Datanomics: India's rising cost of brain drain in a knowledge-driven world

Spending by Indian students abroad has surged over the past decade, highlighting the rising economic cost of brain drain and strengthening the case for internationalising higher education in India

The NITI Aayog recently released a report on the need for internationalising higher education in India, which will not only help provide higher education domestically in line with international standards but also curb the country’s  growing brain drain. This assumes significance in an increasingly knowledge-driven world, wherein an uncontrolled outflow of India’s brightest minds might jeopardise its competitive edge. 

Share of remittance for studying abroad declines

 

Under the RBI Liberalised Remittance Scheme, outward remittances by resident Indians for studying abroad have gone up from $0.28 billion in FY15 to $2.92 billion in FY25, after reaching its peak of $5.17 billion in FY22. 

 

China leads in FHEIs

 

China hosted the maximum foreign higher education institutions (FHEIs). FHEIs are international branch campuses of foreign education providers that offer their academic programmes in the domestic host country.