Shadow home secretary Diane Abbott said: 'Labour has always said graduates should be able to work here after their studies because it enables them to contribute to our economy, our universities and to research, and helps us to attract the brightest and best from around the world.
"It is not enough time to secure a job in four months, a year would be much more reasonable".
Leadsom said the government wanted to increase the number of worldwide students in Britain 30 per cent to 600,000 by 2030, with an emphasis on science, technology, engineering and maths, collectively known as STEM subjects.
When it comes to India, the number of graduates coming to Britain reduced from 51,218 in 2010 to 22,752 in 2011-12 and went further down to 15,388 in 2017-18, but increased to 21,881 previous year, said a report from Times of India.
There will be no cap on the number of students who can apply, as those with student visa will be able to apply to switch to a skilled worker visa if they find a job which meets the relevant criteria.
"The important contribution global students make to our country and universities is both cultural and economic", he said.
They argued that it would also make the UK a more attractive destination for global students and graduates, enabling it to compete with other popular destinations such as the United States, Australia and Canada, who have more welcoming student visa policies - although in fact the U.S. has been tightening its visa regime and has built up a backlog in work permits for students and scholars over the past year.
In 2018, there were around 450,000 worldwide students studying in the UK.
"This visa allows British universities and companies to benefit from the talent and energy of some of the students they have work so hard to train", Spicer added.
The visa will offer opportunities to work or look for work after graduating. Unlike the route which closed in 2012, this new route will also include safeguards to ensure only genuine, credible students are eligible.
There has been a push from the business and education sectors to relax the rules for worldwide students. Boris Johnson, on the other hand, has vowed to remove the restriction and encourage the brightest and best to come, live and work in Britain.
Reports suggest the announcement was due to be made by Mr Johnson's brother, the former universities minister Jo Johnson, at a Universities UK conference last Thursday, but was delayed after his shock resignation over Brexit.
In addition, over 500,000 visit visas were granted to Indian nationals - more than 1 in 5 of all visit visas.