On May 6, 2025, India and the United Kingdom concluded negotiations on a Free Trade Agreement (FTA), which marks an important step forward in bilateral relations. Just days later, the newly elected Labour government under Prime Minister Keir Starmer released a white paper outlining comprehensive immigration reforms. The convergence of these two events has sparked widespread debate regarding their combined impact on Indian students pursuing higher education in the UK.
For years, the United Kingdom has been a favored destination for Indian students due to its globally recognized universities, post-study work opportunities, and clear academic-to-employment pathways. However, the proposed immigration changes have introduced uncertainty, prompting students and education stakeholders to reassess the UK’s long-term appeal.
According to Aritra Ghoshal, founder and director of One Step Global, the FTA presents a potential opportunity to enhance educational mobility, provided education is formally recognized within the agreement. “When education is classified as a service, it can lead to the easing of visa regulations, mutual recognition of academic qualifications, and potentially the introduction of work-integrated learning pathways,” he noted.
Rahul Subramaniam, co-founder of Athena Education, echoed this view, stating that mutual acknowledgment of professional credentials under the FTA could simplify employment prospects for Indian graduates in the UK. Additionally, Subramaniam emphasized the potential for increased collaboration between institutions, which could result in more student exchange programs, joint research initiatives, and improved visa arrangements.
Christopher Abraham, head of the SP Jain School of Global Management in Dubai, highlighted the possibility of deeper academic partnerships. “Such an agreement might encourage UK universities to collaborate more extensively with Indian institutions and reduce regulatory or financial barriers for students,” he explained.
Despite these optimistic perspectives, some experts have expressed caution. Mamta Shekhawat, founder of Gradding.com, pointed to the shift in immigration policy reflected in the white paper, which proposes significant changes to student migration routes. She noted that the new proposals aim to lengthen the pathway to permanent residency, making it more competitive and uncertain for international students.
One of the most debated changes is the proposed review of the Graduate Route visa, which currently allows international students to remain in the UK for two years after completing their studies. The suggested modifications include reducing the visa duration to 18 months, restricting eligibility to graduates who secure jobs at RQF level 6 or above, and a potential reassessment of the route’s long-term future. Abraham observed that these changes could adversely affect the perceived return on investment for students, particularly given the rising cost of international education.
The white paper also proposes stricter regulations for UK institutions hosting international students. These include increasing the Basic Compliance Assessment (BCA) threshold by five percentage points, implementing a red-amber-green classification system for university compliance, and introducing mandatory improvement plans and recruitment caps for underperforming institutions. Moreover, universities using international recruitment agents will be required to adhere to the Agent Quality Framework.
In addition, a new tuition fee levy for international students is under consideration, with the revenue intended to support the UK’s higher education and skills development systems. The paper also raises concerns about the high refusal rate for short-term English study visas and the surge in student dependents, which rose from 16,000 in 2019 to 143,000 in 2023.
In response to these developments, some Indian students are exploring alternatives such as Australia and New Zealand, which are perceived to offer more predictable pathways to work and residency. Ghoshal emphasized that students are not necessarily abandoning the UK but are seeking greater clarity and long-term assurance before committing to overseas education.
Nonetheless, some industry leaders believe the FTA could mitigate the effects of the immigration crackdown. Akshay Chaturvedi, founder and CEO of Leverage Edu, suggested the FTA may prioritize talent exchange in key sectors such as healthcare, technology, environment, culinary arts, and retail. He also welcomed the proposed reforms aimed at improving compliance and quality standards, particularly through mechanisms like the Agent Quality Framework.
In conclusion, while the UK’s immigration overhaul presents new challenges for Indian students, the India-UK FTA has the potential to offer strategic relief—if framed with a strong focus on education, skills development, and talent mobility. As Subramaniam suggested, the agreement could restore student confidence and reinvigorate institutional ties, but only if supported by concrete, balanced policies that align immigration strategy with global talent competitiveness.
