As Indian students face mounting delays and rejections, experts warn of ripple effects across research, STEM talent, and the future of American tech competitiveness.
Earlier this year, during a bilateral meeting between President Trump and Indian Prime Minister Narendra Modi, the two leaders issued a joint statement noting that the more than 300,000-strong Indian student community enrolled in U.S. universities contributes over $8 billion annually to the U.S. economy.
During the February meeting in Washington, D.C., both leaders also expressed their commitment to streamlining avenues for the legal mobility of students and professionals, and to facilitating short-term tourist and business travel.
Cut to summer, and quite the opposite seems to be unfolding. With new, stringent immigration policies emerging almost daily, closer scrutiny of visa applicants, and a ballooning backlog of student visa appointments in India, the American dream continues to grow more distant.
With just weeks to go before the fall semester begins, U.S. universities may lose up to 70–80 percent of their Indian student enrollment this year, says New York-based attorney Poonam Gupta of Summit Legal LLC.
Explaining the sharp decline, Gupta notes, “The F-1, M-1, and J-1 interview slots at U.S. consulates in India remain blocked or inconsistent. Booking portals open sporadically, often without confirmations.” She adds, “Consular officers are increasingly denying student visas under Section 214(b), with approval rates in key states plunging below 50 percent.”
READ: US immigration crackdown leads to sharp decline in Indian student visas (July 9, 2025)
In the 2023–24 academic year, with approximately 331,602 enrollments, India became the top source of international students in the United States, accounting for 27 percent of the total. However, the ongoing delays in visa processing have led many students to reconsider their plans to study in the U.S.
Sophie Alcorn, Founder and CEO of Alcorn Immigration Law and a State Bar of California Certified Specialist in Immigration and Nationality Law, highlighted the scale of the disruption. Speaking about the unprecedented delays and their impact on the U.S. economy, she says, “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.”
Sensing the urgency, a bipartisan group of 15 U.S. House members, led by Congresswoman Deborah Ross, recently urged Secretary of State Marco Rubio to address the growing backlog of student visa appointments in India.
Highlighting what may be at stake if thousands of Indian students are unable to join the fall semester, Allison Kranz, a Cambridge, Massachusetts-based principal attorney at Lodestone Legal, says, “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.”
Experts say the repercussions of the student visa delays will be felt not just by American universities, but also across the innovation pipeline and broader economy. Attorney Allison Kranz emphasizes that the education pipeline plays a critical role in the U.S. economic ecosystem: “Public universities in states like California and Michigan depend on international student fees to offset shrinking state funding. Reduced enrollment directly impacts budgets and program quality.”
READ: New reality hits Indian students seeking F-1, J, M visas: Waiting, rejection, and social media vetting (July 8, 2025)
She adds, “Indian students disproportionately fill STEM, medical, and research roles vital to U.S. scientific advance and hence visa delays disrupt these pipelines, too.”
According to immigration consultants, the delays will likely also affect OPT (Optional Practical Training) timelines, creating a ripple effect on future H-1B visa eligibility and the broader startup ecosystem. Research from Stanford’s Venture Capital Initiative shows that 44% of U.S. unicorn founders are immigrants, with India leading as the top country of origin. Collectively, these immigrant-founded companies are estimated to have a combined valuation of over $195 billion and employ approximately 55,000 people.
There may also be a direct correlation between STEM graduates and the strength of the U.S. tech economy, as studies indicate that 25% of engineering and technology companies founded in the United States over the past decade were started by immigrants, many of them from India. According to Inc42, 26% of the estimated 7,300 U.S. tech startups founded by immigrants have Indian founders.
READ: Indian students have second thoughts about US under Trump: Report (May 14, 2025)
This underscores that failing to attract international students—particularly from India—could have far-reaching consequences for U.S. job creation and economic competitiveness.
Attorney Alcorn warns, “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.”
When asked whether students have any legal recourse or if universities can escalate the matter should the backlog remain unresolved, Alcorn explains: “Should the backlog remain unresolved by August, immediate options for students and universities are narrow. Universities can organize collective appeals to the embassy or lawmakers, and students may try to request expedited interviews, but exceptions are rare and mostly granted for true emergencies. Realistically, if no administrative solution emerges quickly, some students may be forced to delay their studies or look for opportunities in other countries.”
READ MORE:
F-1 visa rejection for Indian students surges to highest in a decade (March 27, 2025)
Everything about premium processing for F-1 visas (March 21, 2023)
Record Indian students drive surge of foreign students to US (November 13, 2023)
India overtakes China in sending most students to US (May 2, 2023)
USCIS expands premium processing for certain F-1 students (March 7, 2023)