Delivering a convocation address at a private university here, he said many students go to countries such as Australia and New Zealand for higher studies.
"I suggest let there be a reverse direction," he said.
Mukherjee said India had provided leadership in higher education for centuries as he pitched for efforts to reclaim that status.
Addressing the 8th Convocation of Lovely Professional University, he said India's diversity is the product of "our civilisation and history".
At the event, Punjab Governor V P Singh Bandore exhorted the students to lead a life of purpose and do good work.
The president was awarded honorary doctorate by LPU Chancellor Ashok Kumar Mittal.
Thirty-eight students were awarded gold medals by the president.
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