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23% drop in Indian students choosing UK: Are visa rules driving them away? | Personal Finance

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23% drop in Indian students choosing UK: Are visa rules driving them away? | Personal Finance



For years, the UK has been a top choice for Indian students seeking higher education abroad. However, recent data from the Home Office suggests a shift in this trend, with Indian students now showing signs of being deterred from applying to UK universities.


What do the numbers reveal?


According to Home Office statistics for the year ending June 2024, there has been a 23% decline in the number of Indian students coming to the UK for higher studies. Despite Indians still being the largest group granted leave to remain on the Graduate Route visa, which allows foreign students to work in the UK for two years after their degree, this drop is notable. In raw numbers, there were 110,006 sponsored study visa grants to Indian nationals, 32,687 fewer than the previous year.


Anuj Gupta, CEO of Youngrads, an online student recruitment platform, commented on the situation, saying, “Indian students are now hesitant to apply to UK universities for a Master’s degree due to stricter visa regulations implemented earlier this year. These regulations particularly affect their ability to sponsor family dependents, spouses, or children, as well as preventing students from switching to work visas until they finish their studies.”


What are the new visa restrictions?


The decline in student numbers seems to be closely linked to new restrictions imposed by the UK government. Earlier this year, tougher rules were introduced, particularly targeting the ability of student visa holders to bring dependent family members to the UK. This change has had a direct impact on prospective Indian students, many of whom would previously have brought their spouses or children with them.


Here are the recent changes in UK student visas:


1. Restrictions on dependents: International students (except those on research courses or with government-funded scholarships) can no longer bring family members, including spouses or children, with them to the UK.


2. Graduate Route Visa (GRV): The GRV allows students to stay in the UK for two years after completing a bachelor’s or postgraduate degree, and three years for PhD students. This visa is non-extendable and does not count towards permanent settlement.


3. Switching to work visas: Students are now prohibited from switching to a work visa until they have completed their degree-level course. PhD students are allowed to switch into a sponsored work route 24 months after the start of their course.


4. Financial requirements: Students must demonstrate sufficient financial means to support themselves and any dependents during their stay, with stricter enforcement of these requirements.


The financial requirements according to the UK Home Office are:


a. In London: £1,334 (Rs 1,46,910) per month for up to 9 months (maximum £12,006).


b. Outside London: £1,023 per month for up to 9 months (maximum £9,207).


Dependents:


In London: £845 per month per dependent.


Outside London: £680 per month per dependent.


These funds must be in your account for at least 28 days before applying for your visa. Meeting these requirements is essential to avoid any issues with your application.


5. English language proficiency: Tighter regulations on proving English language proficiency, with more stringent verification of test results and qualifications.


How do Indian students land in UK universities?


Indian students typically enter UK universities through a variety of routes, including undergraduate and postgraduate study programmes. Two main routes are:


1. India-UK Young Professionals Scheme


The India-UK Young Professionals Scheme, part of the broader UK-India Mobility and Migration Partnership, was designed to encourage young graduates to live and work in either country for up to two years. However, uptake has been lower than expected, with only 2,234 Indian nationals participating since the scheme’s first ballot in February last year, according to official data. This is well below the annual cap of 3,000 visas.


The scheme’s underperformance, combined with the drop in student numbers, could indicate broader challenges in the UK’s efforts to attract and retain Indian talent.


2. Graduate Route Visa


The Graduate Route visa, introduced in July 2021, has been a significant attraction, allowing students to remain in the UK and work for two years post-graduation.


This visa provides an opportunity for students to gain work experience and explore job opportunities in the UK.


As of the year ending June 2024, 67,529 Indian nationals were granted leave to remain in the UK under the Graduate Route Visa. This number represents almost half (46%) of all Graduate Route extensions granted to main applicants during that period.


What impact will the decline have on the UK?


The drop in Indian student numbers is likely to have wide-ranging effects on UK universities and the broader economy. Universities have come to rely on the higher tuition fees paid by international students, particularly those from India, to support their finances. A decline in these numbers could exacerbate the financial pressures already faced by many institutions.


The financial impact extends beyond just the universities. International students, including Indians, contribute significantly to the UK economy through tuition fees, living expenses, and even post-graduation work. The National Indian Students and Alumni Association (NISAU) UK, in a letter to Downing Street, stated that a single cohort of international students contributes approximately GBP 37 billion to the UK economy. They also noted the diplomatic and cultural benefits that come with educating future leaders from around the world.


The decline in Indian students could also affect the UK’s global standing in education. As universities like Oxford, Cambridge, and Imperial College London are renowned for their innovation and research, a drop in international student numbers could hinder these institutions’ ability to maintain their status.


There is also concern that fewer international students will lead to reduced funding for research and less diversity on campuses, which could diminish the educational experience for all students. Universities across the north of England, from Sunderland to Newcastle, have already raised alarms through letters to the government about the potential financial crisis they face if international student numbers continue to fall.


The universities are urging the government to reconsider further restrictions on international students, warning that it could lead to university closures and job losses, especially after a dramatic 63% drop in postgraduate student registrations for the upcoming academic year.

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