Australia student visa: 40% Indians rejected, applications up 36% in 2026

Australia student visa: India moved to high-risk category as visa refusals rise and scrutiny tightens for students applying to Australia

Foreigners applying for Australian degrees are facing record visa refusals, with about 40 per cent of Indian applicants rejected as authorities tighten checks around whether students genuinely intend to study.

 

Almost one-third of higher education visa applications lodged overseas were refused in February, according to the latest Department of Home Affairs data updated in April.

 

The overall approval rate stood at 67.6 per cent, the lowest monthly grant rate in at least 21 years. The previous low of 68.1 per cent was recorded in September 2023, when applications surged after Australia reopened its borders following Covid.

 

The pressure is more visible across key South Asian countries.

   

In February, Australian officials refused about:

 

• 36 per cent of applications from Bhutan

• 38 per cent from Sri Lanka

• 40 per cent from India

• 51 per cent from Bangladesh

• 65 per cent from Nepal

 

This comes as the composition of applicants begins to change. The visa caseload is moving away from China, which has historically recorded high approval rates. Applications from China fell to their lowest level in 12 years in February, down 39 per cent compared with the same month in 2025.

 

At the same time, demand from South Asia has risen. Applications from India increased by 36 per cent year-on-year, while Bangladesh and Nepal saw sharper rises of 51 per cent and 91 per cent respectively. 

 

Indian students under highest visa risk category

 

Against this backdrop, the Indian government said last week that Australia had placed India in the ‘highest-risk’ category under its visa risk framework in January 2026. The move means applications from Indian students now face more detailed scrutiny and may require additional supporting documents.

 

The Centre told the Rajya Sabha that Indian applicants have been moved from Evidence Level 2 (EL2) to Evidence Level 3 (EL3) under Australia’s Simplified Student Visa Framework, raising the compliance requirements for those applying.

 

Even so, India remains a key source country. In 2025, Indian students, along with those from Nepal, Bangladesh and Bhutan, made up close to one-third of Australia’s international student population, with about 140,000 Indians among roughly 650,000 students.

 

Is this the end of the road for Indian students?

 

The reclassification does not prevent Indian students from applying, but it does mean the process is more demanding and timelines may stretch.

 

Ankit Mehra, CEO and founder of GyanDhan, told Business Standard that applicants with strong profiles are still likely to get through. “Students with legitimate academic profiles and clean financial documentation have nothing to fear, only a longer wait,” said Mehra. 

 

He added that the risks rise sharply where documentation is weak. “Students relying on fabricated funds or dubious paperwork risk severe consequences, including visa refusal and long-term damage to their global education prospects,” said Mehra.