‘$40-50 billion going away’: Indian-origin journalist Fareed Zakaria warns as Indian students ditch US

Achieving the American dream has been the highlight of many lives. The ideal route involved getting a degree in the US, getting a job and building a career and life further ahead. For Indians, who are the largest recipients of H-1B visas this has been the golden route to a better life personally and professionally.

But ever since the beginning of Trump's second term in 2025, the American scene has been surrounded by a do not enter tape for Indians. From increasing the H-1B fees to increasing the monitoring of the social media accounts of applicants, numerous policies and statements have made it clear that the American dream can be considered a distant one by the day. According to Indian-origin CNN journalist Fareed Zakaria, more and more Indian students are turning away from the US and the country only has itself to blame.

Talking to American journalist Charlie Rose at his show 'A Charlie Rose Global Conversation', about the changing global education landscape, he said that the decline of Indian students heading to the US is not a temporary dip but an impactful structural shift.

He shared the instance of a conversation with a friend who has invested in a business that helps students wanting to attend foreign universities get loans. "He said my business is up 20% this year, but the American part of the business, Indians going to America, is down 50%."

When he asked his friend if this was a blip, he said no. This is because now, Indian students are searching for and discovering better alternatives. “People are discovering the rest of the world. They’re discovering that they could go to universities in Australia, in Canada, in Britain and they’re realising that it’s a third the price. It’s a quarter the price.”

"We've done this to ourselves," added Zakaria. He said for years, US universities benefitted from what he called the halo effect, the belief that any American university was better than any university in the rest of the world, no matter how "crazily expensive" it was.

But now that belief is weakening to the point of diminishing completely. "It was a huge business for America. $40–50 billion a year. Americans attracting foreign students who come and pay the full fee. That's all going away," he said. And the influence that America had on educating the world's elite is also gone, he lamented.

Is this true?

Zakaria's assessment holds true. As per India's Ministry of External Affairs (MEA), the number of Indians studying abroad fell to 5.7% in 2025 as compared to 2024.

As per The Open Doors report 2025, Indian graduate enrolment in the US fell 10% in 2024-25 and 61% of US universities reported reduced Indian enrolment. Other countries such as Europe and Germany are enjoying the incoming flurry of Indian students. Germany reached 9% in 2025 from 4% in 2023 due to low tuition fees and post-study work opportunities. The UK has witnessed a whopping 143% surge capturing 39% of Indian students. Data from the US Department of State shows that F-1 visas issued to Indian students fell 44% in the first half of 2025 compared with last year.