India has a shot at the space US universities are vacating—but only with bold reforms

If that sounds melodramatic, consider this: In the past few days, Trump has used his executive powers to freeze billions in federal grants to elite higher education and research institutions, and has cancelled millions more in federal contracts.

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Harvard University has had $2.26 billion in grants and contracts frozen or cancelled. Cornell has lost $1 billion in federal funds. Northwestern lost $790 million. Brown faces a $510 million axe, and Columbia—despite meeting most of the administration’s demands—lost $400 million, and potentially up to $1 billion. The University of Pennsylvania lost $175 million for supporting Lia Thomas, the first openly transgender athlete to win a national collegiate title. Trump had, in February, issued an executive order banning trans athletes from participating in women’s and girls’ sports.

None of this should come as a surprise. During his campaign, Trump vowed to crack down on schools that promote “critical race theory, transgender insanity, and other inappropriate racial, sexual, or political content," and pledged action against any institution that imposed vaccine or mask mandates.

And money isn’t the only weapon he is wielding against the universities. There has been an unprecedented crackdown on foreign students in the US. Thousands have had their student visas cancelled, many arrested for even minor offences and several deported. According to an AP report, 1,024 students in more than 160 colleges and universities have had their legal status cancelled, leaving them at risk of summary arrest and deportation.

An immigration lawyers’ association estimates the total to be over 4,000. A significant number—perhaps more than half—are Indian students, who make up over a third of the more than one million international students in the US, and form the largest single group.

This constitutes a major threat to US universities. Indian students contribute immensely to both the American education system and economy. Last year, over 330,000 Indian students were enrolled in US universities. At an estimated annual spend of $50,000 per student (including tuition and living expenses), this amounts to over $15 billion a year.

The crackdown is already affecting enrolments. 

According to an Association of American Universities report, Indian student enrolments have dropped as much as 28% between March 2024 and March 2025. Trump’s threat to shut down the Optional Practical Training (OPT) visa programme—which allows international students to work in the US for a couple of years after graduation—puts another 97,000-plus students at risk. Enrolments for the fall 2025 semester are already down. The US is also tightening student visa approvals for Indians, and the numbers are reportedly falling.

All this presents a massive window of opportunity for the Indian higher education system. With over 1,000 universities and more than 50,000 colleges, India has the capacity not only to absorb much of the talent that would have otherwise headed to America, but also to position itself as a destination for aspiring students from other countries—especially since Trump’s crackdown on foreign students appears to be broadly applied.

India also offers a massive cost advantage. The country's elite engineering, medical and management schools cost a fraction of the US. It offers a familiar cultural environment for students from South and West Asia and Africa. A booming economy, thriving start-up ecosystem, and expanding research and manufacturing base give STEM students a shot at viable internships and job prospects.

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But that’s where the positives end. There’s a reason India hosts only around 47,000 foreign students, as per the Education Ministry’s last All India Survey of Higher Education. The quality of education is largely poor, with a few notable exceptions. Visa processes are cumbersome. Infrastructure tailored for international students—like affordable, quality housing—is minimal.

Social issues abound. For all the rhetoric around vasudaiva kutumbakam (the world is one family), foreign students, especially from African countries, face a lot of discrimination. And our cities do not offer a particularly safe environment for women students from overseas.

Yes, India can benefit. But to do so, government action must be coordinated across the Centre, states, foreign ministry, police, and education authorities. Improving quality—of infrastructure, curriculum, and above all, faculty—must be a priority. 

India has long been unwelcoming to foreign academics, particularly those whose views don’t align with the dominant narrative. The US education system still leads the world because it offers an open, merit-based environment. India must strive to emulate that.

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India also needs to step up its marketing game. This has to be a national effort, just like ‘Make in India’ pitches for global manufacturing to come here. Allowing easier entry to foreign universities and encouraging collaborations will also help. The corrupt and broken rating and accreditation system needs to be fixed, so that Indian degrees carry global cachet. 

Above all, the government needs to stop its fund squeeze on higher education and treat it like what it has the potential to become: a global champion.