Do Most Indian Students Stay Abroad After Graduation? The Myth, the Data, and What It Means

A persistent narrative in media and policy debates is that Indian students go abroad to study and then remain in their destination countries, whether in Australia, Canada, the UK, or the US, in numbers assumed to be permanent.

Recent changes to the US H-1B visa regime, where Indians receive about 71% of approved visas (with China next at approximately 12%), have intensified this narrative. The idea has gained traction that the best and brightest are staying abroad and “taking domestic workers’ jobs.”

However, the evidence suggests a far more nuanced reality. Many Indian graduates return home, and their return plays a central role in both their careers and India’s economic growth.

In the UK, the Graduate Route post-study work visa has become closely linked to this narrative. Indians are the largest beneficiary group. Between its launch in mid-2021 and the end of 2023, they accounted for around 42% of all Graduate visas granted to main applicants, roughly 48,000 visas in 2023 alone.

In that same year, just over 114,000 Graduate Route visas were issued in total, compared to 732,285 international students enrolled in UK higher education, according to HESA. Put another way, only about 15% of the international student body accessed the Graduate Route, with Indian graduates making up just 6–7% of the overall international student population.

While this figure is notable, it does not indicate how long these graduates remain in the UK or what happens to them afterward.

Graduates across the UK do not typically remain permanently, and return rates are significant.

Home Office data shows that of the 25,469 individuals whose Graduate visas expired by the end of 2023, 63% had switched to another visa route. Of these:

• 33% moved into Skilled Worker roles
• 9% moved into Skilled Worker (Health and Care) roles
• 4% moved into other work routes

If 63% transition to other visas, this equates to only around 2% of the total international student population.

Unless there is significant overstaying, which UK universities have consistently assured the government is not the case, only around 2% of international students remain in the UK on working visas after two years.

In reality, more than 90% return home. It is within this context that GGI data becomes particularly relevant.

GGI’s dataset of over 120,000 tracked graduates shows that Indian returnees consistently achieve stronger outcomes than their domestically educated peers.

UK returnees to India secure early-career salaries 20–25% higher than local graduates. Many also gain access to global employers such as Infosys, Tata Consultancy Services, and Accenture.

These outcomes reinforce the continued value of a UK education, even as simplified narratives suggest students are “taking jobs” abroad rather than contributing at home.

However, a new challenge is emerging.

While the UK government is narrowing options for international graduates, some of the world’s largest technology companies are expanding their presence in the UK.

• Microsoft has pledged £22 billion to build AI infrastructure and cloud services, including a supercomputer project in Essex with more than 23,000 Nvidia GPUs
• Google is investing £5 billion in a hyperscale data centre in Waltham Cross
• Amazon has announced a £40 billion expansion over three years, creating thousands of jobs, including at least 2,000 roles in Hull and Northampton
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Historically, many of these roles would have attracted H-1B talent to the US. However, Donald Trump’s decision to impose a $100,000 annual fee per H-1B visa makes sponsorship significantly more expensive for many firms.

This creates a potential shift. The US’s loss could become the UK’s gain.

Indian students, who dominate both H-1B allocations and Graduate Route visas, may increasingly view the UK as a gateway to global technology careers. Instead of heading to Silicon Valley, future engineers and data scientists may begin their careers in London, Manchester, or Cambridge.

However, outside of securing roles at top-tier firms, the question remains:

Is it realistic to expect most international graduates to transition successfully from the Graduate Route, now reduced to 18 months in the UK’s White Paper?

The average graduate starting salary is £25,900, while the “new entrant” Skilled Worker minimum salary will rise from £30,960 to £33,400.

The numbers suggest a clear challenge.

A graduate in their first role is unlikely to meet the Skilled Worker threshold. The expectation that students will graduate, secure a role at a major firm, obtain sponsorship, and achieve long-term settlement is far from typical.

As Fayez Bin Khalid has stated:

“Thousands of international students in the UK are rejected because of their visa status, even with the Graduate Route in place. International students are not eligible for 93% of UK jobs. And for the 7% they are eligible for, employers often prefer to hire a British graduate to avoid sponsorship costs.”

