The Diwali Issue 2024

From Darkness Into the Light

At this auspicious time, with Hindus around the world celebrating Diwali, I am reminded of reading the Ramayana to my daughter during the two years we lived in New Delhi, from 2015 to 2017. She was captivated by the story and it was her favourite bedtime book for months, and the more I reflect on it now, the more I see its relevance to the current state of international education.

I came across a piece by Kaushik Choudhury on LinkedIn, which adeptly summarises the teachings of the Ramayana:

"The Ramayana teaches that life can change its course in a split second — one moment Rama was about to be crowned as the next king of Ayodhya, and the very next moment he was asked to live in the forest for 14 years. We need to accept our fate and take up the next course of action that is justified and moral. There is always something good hidden behind whatever we have to undergo. This goodness may not be apparent initially, but it becomes clearer in hindsight."

With the advent of increased visa charges / rejections / proof of funds and widespread caps on international students being imposed in Australia, Canada, the Netherlands, and the UK’s restrictions on bringing dependents, these policies significantly impact Indian nationals, who now make up the largest portion of the international student population, overtaking China for the last two years.

Such caps and restrictions seem unfair and unjustified to prospective students. While some students may see higher education as a path to immigration, the vast majority — including those from India and the Indian subcontinent — return home after their studies to pursue successful careers.

Australia, for example, is set to limit the number of international student enrolments to 270,000 from 2025, increase study visa fees, and reject visas at a higher rate. Concerns have been raised about how these changes will impact Indian students, who currently make up 17% of Australia's international student population.

“It’ll have a direct impact on Indian students pursuing higher education in Australia,” said Nishidhar Borra, president of AAERI and co-founder of Uni2Go.

“The visa fee hike is the biggest blunder. For Indian students, Australia now becomes the most expensive destination, with no right to appeal. There might be a slight dip, but I don’t foresee a broader impact.”

Jaspreet Gill, a UTS student from Ludhiana, India, recently completed a bachelor’s degree in biotechnology in Australia and is now pursuing a master’s in teaching. He expressed gratitude for his parents' financial support but was worried for friends and family who lack similar backing.

“Not every student has the kind of support I do,” he said. “Some of my friends have taken education loans, and they say it’s an extra financial burden now to consider Australia. It’s going to deter some students. It’s just so expensive now.”

Indian students aspiring to study in Canada are also facing challenges, as study permit approvals are expected to drop by nearly 50% this year. This decline is due to Canadian federal measures aimed at reducing the number of foreign students, with visa approvals projected to return to levels last seen in 2018 and 2019, according to a report by ApplyBoard.

In the UK, Home Office statistics for the year ending June 2024 show a 23% decline in the number of Indian students coming for higher studies. Although Indians continue to be the largest group granted leave to remain on the Graduate Route visa, which allows foreign students to work in the UK for two years after graduation, the decline is significant. There were 110,006 sponsored study visa grants to Indian nationals — 32,687 fewer than the previous year.

Indian student groups have reacted angrily to reports criticising the type of international students coming to the UK, particularly claims that the Graduate Route has not attracted the expected "global talent" but rather students opting for less selective, low-fee universities and ending up in low-skilled, low-wage jobs.

Data from Asia Careers Group SDN BHD shows that the majority of international students, including those from India, return home after their studies, a trend that has been consistent for over a decade. While the number of Indian students applying for the UK’s Graduate Route has increased since its reinstatement in 2019, in 2023, 213,250 Graduate Route visas had been  granted since 2021— 42% of which (89,231 visas) went to Indian main applicants.

Considering that there were 758,000 international students studying in the UK in 2023, and in that same year, 113,000 Graduate visas were granted in total —  this represents less than 15%, with little evidence of abuse within the scheme, according to a recent report from the UK’s Migration Advisory Committee. The vast majority of graduates return home when their Graduate Route visas expire — two years for undergraduates and taught master’s students, and three years for doctoral students.

