Indian Higher Education Sector : Import of Education

Every year a large fraction of Indian students spend large sums of on a foreign education due to the letter system
of education. Some trends relating to import of education are as follows (refer to exhibit 6):
 Indian spend USD 4bn annually on higher education abroad
 The U.S. continues to remain the most popular destination
 71% are pursuing postgraduate courses in engineering and management
 Australia is a popular destination for vocational training and course in hospitality
 U.K.’s popularity is due to the variety of one-year degrees on offer
 China and Russia are emerging as favored destination for medical education.
Traditionally dominated by the public sector, the higher education market in India is being driven by private
sector participation, with several high quality private institutes setting standards and pioneering growth.
Globally some HEIs have rapidly attained scale over the last few years making them models for India HEIs to
analyze and possibly emulate. The expenditure on higher education in India is estimated to be USD 6.5bn in
2008. It is expected to grow at 12% CAGR to reach USD 10.3bn by 2012 according to the 2009 Netscribes
report on Higher Education. Private institutions have been focusing on the area of professional courses like engineering and medicine as well as post graduate courses like MBA. Private set-ups account for 50% of the
total medical seats and 80% of the engineering seats available in students in India.