What motivates Indian parents to send their children abroad for education

A remarkable trend has emerged in India’s education landscape in recent years: an increasing number of parents are investing in their children’s global education. This phenomenon has far-reaching implications for education providers, policymakers, and industry stakeholders. A staggering 78% of Indian parents actively invest in their children’s international education, reflecting a significant shift in educational priorities and aspirations.
To understand this trend, it’s crucial to recognise the deep-rooted importance of education in Indian culture. For generations, education has been considered a critical element for upward economic mobility. In a country with a population of over 1.3 billion and intense competition for limited resources, education is often seen as the great equalizer—a means to break socio-economic barriers and achieve success.
Indian parents have long prioritised education, often making significant sacrifices to ensure their children receive the best possible schooling. However, the focus on global education is a relatively new phenomenon, driven by several factors including the quality of education, career prospects, and cultural exposure that international study offers.
The scale of investment in international education by Indian families is substantial. While exact figures can fluctuate, recent data suggests that Indians spend billions of dollars annually on overseas education. For instance, in the 2021-2022 academic year, Indian students in the United States alone contributed approximately $7.7 billion to the U.S. economy.
1. United States
2. Canada
3. United Kingdom
4. Australia
5. Germany
6. Singapore
Emerging destinations also include Ireland, South Korea, and Hong Kong.
Regarding student population share, Indian students often form one of the largest international student groups in many countries. For example, in the United States, Indian students make up about 20% of all international students, second only to China.
Degree Levels and Preferences
– Bachelor’s level: 15-20%
– Master’s level: 60-70%
– Ph.D. level: 10-15%
This distribution highlights a strong preference for postgraduate education, particularly at the master’s level.
Regarding degree preferences, STEM-based degrees (Science, Technology, Engineering, and Mathematics) are overwhelmingly popular among Indian students, especially in the United States. Degrees such as Computer Science, Mathematics, Economics, and Data Science are particularly sought after. This preference is partly due to these fields’ career opportunities and partly due to immigration policies. For instance, STEM degrees offer a significant advantage in the USA: they allow for 36 months of Optional Practical Training (OPT) on a student visa. This extended period provides students with valuable work experience and three opportunities to be selected in the H1B work visa lottery, greatly enhancing their chances of long-term employment in the U.S.
The allure of career prospects in countries like the USA, Canada, the UK, and Singapore, compared to India, is a significant driver for international education. On a Purchasing Power Parity (PPP) basis, these developed nations often offer a higher quality of life, with lower levels of pollution and, in many cases, a better work-life balance.
Moreover, these countries typically provide more opportunities for career growth and development. The exposure to cutting-edge technologies, diverse work cultures, and global business practices equips students with skills and experiences that are highly valued in today’s interconnected world. It’s worth noting that even when students return to India after studying and working abroad, they are often perceived as more valuable in the Indian job market. The international exposure, advanced skills, and global networks they bring back are highly prized by Indian employers, especially in multinational corporations and rapidly growing start-ups.
As India continues to experience rising standards of living and increasing incomes, the trend of students choosing to study abroad is likely to persist and even grow. This is particularly true given the limited number of high-quality educational institutions in India compared to the large population of aspiring students. The intense competition for seats in top Indian institutions like the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) further drives this trend. Many students who might not secure a place in these elite Indian institutions find that studying abroad offers an alternative path to quality education and promising career prospects.
However, this trend also presents challenges for India. The “brain drain” phenomenon, where highly skilled individuals leave to work in other countries, can result in a loss of productivity for the Indian market. While many students initially plan to return to India after gaining international experience, a significant number end up settling abroad for extended periods or permanently.
The growing trend of Indian parents investing in their children’s global education is a complex phenomenon with multifaceted implications. It reflects the high value placed on education in Indian culture, the aspirations for better career prospects and quality of life, and the challenges within India’s own education system. As this trend continues, it will be crucial for Indian policymakers and education providers to address the factors driving students abroad. This may involve increasing the capacity and quality of domestic institutions, fostering stronger industry-academia partnerships, and creating more attractive career opportunities within India.
At the same time, countries receiving Indian students will need to adapt their policies and systems to cater to this growing demographic. This could include tailoring courses to meet the specific needs and aspirations of Indian students, providing better support systems, and potentially revisiting immigration policies to retain top talent. Ultimately, the global aspirations of Indian parents and students are reshaping not just India’s education landscape, but also influencing global education and employment patterns. As India continues its economic rise and integration with the global economy, this trend is likely to play a significant role in shaping the country’s future workforce and its position in the global knowledge economy.