Chapter 1

A study
on
“Indian Students going abroad and it’s
financial and economic effect in Kottayam”
➔ Introduction

In an era of increasing globalization, the trend of students from India

seeking education abroad has gained significant momentum. This project
delves into the multifaceted dimensions of this phenomenon, focusing on its
intricate financial and economic repercussions for the home country. By
dissecting factors such as remittances, skill enrichment, and potential
economic implications, we aim to unveil the nuanced dynamics surrounding
the migration of Indian students and its consequential effects on the nation's
financial landscape.

Students from India often go abroad for studies to access high-quality

education, diverse academic programs, advanced research facilities, and
exposure to global perspectives. Additionally, some seek better career
opportunities, international networking, and the chance to experience
different cultures. The pursuit of specific fields or courses not widely
available in India also motivates students to study abroad.

➔ Need and importance of study

1. Economic Insight:
- Understanding the financial contributions of students studying
abroad is crucial for assessing the role of this group in shaping India's
economy.
It provides insights into the scale of remittances and their impact on the
national financial landscape.

2. Skill Development and Workforce Enhancement:

- Analyzing the skill development aspect sheds light on how students
returning from abroad contribute to enhancing the skill set of the Indian
workforce. This information is vital for policymakers, educational
institutions, and industries seeking a skilled and competitive workforce.

3. Policy Formulation:
- The findings of the study can inform the formulation of policies
related to education, employment, and international relations.
Governments can develop targeted strategies to harness the
positive aspects and address challenges associated with students
going abroad.

4. Global Competitiveness:
- Understanding why students choose to study abroad contributes to
India's understanding of global education trends. This knowledge is
essential for ensuring that Indian education remains competitive on a
global scale.

5. National Development Strategies:

- The study provides valuable input for shaping national development
strategies. It helps in identifying areas where India can leverage the
experiences and knowledge gained by its students abroad for overall
economic growth.

6. Brain Gain Strategies:

-By exploring the reasons behind students returning to India after their
studies abroad, the study can offer insights into effective retention
strategies. Encouraging a "brain gain" rather than "brain drain" becomes
crucial for sustaining and advancing India's knowledge economy.

7. International Collaboration Opportunities:

-Understanding the global movement of students can highlight
opportunities for international collaboration in education and research. It
 enables the identification of potential partnerships that can benefit both
Indian institutions and their global counterparts.

8. Long-Term Socioeconomic Impact:

-The study contributes to forecasting the long-term socioeconomic
impact of students going abroad. This includes predicting trends in
workforce dynamics, economic growth, and technological advancements
based on the skills and experiences gained by students overseas.

9. Cultural Exchange and Diplomacy:

-Studying the international movement of students contributes to
cultural exchange and diplomatic relations. It fosters a better
understanding of different cultures and promotes people-to-people
connections, which are essential for building strong diplomatic ties.

10. Educational Reforms:

-Insights from the study can guide educational reforms in
India, helping align domestic curricula and programs with
global standards. This ensures that Indian students are well-prepared
for international academic environments.

In summary, the study is important for shaping informed policies, fostering

economic growth, and positioning India strategically in the global
education landscape. It provides a foundation for making evidence-based
decisions that can positively impact the nation's development.

➔ Scope of the study

1. Economic Impact Assessment:

- Evaluate the direct and indirect economic contributions of students
studying abroad to India, including the scale of remittances and their
influence on the national economy.

2. Global Education Trends:

- Investigate the motivations behind Indian students choosing international
institutions and explore global education trends. Understand how India aligns
with these trends and identify areas for improvement in the domestic
education system.

3. Cultural and Diplomatic Perspectives:

- Explore the cultural exchange facilitated by students going abroad and its
implications for diplomatic relations. Understand how international exposure
contributes to a global perspective and impacts India's standing in the
international community.

4. Global Collaboration Opportunities:

-Explore opportunities for collaboration between Indian educational
institutions and their international counterparts. Identify potential
partnerships that can benefit both parties and contribute to the global
exchange of knowledge.

5. Public Awareness and Perception:

-Assess public awareness and perception regarding students going abroad
for education. Understand societal attitudes and expectations, and how these
may influence the decision-making process of students and their families.

