Will US enrollment cap impact admissions of Indian students? GTRI warns new limit to hinder talent flow

Updated on: Oct 22, 2025 10:55 pm IST
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The Trump administration’s new limits on international student admissions may hinder India’s talent flow to the US.

While thousands of Indian professionals and students currently in the US have benefited from the Trump administration’s move to lower the contentious USD 100,000 H-1B visa fee, the Global Trade Research Initiative (GTRI) has warned that additional limitations on admissions of international students may jeopardize the long-term flow of India’s talent to America, as per ANI.

While Indian visa holders in the US celebrate reduced H-1B fees, GTRI warns that tighter admissions for international students could hinder India's talent pipeline.
While Indian visa holders in the US celebrate reduced H-1B fees, GTRI warns that tighter admissions for international students could hinder India’s talent pipeline.

The United States Citizenship and Immigration Services (USCIS) reaffirmed on October 21 that those who presently possess legal visas, such as professionals who are in the country and students who possess F-1 visas, will not be obliged to pay the new charge that was announced last month.

The updated rule permits the Department of Homeland Security to waive charges in circumstances of national interest and shields current H-1B employees from retroactive fees.

The Indian community has applauded the action, but it also comes with a new rule that may not be beneficial.

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US latest move: New cap on foreign students

After restricting foreign student admissions to 15% of the overall university enrollment, the Trump administration sent a memo titled ‘Compact for Academic Excellence in Higher Education,’ to nine universities that were known to enroll a lot of international students.

The 9 universities include Massachusetts Institute of Technology (MIT), University of Pennsylvania, University of Arizona, Brown University, Dartmouth College, University of Southern California, University of Texas, University of Virginia and Vanderbilt University.

Only 5% of students from each nation are now eligible for enrollment. For example, the university can only admit 5% of Indian candidates, regardless of their qualifications.

The GTRI cautioned that the two policy directions “pull in opposite ways” ANI reported. It will relax limits for current US residents while tightening admission requirements for new students. “Trump’s parallel cap on foreign students, only 15 per cent of total students can be from abroad, and no more than 5 per cent from one country makes it harder for Indians to study in the U.S. and later get work visas,” according to GTRI.

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Indian students to face new challenge

India at present sends the most foreign students to the United States. Currently, there are more than 3.3 lakh H-1B visa holders, with Indians accounting for almost 70% of the total. The new limits may thereby jeopardize the ‘American dream’ of students wishing to study and work in US.

The think tank also said that Indian tech workers and companies have found it challenging to make long-term plans due to the Trump administration’s repeated policy changes. “The volatility in US immigration policy has become a bigger concern than the fee itself,” GTRI stated.

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Stay updated with US News covering politics, crime, weather, local events, and sports highlights. Get the latest on Donald Trump and American politics also realtime updates on Indonesia ferry fire.