RISE OF NEW EDUCATION SUPERPOWERS AS BIG 4 – US, UK, AUSTRALIA AND CANADA – FACE HEADWINDS

Foreign Education is a dream that a majority of Indian middle and upper-class parents aspire to fulfil for their children. The promise of studying in the world’s best institutions, acquiring the coveted alumni tag and opening doors to global career opportunities are the key reasons for fuelling the demand.

As per the figures shared in 2023 by the Ministry of External Affairs, the total number of students studying abroad is estimated at 1.5 million with the Big 4 – US, UK, Australia and Canada contributing around 65%. This number is estimated to touch 2 million by 2025 and 3 million by 2027.

Until about five years ago, a high proportion of universities in the Top 500 globally came from the Big 4 until things started to change. Universities from countries such as Dubai, Singapore, Japan, Chile, South Korea and Russia in addition to Germany and the Netherlands started gaining traction in terms of ranking, quality of research output and infrastructure, thereby providing alternate options to students.

Reasons contributing to this shift

Some of the traditional destinations are facing internal challenges in terms of economic slowdown, growing hostility towards immigrants, increasing cost of living, visa/ work permit-related restrictions and decreasing employment opportunities.

Indian parents and students consider expenses towards foreign education as an investment towards a better life through permanent residency/ citizenship status. Therefore, if there is any negative impact on the employment and immigration prospects of a particular country, its attractiveness takes a significant hit.

Listed below are some of the most compelling reasons, necessitating the shift to alternate destinations.

Student-friendly policies: Countries like Dubai, South Korea and Singapore are rolling out a red carpet for students in the form of scholarships, visa relaxations, permanent residency policies and earn-while-you-learn programmes. For instance, under South Korea’s ‘Study Korea 300k Plan’, a series of incentives are being rolled out to attract 300,000 international students by 2027. Currently, nearly 2,000 students from India are enrolled in Korean universities.

Affordable cost of living: A recent trend is the sudden surge in demand for foreign education from Tier 2 and 3 cities in India. Growing aspirations and improving socio-economic status have led to such a shift. Affordability of tuition fees and overseas living expenditures have therefore gained high significance.

Strong economic growth: Economies of alternate destination countries are projected to grow at a much faster pace, leading to better employment and career growth prospects in comparison to the Big 4. Furthermore, countries such as Dubai, Singapore and Russia share cordial relationships with India which have led to better on-ground acceptance of students and effective workforce movement.

Focus and investment in technology: Massive investments in building technological infrastructure to support the development of AI and related tools have been planned by these countries, thereby opening doors for education and research in these futuristic avenues and increasing their attractiveness. Fiscal and non-fiscal incentives are being offered to startups in deep tech, including an opportunity to work with the government directly without going through the formal tendering process.

Culture and Societal pull: India’s younger generation is highly influenced by the culture, music, food and fashion of many smaller countries leading to heightened interest in pursuing higher education and immigration opportunities in those countries. K-Pop, K-dramas and mukbang shows have led to a 200% increase in enrolments at South Korean universities over the last few years. Extremely deep penetration of OTT (over-the-top) content across the country has led to such a shift over time.

A combination of the above factors has led to the rise in popularity of alternate education destinations. Indian students are increasingly being spoilt for choice with new destinations on offer for all categories of budgets and programmes. Any delay in the implementation of corrective measures by the Big 4 may result in their share dropping below 50% and the rise of new education superpowers in the next two to three years. The establishment of foreign education campuses at Gift City and other parts of the country will further expand the options for students in India.

Source:- Financial Express