The scope of the study extends beyond economic considerations to

encompass cultural, educational, and diplomatic dimensions. It offers a
comprehensive understanding of the multifaceted impact of students going
abroad on India.

➔ Statement of the problem

In recent years, there has been a noticeable surge in the number of Indian
students opting to pursue higher education abroad. While this international
academic mobility presents opportunities for skill development and global
exposure, it also raises critical questions about its financial and economic
implications for the home country, India. The burgeoning trend prompts the
need for a comprehensive investigation into the following key problem areas:

1. Remittances and Economic Impact:

 - The scale and significance of remittances sent back by students studying
abroad remain understudied. Understanding the economic impact of these
financial inflows is imperative for assessing their contribution to India's
national economy.

2. Skill Drain or Skill Gain:

-As Indian students seek education abroad, concerns arise regarding the
potential "brain drain" and the loss of skilled individuals to other nations.
This prompts an exploration into whether the skills acquired by these
students overseas translate into a "brain gain" for India upon their return.

3. Policy Effectiveness:
-Existing policies related to international education and the return of
students to India may not be optimized for maximizing benefits or addressing
challenges. Examining the effectiveness of current policies is essential for
guiding future strategies that balance national interests and global academic
mobility.

4. Economic Imbalances and Disparities:

-The study aims to uncover potential economic imbalances resulting from
the international movement of students. This includes disparities in economic
development among regions and sectors, as well as the impact on local
economies.

5. Cultural and Knowledge Exchange:

-While students going abroad contribute to cultural and knowledge
exchange, the extent and nature of this exchange remain unclear.
Investigating the depth of these interactions is crucial for understanding the
broader societal impacts of international education.

Addressing these problem areas will contribute to a nuanced understanding of

the multifaceted impact of students going abroad on India's financial and
economic landscape, thereby informing evidence-based policies and
strategies for sustainable development.
➔ Objective of study
1. To understand the factors driving Indian students to pursue education
abroad
2. To analyze the financial contribution through remittances from
students living abroad
3.To assess the impact of skill development on the indian workforce
To explore potential economic implications, both positive and negative, of
this trend on India

➔ Significance of the study

The significance of this study on lies in its potential to provide valuable

insights and contribute to various aspects of academic, policy, and societal
domains. Here are key points highlighting the significance of the study:

1. Informed Policymaking:
-The study offers evidence and insights to policymakers, helping them
formulate effective strategies and policies related to international education,
immigration, and economic development. Informed decision-making is
crucial for creating an environment that maximizes the positive impact of
students going abroad.

2. Economic Planning and Development:

-Understanding the financial contributions, such as remittances, helps in
better economic planning. Policymakers can leverage this knowledge to
identify areas for investment, economic growth, and development, ultimately
contributing to the overall prosperity of the nation.

3. Educational Reforms:
-Findings from the study can inform educational reforms in India, aiding in
the improvement of domestic educational offerings and aligning curricula
with global standards. This enhances the quality of education and ensures that
Indian institutions remain competitive on the international stage.
4. Global Talent Retention:
-Insight into the factors influencing the return or non-return of students
after studying abroad is crucial for addressing brain drain concerns. The
study can provide recommendations for strategies to retain global talent and
encourage a "brain gain" for India.

5. Strategic International Collaboration:

-Knowledge about the global movement of students enables the
identification of potential international collaboration opportunities. This can
lead to partnerships between Indian and foreign educational institutions,
fostering the exchange of ideas, research, and expertise.

6. Contribution to Academic Discourse:

-The study adds to the existing body of literature on international education
trends and their impact on home countries. It contributes academically by
offering new perspectives, data, and analyses that can be referenced by
researchers and scholars in related fields.

➔ Research Methodology
Research methodology is a systematic approach to solve the issues
and problems faced during the course of research work. It comprised
system of models, procedures and techniques used to find the result of
research problem. The study aims to analyze the attitude and drive
of students going abroad

Data source
The study is based on both primary and secondary data. Primary
data is collected from the policy holders through a structured
questionnaire.
Secondary data is collected from various sources such as
published financial statements, journals, internet and published
books.
Research instrument

A well structured questionnaire was prepared with a view to collect

information from the students about their drive and reason for going
abroad for higher study

Population

Population comprises various customers who hold life insurance

products and are residing in and around Kottayam district.