20% drop in Indians applying to study in UK, universities face funding issues

UK universities are seeing a 20.4% drop in Indian students, driven by visa restrictions, job concerns, and safety issues. The decline adds to the sector's financial strain.

In Short

• Indian student applications to the UK drop by 20.4%
• UK universities to face financial strain by 2025-26
• Canada, Australia gain as foreign students avoid the UK

UK universities are facing a financial pinch as a significant drop in international student numbers begins to strain their budgets.

According to a report from the Office for Students (OfS), applications from Indian students dropped 20.4% in 2023-24 compared to the previous year.

The OfS report revealed a steep decline in the number of Confirmation of Acceptance for Studies (CAS) issued to Indian students, falling from 139,914 to 111,329. This has raised concerns as Indian students, who recently surpassed Chinese applicants, were a major source of revenue for UK universities.

Several factors are discouraging Indian students from applying. These include restrictions on bringing dependents, limited job prospects, and concerns over safety, especially after anti-immigration riots in some cities.

Sanam Arora, Chair of the National Indian Students and Alumni Union (NISAU) UK, said, “Many reasons contribute to the decline in numbers, including the Conservative ban on dependents, confusion around post-study work visas, increase in skilled worker salary thresholds and an apparent lack of jobs in the UK.”

FINANCIAL IMPACT ON UNIVERSITIES

The decline in Indian and other international students, such as Nigerians (down 44.6%), is hitting universities heavily reliant on these demographics.

OfS warns that unless universities take significant mitigating actions, the sector could face a net income reduction of £3.4 billion by 2025-26, with up to 72% of providers operating in deficit.

The financial crunch has also been exacerbated by Brexit and inflation. The cap on tuition fees for domestic students, unchanged since 2017, is worth significantly less due to rising costs.

While the new Labour government recently raised the cap to £9,535, it falls far short of addressing the funding gap.

STUDENTS CHOOSE OTHER DESTINATIONS

The UK’s loss appears to be other countries’ gain. Canada, Australia, and the Netherlands are attracting students who value affordability, job prospects, and visa-friendly policies.

“The drop in international students has dramatically worsened the crisis for us,” said a UK lecturer on condition of anonymity.

Provost Ian Dunn of Coventry University highlighted the challenge, stating that European student numbers have plummeted since Brexit. He also noted that many universities are exploring overseas campuses as a solution, with Coventry University operating in Egypt, India, and China.

Experts suggest universities must address safety concerns, clarify post-study work visa policies, and improve employability support to stay competitive.

As Amit Tiwari, President of the Indian National Students’ Association (INSA) UK, pointed out, “Unless the government addresses these issues, the outlook for UK universities is bleak as they rely heavily on Indian students.”

(With inputs from agencies)