If Australia being undone on the cricket field was not bad enough, it has also lost its number 1 position as a higher education destination for Indians. They have made way for the U.S, which now boasts of hosting more than 1 lakh Indian students for the current calendar year (double the number of Indian students foraying into Australia).

Recent figures hint that Australia suffered a 63% slump in the number of student visa applications from India between July 2010 and June 2011, while the US Consulate registered a 20% increase in the number of visa seekers over the same period. This sharp downturn in the number of migrating Indian students means Australian universities now suffer an 8.7% fall in international student enrollment with two other South Asian countries, Nepal (down 19 percent) and Sri Lanka (17 percent) following suit.

Wondering how Australia lost its prominence in the students’ wish-list? Well, here’s a low-down on the issue:

Though the reasons are manifold, the Indian media was the biggest factor contributing to the downturn as it went on overdrive covering every single attack on the Indian student community in Australia and sometimes blowing up the issue. Believing that the attacks were not unusually problematic, most university officials remained mum on the issue. However, when more attacks were unleashed, all hell broke loose. Our hysterical media lapped up the spiraling controversy and branded Australia as a go-at-your-own-risk zone.

In addition, mulish immigration laws recently imposed by the Australian government to improve its visa program have met with severe criticism from experts citing that it only adds to the woes of the universities, many of which are already having trouble attracting students.

Anup Santhosh, a student who has just finished his high school, expressing his repugnance over the immigration laws said, “Australian education scheme is now despicable; it is aimed at raking in money from foreign students. They tightened the immigration laws so that the students spend millions of rupees and go back to India. It is a money-making scheme by Australian universities.”

Furthermore, owing to the widespread recession and the inability of the Australian education industry to save face, the future prospects also look quite bleak for the country whose higher education sector makes a vital contribution to maintaining a strong and productive economy.

Interestingly, at the same time the U.S. government took measures to persuade Indian students to study in the U.S and it seems to have paid off exceedingly well as India is on the verge of slithering past China to become the largest foreign student population in the U.S.

The table below illustrates the rise and fall of Australia as a higher education destination:

Note: The number of students travelling abroad in 2009 slumped due to recession.