74,000 Indian Students Exit the UK — What Went Wrong?

Why 74,000 Indian Students Are Leaving the UK

A record 74,000 Indians exited the UK last year, signalling a reversal in one of the strongest international student flows Britain has depended on. Their departure is not merely a statistical spike—it is the outcome of stricter visa policies, shrinking post-study prospects, high living costs and a shifting global education landscape where competing countries appear more welcoming.

What the Numbers Reveal

According to ONS data for the year ending June 2025, Indians formed the largest non-EU nationality leaving the UK. Of the 74,000 who departed:

·       45,000 held study-related visas, and

·       22,000 were on work visas,

showing that both students and post-study workers are now moving out at scale. Simultaneously, applications from India for UK programmes have started to weaken—an early sign that the pipeline feeding British universities may be cooling.

Are Stricter Visa Rules the Culprit?

A major turning point came with the January 2024 visa overhaul, which:

·       barred dependants for almost all taught master’s students,

·       restricted that right mainly to PhD and select research scholars, and

·       created uncertainty around the Graduate Route, with political debates hinting at future tightening.

For Indian students—many of whom pursue one-year master’s degrees and often travel with family—these changes altered the cost–benefit equation dramatically.

The work route also narrowed. The 2025 “Restoring Control Over the Immigration System” white paper raised:

·       salary thresholds,

·       language requirements, and

·       eligibility criteria for the Skilled Worker visa.

This made the transition from study to long-term employment significantly tougher, especially in mid-skill fields like care, hospitality and administrative roles, where many fresh graduates begin their careers.

Why Indians Are Deciding to Leave

The combined effect has been a recalibration of expectations. Students now face:

·       tuition between £18,000–26,000,

·       rising accommodation and living expenses,

·       difficulty bringing spouses or children, and

·       far less predictable pathways to secure a job or gain settlement.

With clearer work-and-residency opportunities emerging in Canada, Australia, Europe and parts of Asia, many Indians are opting either to return home after graduation or to migrate onward instead of anchoring their future in the UK.

Implications for UK Universities

British higher education relies heavily on international enrolments to offset frozen domestic tuition caps. Indian students are currently the largest foreign cohort, making their exit financially dangerous.

Sectoral analyses warn that up to three-quarters of UK universities could face deficits if foreign intake drops by 30–40%. The exodus, therefore, reflects not just migration policy but systemic vulnerabilities embedded in the UK’s university funding model.

How UK Policies Compare with Canada and Australia

Although Canada, Australia and the UK have all tightened rules since 2024, their approaches differ sharply:

United Kingdom: The Harshest on Dependants

·       Bans dependants for most master’s students.

·       Graduate Route remains—but its future is politically unstable.

·       Higher salary thresholds make Skilled Worker transitions tougher.

Result: More short-term study, less appeal as a family-friendly long-term destination.

Canada: Caps and Controls, But PR Still a Magnet

·       National cap on study permits, though many master’s/PhD programmes are exempt.

·       Spousal work rights restricted mainly to higher-degree students.

·       PGWP still offers up to three years of open work with strong links to PR.

Result: More selective intake, but a clear work-and-settlement path for high-skill programmes.

Australia: Stricter Screening, Moderate Opportunity

·       New Genuine Student test screens for intent and financial depth.

·       Work-hour limits tightened to 48 hours per fortnight during term.

·       Graduate visas still provide 2–3 years of post-study work.

Result: Tougher entry but viable medium-term job routes, especially in shortage sectors.

A Market Losing its Edge

The departure of 74,000 Indians is not an isolated trend—it is a signal that the UK is rapidly losing competitiveness in the global education market. While all major study destinations are tightening rules, the UK stands out for sending the clearest message that long-term migration is unwelcome.

Unless Britain recalibrates its policy mix—balancing migration control with the economic needs of its universities—it risks ceding ground to Canada and Australia, both of which still offer clearer, more stable post-study pathways that Indian students increasingly prefer.

(With agency inputs)

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