Economic Survey 2025-26 Flags India's Widening Education Deficit and Brain Drain Crisis
New Delhi: India requires structural higher education reforms to address the alarming imbalance in international student mobility that is fueling brain drain and substantial outward remittances, according to the Economic Survey 2025-26 tabled in Parliament on Thursday. Despite operating one of the world's largest domestic education systems, the country faces a significant "education deficit" that demands immediate policy intervention.
India Emerges as World's Largest Source of International Students
The survey reveals a stark reality: for every international student choosing India, 28 Indian students go abroad for higher education. This ratio has officially positioned India as the world's largest source country for international students. The document highlights how this exodus represents not just a talent drain but also carries heavy economic consequences.
The number of Indians studying overseas has surged dramatically from 6.85 lakh in 2016 to an estimated 18 lakh by 2025. This migration comes with a substantial financial burden, with annual outward remittances for "studies abroad" climbing to a staggering ₹3.4 billion in FY24. Indian students abroad show high concentration in a select group of host countries including Canada, the USA, the UK, and Australia, attracted by perceived quality, work rights, migration pathways, and strong institutional branding.
Aggressive Education-Tourism Strategy Proposed
To counter these challenges, the Economic Survey recommends an aggressive "education-tourism" strategy that leverages the National Education Policy (NEP) and updated UGC guidelines. The proposed approach involves:
- Enabling foreign branch campuses in India
- Establishing mutual recognition of qualifications
- Expanding student exchange programmes
- Leveraging quality benchmarks like the National Institutional Ranking Framework (NIRF)
- Strengthening the "Study in India" initiative
The strategy aims to blend India's traditional strengths in Ayurveda, philosophy, and classical arts with its modern advantages in STEM education, innovation, and digital ecosystem. By creating a compelling, affordable proposition for the Global South, the government hopes to reverse the current mobility imbalance.
India's Struggle in Global Student Mobility Market
While the global stock of mobile students grew from 22 lakh in 2001 to 69 lakh in 2022, India has struggled to capture a meaningful share of this expanding market. Even within the BRICS bloc, Russia and China account for over 80% of inbound mobility, while India's share remains in single digits.
Domestically, inbound student numbers have increased from under 7,000 in 2000-01 to approximately 49,000 in 2020. However, this represents a mere 0.10% of total higher education enrollment in India. In stark contrast, leading host countries see international students making up between 10% and 40% of their campus populations.
Although India remains the dominant destination in South Asia—attracting four-fifths of students from Nepal, Afghanistan, Bangladesh, and Bhutan—its regional share has been declining since 2011. The survey warns that rising competition from other regional hubs necessitates a "refresh" of India's value proposition to maintain attractiveness to neighboring countries.
Shifting Patterns and Regulatory Challenges
The survey highlights interesting geographical shifts in international student enrollment within India. Traditional education hubs like Karnataka and Tamil Nadu have seen declines, while Punjab, Uttar Pradesh, Gujarat, and Andhra Pradesh have emerged as new hosts for foreign students. This trend suggests that sub-national policies and institutional outreach are becoming decisive factors in attracting international talent.
India's core strength remains its cost-effective, English-medium STEM and management education. Currently, 13 specific programs—led by B.Tech, BBA, and B.Sc—account for the bulk of foreign student interest. However, "regulatory frictions" and limited international visibility continue to prevent India from converting its massive scale into a global "pull factor" for education.
Comprehensive Strategy for Global Education Hub Status
The Economic Survey proposes a multi-pronged approach to position India as a global education hub:
- Programme diversification beyond full degrees to include summer schools, semester-abroad modules, heritage and philosophy tracks, yoga and Ayurveda certificates, and innovation or rural-immersion labs
- Bundling educational offerings with tourism circuits tailored for BRICS and wider Global South partners
- Promoting reciprocal student mobility through bilateral agreements
- Encouraging top Indian HEIs to institutionalize two-way exchange programmes and offer joint, dual, or twinning degrees
The survey highlights the success of the Indian Technical and Economic Cooperation (ITEC) programme, which has trained over two lakh individuals from 160 countries. By building an ecosystem that offers research and education of global standards at affordable costs, India can move beyond simple "influence" to create "generational goodwill" while addressing the structural challenges in its higher education system.
