The Economic Survey 2025-26 has issued a clarion call for India to significantly elevate its 'education-tourism' strategy to attract a greater number of international students. This imperative comes as competition from neighboring nations and other global destinations intensifies, challenging India's position in the lucrative international education market.
The Stark Imbalance in Student Mobility
The survey presents a concerning statistic for the year 2024: for every single international student who chose to study in India, a staggering 28 Indian students ventured abroad for their education. This significant outflow is accompanied by substantial foreign exchange costs, with annual outward remittances under the 'studies abroad' component ballooning to $3.4 billion in the fiscal year 2024.
India's Regional Dominance and Its Erosion
India continues to be the principal host country within South Asia, attracting over four-fifths of all inbound students to the sub-region in 2023. The majority of these students hail from neighboring countries such as Nepal, Afghanistan, Bangladesh, and Bhutan. However, the survey notes a critical trend: India's share of the South Asian student market has declined by several percentage points since 2011. This erosion signals rising competition from both regional and extra-regional education hubs and underscores the urgent need to refresh India's regional value proposition.
Strategic Diversification: Beyond Full-Time Degrees
To counter this trend and position India as a premier global education hub, the Economic Survey advocates for a fundamental shift in approach. It emphasizes that broader, more innovative strategies must be deployed beyond traditional full-time degree programs.
The recommended initiatives for program diversification include:
- Summer schools and short-term academic programs
- Semester-abroad modules for foreign university students
- Specialized tracks in Indian heritage, philosophy, and culture
- Yoga and Ayurveda certification courses
- Innovation labs and rural-immersion experiences
The survey suggests these offerings can be strategically bundled with tourism circuits and specifically tailored to attract students from BRICS nations (Brazil, Russia, India, China, and South Africa) and wider Global South partners, creating a unique 'education-tourism' package.
The Outbound Surge and Popular Destinations
Concurrently, the number of Indian students pursuing education overseas has witnessed a dramatic increase, rising from approximately 6.85 lakh in 2016 to over 18 lakh by 2025. The most sought-after destinations for these students remain the United States, Canada, Australia, and the United Kingdom.
Despite challenges such as restrictive visa policies and stringent post-study work norms in many host countries, new opportunities are emerging. The recent India-EU Free Trade Agreement is anticipated to boost student mobility to numerous European countries, potentially opening new avenues for Indian scholars.
Inbound Growth: Significant Yet Insufficient
On the inbound front, India has seen growth. The number of international students increased from under 7,000 in the academic year 2000-01 to around 49,000 in 2020, just before the COVID-19 pandemic disrupted global mobility. However, this figure represents a mere 0.1% of total higher education enrolment in India.
This proportion is far below the levels observed in leading host countries, where international students typically constitute between 10% to 40% of total enrolment. This gap highlights the immense potential for growth and the need for a more aggressive and attractive national strategy.
Policy Enablers and the Road Ahead
The National Education Policy (NEP) of 2020, which greenlit the entry of foreign universities into India, has already spurred a surge in their numbers. This development primarily caters to Indian students seeking global educational exposure without leaving the country. While beneficial, the survey stresses that attracting international students remains a separate and critical objective for economic and soft power gains.
In conclusion, the Economic Survey 2025-26 paints a clear picture: India possesses the foundational elements but must act decisively. By innovating its academic offerings, integrating education with tourism, and enhancing its global marketing, India can transform its educational landscape, retain more foreign exchange, and solidify its status as a world-class destination for learning.
