Increasing globalisation and the rise of the knowledge economy have turned the spotlight on international education. It’s why the number of Indians studying abroad is expected to grow to 1.8 million by 2024 (Redseer 2021 report).
The evolution of the study abroad concept from being an opportunity limited to the privileged members of society and those academically driven to its inclusion of students from humble socio-economic backgrounds has also been adding to these numbers. Over 7.5 lakh Indian students opted for overseas education in 2022, 68% more than in 2021.
Better affordability and accessibility to foreign education and the changing job market (meaning the need to think globally and collaboratively) are the primary factors contributing to the democratised foreign education landscape.
The emergence and quick adoption of blended/hybrid learning models (part online and part on-campus) have also significantly reduced the related financial burden (tuition and living expenses), extending international education opportunities across all socio-economic strata.
Improved student services, better career assistance, more virtual tours, and global study fests by big education hubs like Germany, Canada, the UK, the US, and many others have made pursuing foreign degrees attractive and convenient.
In recent years, the Indian government, too, has taken firm steps to promote international education and make it more cost-effective. For example, the government has introduced various scholarship programs (such as National Overseas Scholarship Scheme, Dr. Ambedkar Foreign University fellowship, and others) and collaborated with foreign governments and universities to fund Indian students.
Economic Benefits of International Education (H1)
Employers often consider overseas graduates more job-ready due to their wide exposure and gain of critical transversal skills. According to the Institute of International Education’s (IIE) report, a strong link exists between study abroad programs and positive employment gains.
Expansion of career possibilities, which means an awareness of unanticipated career pathways, alongside developing 21st-century job-ready skills, is another key economic benefit of overseas education.
While these are student-specific benefits with a life-changing impact, the following country-specific economic benefits are no less important.
Benefits to Host Countries (H2)
According to Redseer, Indian students will likely spend $75-85 billion annually on international education by 2024. This means they are poised to add a significant amount to the global economy, which is expected to reach $111,882 billion by the same year, per Statista.
It’s a no-brainer that this positive impact on the host country’s economy is because of the cost incurred against tuition fees and living expenses during the study period. Then playing a pivotal role in the study destination’s job market is another critical contributor. Consider this, international students contributed $38.7 billion to the US economy and supported 415,996 jobs in 2020, per NAFSA (one of the largest non-profit organisations dedicated to international education).
Brain Drain is but Brain Gain! (Benefits to Native Countries) (H2)
As per UN’s data, Indians make up 6.4% of the total immigrant population. They are mostly those who went abroad for quality education and, in search of equal opportunities, decided to settle in the host countries. And yet they contribute invariably to the social and income mobility of India.
These people are often viewed as the change makers and are critical to India’s soft and hard power. NRIs nurture the country’s foreign exchange reserves via inward remittances and help stabilise its macroeconomics. The country’s gross inward remittances reached an all-time high of $107.5 billion in 2022, around $7.5 billion more than the World Bank’s projection for the year.
With NRIs such as Microsoft’s Satya Nadela, Google’s Sundar Pichai, Adobe’s Shantanu Narayen, and many others clawing up the social ladder globally, their investment to brand India is rightly considered incomparably huge. It’s no surprise they are often termed as stars of the Indian diaspora.
Another factor worth considering is reverse migration. The conscious return of the best and brightest foreign-educated minds to their home country and advancing their careers is a clear case of brain gain. Several studies estimate that 30-35% of Indian students return to their home country after earning a foreign degree, thereby contributing to India’s competence for knowledge diffusion and global capital.
Conclusion:
Technological transformation and policy reforms directed at the internationalisation of higher education are only expected to power the growing interest in overseas education. Burgeoning global market size, lack of skilled workers, and other socio-economic factors will continue to push developed economies to open their borders to international students and workers.
But what is expected of education providers is to think innovatively about their educational offerings: make them student-friendly, tech-friendly, and market-sensitive.
-The author is president, upGrad Abroad. Views expressed are personal.
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