How policy changes in USA may impact student mobility, budgeting decisions, and the overall study-abroad experience

Time of India

09-07-2025

A record number of Indian students, 331,602, enrolled in U.S. institutions in 2023-24, marking a 23% increase. Policy shifts and a new remittance tax in the U.S. are prompting students to explore alternatives like Europe, where Germany and France are gaining popularity. India is also emerging as an education hub, with international universities establishing campuses to retain students.
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com .)
As per the Open Doors Report 2024, a record-breaking 331,602 Indian students enrolled in U.S. institutions during the 2023–24 academic year, a strong 23% jump from the previous year. Indian students now represent 29.4% of the international student body in the U.S., the highest share ever. While this growth is encouraging, evolving visa policies and added scrutiny around F-1 visa applications have introduced new steps in the journey for some students.Recent changes and proposals in U.S. federal policies have added new considerations for international students , including those from India, as they plan their academic futures. For instance, the eligibility period for renewing a visa interview waiver has been reduced from 48 months to 12 months. There have also been discussions around potential changes to the Opt ional Practical Training (OPT) program. Currently, F-1 visa holders can work in the U.S. for up to a year post-graduation, with students in STEM fields receiving an additional two-year extension. This pathway has long been a vital bridge between education and career, helping the U.S. retain skilled global talent. While some of these proposed changes may cause uncertainty, they also highlight the importance of staying informed and making well-researched decisions.Despite these shifts, the U.S. continues to be a leading destination for Indian students, thanks to its top-tier universities, strong research ecosystem, and global career prospects. For students and families, the evolving policy environment simply means weighing long-term value alongside short-term logistics more carefully than before.The remittance tax proposal in the US has gone through quite a journey. It started with a 5% tax in the early drafts of the One Big Beautiful Bill Act, was later brought down to 3.5% in the House version, and now the Senate has settled on 1%.This is the first time such a tax is being introduced, and while 1% is still a new cost, it's a big relief compared to what was originally planned.Many Indian families depend on money sent from the US to cover things like education, medical bills, and household expenses. A 5% tax would've made that support more difficult. Bringing it down to 1% feels more fair, it shows that there's an understanding of how important these remittances are. We've been following this closely, and the new rate feels more reasonable. It shows that policymakers are open to feedback and willing to make changes when needed. With Indian students alone contributing over $17 billion to the US economy every year, decisions like this go a long way in keeping trust strong and relationships positiveOn the other hand, the U.S. government stands to benefit by collecting extra revenue, mostly from non-citizens, without necessarily providing any added services in return.Still, for most students, this isn't likely to be a deal-breaker. Yes, it's an added cost, but it's also part of a much bigger opportunity. Studying in the U.S. gives access to world-class education, global exposure, and career opportunities that can open many doors. For many, it's a small trade-off for the chance to chase bigger goals and be part of the American Dream.With US presenting uncertainties, it is obvious for the Indian students to explore alternatives beyond traditional destinations. Europe has emerged as one of the top destinations for international students, driven by its rich cultural heritage, diverse academic offerings, and the continued growth of world-class universities. As per the University Living European report, Germany, France, Italy, Spain, Portugal, Austria, and Malta are fast emerging as welcoming destinations for international students.Recent data shows that Germany has seen 35 per cent surge in university applications from Indian students, reflecting a growing interest in the country's education system.Similarly, France hosted 7,344 Indian students in 2023-24, with numbers expected to grow by 200% by 2030. In 2025, Italy is expected to host 9,186 Indian students, with projections indicating a significant 540% growth by 2030 according to University Living European Student Landscape report, touching an estimated 25,067 students.Austria, Portugal and Malta come as new names that are emerging as international student destinations. For Austria, the number of Indian students was a little over 744 in 2023, but it is estimated to grow at 114% to 1,287 by 2030. Portugal, the number of Indian students was a little over 300 in 2024, but the number of India's student is set to grow steadily, with a projected increase of 71% by 2030 to 597. Malta the number of Indian students to grow by over 350% by 2030, from 279 in 2021 to over 1,278 in 2030.Amid global policy shifts in traditional study destinations, India is making significant strides to emerge as a next-gen education powerhouse. The UGC has officially approved five international universities to establish full-fledged campuses in India, including the Illinois Institute of Technology ( USA ), University of Liverpool (UK), Victoria University (Australia), Western Sydney University (Australia), and Istituto Europeo di Design (Italy).These institutions, opening between 2026-27, will offer world-class education right here in India.On top of that, Education Minister Dharmendra Pradhan recently announced that 15 foreign universities, particularly in STEM fields, will open branches in India in the current academic year.This initiative aligns with NEP 2020's vision of internationalising education and curbing the outflow of Indian students and dollars for foreign degrees.These global campuses mean Indian students can access internationally recognised curricula, research facilities, and industry linkages without leaving home.(The author is the Founder and CEO of University Living)