For decades, the American dream came with a clear route, get admission in a US university, stay back, build a career, and move up. For Indian students especially, the US was the undisputed gold standard. That equation is now breaking, and according to Indian-origin journalist Fareed Zakaria, the US has only itself to blame.
Speaking about the changing global education landscape, Zakaria said the decline in Indian students heading to the US is not a temporary dip, but a structural shift. “We’ve done this to ourselves,” Zakaria said, explaining how American universities have lost their unquestioned halo.
Why Indian students are turning away from America, explained by Fareed Zakaria
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"America has done this to itself. This is a $40-50 billion business and that is all going away. Now Indian students are going to Australia or the UK for a third of the price" pic.twitter.com/hfGURvxisz
Zakaria’s statement
Zakaria recounts a conversation with a friend who runs a company helping Indian students secure loans for overseas education.“My business is up 20% this year,” the friend told him. “But the American part of the business, Indians going to America, is down 50%.”
When Zakaria asked whether this was just a short-term blip, the answer was blunt, no. According to Zakaria, Indian students are discovering alternatives and liking what they see. “People are discovering the rest of the world. They’re discovering that they could go to universities in Australia, in Canada, in Britain and they’re realising that it’s a third the price. It’s a quarter the price.”
For years, US universities benefitted from what Zakaria calls a halo effect, the belief that any American university was better than the rest of the world, regardless of cost. That belief is weakening now. American higher education, he points out, is a massive industry worth $40–50 billion a year. “That’s all going away,” Zakaria warned. “And the influence that we have by educating the elite of the world is also going away.”
The numbers confirm the shift
The data backs Zakaria’s assessment. According to India’s Ministry of External Affairs (MEA), the number of Indians studying abroad fell 5.7% in 2025 compared with 2024, when the figure stood at around 1.33 million.
The Open Doors Report 2025 paints a similar image. Indian graduate enrolment in the US fell 10% in 2024–25, overall international student numbers are projected to decline 17% in Fall 2025, 61% of US universities reported reduced Indian enrolment, 96% cited visa-related concerns as the primary reason. Visa delays, policy uncertainty and travel restrictions are now central deterrents.
Why Indian students are moving away from the US
A separate analysis by education loan provider GyanDhan shows just how dramatic the change has been. Based on internal data between 2023 and 2025, the US, once the top destination saw a 63% fall in Indian student preference. US share dropped from 54% in 2023 to just 20% by Fall 2025 Europe has emerged as the biggest beneficiary of this shift. Ankit Mehra, Co-founder & CEO of GyanDhan, says the reasons are practical, not emotional.
“Rapid policy shifts and visa delays have become the single biggest factor,” Mehra said. Recent H-1B visa fee hikes, uncertainty around Optional Practical Training (OPT) and unclear post-study work pathways have made students rethink the US bet. “Students are making pragmatic, RoI-driven choices,” Mehra said. “They are looking beyond traditional destinations.”
Which are the other countries Indian students are opting for?
As the US stumbles, Europe is stepping in. Germany doubled its share from 4% in 2023 to 9% in 2025, due to low tuition and clear post-study work rules, Ireland saw a 1.5x rise, UK witnessed a 143% surge, capturing 39% of Indian students. Across major study destinations, US, Canada, the UK and Australia, frequent policy changes on visas, dependants, work rights and compliance have created confusion. Often announced without long transition periods, these changes leave families unsure about costs, timelines and outcomes. Indian students are pausing, re-evaluating, or widening their options
Data from the US Department of State shows that F-1 visas issued to Indian students fell 44% in the first half of 2025 compared with last year. Chinese student visas also declined, though by a smaller 24%.
Still, as Fareed Zakaria warns, the larger trend is hard to ignore. America may still attract students, but its position as the default destination is no longer guaranteed. And this time, Zakaria says, the US can’t blame anyone else. “We’ve done this to ourselves.”