India-UK trade deal may cushion blow of UK visa curbs on students: Experts

Business Standard

15-05-2025

On May 6, 2025, India and the United Kingdom concluded talks for a free trade agreement (FTA). Less than a week later, the newly elected Labour government under Keir Starmer released a white paper proposing sweeping immigration reforms.
The timing has stirred discussion on what these parallel developments could mean for Indian students, who have been one of the largest international student groups in the UK. The country has long been seen as a top choice due to its post-study work opportunities, prestigious universities, and clear education-to-employment pathways.
Can the FTA support Indian students in the UK?
Aritra Ghoshal, founder and director at One Step Global, believes the FTA could help, but only if education is explicitly included.
'Such agreements often go beyond goods and services; they open the doors for mobility of talent and recognition of qualifications,' said Ghoshal. 'If education is treated as a service under the FTA, we may see smoother visa norms, better mutual understanding of degrees, and maybe even work-integrated pathways for Indian students.'
Rahul Subramaniam, co-founder of Athena Education, said the FTA could make it easier for Indian graduates to work in the UK if it leads to mutual recognition of professional qualifications.
'It could lead to more exchange programmes, joint research projects, and potentially better visa arrangements,' he said.
Christopher Abraham, head of SP Jain School of Global Management in Dubai, said the agreement might even encourage UK institutions to increase collaboration with Indian universities. 'It could also encourage fewer financial or regulatory constraints, enabling Indian students to access better quality education in the UK,' he added.
But others are more cautious. Mamta Shekhawat, founder of Gradding.com, pointed to the government's shift in tone on immigration.
'The white paper establishes whole new approaches to migration, be it for education, work, or family. The pathway to permanent residency for students will become longer and more competitive,' she said.
Graduate route under review
One of the most discussed proposals in the immigration white paper is a review of the Graduate Route, which allows international students to remain in the UK for work after finishing their studies.
Key proposals include:
Shortening the Graduate visa from 2 years to 18 months
Limiting eligibility to graduates entering RQF level 6 and above jobs
Reviewing the long-term future of the route altogether
'The shortening of the Graduate Route period, coupled with heightened employment criteria, may be detrimental to perceived return on investment,' said Abraham.
New rules for sponsoring universities
The white paper proposes stricter oversight of institutions hosting international students. Changes include:
< Raising the Basic Compliance Assessment (BCA) threshold by 5 percentage points
< Introducing a red-amber-green rating system to classify universities by compliance levels
< Enforcing improvement plans and recruitment caps for poorly performing universities
< Requiring institutions to sign up to the Agent Quality Framework if they use international agents
Concerns have also been raised around asylum claims by international students nearing visa expiry, particularly from countries where conditions haven't changed. Students from lower-ranked institutions have shown the sharpest rise in visa grants, the white paper said.
Financial and visa restrictions
Among other proposals, a new levy on international student tuition fees is being considered, with proceeds going to the UK's higher education and skills system. The short-term English study visa is being reviewed due to a high refusal rate of 48% in 2024
Study visa grants peaked at 498,000 in the year ending June 2023, with student net migration at 262,000 in June 2024. Dependants of students rose sharply from 16,000 in 2019 to 143,000 in 2023, according to the white paper.
Indian students reconsidering options
'The recent tightening of post-study visa norms and immigration scrutiny has understandably made some students cautious,' said Ghoshal.
He added that while students haven't entirely turned away from the UK, many are comparing it more closely with countries like Australia and New Zealand, where the path to work or residency may seem more predictable.
'It's not about the UK becoming 'less attractive', but about students wanting greater clarity and assurance before making such a big decision,' he said.
Akshay Chaturvedi, founder and CEO of Leverage Edu, said the white paper proposals were expected and reflect a balance between different interests.
'From an India lens, with the UK-India FTA in the backdrop, we're likely to see prioritisation of talent in sectors like healthcare, technology, environment, culinary arts, and retail,' he said. 'I wouldn't read too much into the 24 to 18-month change on the Graduate Route.'
He also noted that the new English requirements were long due and welcomed stronger compliance through frameworks like the Agent Quality Framework. 'At least in India, we saw the British Council, BUILA and others drive this for a while now,' he said.
FTA could soften impact of immigration clampdown
Experts said the FTA could become a counterbalance to the tightening immigration rules, depending on how it is framed.
'If strategically leveraged, the UK-India FTA could restore confidence by promoting greater institutional collaboration, clearer qualification recognition, and smoother pathways for professional integration,' said Subramaniam.
Abraham agreed. 'Balanced policies that align immigration with talent branding will enable the UK to remain competitive,' he said.
Ghoshal added that a dedicated India-UK talent corridor, focused on education, tech, or research, could help regain lost ground—'but it needs to be more than lip service,' he said.