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Why Indian students are crucial for US as New Delhi urges visa assessment on merit

FP Explainers May 30, 2025, 15:12:03 IST

Over 3.3 lakh Indian students study in the US. As the Trump administration tightens visa norms and adds scrutiny like social media checks, India has urged that students be judged strictly on merit

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Indian students study inside the Delhi University campus in New Delhi, India, September 20, 2013. Representational Image/Reuters
Indian students study inside the Delhi University campus in New Delhi, India, September 20, 2013. Representational Image/Reuters

As the United States recalibrates its visa policies for international students, India has expressed hope that applications from Indian students will be assessed on merit and processed in time.

With over 3.3 lakh Indian students in the US in 2023–24, India remains the largest source of international students to the country — making any changes to visa processes deeply consequential.

India hopes for merit-based visa assessments

The Indian government has responded firmly but diplomatically to recent developments surrounding US visa procedures.

At a weekly press briefing, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said, “While visa policy and issuing of visas is a sovereign function, we believe that all applications submitted by Indian students should be considered on their merit so that our students can reach universities in US on time to join their academic programmes.”

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Jaiswal reiterated that the welfare of Indian students abroad is a top priority for the Indian government. He confirmed that in the academic year 2023–24, approximately 3,30,000 Indian students were pursuing higher education in the United States.

This makes India the largest contributor to America’s international student population, accounting for nearly 30 per cent of the total 1.1 million international students enrolled in US institutions during that time.

The statement came in response to reports that the United States has temporarily suspended new interview appointments for various student visa categories — F (academic students), J (exchange visitors) and M (vocational students).

This pause reportedly comes as the US State Department awaits instructions on expanding scrutiny of visa applicants’ social media histories.

Jaiswal noted, “We have seen reports suggesting the U.S. government updated guidance regarding Student and Exchange Visitor visa applicants… While we note that issuance of visa is a sovereign function, we hope that the application of Indian students will be considered on merit and they will be able to join their academic programmes on time.”

Screening measures tighten under Trump

The backdrop to the Indian government’s appeal includes policy shifts within the United States, spearheaded by US President Donald Trump’s administration.

On May 27, American embassies and consulates were directed to halt the scheduling of new appointments for student and exchange visas, citing national security priorities and a desire to increase vetting.

The US State Department clarified that its screening process uses “all available information,” and new requirements compel applicants to disclose social media activity dating back to 2019.

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These measures are being introduced even as political pressure increases on universities, especially in the context of alleged antisemitism and criticism of US foreign policy in student spaces — issues that have drawn particular focus from US Secretary of State Marco Rubio.

Though the official rationale is enhanced vetting, the move fits into a wider pattern of immigration enforcement tightening. The current administration has already increased deportations and cancelled student visas in certain cases.

For Indian nationals specifically, Jaiswal disclosed that 1,080 Indian citizens have been deported from the US since January this year.

The US embassy in India has also issued a warning to students: skipping classes or discontinuing their programmes without notifying their institutions could result in visa revocation.

India ranks among top sources for student visas

Despite the recent slowdown in new appointments, historical trends show that India remains a priority market for US education.

Embassy data indicates a strong upward trend in student visas issued to Indian nationals over the last five years. While the combined total for 2018–2020 was below one lakh, that number rose significantly in following years.

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  • 2022: 115,115 student visas issued to Indians

  • 2023: 130,730 student visas issued

  • 2024: 86,110 student visas issued

Even with a noticeable dip in 2024, India retained its position as the top recipient of US student visas, surpassing China, which received about 82,000.

In a written reply to Parliament during the 2024 Monsoon Session, Minister of State for External Affairs Kirti Vardhan Singh provided a breakdown of Indian students studying abroad.

Out of a total of 1,335,878 Indian students globally, around 427,000 were in Canada, followed by 337,630 in the United States.

US economy makes billions off Indian students

Beyond individual achievements and economic contributions, international students overall play a vital strategic role in the American higher education ecosystem. According to the National Association of Foreign Student Advisers (NAFSA), international students contribute over $45 billion annually to the US economy.

In another analysis the Global Trade Research Initiative (GTRI) reported that Indian students studying in the US spend a total of over $25 billion annually, broken down into roughly $15 billion in tuition fees and another $10 billion in living expenses.

These students are concentrated at leading universities with average yearly expenses ranging from $87,000 to $142,000 per student.

Their presence strengthens bilateral ties and international goodwill, as many foreign students go on to become future global leaders, Nobel laureates, CEOs and policymakers.

The US continues to maintain global dominance in research and innovation in fields such as artificial intelligence, biotechnology, and economics, thanks in no small part to the influx of foreign talent.

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Analysts have long warned that policies aimed at restricting international student entry could lead to a brain drain — with top-tier global talent opting for other countries like Canada, the UK, Australia, or emerging hubs in Europe and Asia.

Indian Americans punch above their weight

The significance of the Indian student presence in the US extends well beyond enrolment figures.

According to Chartered Accountant and financial advisor Sarthak Ahuja, the Indian-American community, despite making up just 1.5 per cent of the US population (around 5.1 million people), contributes over 5 per cent of US’ tax revenue.

This speaks to their relatively high income levels, educational qualifications and professional engagement. In a widely viewed social media video, Ahuja highlighted several key statistics that showcase Indian Americans’ influence:

  • 10 per cent of all patents filed in the US have Indian-origin contributors

  • 10 per cent of US doctors are Indian, treating 30 per cent of the patient load

  • 11 per cent of unicorn founders in the US are of Indian origin

  • 60 per cent of hotels in the US are owned by Indian Americans

  • 70 per cent of colleges in the US reportedly have Indian-origin leadership

  • 78 per cent of Indian Americans hold college degrees, compared to the 36 per cent national average

  • 76 per cent work in high-skilled occupations

Indian-American children also dominate US national spelling bees — winning over 80 per cent per cent of competitions in recent years. Indian cuisine has also punched above its weight: although Indian restaurants represent just 1 per cent of eateries nationwide, they comprise 3 per cent of all Michelin-starred establishments in the US.

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Ahuja also pointed out the philanthropic impact: in 2023 alone, Indian Americans donated $1.5 billion to causes within the US and an additional $800 million to India.

The Pew Research Center also reported that the median income of Indian-American households in 2022 was $145,000, well above the $100,000 median for Asian Americans as a whole.

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With inputs from agencies

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