FHEIs Can Boost India’s Education Services Exports

The expected entry of foreign higher education institutions (FHEIs) into India is intended to help lower the nation’s education imports. It could also make India a potential education hub and enable expansion of education services exports, including tuition and related living expenses for international students. Local economies and communities, too, stand to gain substantially from foreign student inflows. 

Recognising the wide-ranging economic and social benefits of education exports, India, in its National Education Policy (NEP) 2020, outlined several models to enhance the participation of reputed FHEIs in its higher education system, a step-change from existing policies. 

India’s services exports reached $388 billion in 2024-25, up from $213 billion in 2019-20, recording faster growth than merchandise exports. However, services exports remain heavily concentrated in software and business services. In many countries, high-quality higher education has significantly bolstered education services exports. For example, Canada estimated that international students’ annual expenditure contributed as much as 1.2% to its GDP in 2022. The United Kingdom earned GBP 20.3 billion in education-related exports in 2022, with overseas students accounting for almost a quarter of total enrolments. Education exports also rank among Australia’s top five goods and services exports.

Developing countries are similarly promoting higher education to attract foreign students. Kazakhstan has launched  a Study in Kazakhstan program, aspiring to attract 100,000 overseas youth by 2028. China’s growing number of high-ranked universities brought in close to half a million international students pre-COVID. Malaysia has prioritised education exports through FHEIs and already hosts over 130,000 foreign students, with plans to reach 250,000 by 2030.

India, meanwhile, is a major source of students for universities abroad, sending 1.8 million youth for higher education to more than 100 countries in 2025. The United States, Canada and Australia remain preferred destinations, but Indian students have also enrolled in countries such as China, Ukraine, and Malaysia. Remittances for studies abroad totalled $3 billion in 2024-25, according to RBI data. Expectedly, education imports will continue as Indians increasingly seek work and migration pathways.

Foreign student inflows into India are rising and currently stand at about 72,000. Their expenditure on tuition and living expenses is poorly documented, and such inward transfers need to be better reflected in the RBI’s balance of payments data to capture education exports.

India aims to host 500,000 international students by 2047 under the Study in India program and enjoys several natural advantages in pursuing this goal. Its 57 central universities, alongside state and private universities, offer English-language instruction, a wide range of specialisations, and job-oriented programs. The country’s STEM (Science, Technology, Engineering, and Mathematics) talent pool continues to supply high-quality resources to software companies, global capability centres and manufacturing units. The NEP 2020 further supports this ecosystem through flexible entry and exit options, credit transfers, and multidisciplinary education.

FHEIs, with their high academic standards, can integrate well into India’s system and help position the country as a global node for international students and education exports. As of October 2025, the University Grants Commission had issued letters of intent to 14 foreign universities to set up campuses in India.

To attract both Indian and international students, FHEIs must ensure that their Indian campuses match the quality of education offered in their home countries. Courses will need to be aligned with Indian industry requirements and global expectations for an international education.

The pricing of these programs will also be key factor in scaling up enrolments. Foreign students expect good student amenities and an environment conducive to extracurricular activities. Central and state governments should work to build welcoming communities, ensure safety and security, and provide conveniences that enhance the overall study experience. An important issue the government may need to consider in the future is granting work visas to international students.

Robust branding and marketing of foreign campuses in India, both by FHEIs and the government, particularly in Asian and African countries, will be crucial to positioning India as an education destination. With several countries already enjoying a head start and strong competitive offerings, FHEIs in India will need to leverage the country’s fast-growing economy as a unique selling point to attract global students.

About 7 million students leave their home countries each year to seek better educational opportunities, and this number is likely to grow as new youth cohorts from developing countries enter the market. India is well-positioned to seize this moment, and FHEIs will likely play a pivotal role in shaping the trajectory of its education services exports.

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