UGC’s foreign university nod could be India’s best bet to stop USD 80 billion study abroad brain drain

By Brajesh Kumar Tiwari

India is on the verge of an educational revolution as US policies become more restrictive toward international students. The “Make Education in India” campaign has the potential to make India a top international study destination that caters to both domestic and foreign students with the help of strategic reforms and recent momentum. The All-India Survey on Higher Education (AISHE) 2021-22 reported that India accommodated 46,878 international students from 170 countries and represented below 1% of the total enrolment in higher education, and Nepal and Afghanistan accounted for the majority of these international students.

The establishment of foreign university campuses in India could lead to collaborative research opportunities, greater diversity within educational environments, and improved global recognition for Indian institutions.

Recently, a significant milestone was achieved in the higher education landscape of India, marked by the simultaneous issuance of Letters of Intent (LoI) to five esteemed foreign universities – the University of Aberdeen (UK), the University of York (UK), the University of Western Australia (Australia), the Illinois Institute of Technology (USA), and the Istituto Europeo di Design (Italy). This decision is regarded as a significant advancement in the globalisation of education. The initiative aligns with the National Education Policy (NEP) 2020, which outlines a legislative framework permitting leading global universities to establish operations in India.

UGC nod to foreign universities

The government is undertaking numerous initiatives aimed at enhancing the quality of higher education, fostering innovation, and achieving excellence in the context of global competition. Following the enactment of the 'Regulations on Establishment and Operation of Campuses of Foreign Higher Educational Institutions in India-2023' by the University Grants Commission (UGC), foreign universities and institutions are now permitted to establish their campuses within India.

Previously, Deakin and Wollongong Universities from Australia have inaugurated their campuses in Gujarat, while Southampton University from Britain has established its campus in Gurugram.

India is a youthful nation with a significant portion of its population pursuing education. A significant number of students are departing the country in pursuit of better opportunities overseas. While the latest data is not available, as a result of brain drain, the annual foreign expenditure of Indian students was projected to attain USD 80 billion by 2024.

Higher Education Abroad: What numbers say

Last year, over two lakh Indian students traveled to the US alone. While we do not have the latest data, the 'Higher Education Abroad' report indicated that by 2024, the number of students studying overseas will approach 20 lakh. At the same time, the number of Indian students going abroad for higher education was 4.4 lakh in the year 2016.

An analysis of the data from the past decade reveals a consistent annual increase of 15-20%.

According to the data of the education ministry, in 2023, about 9 lakh students went abroad for higher education and these students spent Rs 5.1 lakh crore on getting education abroad. This is 10 times more than the annual budget (Rs 44,090 crore) allocated by the central government for higher education in 2023-24 and is about 3% of India's gross domestic product (GDP). India urgently needs to reverse this trend. Institutions in the US, Canada, and the UK are the three most favoured study destinations for Indians.

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As of May 2024, India's Gross Enrolment Ratio (GER) in higher education was 28.4%, with over 43 million students enrolled in around 1,200 institutions. However, this is well below the current global average of 36.7%.

Even today, no educational institution of India is even included in the top 200 institutions of the world. Countries like America, Britain, China are much higher than India in the QS World University Ranking-2025. India's position is not respectable even in The Times Higher Education Ranking-2025. The top 10 universities in Asia include 5 from China, 2 from Hong Kong, 2 from Singapore and 1 from Japan.

Study Abroad: How India can curb brain drain

Indian students studying abroad spend billions of dollars annually in tuition fees to foreign universities. If international universities establish campuses in India, the funds will be reinvested within the country.

Only foreign institutions ranked in the top 500 of overall or subject-specific global rankings will be permitted to establish campuses in India, with initial approval granted for a duration of 10 years. These institutions will refrain from providing any academic programmes that jeopardize India's national interest or the standards of higher education in the country.

The initial proposal was introduced in 1995, but it failed to progress. In 2007, the United Progressive Alliance (UPA) government proposed a comparable initiative, which also remained unexecuted. Foreign institutions like the University of Nottingham (UK) and New York University (US) have established campuses in China, providing the country with a competitive edge in international rankings, albeit under stringent governmental oversight.

Likewise, Singapore implements highly advantageous policies for foreign universities; however, certain institutions have relocated due to their inability to sustain operations over time. This indicates that both the name and the educational model must be sustainable.

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Govt push for foreign universities in India

The government is pushing for radical transformation in the education sector to enable Indian students to acquire foreign qualifications at affordable costs and make India an attractive global study destination. This move will help talented students who are unable to go abroad due to high costs, as it will eliminate all the logistical hurdles and travel expenses and visa related issues. This will also put pressure on Indian universities to perform better.

The quality of curriculum, research, faculty development and modern academic structures will improve and thousands of new jobs will be created for teachers, researchers, management personnel and other support staff in the education sector. The world's top universities will set up research centres in India, which will boost its research and development ecosystem. This academic collaboration will transform India into a knowledge economy and enhance its soft power.

On the flip side, the cost of attending a university abroad can add up quickly. Additionally, local universities in India, particularly tier-2 and tier-3 institutions, may confront an existential threat if foreign institutions join with greater resources and a better reputation than Indian universities. Independent course, fee, and admissions policies are being left to foreign universities.

The commercialization of education in India is likely to grow in the absence of robust regulation, as educational institutions in the country will prioritize profit over improving the quality of education they provide. The government ought to keep tabs on the money foreign universities spend on hiring and research, and they ought to push for more inclusive tuition rates. Not only should these places of higher learning serve the well-off, the government should also move in this direction to ensure that students from lower socioeconomic backgrounds have equal opportunity.

What we are seeing here is a "double-edged sword" situation indeed. A new age in India's higher education sector can be ushered in if the government maintains a balanced, transparent, and education-centric approach to regulating foreign universities.

The magnitude of the higher education sector in India is substantial enough to entice prominent global educational institutions to establish campuses in the country. Foreign universities will not only invest capital but also introduce modern educational technology and innovation, which are presently deficient in India.

The government should consistently strive to elevate the nation's higher education institutions to 'Institutes of Eminence' to enhance their competitiveness in contemporary contexts. Overall, this is a good decision by UGC. This will undoubtedly mitigate brain drain and retain the nation's financial resources domestically. Furthermore, the implementation of India's premier education system will enable students from adjacent countries to benefit from it.

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The UGC should prioritize only foreign institutions that are ranked in the top 200 of overall or subject-specific global rankings, excluding those in the top 500. It is essential to closely monitor aspects such as educational quality and equitable fees. Furthermore, these foreign universities should not be given complete autonomy otherwise they will think about the interests of their country before the interests of India.

Brajesh Kumar Tiwari is an associate professor in the Atal Bihari Vajpayee School of Management & Entrepreneurship (ABVSME), Jawaharlal Nehru University (JNU)