India’s Expanding Education Gap

In recent years, a significant shift has occurred in the world of education in India. More and more Indian students are heading abroad to study, leading to a huge increase in the money spent on education-related travel. In just ten years, the amount of money Indians spent on education abroad has more than doubled. In the financial year 2014-15 (FY15), Indians spent $2.46 billion on education-related travel. By the financial year 2023-24 (FY24), this figure had skyrocketed to $6.3 billion. This growing demand among Indian students for higher education abroad has created a $6 billion hole in India’s current account balance.

The reasons behind this trend are clear. The middle class in India is growing, and many families are earning more money than before. With better income, students are looking for better opportunities outside India, where they believe they can get higher-paying jobs after completing their education. This increase in income and the desire for better opportunities abroad have fueled the demand for education in foreign universities.

However, while more Indian students are leaving the country for education, fewer foreign students are coming to India. The amount of money foreign students spent on education in India has dropped significantly over the years. In FY15, foreigners spent $519 million on education in India. But by FY24, this figure had fallen to just $247 million. There was a consistent decline in spending by foreign students from FY16 to FY22. Although there was a slight increase in the last two years, the revenue from foreign students is still much lower than it was in FY15.

Efforts to Attract Foreign Students

India’s National Education Policy (NEP) 2020 aimed to change this trend by making Indian education more appealing to international students. To achieve this, the government has introduced several initiatives. The University Grants Commission (UGC) has created rules for academic collaborations between Indian and foreign universities. This includes offering dual or joint degrees, allowing students to study in both India and a foreign country.

The UGC has also set up the Office for International Affairs in Indian universities. This office is supposed to help foreign students with everything they need while studying in India. Additionally, the Indian government has allowed highly ranked foreign universities to open campuses in India. This means Indian students can study international courses without leaving the country.

In 2018, the government launched the ‘Study In India’ scheme to attract more foreign students to Indian universities. The goal was to have 200,000 foreign students studying in India by 2023. To make this more attractive, the government has offered scholarships and fee waivers to meritorious foreign students. Regular student exchange programs have also been encouraged by signing agreements with friendly countries.

Moreover, in 2022, the UGC allowed Indian universities to reserve up to 25 percent of their seats for international students. This was an attempt to increase the number of foreign students in India. Despite these efforts, the inflow of foreign students to India has not seen much improvement. In fact, the number of foreign students in Indian universities has grown very slowly and has even declined in recent years.

Declining Numbers and Challenges

According to the All India Survey on Higher Education (AISHE), the number of foreign students enrolled in Indian higher educational institutions has only increased by 16.68 percent from FY15 to FY20. In FY15, there were 42,293 foreign students in India. By FY20, this number had increased to 49,348. However, during the pandemic, the number of foreign students decreased. In FY21, there were 48,035 foreign students, and by FY22, this number had fallen to 46,878. This decline was largely due to the impact of the COVID-19 pandemic on the Indian economy and the restrictions on global travel.

The latest AISHE report shows that in FY22, students from 170 countries were studying in India. Most foreign students come from South Asian and African countries. Nepal sends the most students to India, and their share has increased from 21 percent in FY15 to 28 percent in FY22. However, the share of students from countries like Afghanistan, Bhutan, Malaysia, Sudan, and Nigeria has decreased since FY15. Despite this, Afghanistan and Bhutan remain among the top six countries sending students to India. Interestingly, the USA has the third-largest share of foreign students in India, closely followed by Bangladesh and the UAE.

The decline in foreign students is concerning, as it reflects broader challenges in India’s higher education system. The lack of adequate funding and the rising cost of quality education have made India less attractive to foreign students. The government-run universities, which once provided quality education at an affordable cost, have seen a decline in quality. Meanwhile, private universities, which charge higher fees, have become more prominent. This shift has made it harder for India to compete as a destination for affordable, quality education.

This post highlights the growing gap in India’s education system and the challenges faced in attracting foreign students. Despite government efforts, the trend of declining foreign student enrolment continues, pointing to broader issues within the higher education sector.