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Why are Australian universities restricting Indian students from 6 states?

At least six Australian universities have imposed restrictions on student applications from Punjab, Haryana, Uttar Pradesh, Gujarat, Rajasthan, and Jammu and Kashmir after visa rejection rates for Indian students hit 24.3 per cent. The Australian Department of Home Affairs flagged one in four Indian applications as 'fraudulent or non-genuine', prompting universities to tighten admissions and review assessments read more Federation University, a public university in Ballarat, Australia has reportedly emerged as one of the primary institutions enforcing these limitations. Image/ Several Australian universities have reportedly introduced unprecedented restrictions targeting student applications from six Indian states — Punjab, Haryana, Uttar Pradesh, Gujarat, Rajasthan, and Jammu and Kashmir. This move, driven by serious concerns about student visa misuse and the perceived abuse of Australia's international education system, has reshaped the country's student intake dynamics, especially concerning one of its largest student-sending nations. These restrictions are not uniform across all educational institutions but are being independently implemented by select universities based on internal assessments and directives issued to their education agents. STORY CONTINUES BELOW THIS AD Most affected students now face either outright rejection of their applications or must undergo significantly more rigorous scrutiny, often involving extended documentation checks and elevated verification standards. Growing visa fraud and dropout concerns The root of the restrictions lies in a disturbing rise in the number of non-genuine applications from certain regions in India. According to recent figures shared by Australia's Department of Home Affairs, approximately 24.3 per cent of student visa applications from India have been deemed 'fraudulent' or 'non-genuine' — a level not seen since 2012. The agency flagged multiple patterns of misuse including the submission of forged academic transcripts, falsified financial records, and an intent to use education visas as a pathway to permanent immigration, rather than for genuine study. Authorities also pointed to academic disengagement and concerning dropout trends from students of the affected regions. Institutions reported that some students were shifting to different courses or universities shortly after arrival, or were prioritising off-campus work over academic responsibilities. In response, universities have tightened their recruitment processes and ceased engagement with education agents operating in specific high-risk regions. 'Dodgy providers have no place in our international education sector. These actions will help weed out the bottom feeders in the sector that seek to exploit people and trash the reputation of the sector,' Home Affairs Minister Clare O'Neil said in 2024. STORY CONTINUES BELOW THIS AD Key universities enforcing the restrictions The universities leading the implementation of these restrictions include Federation University and Western Sydney University, reported Y-Axis, a private publishing website that focuses on issues related to immigration etc. Federation University directed its education partners to stop recruiting students from Punjab, Haryana, Jammu and Kashmir, Uttar Pradesh, and Uttarakhand. The university observed 'a significant increase in the proportion of visa applications being refused' from these states. Similarly, Western Sydney University advised against student recruitment from Punjab, Haryana, and Gujarat, citing that students who began courses in 2022 from these regions showed 'a significantly high attrition rate'. The university's communication referred to these areas as posing 'the highest attrition risk'. Other universities adopting similar measures include Edith Cowan University, Victoria University, Southern Cross University and Torrens University. These institutions have not uniformly banned applicants from these Indian states but have either advised their education partners to pause recruitment or instituted elevated levels of applicant scrutiny. In some cases, admissions have been temporarily frozen while student sourcing strategies undergo review. Universities acting independently It is important to note that these restrictions are not part of any official policy from the Australian federal government. The Australian High Commission has clarified that there is 'no federal ban' on students from any Indian state. Rather, these are institution-specific decisions, based on individual risk assessments conducted by universities. These policy shifts follow repeated warnings from the Australian government over unethical student recruitment practices. STORY CONTINUES BELOW THIS AD In 2024, Canberra cautioned universities against admission strategies that encouraged record levels of migration without ensuring academic credibility or visa integrity. Increased financial requirements for international students Alongside the university-level restrictions, in 2024, the Australian government had revised its financial requirements for student visa applicants. Effective May 10, 2024, international students must now show proof of savings amounting to A$29,710 (approximately ₹16.2 lakh) to qualify for a student visa. This represents the second financial threshold increase in just seven months — up from A$24,505 (approximately ₹13.3 lakh) in October 2023, and A$21,041 (approximately ₹11.4 lakh) prior to that. According to the Department of Home Affairs, 'The financial capacity requirement has been updated to align with a proportion (75 percent) of the national minimum wage.' Additional financial requirements include: A$10,394 (approximately ₹5.7 lakh) for a spouse or partner (previously A$8,574) A$4,449 (approximately ₹2.5 lakh) for each dependent child (previously A$3,670) A$13,502 (approximately ₹7.4 lakh) for annual school costs (previously A$9,661) These hikes are intended to ensure that international students are financially self-sufficient, particularly as Australia faces ongoing housing shortages following the lifting of COVID-19 restrictions in 2022. Strain on education sector in Australia Australia has seen a rapid rise in international student enrollments over the past two decades. While domestic student numbers grew by 84 per cent between 2000 and 2020, international student enrollments surged by 370 per cent during the same period. As of 2020, international students made up 29 per cent of all Australian university students — more than double their share in 2000. This increase has turned international education into a major financial driver for universities, prompting debates over whether academic standards are being compromised to accommodate this revenue stream. The Institute of Public Affairs has raised alarms about the sustainability of this model, claiming that 'Australia's universities have been allowed to transform into little more than degree factories for international students.' STORY CONTINUES BELOW THIS AD Concerns over system integrity have only intensified with the revelation that despite lower dropout rates among international students (19 per cent) compared to domestic students (25 per cent), patterns of academic disengagement, especially from specific regions, are creating operational challenges for universities. Confusion among genuine applicants in India The new restrictions have caused widespread confusion and concern among legitimate Indian applicants, particularly those already in the visa pipeline or who had paid application fees. Education consultants across India report that hundreds of students have been caught off guard by the policy changes, which were not always publicly communicated in advance. India remains one of Australia's most significant sources of international students. Many education experts believe that unless this issue is resolved diplomatically or through better policy coordination, bilateral educational relations could be strained. The timing is particularly sensitive, as many students previously affected by stricter US student visa rules under President Donald Trump were looking to Australia as a viable alternative. What lies ahead? While some universities reportedly relaxed their restrictions towards the end of 2023, the general trend across the Australian higher education sector points to increased vigilance when processing student applications from regions with higher rates of visa rejections and attrition. The Australian Department of Home Affairs has confirmed that they are collaborating with universities to streamline visa processing and prevent abuse of the system. In the interim, education consultants are advising students from the restricted regions to plan well in advance, seek transparent guidance from credible agents and consider diversifying their university preferences within Australia. STORY CONTINUES BELOW THIS AD Also Watch: With inputs from agencies