From “Howdy Modi” to a 25 per cent reciprocal tariff, the United States–India relationship has undergone a dramatic reversal, creating a geopolitical roller coaster that has stirred uncertainty across multiple sectors. Amid this turbulence, higher education has emerged as one of the most visibly affected areas.
Columbia University was at the centre of a research funding freeze several months ago, and media reports now indicate that the release of over USD 400 million in frozen funds may be contingent on the university reducing its financial reliance on international students. These actions suggest a deeper, more strategic agenda, seemingly aimed at narrowing the global footprint of America’s universities and aligning domestic education priorities with a more inward-looking political approach.
The US is home to around 4.8 million Indian Americans, accounting for 20 per cent of the nation’s Asian American population, with roughly two-thirds being immigrants, according to the US Census Bureau. The new clause now in play threatens not just the dreams of Indian students aiming to study in the US, but also the wider ambitions of those planning to launch their careers there after graduation.
Tightening Borders, Shifting Campuses
According to NAFSA: Association of International Educators, a non-profit body dedicated to international education and exchange, more than one million international students at US colleges and universities contributed over USD 40 billion to the US economy during the 2022–2023 academic year a sum larger than the entire gross domestic product (GDP) of several nations across Africa, parts of Asia, and small Pacific and island states.
This shift not only signals an end to aspects of globalisation but also raises concerns about its impact on research, innovation and equal access to opportunity.
“The recent policy measures aimed at restricting international student inflow to the US, particularly in the wake of the Columbia University case, present a significant challenge to the ideal of globalised higher education. These moves risk creating a chilling effect on student mobility, collaborative research and the cultural diversity that fuels academic innovation,” stated Satinder Kumar Sharma, Head International Relations Division, IIT Mandi.
While countries such as the US, long considered the epicentre of international education, begin tightening their stance on student visas or questioning institutions’ credibility, it sends ripples through the entire global education system. Students begin to rethink their choices, parents grow concerned, and universities worldwide feel the impact. It is not just about one country; it challenges the broader idea that education should be borderless.
Amruta Ruikar, Head of International Admissions and Promotions, Symbiosis International University, highlighted, "Stricter visa norms, increased institutional scrutiny and a more restrictive political climate may discourage international students, prompting them to consider alternative destinations.”
India’s Chance To Become A Global Education Hub
Indian institutions should see this as an opportunity to strengthen their global standing and attract talent, but only if they are prepared to back that ambition with action. Global stature is not given; it must be achieved. This requires strengthening faculty, improving infrastructure, encouraging research and building meaningful international collaborations. The aim should be relevance, not just recognition, added Sanyal. If institutions can deliver outcomes that matter, both academically and professionally, students will choose them willingly rather than as a last resort.
Collaborations with Europe, Australia and New Zealand offer a path forward, with Indian universities able to deepen partnerships with institutions in these regions now actively recruiting, offering joint or dual degrees that combine international prestige with India’s cost advantage. With greater investment in research infrastructure, faculty and global networks, India could also attract foreign academics and industry collaborations displaced from the US.
If institutions can deliver outcomes that matter, both academically and professionally, students will choose them willingly rather than as a last resort. “This is the right time for Indian institutions to elevate their global profile. By raising academic standards and deepening engagement with students, they can offer an experience that rivals international options,” noted Anand Achari, Principal at VES College of Architecture.
This shift poses challenges not only for international students but also for the US itself. Although they make up just 6 per cent of the US higher education population, one international student generates the financial equivalent of three in-state students. These funds go beyond supporting research and development; they help attract and retain world-class faculty.
“Indian institutions are uniquely positioned to harness the shifting tide. Globalisation has already increased student mobility into India, with international enrolments up around 14 per cent between 2020 and 2021,” noted Sanjeev Prashar, Director in Charge, IIM Raipur.
Europe Seizes The Student Shift
While this is undoubtedly a setback for students who aspire to study in the US, other destinations, particularly in Europe, are gaining ground. In the first week of May 2025, a group of European Union leaders gathered at the Sorbonne in Paris to unveil a bold new initiative: a 500 million euro investment to attract global researchers and students, dubbed “Choose Europe for Science”.
The Student and Exchange Visitor Information System (SEVIS) data show an 11 per cent decline in international student registrations, costing US institutions nearly USD 4 billion, with projections of a 40 per cent drop in new arrivals by autumn 2025, potentially amounting to USD 7 billion in losses and 60,000 jobs.
Debashis Sanyal, Director, Great Lakes Institute of Management, highlighted, “Students are already looking to countries such as Germany, Australia and the Netherlands, which are actively inviting global talent. Universities, meanwhile, are beginning to explore cross-border degree programmes, virtual global classrooms and international tie-ups that do not require physical relocation.”
It is a stark reminder of a geopolitical reality: there are no permanent allies or adversaries, and funding can be used to shape institutional priorities. For educational leaders, resilience lies in reducing dependence on any single country, broadening international partnerships, and building global networks and digital learning ecosystems that transcend borders.
By ensuring curricula remain globally relevant, adopting contemporary teaching practices and aligning infrastructure with international standards, institutions can stay agile, inclusive and competitive in an evolving educational landscape. |
