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Fears are growing that new visa rules could expose UK universities to a sharp downturn in demand from Indian students next year, after one university reported a large drop in numbers.
Middlesex University, where about 40 per cent of non-European Union students come from India, said it expected a 50 per cent year-on-year decline in students from the country for the 2011-12 academic year, costing it millions in lost fees.
The decision by the government to close the existing post-study work route that gives students an opportunity to stay on in the UK after graduation is being blamed.
Theresa May, the home secretary, announced in March that from April 2012 overseas graduates would...