India is among the top five nations sending students abroad for higher education, with projections suggesting 18 lakh Indian students will be studying overseas by 2024. The US, Canada, the UK, and Australia remain the top picks for students, but a trend is emerging to explore unconventional destinations like Germany, Ireland, Malaysia, Singapore, and New Zealand.
The top destination for Indian students overseas is America. The higher education enrollment in U.S. universities increased by 35% in 2022-23.
The study abroad landscape is rapidly evolving with new rules and regulations, such as limited visa issuance by Canada and Saudi Arabia becoming the fifth most popular destination for Indian students.
Here are the views and budget expectations from some of the leaders in the Education Abroad sector:
Suneet Singh Kochar, CEO of Fateh Education
Considering the significant impact on students and their families, I have a few key expectations from this budget. First, we need to reduce the TCS for student remittances. Currently, it’s 0.5% for loan payments but jumps to 5% for personal funds over seven lakhs. This 5% upfront cost, though refundable, can deter students from pursuing higher-ranked universities. By aligning the TCS rate for personal funds with the 0.5% rate for loans, we can provide financial support for students to achieve their academic aspirations without undue financial burden.
Secondly, we must address the issue of educational loan companies engaging in cross-selling. Students often face pressure to pay high insurance premiums or transfer fees, incurring additional costs. For instance, some companies require medical insurance costing up to INR 30,000, despite cheaper alternatives. Additionally, students may be forced to repay their entire loan at once, leading to higher interest rates. Implementing regulations to prevent such practices will protect students from exploitation and ensure that student loans remain beneficial financial aid.
Lastly, I propose establishing national scholarships for underprivileged students to study at top global universities, with a requirement to return and work in critical areas like public health, AI, or nuclear energy. This would offer deserving students opportunities while ensuring their skills contribute to national development. Investing in our brightest minds and ensuring they support India’s growth will help build a stronger, more skilled workforce for the future.
Abhijit Zaveri, Founder & Director, Career Mosaic
As we approach the upcoming budget announcement, we anticipate that the government will foster more international partnerships and collaboration as seen with the opening of GIFT City creating new opportunities and fostering collaboration between Indian and international universities, creating avenues for cross-cultural learning and research in Ahmedabad Gujarat.
A focus on global education in this budget will empower young Indians and strengthen India’s standing in STEM fields on the world stage.
In the past year, India reached an all-time high in international student enrollment, we expect the government to recognize and harness this potential by implementing measures to make international education more accessible and affordable.
This could involve targeted scholarship schemes for Tier 2 and Tier 3 city students, tax benefits for families supporting overseas education, and streamlined visa processes.
A supportive budget addressing these aspects will not only enable students to pursue their international education dreams but also contribute significantly to India’s long-term economic and intellectual growth.
Vandana Mahajan, Founder and Director Futures Abroad
The biggest challenge today is the rising tuition fees and cost of living for higher education in foreign countries, especially with inflation at its peak. To support the global mobility of India’s young talent, policymakers should allocate resources that facilitate international education.
Key initiatives should include fostering collaboration between Indian and international universities and creating avenues for cross-cultural learning and research opportunities. Measures to make international education more accessible and affordable are essential.
This can involve targeted scholarship schemes for students from smaller cities, tax benefits for families supporting overseas education, and streamlined visa processes. Additionally, offering lower interest rates on education loans will alleviate financial burdens for students and their families, enhancing access to education in the destination of their choice. Reducing air travel fares is also crucial to make global education economically viable for a broader demographic of students. These efforts will foster cultural exchange and elevate India’s representation on the global academic stage.
Saurabh Arora, Founder & CEO, University Living
In anticipation of the upcoming budget, we at University Living urge the government to consider essential measures that can significantly benefit Indian students pursuing education abroad.
Firstly, increased fund allocation to the higher education sector will be highly appreciated by the growing student community in India. Secondly, lowering interest rates on education loans and a reduction or waiver in Tax Collected at Source (TCS) when remitting money for overseas education is crucial for alleviating financial burdens on students and their families, thereby enhancing access to education at their chosen destinations.
Lastly, implementing student concessions on air travel is imperative to make global education economically viable for a broader demographic of students. This would not only foster cultural exchange but also elevate India’s representation on the global academic stage. We hope these comprehensive budgetary considerations will create a more supportive environment for Indian students undertaking international education, fostering academic growth, and enhancing India’s presence in the global educational sector.”
Meenakshi Kachroo Chatta- Senior Director & Regional Head, College Board – India, South & Central Asia
The upcoming budget presents a unique opportunity to transform the landscape of higher education in India. We anticipate significant investments and initiatives aimed at enhancing accessibility to quality education through increased scholarships and financial aid. This support is crucial for students aspiring to study both within India and abroad.
With the growing demand for international education, the budget must address the need for better financial assistance. Beyond this, we hope to see announcements that foster international academic collaborations and invest in technological advancements in education.
Moreover, investments in digital infrastructure will ensure that students from all corners of India can access world-class education and resources. By prioritizing these aspects, the budget can be a catalyst for empowering Indian students to become global leaders. Such measures will not only democratize access to premier educational institutions worldwide but also strengthen India’s position in the global academic community.
Aritra Ghosal, Founder and Director of OneStep Global
Given the government’s emphasis on developing a skilled workforce for multicultural environments and the increase in funding for higher education reflected in the interim budget, it is expected that the government will support more partnerships like the Australia-India educational collaboration.
Such initiatives will open new pathways for knowledge and workforce exchange and streamlining the process for foreign universities to establish campuses in India will also strengthen India’s international standing and prioritize global education.
To further accelerate global mobility, I encourage the government to reduce interest rates on education loans and increase financial aid support for aspiring study-abroad students. These measures will ease their financial burden and help cultivate a generation of globally competent and confident individuals.
Subhakar Alapati, Founder Director, Global Tree Careers
In Budget 2024, we expect the government to reduce the Tax Collected at Source (TCS) on foreign transactions related to educational expenses, which will alleviate financial stress on families sending students abroad. This move is crucial for making international education more accessible and supporting India’s global educational aspirations.
Lowering TCS will ease the financial burden on families and encourage more students to pursue education overseas, thereby enhancing India’s representation on the global academic stage.
Furthermore, the budget should allocate more funds to higher education, fostering public-private partnerships that can drive innovation and infrastructure development.
Pankaj Dhingra, CA & CPA, Co-Founder & Managing Partner, FinTram Global
As the budget approaches, there’s hope for reduced GST on international qualifications, easier access to educational loans, and improved employment prospects for certified professionals. These changes would make global education more affordable and accessible, fostering a highly skilled workforce that can compete on an international stage and contribute significantly to India’s growth and development.
Sachin Jain, Country Manager, ETS India and South Asia
As we approach the 2024 Union Budget, policymakers must prioritize initiatives that will empower youth and make them employable. In that context, investments to enhance the global mobility of our workforce and prioritizing their language skills will be key. India has the potential to harness its human capital which can become a talent pool for the world in the next decade, and here Government must initiate public-private-partnership models to achieve scale in training & assessment of India’s young demographic.
Further, in line with the Government’s focus on the ‘Study in India’ programme – there is a need to showcase the academic standing and rigour of Indian higher education institutions (HEIs). There is also a need to make admissions to these HEIs more accessible and streamlined for foreign nationals. Here we urge the Ministry of Education to broaden base acceptance for global admission tests and partner with International agencies who can help to bring in international students. Steps such as these will help to make our classrooms more diverse and global, while also augmenting the stature of the Indian higher education institutions.
