Experts Warn Of Crisis For US Universities, Tech Sector Amid Indian Student Visa Delays

Last Updated:August 07, 2025, 22:38 IST

US universities may see a 70-80% drop in Indian student enrollments due to visa delays, impacting the economy and tech sector

India is the largest source of international students in the US, with about 331,600 enrolments, 27% of the total, in the 2023–24 academic year. (File photo: Getty Images via AFP)

Visa delays for Indian students threaten to disrupt the incoming autumn class, with US universities expecting a sharp drop, up to 70–80%, in Indian enrolments this year.

According to a report by The American Bazaar, these delays are more than an educational problem, they pose serious risks to the broader innovation pipeline and the US tech sector.

Since US President Donald Trump came to power, the country has implemented stricter immigration policies, increased scrutiny of visa applications, and seen a growing backlog of student visa appointments at US consulates in India.

Poonam Gupta, a New York-based attorney at Summit Legal LLC, told the publication that booking systems for F-1, M-1, and J-1 visa interviews remain unreliable. Even when students secure appointments, visa refusals under Section 214(b) have risen, with approval rates in some regions dropping below 50%.

India is the largest source of international students in the US, with about 331,600 enrolments, 27% of the total, in the 2023–24 academic year. Yet, ongoing visa delays are forcing many to reconsider their plans.

Sophie Alcorn, an immigration law specialist in California, warned that the issue goes beyond delayed university starts.

“Delays are threatening not only students’ academic plans, but also the broader U.S.-India partnership in education, science, and research. Indian students contribute nearly $9 billion to the U.S. economy each year, and their presence is vital for STEM research, university budgets, and campus diversity," she noted.

A bipartisan group of 15 US House members, led by Congresswoman Deborah Ross, has urged Secretary of State Marco Rubio to tackle the backlog.

Allison Kranz, an attorney from Massachusetts, noted the impact on local institutions: “Many of these students are engaged in research and advanced study roles at institutions across congressional districts, including universities in Arizona, Illinois, Texas, and Michigan."

Public universities in states like California and Michigan rely heavily on international student fees to make up for shrinking state funding, so fewer enrolments affect their finances and program quality.

Kranz also warned these delays may disrupt Optional Practical Training (OPT) timelines, affect future H-1B visa eligibility, and slow growth in the startup ecosystem.

According to Stanford’s Venture Capital Initiative, 44% of US unicorn founders are immigrants, with India as the leading country of origin. Their companies have a combined valuation exceeding $195 billion and employ around 55,000 people. Nearly a quarter of US engineering and tech firms founded over the last decade were started by immigrants, many Indian.

“If the backlogs persist, and large numbers of Indian students cannot arrive for the fall term, universities may face financial strain, research teams could be disrupted, and global competition for top talent will intensify," Alcorn cautioned.

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