Indian students abroad have become an increasingly visible phenomenon worldwide. Consequently, interest in these students has grown among scholars, academicians, and policymakers who see foreign country students as one of the foundational pillars to accomplish foreign policy objectives.

The presence of the Indian student diaspora in Australia serves as an organic link that automatically unites the two countries. While addressing the Indian diaspora at a community program in Sydney, Australia, in May 2023, PM Narendra Modi characterized Indo-Australian bilateral ties of the present in terms of the three D’s: Democracy, Diaspora, and Dosti. However, some people concluded this relationship by establishing it on the three E’s: Energy, Economy, or Education. Thus, the combination of education and diaspora gives this relationship a distinct and unique flavor.

Referring to the 2021 census, people linked to Indian ancestry spotted in Australia estimated to be around 9,76,000, out of which, the number of Indian students currently enrolled in various Australian universities was around 118,869 (July 2023)(MEA). Several projections indicate that the Indian-born population might overtake the Chinese-born population in Australia by the year 2031. As a result, this sizable group becomes crucial for promoting and fostering close cultural linkages and people-to-people exchanges between Australia and India, thereby leveraging soft power.

Moments of Collaborations

Education diplomacy is not a new concept. Formerly, as part of the Colombo Plan, many Indian students were sponsored to come and study in Australia in the 1950s and 1960s. 

India and Australia also signed an Educational Exchange Programme (EEP) in 2003 to foster cooperation in education and training. The Australian Government has also launched 3 Maitri Initiatives to intensify diaspora linkages with India with a total budget allocation of AUD$20.8 million. Under these three initiatives one defined as the “Maitri Scholarship Programme” with an investment of AUD$11.2 million, designed to support around 45 high-achieving and meritorious Indian students to complete their postgraduate STEM degrees at Australian universities for over four years. This scholarship not only offers a significant contribution towards tuition fees plus covers other benefits, but also facilitates scientific and research collaboration between Australia and India in key areas like advanced manufacturing, critical technology, critical minerals clean energy solutions, etc. Point to note, between 2007–2017, around 32 students from India were offered Australia Awards scholarships, out of 2,484 offered to students from other countries in South and West Asia as well.

Compared to the Indian diaspora in Australia, the Australian diaspora in India is relatively small, but through the initiatives like New Colombo Plan of 2014 in conjunction with Endeavour Scholarships and Fellowships of the Australian government, which aims to elevate knowledge of Indo-Pacific in Australia, around 3,350 young Australian undergraduates have studied and completed internships and short term mobility programs in India, thus enhancing bilateral ties and facilitate community exchanges.

Similarly, agreements like the Indo-Australia Economic Cooperation and Trade Agreement (ECTA) which was signed in 2022 impacted the Indian students community residing in Australia positively. It is estimated that over one lakh Indian migrants will benefit from post-study work visas through Temporary Graduate Visa (subclass 485) based on the level of qualification for 1.5 to 4 years. Such efforts will help in utilizing the full potential of the educational relationship of India and Australia.

In March 2023, the Mechanism for Mutual Recognition of Educational Qualifications (MREQ) was also signed to facilitate more mobility of students between India and Australia.

A short while ago, Deakin University and the University of Wollongong became the first foreign universities to set up their campuses in India’s GIFT City, Gujarat. Both campuses have been in operation since July 2024 as part of the agreement signed between both nations in 2023 though with a limited number of courses. These happenings underline the importance of a bilateral partnership between India and Australia and reflect the hope to further collaborate and expand on the levels of educational ties shortly.

Mutual Benefits

Education makes up a significant amount of Australia’s service export earnings given its reputation worldwide. Being a world-class education provider, six out of thirty-nine Australian Universities are ranked under the top 50 category in the QS Ranking of 2024. The 2017 International Student Survey, designed based on views taken from International students from all countries, ranked Australia as: the most welcoming country for international students; the ‘safest’ country for international students; and the country offering the ‘best lifestyle’ for international students. 

