If you are an Indian applicant who sat for the GRE last month, or is planning to sit for it before Round 1 deadlines in September, you just became a customer of the largest standardized testing organization in American history. On July 1, 2026, ETS completed its acquisition of ACT, merging the two nonprofits that have controlled American college and graduate admissions testing for over sixty years. For the roughly 80,000 Indian test-takers who register for the GRE each year, this is not an abstract corporate transaction. It is the moment the only meaningful competitor to your test disappeared.
What actually happened on July 1
ETS, the Princeton-based nonprofit behind the GRE, TOEFL, and Praxis teacher licensing exams, closed its acquisition of ACT on the first day of July 2026. ACT, which administered the college-readiness exam taken by roughly 1.4 million American high schoolers last year, will continue operating under its own brand for now, but it is fully owned by ETS.
The combined entity now controls the SAT's chief competitor (ACT), the dominant graduate admissions test (GRE), the dominant English proficiency test (TOEFL), multiple state K-12 assessment contracts, teacher licensure exams, and a growing portfolio of workforce credentialing tools. Higher Ed Dive called it a consolidation of "two testing giants" into a single organization spanning K-12, higher education, and career readiness.
ETS frames the deal as mission-driven. "Together, ETS and ACT will deliver solutions to help individuals learn, demonstrate skills, and connect to jobs in a dynamic economy being radically reshaped by AI," the official announcement reads. The language is warm. The structural reality is simpler: competition in American standardized testing just contracted.
Why this matters beyond the United States
The ACT exam is almost entirely a domestic American product. Most Indian applicants have never taken it and never will. So the instinct is to shrug: two American testing companies merged, and it does not affect the GRE or TOEFL directly.
That instinct is wrong, and here is why.
First, ACT was the only organization with the infrastructure, brand recognition, and institutional relationships to credibly launch a competing graduate admissions test. With ACT absorbed, the GRE has no realistic challenger in the graduate admissions space. GMAC's GMAT Focus competes for MBA applicants specifically, but for the broader MS, MiM, and interdisciplinary graduate market, the GRE stands alone. U.S. News noted that the acquisition consolidates the two largest testing organizations in the country, eliminating the competitive pressure that historically kept pricing and innovation in check.
Second, ETS now controls both TOEFL and ACT's English proficiency tools. For Indian applicants who need both a graduate admissions score and an English proficiency score, the entire pipeline now runs through one organization. If ETS decides to bundle pricing, change score-reporting fees, or restructure the GRE-TOEFL relationship, there is no competitive alternative with comparable acceptance at top universities.
Third, the deal gives ETS enormous data. ACT's Encoura platform, which tracks millions of student records for enrollment management, now sits alongside ETS's GRE and TOEFL score databases. The combined data set covers a student from high school through graduate school. For Indian applicants, this means the organization scoring your GRE also has deep insight into how American universities make enrollment decisions.
What changes right now (and what does not)
ETS and ACT have both stated that no immediate changes are planned to the GRE's format, scoring, or pricing. The ACT exam will continue under its own brand. TOEFL remains unchanged. Score reporting fees, test center availability in India, and the at-home testing option are all staying as they are for now.
If you are registered for a GRE in August or September 2026, nothing about your test day is different.
What will change over time is harder to predict, but the structural incentives point in a clear direction. Without a credible competitor, ETS has less pressure to keep the GRE affordable, to maintain the at-home testing option (which it introduced during COVID partly in response to competitive pressure from Duolingo and other digital-first entrants), or to keep innovating the test format. The GRE's shift to the shorter, adaptive format in September 2023 was itself partly a competitive response to the GMAT Focus Edition. With ACT off the board, the pace of innovation may slow.
The PIE News reported that the merger positions ETS to invest more heavily in AI-driven assessment tools and workforce credentialing. For Indian applicants, this could eventually mean AI-scored writing sections, adaptive difficulty that adjusts more aggressively, or new credentialing products that complement traditional GRE scores. Whether these changes benefit test-takers or simply benefit ETS's bottom line remains to be seen.
What this means for Indian applicants
If you are deciding between the GRE and the GMAT for your MBA applications, this merger adds one more variable to the decision. The GMAT is now the only graduate admissions test run by an organization that does not also control a competing English proficiency exam, a K-12 testing empire, and a workforce credentialing business. GMAC remains a single-purpose organization focused on graduate management education. ETS is now something much larger.
For the 2026-2027 application cycle specifically, nothing changes in how you prepare, register, or send scores. But if you are early in your test-prep journey and have not yet committed to the GRE, this is worth weighing. The GMAT Focus Edition is accepted at every major MBA programme globally. The GMAT's new Superscore feature launching August 12, 2026 makes retaking strategically more forgiving. And GMAC's competitive position as an independent testing body is, if anything, strengthened by ETS's consolidation move.
For MS and MiM applicants who do not have the GMAT option, the calculation is different. You are effectively locked into the GRE for most programmes. The best hedge is to take the GRE sooner rather than later, before any potential pricing or format changes take effect. Current GRE fees in India are $228 (approximately Rs. 19,000). If ETS raises that figure in 2027, you will have no alternative with comparable acceptance.
If you are weighing how this fits into your broader application strategy, a profile evaluation can help you decide whether the GRE, GMAT, or a test-optional route is strongest for your specific background and target schools.
Common questions applicants are asking
Will the GRE exam format change because of the ETS-ACT merger?
Not immediately. ETS has confirmed that the GRE's current format, scoring, and test dates remain unchanged. However, without competitive pressure from ACT, ETS has less incentive to maintain the pace of innovation it showed in 2023 when it shortened the GRE. Long-term format changes are possible but unlikely before mid-2027.
Will GRE fees increase for Indian test-takers?
ETS has not announced any fee changes. The current GRE fee is $228 globally. The risk is not immediate but structural: monopolies tend to raise prices over time when there is no competitor to undercut them. If you are planning to take the GRE in the next 12 months, registering at the current price is prudent.
Should I switch from GRE to GMAT because of this merger?
If you are applying exclusively to MBA programmes, the GMAT Focus Edition is a strong alternative and is now run by the only independent graduate admissions testing body. If you are applying to MS, MiM, or interdisciplinary programmes, most still require or prefer the GRE, so switching may not be practical. Check your target schools' requirements before deciding.
Does this affect TOEFL?
Not directly, but ETS now controls both the GRE and TOEFL along with ACT's English assessment tools. The long-term risk is that ETS could bundle or restructure these products. For now, TOEFL scoring, format, and acceptance remain unchanged.
Is this merger good or bad for students?
The honest answer is that it is too early to tell. ETS's press release emphasizes expanded access and innovation. Critics point out that reduced competition historically leads to higher prices and slower improvement. Indian applicants should monitor GRE pricing and policy announcements through 2027 and factor this uncertainty into their test-timing decisions.
Related reading
- GMAT vs GRE for Indian MBA Applicants: Which Test to Take
- When to Retake the GMAT in 2026
- Free GMAT preparation resources
Sources verified on July 17, 2026. Next review scheduled for January 15, 2028. Analysis reflects information available at the time of publication; ETS and ACT policies may change.