America’s academic and professional allure for Indian Science, Technology, Engineering, and Mathematics (STEM) graduates is diminishing, as evidenced by a dramatic decrease in their participation in the Optional Practical Training (OPT) program. Data indicates that the number of Indian STEM graduates staying in the US has plummeted by 42% from its 2017 peak.
The OPT program, a crucial work authorization for international graduates, once saw an overwhelming majority of Indian STEM talent. Previously, around 95% of these graduates would pursue OPT extensions. Today, that figure has dropped to approximately 78%, a clear indication of a changing tide. This decline contributes to an overall 18% reduction in international student presence in the US since 2017.
Experts point to a more challenging immigration environment in the United States as a key driver. The H-1B visa system’s lottery-based nature creates uncertainty, and the protracted, complex routes to obtaining permanent residency leave many highly qualified individuals in a state of limbo. Concerns about securing employer sponsorship for work visas are also escalating annually.
Meanwhile, competitor nations are actively pursuing international talent. Canada, the UK, Australia, and Germany, among others, have introduced more accessible permanent residency pathways and post-study work permits. These countries are effectively replicating the historically strong draw that the US once held for global innovators and professionals.
The dwindling numbers of Indian and Chinese STEM master’s graduates, who formed a significant portion of the US’s international graduate population, could have long-term implications for the country’s innovation ecosystem. This shift may also benefit India by encouraging the return of its skilled diaspora, who may now find more viable opportunities in burgeoning Indian tech centers or other international hubs.