New Delhi: Raghuram Rajan, former Governor of the Reserve Bank of India (RBI), has expressed concern over the Trump administration's policies regarding the US higher education system and foreign students. Rajan stated that a decline in the number of foreign students due to political reasons could negatively impact the US economy and employment. He warned that foreign students have been a crucial part of American innovation and development, and a reduction in their participation could weaken America's competitive edge.
In an interview with Bloomberg, Rajan cited examples like Google co-founder Sergey Brin, who came to the US as a student, to illustrate the significant contribution of foreign students to the American economy. He argued that the education of foreign students and their participation in companies have helped the US become the world's leading economy. Brin is among the world's wealthiest individuals, with a net worth of $146 billion, and is a co-founder of Alphabet, Google's parent company.
Impact of a Strict Stance on Foreign Students in the US Education Sector
Recently, tensions have escalated between the Trump administration and US universities. This dispute, which began after antisemitic incidents at prestigious universities like Harvard and Columbia, has sparked a debate about the autonomy and role of higher education. Rajan explained that the Trump administration's orders to halt student visa interviews and tighten social media scrutiny have increased uncertainty among foreign students.
Rajan described this atmosphere as worrying, stating that it has created a climate of fear among university faculty and administrators. He believes that if foreign students lack confidence in the educational and career opportunities available in the US, they may turn to other countries, potentially harming America's global standing.
Significant Contribution of Foreign Students to the US Economy
According to official figures, a total of 19 million students are pursuing higher education in the US, of which approximately 5.9% are international students. In the 2023-24 academic year, over 1.1 million foreign students were studying in the US, with the largest number coming from India and China.
Rajan compared the uncertainties faced by foreign students to the investment climate, stating, "If someone is not confident that their investment will be secure, they will either postpone the investment or invest elsewhere. The same situation applies to foreign students."
