Former Reserve Bank of India Governor and renowned economist Raghuram Rajan has issued a serious warning regarding the future of the U.S. economy, with a specific concern about policies under the administration of U.S. President Donald Trump. In a recent interview with Bloomberg TV, Rajan highlighted the potential long-term economic damage the U.S. could face if the number of foreign students entering the country continues to decline.
Rajan, who currently serves as a finance professor at the University of Chicago, emphasized that foreign students, particularly from India and China, have played a critical role in driving innovation and economic growth in the U.S. He pointed out that many of these students not only pursue higher education in America but also go on to start successful businesses and contribute significantly to the country’s technology and startup ecosystem.
As an example, Rajan mentioned Sergey Brin, the co-founder of Google, who was born in Russia and immigrated to the United States at the age of six. Brin’s journey from a foreign student to a global tech entrepreneur symbolizes the powerful impact that international talent can have on the American economy.
However, Rajan expressed concern that recent policy changes are creating hurdles for foreign students. The Trump administration has paused interviews for student visa applications and is now reportedly scrutinizing applicants’ social media accounts before approving visas. These steps could make it increasingly difficult for students from other countries to study in the U.S.
Currently, there are approximately 19 million students enrolled in U.S. educational institutions, out of which over 1.1 million—or 5.9%—are international students. A large portion of these come from India and China. These students do much more than attend classes—they often lead research, innovation, and startup ventures that generate employment and strengthen the economy.
Rajan warned that a decline in foreign student numbers could negatively impact the development of future companies like Google, which are major job creators. He also highlighted the growing tension between U.S. universities and the federal government. Recent controversies involving top institutions such as Harvard and Columbia have evolved into larger debates about the state of the American education system. This, Rajan said, is creating fear and uncertainty among faculty and academic administrators.
He reiterated that U.S. universities play a pivotal role in the country’s progress, and that sidelining international students could weaken America’s global leadership in innovation and economic advancement.
For India, this warning carries deep relevance. Indian students represent the largest group of foreign learners in the U.S., and stricter visa regulations could make their academic aspirations more difficult. According to recent posts on X (formerly Twitter), the U.S. has canceled visas of 327 foreign students, more than half of whom are Indian. Additionally, 30 U.S. universities have reportedly revoked the admissions of 10,000 Indian students.
Rajan’s cautionary message is not just for the United States—it also calls upon countries like India to consider how to retain and nurture their own talent. If the U.S. becomes less welcoming, India must explore how to offer similar opportunities at home to prevent brain drain.
Disclaimer:
The information provided in this article is based on public interviews and news reports. It reflects the opinions and analysis of Raghuram Rajan as shared in the Bloomberg TV interview. This article is intended for informational purposes only and does not constitute financial, educational, or immigration advice. Readers are advised to consult appropriate professionals for specific concerns.
