Former RBI Governor Raghuram Rajan has expressed concern over Donald Trump’s stance on student visas and U.S. universities, warning that such measures could damage both America’s academic reputation and international collaboration. Speaking in a recent interview, Rajan described these restrictions as a setback not only for students but also for the U.S. economy, which earns billions from international education.
Rajan highlighted that international students, particularly from India, have historically contributed significantly to American institutions while gaining invaluable skills. However, with growing uncertainty, he believes many students may now consider alternatives like the UK or Australia.
Despite the challenges, Rajan sees a silver lining: a rare chance for India to invest heavily in its own education system. He suggested this disruption could be India’s moment to boost local institutions and reclaim talent that would otherwise go abroad.
Drawing parallels with China’s educational transformation, he urged for strategic investment in research and university infrastructure. He also warned that U.S. academic dominance could decline if reputational damage persists, citing a shift in global faculty preferences towards Asian institutions.
Rajan also touched on India’s economic outlook, calling for structural reforms to sustain growth beyond 6.5%. “To become a developed nation by 2047, India needs at least 8-9% annual growth,” he said. He believes that robust educational reform could play a key role in achieving that target.
