For a long time, Indian students formed the largest contingent in US STEM graduate programs. However, a significant shift is now underway, with more and more of them opting not to remain in the United States after graduation. A recent report from the OPT Observatory reveals a sharp decline in Indian student participation in the Optional Practical Training (OPT) program, plummeting from 95% to 78% in just a few years. This data suggests that the US, historically seen as the go-to country for skilled migration, is losing its appeal to nations that offer more straightforward and quicker pathways to work and permanent residency.
This change in student behavior coincides with a broader decrease in international enrollment across US universities, which has fallen by 18% since 2017. For Indian students specifically, the drop is even more dramatic, with enrollment decreasing by 42%. For many years, the US was the dream destination for Indian engineers, scientists, and data professionals looking to kickstart their global careers. Now, this long-held dominance is being questioned due to complex immigration barriers in America and the rise of attractive new opportunities worldwide.
Understanding the Decline
According to the OPT Observatory report, Indian and Chinese STEM master’s graduates collectively make up approximately 30% of all international graduates in the US. Both demographics are now exhibiting significantly lower retention rates within the country. Indian engagement in the OPT program has decreased by 17 percentage points, while Chinese involvement has fallen even more sharply by 25 points, from 75% to 50%. These trends indicate a wider reluctance among international students to pursue post-study work opportunities in the US.
The OPT program has always been a vital bridge, connecting international graduates’ academic pursuits with professional employment in the US. It grants them up to three years of work authorization in their specialized field before they can apply for a long-term visa, typically the H-1B. The observed decline in OPT participation suggests that a growing number of students are either unable to secure this crucial authorization or simply no longer deem the process, with all its inherent uncertainties, a worthwhile endeavor.
Immigration and Visa Hurdles
A primary driver of this trend is the increasing unpredictability surrounding post-graduation life and work in the US. A significant portion of international students relies on the H-1B visa to transition from OPT to long-term employment. However, securing an H-1B has become considerably more difficult in recent years. Even when US employers are eager to retain qualified international talent, the arbitrary lottery system often denies these candidates. This leaves many students in limbo, facing prolonged visa processing delays and constant policy changes that force them to reconsider their career paths and future.
In stark contrast, other countries are actively streamlining their post-graduation work opportunities. Canada, for instance, offers clear routes to permanent residency and simplified post-study work permits. The UK has reintroduced its two-year Graduate Route, allowing international graduates to work freely after completing their degrees. Australia and several European countries also provide extended ‘stay-back’ options, giving graduates more time to gain valuable work experience. Even Gulf nations like the UAE and Saudi Arabia are introducing new talent visa programs. These policies collectively make it significantly easier and faster for Indian graduates to establish stable international careers outside the United States.
The Pandemic’s Role in Global Realignment
The COVID-19 pandemic dealt a severe blow to international students’ aspirations worldwide. The US became particularly difficult to access due to widespread halts in visa appointments and border closures. Countless students endured months of uncertainty, with many facing frustrating cancellations that completely derailed their academic and career plans.
However, other nations swiftly adapted to the crisis. Canada, the UK, and Australia implemented hybrid learning models and flexible visa policies, enabling students to commence studies online and transition to in-person learning later. Meanwhile, persistent visa backlogs in the US, even after borders reopened, exasperated applicants and prompted many to seek more accommodating and less convoluted immigration systems elsewhere.
Concurrently, the global employment landscape is evolving. Emerging tech and research hubs in Canada, Europe, and Asia are now presenting attractive career prospects with fewer bureaucratic hurdles. For numerous Indian students, these destinations offer job stability and transparent work permit processes, free from the unpredictability associated with the US system. What initially seemed like a temporary setback during the pandemic has crystallized into a permanent alteration in how skilled graduates approach their international career aspirations.
Evolving Priorities of Indian STEM Graduates
The dwindling OPT participation among Indian STEM students carries potential repercussions for both US academic institutions and industries. Many science and technology programs heavily rely on Indian and Chinese students to maintain enrollment numbers and fuel research initiatives. A sustained decline could lead to smaller programs, reduced research output, and increased difficulty for companies seeking to fill crucial STEM positions.
Back in India, this trend highlights a noticeable shift in student priorities. A growing number of graduates are opting to return home, finding opportunities in thriving startups, advanced research laboratories, or multinational corporations. Others are actively exploring countries that offer rapid career entry, free from the protracted visa delays and complex immigration regulations that plague the US system.
The data from the OPT Observatory unequivocally demonstrates that the US can no longer be considered the automatic preference for Indian STEM graduates. Today’s students are prioritizing tangible career opportunities and streamlined immigration processes over the traditional prestige of a US education. This profound shift is reshaping global talent migration patterns and promises lasting implications for academic institutions, governments, and industries in both India and the United States.