Trade in Education - Where does India stand?

Education exports is a booming business around the world.

According to the Open Doors 2003 report released by the Institute of International Education (IIE),

international students contribute nearly $12 billion dollars to the U.S. economy in money spent on tuition, living expenses, and related costs. Nearly 75% of all international student funding comes from personal and family sources or other sources outside of the United States. Department of Commerce data describe U.S. higher education as the country's fifth largest service sector export.

This led me to a quick back of the envelope calculation. According to the IIE's country fact sheet on India, the percentage of Indians among all foreign students entering the US over the past 4 years was 12.7% (2002-03), 11.5% (2001-02), 9.9% (2000-01) and 8.2% (1999-00), which averages to 10.6% over the past 4 years.

So of the $12 billion contributed by all foreign students in USA (I'm assuming this is an annual number), Indians contributed roughly $1.27 billion (10.6%). Of this, about 75% (which works out to $950 million or Rs. 4,280 crores) would have been contributed from personal/family sources or other sources outside the US. So the annual education exports from USA to India is about US$ 950 million?

For perspective, the figures of US exports to India for calendar Year 2002 (figures for 2001 are in brackets) show

US merchandise exports to India = $ 4.1 billion ($3.8 billion)
USA services exports to India = $ 3.1 billion ($2.8 billion)
Total USA exports to India = $ 7.2 billion ($6.6 billion)

Is the back of the envelope calculation in the ballpark or am I missing something here? Is Education one of the main services exported by the US to India?

Australia does in fact earn more from exporting education than any single primary commodity. IDP Australia (an independent not-for-profit organisation owned by 38 of 39 Australia's universities and representing all education sectors) reports,

Australia’s eighth largest export sector, international education was worth $4.2 billion to Australia in 2002 (presume all figures are in AUS$). There are approximately 1.8 million international students around the world – and Australia is their third most popular choice, after the USA and UK.

More than 188,000 international students studied at Australian institutions in 2002, with more than 100,000 at campuses onshore. Foreign students comprise about one in five of the 850,000 degree-seekers enrolled in Australia’s 38 universities.

Australia now earns more from foreign students than it gets from exporting wool, or any other single primary commodity. And that income could expand ten-fold over the next two decades to $40 billion a year. On average, every international student spends around $9,000 on goods and services each year they’re in Australia. Latest statistics on international student expenditure, from a survey by Australian Education International, show that students spend more than $118m on entertainment, $100m on overseas travel, $ 77m on clothing and footwear, $ 59m on daily transport, $ 53m on household goods and, $ 41m on car costs.

Estimates of education exports from UK are in the region of around £8 billion a year ($13.3 billion).

How can India get into this game?

IIT is a reputed and established Indian brand and we should certainly be looking to leverage our investment in the IITs over the past 50 years and look at exporting IIT education. There is apparently already a proposal under active consideration by the Government of India to set up IITs abroad. This would call for sizeable investment (don't know if the government has decided to invest) and involve other logistical issues as well. The easier step would be to start out by marketing the existing IITs in India (as education destinations) to foreign students and gain some traction in the export market. We could look at setting up more IITs within India as well as outside as the export demand grows.

On a slightly different note, given that demand for IIT education far exceeds supply right here in the Indian home market, the IITs would do well to leverage their brand and expand supply starting in the Indian market. An earlier post of mine looks at possibilities.

Comments

[Crawford Kilian]

See my article on international education in British Columbia at http://www.capcollege.bc.ca/dept/cmns/foreign.html

--it was originally published several years ago, so the stats are out of date, but the point remains: international students are important to Canada just as they are to the US and Australia.

[samrat]

read this

[vikramkumar]

helo sir,
iam doing my b.com from kalinga university,iam very very very much worried wheather is this degree valid for further studies,govt.job are going aboard iam very very much thankful for giving me details regarding this university its located in raipur, chattisgarh,and recently they have opened office in hyderabad also so sir,please give me details, as my life is completely depend on this degree,,, i would be very thankful,graceful, its my humble request.... thanking you

[wasim ali khan]

sir/medam,

sir i have done 12th class from rajasthan(ajmer board)in 2002/2003 and i want to study a head. but i have no time for long study time. i'm going out of india. so plz tell me any process to bechlor degree (B.A)can i complete my bechlor degree by on lime exame in short time.

[gunjan agarwal]

i want to know if i do education in private university in india then i will have to suffer from any problem at the time of taking admission in abroad.
Are they want recognized university from india?

[s.kumaran]

dear sir,
i'm working in kuwait.i'm completed hsc,ITI.now i'm interested to study diploma in mech.engg course.it is possible,i will get admission for this course?if yes what are the institutes?and also send the details about this.kindly,please do the needful

thanking you
yours
s.kumaran

[Katam]

Dear Friends

Any one can answer my questions please?
Now I am studying my MA (Masters degree) from UK University after completing my MA I like to do PhD In Indian University. Can I get admission in PhD at Any Indian University? UK Pstgraduation degree recognized by UGC in India.
Thanks
Katam

[simranjeet singh]

dear friend,
i am newly posted in bangalore i am an employee of IAF so i what to take admission in b.com correspondence course so plz heip me out and tell me some famous universities of bangalore as soon as possible.

[poo]

this is no dam help at all

[harish kumar]

dear friends
im working in mysore i want to know about NCTVT,NTC&NTA
institutes in karanataka can we study courses under these courses in any open university kindly help,plz do the needful
thanking you,

harish

[RAMANUJ SINGH]

sir

I want to complete graduatation in arts subject from any university in India through correspondence in short time i.e 01 or 02 year.So it is requested that if any path please send me details as soon as possible. AWAITING YOUR REPLY

[Karthikeyan]

dear sir,
i'm working in Hosur.i'm completed sslc,ITI(electronic mechanic).now i'm interested to study diploma in eiectrical&electronicsengg course in distance education.it is possible,i will get admission for this course?if yes what are the institutes?and also send the details about this.kindly,please do the needful

thanking you
yours

R.KARTHI

[Venkat]

Helo sir,
I have done my deploma from kalinga universitycomplited in 2005 ,I heard about it it's haveing some problem (black list) will it applicable for us to apply the job in for further govt.jobs

Please giving me details regarding this university its located in raipur, chattisgarh
please give me details, i would be very thankful,graceful, its my humble request....

thanking you

Venkat

[meena]

i have done my b.ed m.ed and m.phill in education i want to do phd i belong to kurukshetra can u help me to search any valid university which give admission in phd without entrance test

[meena]

i have done my b.ed m.ed and m.phill in education i want to do phd i belong to kurukshetra can u help me to search any valid university which give admission in phd without entrance test