A recent article in The Economist highlighted that only 281 million people, or 3.6% of the world’s population, live outside their country of birth. This statistic surprised me, but also made me question the current obsession with immigration in the Global North, where political parties of all colours seem to focus on restricting movement. While politicians have elections to win and international students don’t typically vote, by restricting global mobility, governments limit future economic development and soft power — assets needed more than ever in today's volatile, uncertain, complex, and ambiguous (VUCA) world.

Returning to the Ramayana, the fate of universities' ability to recruit international students will ultimately be controlled in part by government policies, visa issuances and border agencies. Nevertheless, universities should fiercely defend their right to recruit international students at levels they deem appropriate and not surrender that right to the whims of the government of the day.

While the tertiary education sector is lobbying fiercely against legislation around student caps in Australia, Canada, and the Netherlands, Universities UK is reportedly suggesting the government limit international student recruitment in exchange for raising domestic tuition fees — a lose-lose scenario, no matter how you view it.

Whatever the future holds for higher education and its capacity to internationalise, it seems that international student caps will remain in place for now. Universities must, therefore, find other means of generating untied revenue. Employability is key to this —  see our article “Students costs or assets?” — and pursuing international employability is both a justified and moral course of action. The primary reason international students choose to study abroad is to enhance their job prospects and progress their careers.

As Choudhury surmises, “there is always something good hidden behind whatever we have to undergo. This goodness may not be apparent initially, but it becomes clearer in hindsight.” If universities and those that represent them embrace these challenges to pivot toward a better understanding of international employability and focus on supporting their international students' transitions to successful careers, this period in the "wilderness" will not be for nothing.

Let’s just hope governments come to their senses sooner rather than later, and that it doesn’t take 14 years, as it did for Rama.

 

 

Indian Undergraduate Insight

This section presents a snapshot of employment data specifically focused on Indian undergraduates, powered by ACG's comprehensive international graduate database. Here, you'll find average employability figures that highlight trends and insights related to the career prospects of Indian undergraduates. Feel free to use this data as a reference for understanding the employment landscape for Indian students abroad.

-- EMPLOYMENT DATA --

 

1. Average Employability

The employability of Indian undergraduates is 90.50%.  

 

Indian Undergraduate Employability by Country

Those from New Zealand have the highest employability at 92.31%, followed closely by the UK at 91.01%, Australia at 89.89%, and the US at 87.18%.

 

 

Indian Undergraduate Employability by Universities

 

Indian undergraduates from Australia demonstrate higher employability compared to those from the UK. Half of the Group of Eight universities and half of the Russell Group universities report elevated employability rates compared to their counterparts.

 

2. Months to First Job

Average Months to First Job for Indian Undergraduates by University Category

Indian undergraduates tend to secure their first job more quickly at prestigious universities like the Group of Eight in Australia and the Russell Group in the UK, compared to the overall average in both countries. Among all four groups, the Group of Eight is the quickest, while Australia overall remains the slowest in terms of time to first employment. 

 

Average Months to First Job for Indian Undergraduates by University

 

The data reveals a significant difference in the average time to first job among Indian undergraduates, with the highest being 36 months and the lowest around 5 months, resulting in a difference of approximately 31 months.

Indian graduates from the Group of Eight and Russell Group universities tend to find jobs quicker, averaging about 18 months—8 months faster than their peers in Australia and 3 months faster than those in the UK.

The graph reveals that UK universities typically facilitate faster job placements for students compared to Australian universities. Interestingly, the top four UK institutions with the quickest job placement times are not part of the Russell Group. In addition, two universities from Australia’s Group of Eight also show quicker job placement for Indian undergraduates.

3. Average Annual Salary

Average Annual Salary of Indian Undergraduates

Indian Undergraduates on average earn an annual salary of £5,069.

The average annual salaries of Indian graduates vary significantly by location and field. Australia offers the highest salary at £5,261, followed by the UK at £5,013, while the US provides £4,890 and New Zealand the lowest at £3,454.

