Indian Students Abroad: Where Do They Go, Why Do They Leave, And What Does India Gain or Lose?

Introduction

The stories of students leaving for yet another “Ivy League” or the Oxfords and Cambridges of the world are not unknown. Their departure is often lamented as yet another chapter in India’s “brain drain” story—a narrative that portrays overseas education as an irreversible loss of talent which the country hasn’t been able to retain. However, this narrative fails to acknowledge what exist beyond this traditional notion.

In today’s day and age, where boundaries are only for geography textbooks, and opportunities flow with unprecedented ease, the more pertinent question is not whether Indian students should leave, but whether India possesses the institutional prowess as well as infrastructure and opportunities to bring such students back to contribute to their motherland.

Beyond Rankings: Understanding Student Choices

The scale of Indian student mobility has grown dramatically over the past decade. Niti Aayog, in its 2025 report, ‘Internationalisation of Higher Education in India,’ noted that 69 lakh students were outbound to universities outside India, which back in 2001 was 22 lakh students¹. The Report undertakes to analyse the past two decades, from 2004-2024, and identify the leading host countries over this period². Data suggests that in 2024, USA, Canada and UK lead  the preference list of outbound Indian students for higher education, with the USA being the most  preferred. The numbers show exponential growth in demand for the American educational pedagogy and institutions. For over two decades, America has retained this spot with international student numbers rising from 5.73 lakhs in 2004 to 9.75 lakhs in 2014 and reaching 11.27 lakhs in 2024.

However, the rise of Canada as preferred destination for higher education is a remarkable development, witnessed in the past 20 years. In 2004, the country which was lesser known and not frequently opted for by students has now grown ~14 times.

The reasons for such outward movement are hardly surprising and no the answer lies beyond the tradition assumption of just rankings. While some may term them as a matter of legacy and prestige, the Times of India, in one of its article³ attributed the same to limited national opportunities, liberal and an eclectic range of financial assistance, internationally recognised degrees, and above all, the opportunity of having a global exposure and interact in a culturally diverse atmosphere, thereby facilitating holistic development. To elucidate on the same, structural constraints pertaining to finances, faculty quality, infrastructure and lack of collaborative initiatives with international counterparts plague the system significantly, which, outbound students believe, would be better abroad. International exposure, multicultural learning environments and access to global labour markets have become integral components of career planning. For many students, studying abroad is less about leaving India than about participating in an interconnected knowledge economy.

The recent efforts to address these issues, however, deserve due credit and acknowledgement. Be it the 200 crore layout, over a period of 5 years, for the Prime Minister Research Chair Scheme or the establishment of offshore campuses of various global universities, these efforts are testament of not only cognizance but also intent.

These data points allow for introspection and deeper vertical analysis for policy makers to not just retain talent but bring back the talents who have hone themselves into their better version – prepared to contribute dynamically to the nation’s growth story.

From Brain Drain to Brain Circulation Measuring What India Really Loses & Gains

The term brain drain has dominated India’s migration discourse for decades, implying that every student who leaves permanently is yet another loss which the country has suffered. While the concern is understandable, the concept is increasingly too narrow to explain the realities of twenty-first century mobility. In the present day and age migration by graduates expands into global research collaborations, build multinational enterprises, invest across borders and remain digitally connected to their home countries. The policy challenge, therefore, is not whether students leave, but whether India has created mechanisms to harness these transnational networks.

The Organisation for Economic Co-operation and Development (OECD) now frames international student mobility as a driver of knowledge exchange, innovation and economic growth rather than merely a precursor to permanent migration. Many students pursue overseas education to acquire specialised skills, international experience and professional networks before either returning home or maintaining long-term collaborations across borders⁴.

This evolving understanding has given rise to the idea of brain circulation. Rather than viewing talent as permanently “lost”, it postulates the idea that skilled migrants often generate value for both their host and home countries through eclectic endeavors such as research partnerships, entrepreneurship, venture capital, technology transfer and diaspora networks.

This distinction is particularly relevant for India because the country’s losses transgress the concerns of departure of its brightest students. The more significant concern lies in the domestic ecosystem they leave behind which then end up not having enough reasons to be revamped.

Equally important is the financial dimension. Overseas education represents one of the largest components of outward remittances under India’s Liberalised Remittance Scheme, reflecting the substantial investments made by Indian households in tuition fees and living expenses abroad. Yet this expenditure should not automatically be interpreted as an economic loss. Inward flow through remittances, cross-border investments, philanthropic initiatives and business partnerships that extend well beyond conventional monetary transfers are not unknown.

Countries like China, South Korea and Ireland have progressively shifted from discouraging outward student mobility to cultivating enduring relationships with their overseas graduates. Through various initiatives like return fellowships, innovation grants, etc. they have transformed international education into an extension of national development strategy rather than treating it solely as an emigration issue. Their experience demonstrates that successful countries do not necessarily retain every talented student; instead, they ensure that talent remains institutionally connected regardless of geography⁵.

India has already begun moving in this direction. The National Education Policy 2020, the Study in India initiative and recent University Grants Commission reforms pertaining to offshore campuses reflects an ambition to make India a more attractive destination for both domestic and international students. Simultaneously, the Economic Survey advocates an “education-tourism” strategy that combines India’s strengths in science, technology and digital innovation with its comparative advantages in culture, philosophy and traditional knowledge systems. These measures indicate a gradual recognition that the solution lies not in limiting student mobility but in enhancing India’s own academic ecosystem⁶.

To sum it up, the steps need to turn into strides. In today’s day and age, it is definite that students would be enticed by opportunities overseas, be it for the “tag”, opportunities or just cultural exposure. However, the gain would be in creating abundant opportunities and affinity towards the nation’s growth story which even inculcates the aspirations to bring the best around the world into India. The loss, however, would be the loosing yet another star from our sky, who might brighten up other skies, while we lament its loss.

 

References:

1 NITI Aayog and Indian Institute of Management Ahmedabad, Working Paper: International Student Mobility (NITI Aayog Working Paper, November 2025).

2  ibid

3 ‘1.8 Million and Rising: Here Is Why Indian Students Prefer Studying at International Destinations’ The Times of India (29 May 2025)

4 Organisation for Economic Co-operation and Development, ‘International Student Mobility’

5 Arpan Tulsyan, International Student Mobility: Beyond Brain Drain (Observer Research Foundation, ORF Occasional Paper No 525, March 2026

6 ‘Economic Survey 2025–26 Calls for Education Reforms to Stem Student Exodus, Draw Overseas Learners’ Mint (29 January 2026)