In Charts: Why Varying Types Of Indian Students Move To US And How To Get Top Tech And Scientific Talent Among Them To Return

It is the unfortunate season of massive layoffs in the US, especially in the technology sector.

Over 60,000 Indian IT professionals in the US have reportedly lost their jobs.

Given that most of them are likely to be on work-related H-1B and L1 visas, they may have to find another job within 60 days or pack up.

The impact of tech layoff on the Indian workforce in the US has once again stirred a debate on the reasons driving the migration of Indian students to the West, especially to the US, and why a significant number among them choose to stay put there and pursue professional opportunities.

The migration from India, often described as a brain-drain problem by several policymakers, is two-fold.

One, that of the students, and two, that of high-net-worth individuals (HNWIs).

Data from the AfrAsia bank, focussed on HNWIs with a net worth between $1 million and $9.9 million, reveals that in 2019, roughly 2 per cent of India’s HNWIs, roughly 7,000, emigrated from India.

This was second to China, where 16,000 HNWIs chose to leave the country, approximately 2 per cent. India found itself in the top spots with Russia and Hong Kong.

However, what explains the migration of students from India, especially to the US?

The numbers explain the urgency.

Now, to the reasoning behind these numbers. 

One, at the risk of stating the obvious, it is the formidable educational ecosystem, including Ivy League universities attracting the best and brightest.

Leading institutes for international students include New York University, Boston University, Purdue University, John Hopkins University, University of Michigan, Cornell University, and many more. 

For many graduates in India, from IITs and NITs or specialised management institutes, the next obvious stop is the Ivy League universities for the courses they offer and for the professional prospects.

It is both a matter of personal preference and academic excellence that propels this movement. 

However, the ones unable to move to the best universities are also content with second-tier and lesser-known institutes.

While scholarships are hard to attain, the objective is to secure a loan, hustle with a side job to manage the expenses, and land a job with any big multinationals to pay off the loan and pursue the 'American dream'.

For most, this entire EMI circle goes up to a few years.

Two, the population.

This explains the high number of students migrating to the US from India and China. That students from China (more than 4x the size of India's current GDP) constitute the largest overseas student group in US universities is a valuable reminder that migration is not a function of a country's economic prowess.

For the last 20 years, the demographics of both countries ushered a significantly larger chunk of young population, eager for both opportunities and growth and rattled by the cutthroat competition to secure admission to best-in-class domestic universities and local factors. 

China, in 2021-22 alone, had around 290,000 students admitted to the universities in the US. 14.6 per cent of them were studying business and management, 17.2 per cent were studying engineering, and more than 23 per cent were enrolled in computer science and mathematics; trends are pretty similar to that of Indian students. 

For Indian students, it is not always about migration right after graduation.

From a little over 42,000 in the academic year of 1999-00, it more than doubled to around 103,000 in 2008-09. In 2018-19, the number peaked at more than 202,000 before reaching 199,000-odd in 2021-22.

The Covid-19 pandemic resulted in a 13 per cent drop in migration in 2020-21, followed by a 19 per cent increase the next year. 

When it comes to migrant students in the US, one-third hail from China while around 20 per cent hail from India.

South Korea is at a distant third with 4 per cent of students in US universities.

It turns out Indians in their early 20s are already aspiring movers. The American dream is never out of the question for students with graduate degrees in STEM. 

Three, the affordability.

Today, pursuing a master's from any decent university abroad, beyond the Ivy League, has become a routine for young India. However, this can be attributed to affordability.

Affluent parents in India are positioned to move their children abroad especially if they want to protect their kids from extremely competitive environments to secure admissions to top Indian institutions. 

Of the 199,000-odd students enrolled in 2021-22 alone across the US, more than 13 per cent were studying business and management, almost 30 per cent were in engineering courses, more than 36 per cent were in computer science and math, and interestingly enough, less than 3 per cent were studying social sciences. 

