How brain drain costed India a whopping $6 billion
India's current account balance has been hit by a $6 billion deficit, largely due to the increasing trend of Indian students seeking education at foreign universities. Over the past decade, education-related travel expenses by Indians have more than doubled, rising from $2.46 billion in FY15 to a staggering $6.3 billion in FY24. This surge is often linked to the rising income level of India's middle class, and promising employment opportunities with higher wages abroad.
Foreign student intake in India plummets
Conversely, the intake of foreign students by Indian universities has seen a significant decline. Revenue from travel to India for education reasons has more than halved, falling from $519 million in FY15 to just $247 million in FY24. Despite a slight uptick in forex revenue from education-related travel into India in FY23 and FY24, after hitting a low of $109 million in FY22 due to the second COVID wave, it remains substantially below the 2014-15 level.
India's efforts to internationalize education
In response to the declining foreign student intake, the National Education Policy (NEP) 2020 has emphasized internationalizing education. The University Grants Commission (UGC) has issued rules on academic collaborations between Indian and foreign higher education institutes, offering twin and/or joint degrees. Additionally, the UGC introduced guidelines for setting up an Office for International Affairs in higher education institutes, to facilitate foreign students.
'Study in India' scheme and its impact
In 2018, the Indian government launched 'Study In India' scheme, with an ambitious goal of having 200,000 foreign students studying here by 2023. Scholarships and fee waivers have been offered to meritorious foreign students, and student exchange programs have been facilitated through MoUs with friendly countries. However, according to the All India Survey on Higher Education (AISHE) Final Reports, enrollment of foreign students in higher educational institutions of India, increased by only 16.68% from FY15 to FY20.
Decline in foreign student enrollment
The number of foreign students enrolled in India's higher education institutions fell to 48,035 in FY21 and further to 46,878 in FY22, due to the pandemic. Most of India's education exports are directed toward South Asian and African nations. Nepal sends the largest contingent of students, with its share increasing from 21% in 2014-15 to 28% in 2021-22. However, the share from Afghanistan, Malaysia, Bhutan, Sudan, and Nigeria has decreased since 2014-15.
Crisis in India's higher education sector
Biswajit Dhar, a retired professor at Jawaharlal Nehru University, stated that India's higher education sector has been in crisis due to inadequate funding for an extended period. He noted that the cost of quality education has increased in India, as the quality provided by government-run higher education institutes has declined. Meanwhile, private universities have emerged charging higher fees, leading foreign students from low-income countries in South Asia and Africa to seek alternative countries for affordable and quality education.