In terms of disciplines, STEM graduates earn an average of £5,342, reflecting strong demand for technical skills, followed by Business graduates at £5,087, and other fields at an average of £4,685.

 

Average Annual Salary of Indian Undergraduates by University

 

The institution Indian undergraduates graduate from does not seem to have a significant impact on their starting salary. However, the graph shows that the top 5 earners are primarily from Australian institutions, with 4 coming from Australia (including 1 from the Group of Eight) and 1 from the Russell Group. Russell Group and other UK institutions display more consistency in salary outcomes. Notably, despite having good salary averages, the bottom 5 earners are also from Australian institutions.

The salary gap between the highest and lowest-earning universities ranges from approximately £4,998 to £5,845.

 

4. Entrepreneurship

Are Indian Undergraduates likely to start their own businesses after studying abroad?

Approximately one in three Indian graduates—specifically, 31.07%—will pursue entrepreneurship. This trend indicates a growing interest in self-employment and innovative ventures among recent Indian undergraduates.

 

Where did Indian Undergraduate Entrepreneurs pursue their studies?

In Australia, Indian undergraduates make up 13.78% of the total entrepreneurial population, while in the UK, they represent 25.27% of all entrepreneurs. This means that one in seven entrepreneurs graduating from an Australian university is an Indian undergraduate, compared to one in four graduate from a UK university.

 

What degrees did Indian undergraduates entrepreneurs pursue?

The majority of Indian undergraduates who became entrepreneurs studied Business, accounting for 51.49%. STEM fields followed at 25.37%, while other degrees made up 23.13%.

The data shows that Indian undergraduates in Australia are more likely to study Business before becoming entrepreneurs, with 57.94% choosing this field compared to 50.55% in the UK (7.39% difference).

For STEM fields, 21.50% of Indian undergraduate entrepreneurs pursued STEM degrees in Australia, while in the UK, this figure is higher at 25.83% (4.33% difference).

In terms of other degrees, 20.56% of entrepreneurs in Australia studied these fields, while 23.62% in the UK did the same (3.06% difference).

Post-study work is the problem, not the solution

How did international education become so tightly intertwined with immigration? Across the Western world, governments are increasingly "clamping down" on immigration, introducing policies that often directly target international students. In some cases, like in Australia, Canada, and the Netherlands, even caps on student numbers are being imposed.

The origins of this shift can be traced back to 2012 when UK Home Secretary Theresa May revoked post-study work rights for international students. Under the new rules, international students had only six months post-graduation to secure a skilled worker visa. At the time, May said:

“International students not only make a vital contribution to the UK economy, but they also help make our education system one of the best in the world. However, it became clear that the previous student visa system failed to control immigration and did not protect legitimate students from poor-quality colleges. The changes we are announcing today will refocus the student route as a temporary one, reserved for the brightest and the best. Students will come to the UK for a limited period to study, not work, and make a positive contribution while they are here.”

While the immediate impact was minimal, this policy change had long-term repercussions on the global education landscape.

Australia quickly realized that post-study work rights gave it a significant competitive edge in recruiting international students. They leveraged this advantage by making post-study work a key selling point, since Australia's international student market is predominantly driven by agents—over 75% of students come through agent referrals.

It didn’t take long for the UK to recognise Australia as a serious competitor, the United Kingdom was at risk of losing its position as the second most popular destination for international students, according to research from the Centre for Global Higher Education at UCL’s Institute of Education, published on 19 July 2018.

Professor Simon Marginson, the report's author, analysed UNESCO data and found that between 2011 and 2016, the number of international students entering the UK stagnated, while Australia and other competitor nations saw significant growth.

Marginson noted: "We are witnessing a seismic shift in the global student market. Although UK higher education remains highly regarded worldwide, the government's restrictions on international student numbers and post-study work visas over the past five years have stifled growth. Meanwhile, other countries have aggressively promoted their international education sectors."

According to Marginson’s report, international student numbers in the UK increased by just 2.6% from 2011 to 2015, compared to a 27.9% growth rate in the US during the same period, attributed to the Obama administration's more open policies.

