Daily Mains Question - GS 2 - 2nd September 2025
- TPP
- Sep 4
- 3 min read

Welcome to your Daily UPSC Mains Answer Writing Practice – GS Paper 2 (International Relations & Education Policy).
Today’s question focuses on the challenges faced by Indian students in the United States due to recent federal funding cuts and changes in visa policies. With over 3.3 lakh Indian students studying in the U.S. (2023–24), they form the largest international student cohort, contributing not only to American research and innovation but also strengthening India’s global knowledge linkages.
However, a volatile policy environment—marked by reduced federal research grants, stricter visa scrutiny, and uncertainty over post-study work opportunities—has raised concerns about access to higher education, affordability, and long-term career prospects. For Indian students dependent on research assistantships and teaching fellowships tied to federal funding, these developments directly impact both their academic continuity and legal visa status.
This makes the topic highly relevant for UPSC GS Paper 2, as it connects with themes of education diplomacy, diaspora policy, bilateral relations, and the global mobility of Indian talent. Understanding these dynamics helps aspirants analyse the intersection of international policy shifts and India’s efforts to safeguard the interests of its overseas student community.
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QUESTION
Discuss the impact of recent U.S. federal funding cuts and visa policy changes on Indian students pursuing higher education in the United States.
Answer: The United States hosts over 1.13 million international students (2023/24), with Indians forming the largest cohort at ~3.3 lakh. These students contribute significantly to U.S. research, innovation, and economy (about USD 43.8 billion and 3.78 lakh jobs). However, recent federal funding cuts and tightened visa regulations have created uncertainty for Indian students aspiring to study and work in the U.S.
Impact of Federal Funding Cuts
Shrinking Research Opportunities: Leading universities such as Stanford have faced budget reductions (USD 140 million cut; 363 staff laid off). Associations report 29% fall in NIH awards and 50% fall in NSF awards in 2025.
This directly reduces Research and Teaching Assistantships (RAs/TAs), which are crucial funding avenues for Indian graduate students.
Delayed Projects: The temporary freeze on USD 2.2 billion research grants stalled work in medical, engineering and STEM fields. As many Indian students are enrolled in such projects, delays hinder their coursework, publications, and completion timelines.
Link with Visa Status: RAs/TAs ensure full-time enrollment and financial support—both necessary conditions for F-1 visa compliance. Funding shocks therefore risk students’ legal stay.
Visa Policy Changes and Consequences
Operational Pauses: In May 2025, U.S. consulates paused F-1/J-1 interview scheduling, resumed only in June, leaving many students stranded or forced to defer.
Enhanced Scrutiny: Social-media checks and security vetting increase visa rejection risks. Privacy settings or posts can be misinterpreted, creating compliance anxiety.
SEVIS Disruptions: Instances of abrupt termination of Student and Exchange Visitor Information System (SEVIS) records—later reinstated by courts—show procedural vulnerability, threatening continuity of OPT/CPT opportunities.
Decline in Issuances: From March–May 2025, only 9,906 F-1 visas were issued to Indians, a 27% decline from the previous year, reflecting the tightened environment.
Post-Study Career Challenges
OPT and H-1B Transition: Research slowdowns reduce chances of publishing, internships, and U.S. work experience—all critical for H-1B applications.
Policy Shifts in H-1B: The beneficiary-centric lottery system removes multiple-registration advantages; registration fee will rise to USD 215 from FY 2026, tightening access for fresh graduates.
Broader Implications for India
Human Capital Mobility: Reduced opportunities may divert students towards Canada, Europe, or Australia.
Knowledge Corridor: Interruptions in joint research limit Indo-U.S. academic collaboration.
Return Migration: Stricter H-1B rules may accelerate return of skilled graduates, adding to India’s domestic talent pool but impacting remittances.
The U.S. remains a premier education hub, yet federal funding cuts and stricter visa policies cumulatively strain the admission → enrollment → research → career pathway for Indian students. For India, this calls for education diplomacy, stronger domestic research ecosystems, and structured return pathways to absorb skilled talent. For students, strict compliance, diversified funding, and career hedging are essential to navigate this uncertain environment.
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