OPT Participation Declines: US No Longer Top Choice For Indian STEM Students
The USA has always been a top choice for Indian students pursuing education abroad. STEM (Science, Technology, Engineering, Mathematics) courses are one of the most popular fields of study in USA for international students. Moreover, due to the exceptional education system and the work opportunities in USA, the Optional Practical Training (OPT) program is also a popular pathway to residency for international students. However, there has been a shift lately as the participation in OPT among Indian STEM graduates has reduced to 78% from 95%. This drop in OPT participation is due to several factors, including changing immigration policies, an increase in the H1B visa fee, and the flexible policies and increased work opportunities in countries such as Canada, the UK, Germany, and Australia. Read along to understand the reason behind the OPT participation decline in USA.
OPT Drop in USA From 95% to 78%
Recently, there was a drop in the number of Indian STEM graduates opting to stay in the USA through Optional Practical Training (OPT). The statistics by OPT Observatory state the following findings:
Previously, around 80% to 90% of STEM master's students from India opted to stay in the USA on OPT. This number also reached 95%. However, this has now dropped from 98% to 78%.
About 50% to 60% of Chinese students in the USA also stayed on OPT. This number has also declined from 75% to 50%.
An overall 18% decrease in international students has been recorded since the peak number of international students in 2017.
Compared to the numbers in 2017, Indian students in USA have been dropped by 42% drop in numbers compared to 2017.
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Why OPT Participation among Indian STEM Students is Declining?
Many Indian STEM students are starting to rethink their plans to remain in the USA after they graduate. There are various reasons behind this shift, but major restrictions and changes in the policies in USA are one of the major reasons behind the decline. Meanwhile, countries like Canada, the UK, Germany and Australia are offering more accessible and flexible work options. The reasons behind the decline in the number of OPT participants by Indian STEM students include:
Stricter Immigration Policies: The Trump administration has introduced stricter immigration polices in USA. Recently, they announced an increase in the H1B visa fee to $100,000. Moreover, there has been an ongoing proposal to end the OPT program and also to remove the OPT tax exemption from international students and their employers. With these major changes in the USA, Indian students have been impacted the most.
Flexible Alternative Countries: Countries such as Germany, Canada, UK, Australia, etc have either introduced or enhanced policies for international students. Germany recently announced that they are increasing their number of skilled visas to 90,000 for Indians. Similarly, Canada has opened up opportunities for current and potential H1B workers with a USD 140,000 (CAD 200,000) salary and a three-year employment commitment. This has made it easier for international students to obtain work visas and permanent residency.
High Cost & Return on Investment: Studying in USA is an expensive investment that several international students make, as there are job opportunities in USA. However, with the changing policies and increased restrictions, there has been uncertainty in the US job market. This has majorly impacted the return on investment of the international students. Moreover, with the fluctuating USD to INR exchange rate, studying in the USA can become more expensive for Indian students, affecting the overall return on investment of their education.
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Frequently Asked Questions (FAQs)
Q: What alternatives are Indian students choosing instead of OPT?
A:
Indian students are choosing alternative study abroad destinations and using alternative visas in USA. Countries like Canada, Germany, UK, and Australia are offering flexible and earlier work opportunities for international students.
Q: Can I stay in the US after my OPT expires?
A:
Yes after your OPT expires, you can stay in the US for a period of 60 days. This grace period is provided so that the international students can smoothly transition into the next step.
Q: Is OPT going to end in the USA?
A:
No, OPT is not going to end in USA as there is no official statement on this. However, the Trump administration has proposed to end the OPT or make a few changes, such as removing the OPT tax exemption on international students.
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