Is US Still The Dream Destination For Indian Students?

For decades, Indians have been going to the US, the land of opportunity to build careers, lives and raise the next generation. Most first landed there as students. According to the Student and Exchange Visitor Program (SEVP), which is part of the US Immigration and Customs Enforcement (ICE), in 2024, 422,335 Indian students went to the US, a figure that was 11.80 per cent higher than the previous year.

The recent restrictions on the H-1B visa, however, can throw a spanner in the works for many Indians aspiring to work in the US. The US administration under President Donald Trump has introduced a one-time $100,000 fee (up from $2,000-5,000) for US employers sponsoring new applications for H-1B visas filed on or after September 21, 2025. Renewals and existing H-1B visa holders are not affected by the restrictions.

In fact, Indian student arrivals in the US saw a significant decline in 2025. In August, 41,540 students arrived, marking a 44.50 per cent drop compared to August 2024, while July saw 13,027 arrivals, a 46.30 per cent dip from the previous year, according to the US International Trade Administration’s I-94 Arrivals Program.

It’s not clear though if the drop is related to the US restrictions.

Will the restrictions affect the number of Indian students going to the US? Let’s find out.

The Dream Of Migration

H-1B visa is a key factor for international students as it lets them work in the US temporarily after graduation.

Jitin Chawla, co-founder of Unone, an AI-based platform for career counselling based in Delhi, while talking to Outlook Money, highlighted the different categories of students going to the US. “There are students aiming for Ivy League universities, high performers with strong backgrounds. Then there are those exploring multiple countries and thinking about career and PR opportunities. And finally, there are students who view US studies mainly as a route to migration, but that category has largely declined due to recent policy changes mostly affecting new applicants.”

Many Indian students going to the US for higher studies opt for STEM (science, technology, engineering and math) courses.

According to the Open Doors Fields of Study by Place of Origin survey, sponsored by the US Department of State and supported by the Institute of International Education (IIE), in 2023-24, more than 75 per cent of Indian students (out of 331,602) who went to the US enrolled for STEM courses compared to less than 3 per cent who went for humanities and social sciences. The figure was 75-76 per cent in the previous two years.

While both STEM and non-STEM students need H-1B visa to work in the US, the demand from STEM aspirants is more due to their overwhelming number. But this requirement comes at a later stage. As students, they have other options.

Says Sonal Kapoor, global chief business officer at Prodigy Finance, an international student lending firm headquartered in London with an office in Bengaluru: “For international students, part-time on-campus jobs in places like the library, cafeteria, or administration offices are allowed and don’t affect the visa status. Then, most postgraduate students focus on Curricular Practical Training (CPT) for course-related internships and Optional Practical Training (OPT) after graduation. STEM students can extend OPT by 24 months, gaining up to three years of practical experience, which strengthens their resumes and helps with future opportunities, including obtaining H-1B visas to work in the US.”

Non-STEM students can travel on F-1 visas and get 12 months of OPT, but unlike STEM students, they usually get one year of work authorisation, she adds.

It is after completing their OPT that many students consider H-1B visas to continue working in the US. According to US Citizenship and Immigration Services (USCIS), the H-1B program allows US businesses to temporarily employ foreign workers in specialised jobs needing technical or scientific expertise, like engineering, science, or programming.

H-1B visas are granted for three years and can be extended by another three, which allows longer-term work in the US. To stay longer, they need a US employer to sponsor them.

Training Matters

The restrictions on H-1B visas, however, are not the only consideration for students aspiring to study in the US. Students also recognise the strategic value of post-study internships in the US.

From on-campus part-time jobs to post-study practical training, students carefully plan their paths to gain experience and strengthen their career prospects outside the US and even their claim for H-1B visa.

Says Nalini Agrawal, co-founder and director, KC Overseas Education, a study abroad consultant firm based in Nagpur: “Sectors driven by innovation and skill shortages, such as AI, healthcare technology, sustainable energy, and financial analytics, are expected to continue expanding for Indian graduates. Roles that depend on large-scale cross-border deployment may slow down, but US firms with local or hybrid operations will keep hiring talent trained in the country.”

Even with recent H-1B changes, many STEM students remain determined to pursue the US due to better post-graduation opportunities, says Kapoor.

She says: “There is an interesting divide among students: in the big metro cities. Many male students view a US degree as a way to boost earnings and build an international career, whereas students from Tier III and Tier IV cities, especially women, often aim to complete their degrees and return home to make an impact locally.”

According to Pallavi Jha, chairperson and managing director of Dale Carnegie India, a global professional business trainer, Mumbai, internships and US work experience are strategically important for Indian students, as many full-time offers come from companies where they previously interned.

She adds that opportunities are unevenly distributed, often favouring students with strong networks, prestigious internships, or university connections. Therefore, OPT has become a high-stakes period for showing value, careful preparation, and relevant experience. Also, networking is essential for obtaining long-term employment and H-1B visa sponsorship.

The State Of Uncertainty

Changes in US visa policies can complicate students’ plans for working in that country after graduation and add uncertainty to their future career choices.

“The H-1B visa system acts as an invisible barrier shaping job opportunities for Indian students in ways that are not immediately visible,” says Jha.

She adds: “In addition to the lottery odds, the uncertainty itself makes employers concerned, particularly smaller companies or start-ups, who frequently prefer to hire US citizens or permanent residents.”

Students must be extraordinarily skilled to overcome the perceived friction cost of visa sponsorship and persuade employers to invest in them. “This uncertainty also affects career mobility, as students often feel unable to take risks, such as switching jobs or negotiating offers, because their legal status actually depends on their employment,” says Jha.

The Silver Lining

Within The US: There are options available, however. Jha recommends Indian students to take an integrated strategy rather than focus primarily on the H-1B path. She says focusing on multinational corporations with extensive Indian operations, such as Microsoft, Google, Amazon, and major consultancy firms, which can allow internal transfers through L-1 visas, can help. Students can also explore research institutions in emerging US cities like Austin or Raleigh-Durham, Jha adds.

Kapoor believes in the talent of Indian students. “International students, whether STEM or non-STEM, are highly talented and hardworking, and employers typically support strong candidates, even if it means additional costs,” she says.

Agrawal says that while the new H-1B policy has introduced a certain degree of uncertainty, it is not a closure. “It will make employers more selective and students more strategic. For genuine and capable graduates, opportunities in the US will continue, perhaps in a more competitive, but ultimately more merit-driven environment. Policies may change, but the demand for skilled, flexible professionals remains constant,” she says.

Global Options: With rising uncertainty around the US visa and post-study work, experts believe that Indian students can evaluate alternative countries to advance their education and careers.

While discussing alternative options, Chawla says that students looking at Masters degrees are increasingly looking at Europe, especially Germany, Sweden, and Finland, due to affordable tuition and new English language programs.

He says: “Japan is emerging as a promising option, while Australia, New Zealand, and Ireland are also becoming strong option for students. Dubai and other parts of the Gulf region are particularly attractive for Indian students.”

He believes Indian students have several opportunities outside of the US to build successful careers.

Chawla shares an example of a student who was planning to go to Boston for his post-graduation, but has now opted for The University of Melbourne in Australia. “The university’s ranking, better post-study work options, and easier permanent residency (PR) opportunities in Australia influenced the decision,” he says.

Looking ahead, experts believe that while the landscape may be more competitive, skilled and adaptable students can still find meaningful opportunities both in the US and elsewhere.

manas.malhotra@outlookindia.com