Starting from Monday, students can seek employment for up to two years under Tier 1 of the Points-Based System (PBS) introduced by the government in early 2008 to replace an earlier scheme, according to official sources.

The students were allowed to stay in the country only for one year after completion of their studies under the previous International Graduate Scheme (IGS).

Indian and other international students will now be able to work in the UK for two years without the need for a sponsor or a work permit, the sources said.

Many self-financing Indian students take up work while studying or after completing their courses to recover the costs. In 2007 almost 22,000 student visas were issued across India, representing a 10 per cent increase in 2006.

The government also announced that from Monday, Tier 1 of the PBS will also be extended to include Entrepreneurs and Investors.

Tier 1 (post-study work) replaces IGS and the Fresh Talent: Working in Scotland Scheme and provides a bridge from study in the UK to highly skilled or skilled work.