US Sees 6.9% Drop in Indian Students as Australia Moves India to High-Risk Category

The global landscape for Indian students seeking education abroad is undergoing a decisive shift, as the United States and Australia two of the most preferred destinations tighten visa regulations even while continuing to rely heavily on international talent. Recent data presented in Parliament reveals that the number of Indian students in the United States declined by 6.9% , falling from 378,787 in February 2025 to 352,644 in February 2026, marking a notable reversal after years of rapid growth.

Historically, Indian student enrolment in the US expanded significantly before 2017, driven by demand for STEM education and favourable visa conditions. Growth slowed during stricter immigration phases and dipped further during the pandemic, before rebounding strongly between 2021 and 2024. However, the latest decline is largely attributed to renewed visa scrutiny , including expanded background checks, mandatory social media screening , and the positioning of visas as a “privilege, not a right” tied to national security considerations. A sharp 69% drop in F-1 visas during mid-2025 highlights the scale of tightening, alongside stricter post-arrival compliance rules.

At the same time, Australia has introduced parallel restrictions by moving India into the highest-risk category under its Simplified Student Visa Framework (SSVF) . Effective January 2026, Indian applicants face stricter documentation requirements , higher financial scrutiny, and more intensive evaluation processes, reversing earlier relaxations and raising barriers to entry.

Despite these measures, both countries remain structurally dependent on international students . In the United States, while their share is relatively small overall, they dominate graduate STEM programmes and play a crucial role in feeding high-skill sectors such as technology and research . Australia’s dependence is even greater, with international students forming a significant portion of university populations and contributing directly to its skilled migration system and economic growth.

Indian students, in particular, continue to prefer postgraduate programmes , especially in fields like computer science, engineering, and data science, driven by strong global job prospects. Together, these developments point to a broader shift toward selective mobility frameworks , where opportunities remain strong but navigating a stricter, compliance-driven visa environment is becoming essential.