Indian students drifting away from US? Enrollment in American colleges see 45% dip, 25% rise in domestic B-schools

US study less appealing: Indian student enrolment drops 45%, domestic B-school applications rise 25%

A steep 45% drop in Indian student enrolments at US universities in August 2025, alongside a 25% rise in international applications to Indian graduate management programmes, signals a major shift in global business education patterns, according to the Graduate Management Admission Council (GMAC).

The findings, based on GMAC’s 2025 Application Trends Survey and detailed in its latest white paper, indicate that North America’s long-standing dominance as a preferred study destination is weakening, while Asia and continental Europe gain traction. Changes in visa policy, currency volatility, and affordability concerns are emerging as decisive factors influencing student choices.

US loses ground as Europe, Asia attract more applicants

The report shows international applications rose across Europe (excluding the UK) and Asia in 2025, while declining in the US, Canada, and the UK. In North America, the drop in overseas demand outweighed any increase in domestic applications.

GMAC’s Prospective Students Survey found that the share of non-US candidates preferring the United States fell to 42% in 2025, down from 57% in 2019. Preference for Western Europe held steady at 63%, while interest in Asia and Eastern Europe continued to grow. Preference for Western Europe also increased by six percentage points year-on-year.

Applications from Central and South Asia to institutions within their home region, as well as East and Southeast Asia, recorded steady growth, reflecting a broader regionalisation of management education.

India’s dual role in global education mobility

India is playing a complex role in this transition. While more than two in five Indian business schools still identify the US as their primary source of international students, overseas applications to Indian management programmes rose 25%, suggesting the country is increasingly positioning itself as a destination, not just a source market.

A separate GMAC pulse survey of 361 business schools found that 54% of programmes in the Asia-Pacific region reported higher international enrolment in fall 2025 compared with the previous year. In contrast, two-thirds of programmes in the Americas recorded declines.

Visa constraints hit Indian students hardest

The white paper highlights visa-related uncertainty as the most significant driver behind the 45% decline in Indian enrolments in the US. It points to the temporary suspension of student visa interviews in May 2025 under the Donald Trump administration, pending updated social media vetting guidelines, which created processing backlogs.

Many Indian students who had secured admissions and paid deposits were reportedly unable to begin their courses on time due to delayed appointments and approval uncertainties.

According to a GMAC survey of US institutions, 90% identified India as the leading country where admitted students failed to matriculate despite paying deposits. Institutions attributed this “deposit but no show” trend primarily to visa delays, denials, and interview bottlenecks.

Political signalling has further dampened sentiment. The report notes that international interest in US graduate management programmes declined steadily after January 2025. By December 2025, 40% of prospective international students said they were less likely to study in the US, with Indian candidates among the most discouraged.

Post-study work concerns and currency pressures

Beyond visa processing delays, uncertainty around post-study employment has also influenced decisions. Indian students, who often depend on post-graduation work opportunities to offset high tuition costs, have grown cautious amid ambiguity surrounding the H-1B visa and broader immigration policy direction.

Concerns over potential changes to the Optional Practical Training (OPT) programme, which allows students on F-1 visas to work for 12 months after graduation, have added to apprehensions, even though formal regulatory changes remain limited. GMAC notes that perceptions of a tightening immigration climate have had a measurable impact on enrolment decisions.

Financial pressures are compounding these challenges. The Indian rupee’s depreciation to record lows against major currencies in September 2025 has reduced purchasing power, prompting students to prioritise affordability over institutional prestige, the paper noted.