that rising visa rejection rates, a global tech slowdown, and tightening post-study work policies are prompting students to return from these key destinations.
Experts like Eela Dubey, Co-founder of EduFund, highlight that Canada's study permit caps and the U.K.'s restrictions on dependent visas have further complicated matters. Fewer employers are willing to offer visa sponsorship, especially in the U.K. and Australia. The persistent depreciation of the Indian rupee has also significantly increased the real-term burden of international education loans. Rohan Ganeriwala, Co-founder of Collegify, points out that the shrinking job market, particularly in technology, makes securing entry-level roles and navigating the path to employment and visas far less predictable, leading students to make rational decisions based on these challenges. The rapid adoption of AI has also contributed to a hiring dip in traditional tech and consulting sectors, further reducing opportunities.