As Australia joins list of countries curbing Indian students, what options do you have?

Indian students looking to study abroad are finding their options increasingly limited as the most attractive destinations like the United States, the United Kingdom, and Canada have increased restrictions for foreign students.

The latest country to raise barriers, especially for Indian students, is Australia. With effect from January 8 this year, Australia has moved India into the “highest-risk category” for student visas, and has tightened scrutiny for Indian student applicants, citing “emerging integrity risks”. India now joins nations like Bangladesh, Bhutan, and Nepal in the highest-risk category.

However, the other side of the coin is that countries like Germany, Ireland, Japan, and South Korea are welcoming Indian students.

Challenges faced by Indian students

This “closing of doors” by the Big Four study destinations is driven by several factors – domestic economic pressure, crackdown on visa fraud, and political shifts.

1. Stricter visa rules

Several countries, including the United States, the UK, Canada, and Australia have introduced stricter visa requirements, including more rigid financial proof and language proficiency tests.

Also Read: New US H-1B visa rules: What students and IT professionals can expect

Australia has introduced higher English language proficiency standards and tougher financial requirements for international students.

2. Limits on post-study work permits

Nations like the UK and Canada have reduced the number of work hours allowed post-study. Many countries are shortening "Graduate Visas" or raising the salary thresholds needed to switch from a student visa to a work visa.

3. Housing and infrastructure crisis

In many Western nations, the post-pandemic surge in international students outpaced the construction of new housing. In cities like Toronto, Sydney, and London, locals have blamed the influx of students for driving up rents and making housing unaffordable.

Also Read: US proposes tighter social media screening for visitors from visa-free nations

Governments argue that rapid population growth has placed unsustainable pressure on healthcare systems and public transport.

4. Curbing ‘backdoor’ immigration

Governments are increasingly viewing the student visa as a "backdoor" to permanent residency rather than a temporary educational path. The UK has effectively banned most international master's students from bringing family members (dependents) to the country to reduce net migration numbers.

5. Crackdown on ‘ghost colleges’

There has been a global push to restore the "integrity" of the education sector by eliminating institutions that exist solely to facilitate visas. These are institutions that enrol students who work full-time instead of attending classes.

6. Political shifts

In an era of rising populism, international students have become an easy political target for governments looking to show they are "tough on immigration" before elections.

Also Read: US Senators introduce bill to tighten H-1B and L-1 visa rules

The US has introduced AI-powered monitoring and expanded social media vetting.

7. ‘International student levy’

Some countries, including the UK, are exploring or have introduced specific taxes or levies on universities for every international student they enrol to discourage "over-reliance" on foreign tuition.

New destinations

In 2026, the shift is towards countries like Germany and Japan where governments are using education to solve their own labour shortages.

Germany offers free education

Germany has become a primary destination, especially for Indian students. It offers free education in exchange for skilled talent. Most public universities charge zero tuition, only a semester fee of roughly €100–€350 (which often includes a transport pass). There are now over 2,400 English-taught programmes, particularly in STEM and Management.

Also Read: UK inflation: Study abroad journey for Indians gets tougher amid struggle for affordable living

Graduates get an 18-month job-seeker visa. If you find a job related to your degree, the path to a Blue Card (EU Work Permit) and Permanent Residency (often within 3 years) is very clear.

Japan: solving the labour gap

Japan is planning to raise enrolment caps by 5 per cent starting April 2026 to recruit "outstanding international talent" to support its aging economy. The country offers high safety and a unique blend of tradition and high-tech.

Also Read: US university dreams go farther from reach with tumbling rupee

Graduates can stay up to 360 days just to hunt for jobs. If you learn the language, the employment rate for graduates in engineering and nursing is reportedly nearly 100 per cent.

Ireland: The English-speaking EU alternative

Ireland has become the go-to destination for those who want an English-speaking environment with EU access. It offers a 2-year stay-back option for Master’s graduates (Level 9). Dublin is the European HQ for Google, Meta, and Pfizer, leading to high demand for graduates in data science and biotech.

South Korea

South Korea has hit its target of 300,000 international students ahead of schedule and is now aiming for even more by expanding English-taught courses. Tuition is 30–40 per cent cheaper than in the UK or US.

Also Read: Can prompt engineering be a standalone career? Zoho AI chief responds

The Global Korea Scholarship (GKS) is one of the most generous in the world, often covering airfare, tuition, and living stipends. For students in robotics, AI, and semiconductors, being near companies like Samsung and LG provides unmatched internship opportunities.