In 2016, Australia surpassed the UK in attracting students from outside Europe, with its international student numbers growing by 12-14% annually. Marginson warned that without a change in UK policy, the country would continue to lose global market share. By 2018, he suggested, Australia may have already surpassed the UK in overall international student numbers, including those from both Europe and the rest of the world.

Following which intense government lobbying led to the reinstatement of post-study work in 2019 under Boris Johnson’s government, with the introduction of the "Graduate Route." The abolition of two-year post-study work visas in 2012 was perceived by universities as a deterrent to international students, particularly since rival nations like the US, Canada, and Australia continued to offer such visas. This change is considered a significant factor in the dramatic decline in the number of Indian students coming to the UK.

There was great celebration within the sector, and the UK began heavily promoting education primarily based on the ability to work post-study, despite the fact that the majority of international graduates historically returned to their home countries.

The British Council spent over £1 million promoting the Graduate Route in key source markets, shifting the conversation away from the quality of UK education to post-study work opportunities.

At the same time as the UK and Australia were doing battle over post-study work rights, Canada emerged as a key study destination for international students, particularly those from South Asia, as it offered a clear path to immigration—something neither the UK nor Australia could meaningfully provide.

The focus of international education thus moved away from teaching quality, research, and student experience. Instead, universities and agents began marketing education as a pathway to work visas and eventual immigration. Agents played a central role, often helping students extend their visas by offering additional courses, allowing them to remain in the country for longer. Plus, a number of agents expanded their offer to education provision particularly in Australia with city centre private college “campuses” offering predominantly business courses of varying quality.  This allowed agents to collect the full course fee rather than just a percentage of it.

During this time, many students engaged in part-time work to repay student loans which at the time made sense with interest rates at an all-time low. Lower interest rates and the availability of affordable debt, led to a surge in international student numbers, particularly from Africa and South Asia, and increased the number of so-called “bogus students” who were more interested in work than study. Universities, growing agent networks, and the rise of agent aggregators only exacerbated the issue.

The pandemic further complicated matters. While the UK managed to keep its borders relatively open, Australia enforced strict lockdowns. This led to students frequently transferring between courses to maintain their visas. Over time, this course-transfer model became a legitimate way for students to extend their stay, resulting in some international students studying in Australia for well over a decade. The Australian government ended so called visa hopping in July 2024, in its efforts to reduce immigration.

The pandemic also led to the rise of agent aggregators and extensive sub-agent networks, which operated with little oversight from the universities that contracted them. This lack of regulation resulted in a surge of international applications, placing significant pressure on university international offices across all major English-speaking destinations.

Aggregators, which take a percentage of agent commissions or charge membership fees, thrive on volume. The more applications they submit, the better their chances of success, leading to a "throw enough mud at the wall, and some will stick" mentality. Flush with venture capital and high valuations during the pandemic, these aggregators had massive marketing budgets, further driving up the number of international applications.

Between 2018 and 2023, the number of international students in the UK grew from 580,000 to 758,000—a 31% increase—bringing in an estimated £2.7 billion. This figure roughly compensated the sector for the loss in value of UK domestic fees due to inflation over the same period.

It’s ironic that while many universities claim to value education for education’s sake, they and their agents are primarily using work opportunities to attract international students. This raises an important question: What has gone wrong with the system?

Moreover, while universities are happy to promote post-study work opportunities, they offer little support for international students transitioning back to their home countries. In the 2024 Universities UK International research it stated that just 3% of international students said their university careers service “helped them find a job,” up from just 2% in 2019. Once their post-study work period ends, many students find themselves unable to secure skilled work visas and are either forced to return home or risk becoming illegal overstayers.

Every day, Asia Careers Group SDN BHD receive emails and messages from international graduates nearing the end of their post-study work visas, desperate to secure jobs that would allow them to stay legally in their country of study. They have been sold a dream by both agents and universities, but for many, that dream is far from reality.