The reduction of the Graduate Route from two years to 18 months further narrows the window for students to secure qualifying roles.

Combined with rising salary thresholds, the likelihood of transitioning into long-term employment routes becomes even lower.

This is why UK universities need a clear alternative strategy. Supporting international graduates into careers in their home countries or third markets will become increasingly important.

GGI is well positioned to support this shift by connecting graduates with employers in India and other markets, while also demonstrating the global career impact of UK education.

So why does the perception persist that most Indian students remain abroad?

Partly because it aligns with political narratives in destination countries.

In the US, attention on H-1B allocations creates the impression that Indian graduates intend to stay indefinitely. In the UK, debates around the Graduate Route are often shaped by concerns that international graduates remain in large numbers, displacing domestic workers.

The reality is more nuanced.

Most Indian students stay temporarily, typically one to two years, gain experience, and then return home with enhanced skills and global exposure.

Voices within India are also challenging the narrative.

Alakh Pandey, founder and CEO of Physics Wallah, has urged Indian students at institutions such as Harvard, Stanford, and the University of California to return home, or, if not, to contribute “directly or indirectly” to India’s development.

“Yes, there are many shortcomings in our country, but no nation is perfect. There is a need to better utilise the youth of the country,” he said.

Other entrepreneurs have echoed similar concerns, highlighting that highly skilled Indians remaining overseas represents a missed opportunity for domestic growth.

Changes to US immigration policy further strengthen the case for return, as global mobility becomes more constrained.

For UK universities, this context is critical.

The Graduate Route is valuable, but it was never designed as a long-term immigration pathway.

As the Migration Advisory Committee stated in its 2024 rapid review:

“The Graduate Route should be seen as part of the UK’s education offer rather than a means of meeting labour market needs.”

The committee emphasised that the route was not intended to lead to settlement, but to enhance the attractiveness of UK education by providing short-term work experience.

The Graduate Route should therefore be understood as a bridge.

It provides Indian students with an opportunity to gain work experience, strengthen their CVs, and demonstrate their capabilities in a global labour market.

Only a small percentage will transition into Skilled Worker visas or other long-term migration routes. The vast majority, over 90%, will return to India.

What sustains demand for UK education is not long-term retention, but outcomes wherever graduates go.

This is why the current policy debate is so consequential.

An international student levy, combined with a shorter Graduate Route and higher salary thresholds, risks signalling that the UK is becoming less supportive of international student careers.

At a time when the US is becoming less accessible, the UK risks weakening its competitive position.

Employability must act as the counterbalance.

As a University World News article “Losing the Edge?” highlights, outcomes for international graduates are becoming more uncertain.

Full-time employment rates for returnees have declined from around 80% in earlier cohorts to closer to 30% today. While salary premiums remain, often 20–40% higher than domestic peers in countries such as India, China, Malaysia, and Singapore, this advantage is narrowing.

Without targeted investment in employability, the UK’s value proposition may weaken.

Nick Hillman of HEPI has noted that international students are increasingly focused on return on investment.

They want clear evidence that their education leads to career outcomes.

However, many UK universities continue to treat employability as a recruitment tool rather than a strategic priority. Few publish detailed outcomes data for international graduates, and fewer still invest systematically in supporting careers in home markets.

When post-study work was removed in 2012, international student numbers declined sharply. When it was reinstated in 2019, recruitment recovered.

Reducing it again now, at a time when the US is becoming less accessible and global competition is intensifying, risks repeating past mistakes.

Canada and Australia are already adapting by linking post-study work rights to skills shortages and labour market demand.

The UK still has an opportunity to lead, but only if it avoids repeating previous policy decisions.

The real measure of success is not how many Indian students remain in the UK permanently, but how they succeed in the global labour market, whether in London, Mumbai, Bangalore, or elsewhere.

The narrative that Indian graduates remain abroad in large numbers obscures the reality that most return home, and that their success there is just as important as their contribution abroad.

For universities, this is the key takeaway.

The future of international education will not be shaped by narratives, but by outcomes.

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