After the United States, Indian students rank Australia as one of the top academic destinations to go ahead with. The preferability for Australian institutions lies due to many factors such as a world-class provider of education across secondary, university, and vocational levels, leniency in post-study working rights as compared to other host nations, crises in skilled markets, English as the primary language of instruction and an easy pathway to get permanent residency in Australia. For many Indian students, the other motivating reasons for opting for Australian Universities are its better quality of life, multicultural population, safety standards, breathtaking scenery, and a great study abroad experience ahead. “An India Economic Strategy to 2035” states that many Indian students in Australia have a preference for a career in management and commerce (45.6%) or vocational education and training (45.4%). For higher education, around 70% of students prefer a master’s by coursework degree. 

However, this educational partnership is not only strengthening cultural relations but also having a major positive impact on Australia’s economy. Education exports totaled AUD$37.6 billion in 2018–19, with approximately AUD$5.5 billion coming from Indian students. Thus, elevating association by using the soft power between two nations will have many additional advantages in its follow-up. In the case of Indo-Australia, educational exchange gradually evolved as a key pillar in bilateral relations, influencing diplomatic, economic, scientific and defense aspects. For instance, the Australian economy is observing chronic skills shortages, especially in key sectors such as STEM and Information technology, thereby Indian students can contribute billions to the economy and help fill shortages in their vital industries.

This large Indian student diaspora also increases cross-cultural interaction by adding to the multicultural tapestry of Australia. According to Census Data 2021, published by the Australian Bureau of Statistics, Punjabi speakers have increased by 80% in the last five years to over 239,000 in Australia. It has even been requested to teach Punjabi language along with other languages in the Queensland School Curriculum as Punjabi is the fifth most spoken language in Australia. Thus, these all factors cumulatively resulted in making a more linguistically diverse, multicultural, and inclusive Australia. As follows, the student diaspora serves as an important interface between Australia and India, stimulating further student-to-student, university-to-university, and government-to-government collaboration.

Issues of Concern

Reflecting on past occurrences, on May 23, 2009, the first major incident of racial violence in Melbourne, Australia, occurred when Indian student Shravan Kumar was brutally attacked. Following the 2009-10 attacks, Indian students faced higher rates of assault and robbery compared to other international students. Additionally, the commencement of a wave of investigations and stringent laws left Indian students in a state of anxiety and helplessness, which at that time led to a decline in the number of Indian students enrolled in Australian universities.

However, recent years newspaper headlines also highlight the cause of concern for the Indian student community living in Australia. As reported, in July 2023, a 23 old Indian student was beaten up by a Khalistani group in Sydney Merrylands with iron rods for opposing extremist elements, Similarly, in May 2024, a murderous attempt on Devarshi Deka, a Master’s student in Tasmania was registered which made him left paralyzed for his lifetime.

Apart from these, visa fraud has long been an alarming issue as reflected in the story of Prinjal covered by ABC News in September 2024. Hailing from a small town in Haryana, she was scammed by a fake agency over her secure admission and was looted by around 9 lakhs. Each year, the second-largest group of international students in Australia are Indians. According to the Australian Department of Home Affairs, during the final half of 2022, the number of student visa applications from Indian students surpassed that from Chinese students. In contrast to China, which has 38,700 applications, India alone submitted almost 44,000 applications.

As a solution to this problem, the Australian government announced to cap on the number of international student migrants to 270,000 for the year 2025 as part of a broader strategy to reduce the foreign student intake. In addition, the application fees for international student visas have increased gigantically from 710 Australian Dollars to 1600 Australian Dollars. Plus, a considerable change in visa assessment criteria by shifting from Genuine Temporary Entrant (GTE) to the Genuine Student (GS) requirement i.e., initiation of enhanced English Language test. All this has cumulatively resulted in the increment of rejection rate of Australian student visas, grappling the Indian students with the task of preparing and reapplying for visas when they are already overstressed with the financial burden from this whole exercise. 

Thus, the measures recently taken by the Australian government to curb fraudulent visa applications, while addressing valid concerns, risk causing significant harm to the higher education sector and bilateral ties with key source countries like India, China, Pakistan, and the Philippines. The highest body in charge of Universities in Australia had already gone to warn the government against the economic implications of such restraint which range from billions to losses and thousands to job cuts, given international education is one of the biggest export industries in the country. Such blanket bans imposed on the students intake from some specific Indian states, such as Punjab, Haryana, Gujarat, Uttar Pradesh, Uttarakhand, and Union Territory of Jammu and Kashmir last year, citing fraud, unfairly punish genuine students but address the root cause -lack of stringent regulation on the education agents who facilitate applications.