It must be noted that these courses, naturally, by virtue of their demand, are cost-intensive and require a certain income threshold on the part of the parents.

Also, for an average urban parent acquainted with the big-tech companies and Wall Street giants, the road to the American dream passes through STEM courses alone. 

Four, the 'R' word.

The call for social inclusion comes from the Constitution of India; therefore, there is a limit to what the government can do about it. Coupled with the politics of the land, the reservation leaves many without hope in the current scheme of things; therefore, for those with resources, migration is the only option. 

The private sector option, in higher studies is also now becoming questionable for one simple reason.

The cost of an undergraduate degree, for four years in design, management, or engineering, in terms of returns, is more than one pursued abroad. The author, speaking to an NRI, for another piece published in 2021, gained some interesting insights. 

"In India, you complete engineering outside IITs or NITs, and your best prospect is a Rs 20,000 job in one of the big IT companies. Instead, why not secure a loan, move abroad, and start with a clean slate there. Even if you are skilled, there are not enough high-paying jobs in the country," the NRI had remarked. 

While the government has done well to focus on the reservations for economically weaker sections of society, it will be a while before the entire problem is weeded out. Until then, the exodus is inevitable.

The constitutionally mandated reservation system in higher education may be an enabler of a section of students not migrating to the West. But is definitely not the primary mover.

However, in a post-pandemic era, can policies and polity reverse this migration?

One, before policy, polity may usher a reverse migration of students and working professionals to India. Unlike 20 or even 10 years ago, the global world is far more fluid, with opportunities more scattered, and the world economic order skewed towards Asia, mainly India and China. 

The pandemic has also ushered its own set of challenges and changes. People, unlike before, are factoring in the local dynamics (ease, quality, and access to healthcare, closeness to families, political factors, etc) before moving to the West or settling down outside their home countries.

India, by virtue of where it is placed today, is in a position to attract millions of young overseas Indians, both students and professionals, wanting to be a part of the inevitable growth story. Thriving digital public infrastructure along with programmes like Gati Shakti will only accelerate this reverse migration. 

Two, taking a cue from China, India must also invest in a plan similar to the ‘Thousands Talent’, and begin by getting back Indian talent from the rest of the world.

The incoming talent can then be facilitated to flourish in universities and schools to upgrade the overall education system in India.

In some strategic sectors, starting with manufacturing (semiconductors, electronics, pharmaceuticals, renewable energy, textiles, and so on), the government must find a way to incentivise professionals wanting to realise entrepreneurial ambitions in India. In the services industry, this push is easily workable. 

While it would be good if any Indian working abroad wishes to return, the policy should have a narrow focus only to lure back high talent.

Lastly, foreign universities coming to India could be a game changer.

While the social justice warriors will want to make their entry about accessibility, the government should push for more exposure on the front of research, development, publication and innovations.

Curb the migration momentum by getting the best of the West to India. 

Still, there are enough silver linings when it comes to the migrant students and professionals (remittances, diaspora strength, soft power leverage, etc).

India saw $100 billion in remittances in 2022. In 2019-20 and 2020-21, remittances were in the neighbourhood of $83 billion, increasing from merely $12.8 billion in 2000-2001. 

However, globalisation is at a tipping point with each country aiming for atma nirbharta in strategic sectors, and at a juncture this critical, it would be incorrect to not focus on the increasing number of students moving abroad.

Not only it is migration of talent, skill, and money, it is also an unquantifiable loss of potential opportunities. 

Times have changed and therefore, the thinking must too. 

The move out can come after four to six years of their graduation as well. Some opt for an executive programme in management and take the first flight, while some consistently burn the midnight oil to secure an onsite project, only to never return.

Some, working through their professional networks, move out, and if all else fails, people plan for the exit after their marriage as one of the spouses garners enough prospects in any of the above-mentioned countries.

The obvious push-and-pull factor inspires this desperate exit. India, with its surplus young labour force, is an enabler for this push.