For decades, India has been one of the largest exporters of students pursuing higher education. Today approximately 1.3 million students annually choose to pursue their higher education abroad, citing various reasons, including better academic and professional quality, superior infrastructure, and versatile courses. This trend poses a significant strain on monetary resources, causing an outflow of around $6 billion from India’s foreign exchange reserves. While students have been known to gravitate towards Western and European countries, the US remains the most popular destination, with Indians comprising almost 25% of its over 1 million international students.
However, in light of the recent restrictions on visa policies for international students as well as their revocation in some situations, many students are faced with uncertainties with respect to their futures abroad. These concerning developments raise quite a few questions regarding the state of higher education in India—what compels students to move away from their home country and how can India transform this challenge into an opportunity to build a robust education system that inspires them to stay? This blog tackles the structural drivers behind this academic exodus and analyses existing as well as potential measures that the Indian government can respond with to prevent it.
Given the current challenges faced by international students in America, this article focuses mostly on factors that attract Indian students to the USA. A mix of gaps in India’s domestic education system, structural issues in admission and limited career opportunities, coupled with the perceived ‘American Dream’ drives students to the West. This perception, rooted in ideas of opportunity and freedom, is shared not only by students but also by their families, who find higher prestige in a ‘foreign degree’ than a domestic one. As middle class incomes rise, more families are able to afford foreign education for their children. Studies show that family encouragement or neutrality plays a key role in the children’s foreign education. And while this perception may be romanticised, there must be some truth to it.
An average ‘American dream’ for an Indian student involves quality education, employment and a better alternative to the unrealistic competitiveness of top Indian universities. Top Indian schools like IIT have an acceptance rate of only 0.2% as opposed to the acceptance rate at Harvard University, which stands at 3%. Even for those who get admission, college life is often marked by intense coaching, mental stress and discrimination. Since 2005, almost 115 students have died by suicide due to academic stress and administrative apathy. These challenges make the U.S. a more appealing alternative, with its holistic admission and comparable education standards.
Employment opportunities in the US further incentivise Indians due to higher salaries, better working conditions and structured career growth in sectors like technology, finance and research as well as benefits like health insurance, paid leave, and immigration pathways like Optional Practical Training. In contrast, India faces an oversupply of graduates and limited high-quality jobs, especially in research and innovation. Formal sector employment is lower and compensation is often overshadowed by global incomes underscored by the fact that Indian Americans are far better off than those in India. In 2022, the median income of Indian Americans was reported to be $145,000 annually, while the per capita income in India that same year was $2,388. Faced with this reality, the anticipation of upward mobility in US jobs drives many Indians to pursue education and then careers abroad.
While there are several other reasons why Indian students move abroad for their higher education, key challenges like outdated curricula, limited research infrastructure and lack of global exposure must be addressed. In response to these issues, the Government of India launched the National Education Policy (NEP) in 2020, aiming at the ‘internationalisation’ of Indian higher education. The policy promotes student and faculty mobility, international research collaborations, and the establishment of global campuses in India. It also encourages Indian institutions to attract foreign students and improve quality through global rankings and accreditation. These efforts are designed to make India a knowledge hub and reduce the outflow of students seeking better opportunities abroad. Additionally, the NEP 2020 emphasises fostering entrepreneurship and innovation by encouraging institutions to establish incubation centres and support student-led startups.
Despite its ambitious vision, the implementation of the NEP faces several challenges, including inadequate funding, lack of clarity in execution strategies and variations in institutional capacities across states. Many colleges lack the infrastructure and trained faculty to deliver this multidisciplinary and research-oriented education. While the policy encourages internationalisation and flexibility, achieving uniform reforms across the country’s vast education landscape remains a complex and time-consuming task.
However, the current situation ongoing in the USA may prove to be a boon for India. Heightened visa restrictions in the US—halting the F, M and J visas for students, revoking previously issued ones, and targeting incoming and existing international students in universities like Harvard—have shaken student confidence. India must seize this opportunity as a chance to transform its higher education system into a globally attractive option. This means changes at the school level, involving shifts from rote learning to research and critical thinking, enhancing post-study employment, and fostering international collaborations.
Investment in smart learning through digital learning platforms like SWAYAM and Khan Academymay pave the way for distance learning. Faculty hiring must improve through global-level incentives, grants, and shift from a metrics-driven approach focused on publication counts and citations to a more holistic method to evaluate individuals. Creating a safe space for foreign university branches could also reduce the need for relocation. While the NEP 2020 provides a framework for the development of our higher education system, its success ultimately depends on overcoming systemic inertia and inequality to truly compete on a global level.
Ananya Gaunekar
