Why more Indians are going abroad to pursue higher studies?

                                                                            Photo by Ulises Peña

As per studies done a couple of years back, the number of Indian students studying abroad is likely to grow from 1.3 million to 1.8 million in the next two/three years (2025~2026).

The reason for the surge in the demand for more Indians going abroad for higher studies can be attributed to the following reasons.

1.    More disposable Income and smaller families:

In the last 10 years, more Indians have become economically more capable than before. So, they are able to send their children abroad for higher education. This is also because more Indian families now have an average of two or less two kids, so the amount of money available to spend on education has substantially increased. This is clearly understood from the Total Fertility of Indian women which is at 2.1 now. GDP per capita (current US$) of Indians has improved over the last 10 years substantially (70% from 2013 to 2022, from US $ 1400 to approx. US$ 2400 now). These two reasons are primarily for higher amounts of funds available for individual families to spend on school and higher education.

2. The Formal Job Sector is inadequate for the growing population:

The formal job sector in India is still a cause of concern, as per various estimates, less than 10% of Indians are working in a formal job sector and balance work in the informal job sector. So, by going abroad for higher studies, many opt to work abroad for at least a few years before returning to India. Many also opt to stay in those countries as permanent citizens.

3.    Demographic Challenges and Opportunities:

In India, people born between 1997 to 2011 constitute roughly 36 crores, who are the millennials and the Gen Z. Most of these cohorts of young people are in the various stages of their academic and professional careers. All these 36 crore people are the major contributors to the demographic dividends of India, keeping our median age to about 28 (one of the lowest in the world). At the same time, our formal job sector does not have the capacity to absorb this entire cohort. Coincidentally, most of the countries across the Western world are getting older and reducing their population. Countries like Canada and Australia have declared government policies in place to immigrate young people from across the world, to satisfy their skill gap needs. These demographic changes are creating the right kind of environment for more young Indians to travel across the world as immigrants as well as for higher education.

4.    State of Higher Education in India:

Getting admissions into a good institution in India varies from less than 1% to about 10%. As more children are coming out of the higher secondary school education. The higher education system in India has not been able to provide a suitable solution for the ever-increasing demand for a good education system. As per the All-India Survey of Higher Education, 2020-21, about 4.13 crore young Indians got into the higher education system in that year, and about 95 lakh students passed out of the system. Absorbing all the 95 lakh pass-outs from the higher education system into the formal job sector in India is impossible right now. Unless some of them don't get absorbed into formal jobs abroad, we will continue to put a lot of stress on the formal job sector in India.

5.    Strong Indian Diaspora:

According to a Ministry of External Affairs report, there are 32 million NRIs and PIOs (including OCIs) residing outside India; and overseas Indians comprise the world's largest overseas diaspora. Every year 2.5 million Indians migrate overseas, which is the highest annual number of migrants in the world.

6.    Easy Access to Information:

Anyone seeking information about any college/course/fees details etc has become very easily accessible and most of the time it is free of cost. This has led to wider knowledge among young students. This has definitely helped the cause as well. India Career Centre

7.    Easy Access to Education Loans/Finance:

There are several banks and NBFCs offering flexible loans to the desirous and meritorious students very easily. The loaning organizations have dedicated departments, which are working along with educational consultants and foreign Universities/Colleges to provide the best possible loans at the most competitive terms.

The above factors will continue to drive the younger population from India to seek greener pastures across the globe either through higher education route or through immigration route.