Australia tightens student visa rules but Indians still lead international enrolments

Over 2,700 Indian students granted visas in February 2025

Australia has witnessed a significant surge in international student enrolments, with India now leading the charge, surpassing China as the primary source of student visa approvals. In February 2025 alone, over 2,700 Indian students received visas, marking a substantial increase. Despite recent curbs on visas for students from certain states, Indian students continue to play a pivotal role in Australia's education sector.

Australia has long been a hot destination for Indian students seeking international education. However, recent developments in immigration policy have introduced significant hurdles, particularly for applicants from specific Indian states.

In a move that has sparked concern across India’s student community, several Australian universities begun imposing regional restrictions on student visa applications.

For instance, Federation University in Victoria, Australia announced in early 2024 that it would temporarily stop processing student applications from Indian states such as Punjab, Haryana, Uttar Pradesh, Uttarakhand and Jammu & Kashmir. The decision, attributed to a high rate of visa refusals from these regions, marks a significant shift in Australia’s student intake strategy.

Adding to the pressure, the Australian government increased the student visa application fee from AUD 710 to AUD 1,600, from USD 456 to USD 1028, in July 2024. This more than twofold rise in visa costs has made affordability a growing concern for many Indian families planning overseas education.

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To manage rising numbers of international students and ease infrastructure stress in major cities, the Australian government also announced a cap of 270,000 new international student enrolments for 2025. These limitations are spread across education sectors, with public universities allotted 145,000 spots, vocational training receiving 95,000, and the remaining 30,000 going to private and non-university institutions.

These policy changes impacted visa trends. Between July and August 2024, Indian student visa applications dropped by 66.4 pc, reflecting the significant barriers now faced by aspiring students.

“There has been a noticeable shift. While interest in Australian education remains high overall, students from affected states are now more cautious and hesitant. Many are exploring alternative countries or delaying their application decisions,” Manisha Sharma Team leader, Australia Student visa Advisors, StudyNet, an Australian technology-based international student placement service, tells Media India Group.

“That said, students from non-impacted regions or those with strong academic and financial backgrounds continue to show consistent interest in Australia. We have also seen an uptick in queries about institution-specific policies, visa approval trends, and course options with high post-study work potential,” she adds.

International students remain crucial to the Australian economy, supporting around 250,000 jobs and providing significant funding for university infrastructure and research. A balanced approach is needed to ensure that these contributions are not undermined.

Any reduction in enrolments could lead to economic repercussions, potentially costing the university sector over AUD 4.3 billion and affecting more than 14,000 jobs, along with broader impacts on businesses that rely on this vibrant student community, as estimated by Universities Australia in 2024.

Despite challenges, India leads in visa approvals

Despite the more stringent policies, India has surpassed China to become the leading source of international students in Australia. According to data from the Australian Department of Home Affairs, over 2,734 Indian students were granted visas in February 2025 alone, marking a significant uptick from the previous month.

This spike reflects a broader trend, in the year leading up to December 2024, there were 1,095,298 international student enrolments across Australia, a 15 pc increase compared to the same period in 2019, according to the Australian Department of Education.

Experts believe this sustained growth, especially from India, is driven by Australia’s reputation for high-quality education, relatively accessible post-study work options and the appeal of multicultural urban life.

“For students who remain focussed on Australia, we are encouraging them to explore universities and vocational institutions that continue to assess applications on a case-by-case basis, rather than applying blanket exclusions. We also guide them to strengthen their genuine temporary entrant (GTE) statements, ensure financial transparency, and maintain consistent academic and English language credentials,” says Sharma.

Top destinations for Indian students

Major cities of Sydney, Melbourne, Perth and Adelaide have emerged as the top destinations for Indian students in Australia. These cities not only offer good universities but also boast diverse cultural communities, making it easier for international students to integrate.

Melbourne, in particular, is a highly sought-after city for students, owing to its vibrant food and cultural scenes, including popular Indian restaurants. According to Victoria’s state government, approximately, 36 pc of Australia’s Indian migrants choose Melbourne.

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Adelaide has also seen a marked increase in international student enrolments, largely due to government-driven initiatives designed to enhance the city’s appeal to foreign students. The South Australian government’s proactive approach, which includes establishing direct flight routes between Adelaide and India, is set to bolster this trend further.

In 2021, approximately 42,933 people in Greater Adelaide were born in India, representing 3.1 pc of the population, says a report by Australian Bureau of Statistics.

While India continues to be a major contributor to the international student population in Australia, recent data indicates growing interest from other countries as well. Applications from China and South Korea are on the rise, suggesting a diversification in Australia’s international student demographic.

While the Australian government has introduced measures to manage enrolment numbers and visa processes, India continues to provide a significant contribution to the international student sector.