Instead of targeting regions or curtailing visa intake, the Australian government should target the elimination of unscrupulous interceders and “ghost colleges or visa factories” that exploit the system. Such restrictive policies, coupled with a post-pandemic cost-of-living crisis, along with inflation, factors ranked high by international students, will make students look to alternatives in countries like Canada, the UK, or the US, where problems exist but student-friendly policies are more attractive. It is countries that take a balanced approach, such as low-cost living options, controlled intermediaries, and flexible post-study routes, that will not be left behind in their efforts to attract international students. If Australia continues on this trajectory, the repercussions could extend beyond economic losses to strained diplomatic ties, particularly with India, undermining cooperation in education and trade. A more sustainable and feasible solution lies in targeting systemic loopholes while preserving opportunities for bona fide students who contribute significantly to Australia’s economy and cultural diversity rather than snatching the chance from students and depriving them of the acts of shocks and dodgy education agents and providers.

International Implication

From a geopolitical perspective, India presents itself as an alternative to China about Australia in the Indo-Pacific Region. China’s behavior was found to be aggressive while dealing with Australia i.e. China imposed punitive trade measures in 2020 when Australia demanded a transparent probe into the COVID event. Contrary to this, India deals with Australia on the front of soft power and public diplomacy situating the bilateral ties on mutual respect and mutual trust. 

By looking at the trends and patterns, it can be estimated that China will remain the largest source of International students to contribute to the Australian education economy for the foreseeable future only. Since the Chinese government is involved in investing heavily in their educational institutions to fulfill their set targets of becoming a facilitator of education at a world level, thus there will be very little requirement for the Chinese students to seek an Australian education.

Highlighted in “An India Economic Strategy to 2035”, the deepening of educational ties with India works as a hedging strategy against an over-reliance on the Chinese market, which accounts for about 30 percent of Australia’s education exports (or around AUD$12.1 billion contribution in 2018-19 period).

Indian students and parents traditionally place Australian universities on a rung below universities in the United States and the United Kingdom. However, advantages are present both in the United States and in Australia for students hailing from India. For its academic superiority, the U.S. is favored due to its emphasis on STEM programs, but it is also on the pricier side and there may be challenges regarding visa application outcomes. While Australia offers less expensive and better immigration services moreover encouraging permanent residency, the education market is smaller than that of the U.S. Indian students however make their choices depending on their long-term career goals, financial capabilities, and the desire to settle abroad.

Furthermore, this educational partnership based on cultural diplomacy and soft power, seemed to be beneficial to both nations as both countries are also cooperating in QUAD (Quadrilateral Security Dialogue).

Way Forward

Indian students are among the primary ways of promoting cross-cultural exchanges, strengthening India’s perception, and disseminating Indian human capital around the globe.

It was seen that the Indo-Australian educational collaboration involves several different layers and aspects. Although education continues to be an important instrument for diplomatic engagement, its potential is inhibited by several underlying social-political considerations, policy concerns, and economic relationships. To make progress on this, the two countries need to be able to understand these difficulties in ways that will increase the likelihood of long-term collaboration in the field of education and address the issues that could jeopardize the effectiveness of the current exchange programs.

There is much opportunity for both countries to function together more closely at the educational level which will also be reflected in the enhancement of partnership in other different sectors. As suggested by “An India Economic Strategy to 2035”, the Australian government could think of establishing an annual merit-based scholarship similar to a Rhodes or Fulbright scholarship with the name of ‘Alfred Deakin Scholarship’ to attract top students from India. Through mutual efforts, a win-win situation can be created for all stakeholders, i.e., the Australian government should monitor visa rejection rates, and urge those institutions with high rejection rates to review their process while selecting quality students. The shift in the Indian government’s perception from brain drain to a paradigm of brain circulation is a much-welcomed step to foster close ties with any nation.

In a nutshell, the Indo-Australian educational ties have a lot of unrealized potential that could potentially be used through diplomatic channels in the future.