INDIA OVERTAKING CHINA AS KEY STUDENT MARKET MAY BE A GAME CHANGER FOR LOWER RANKED UNIVERSITIES

A year ago seems an age away but in January 2020 I was speculating about how the surge of student mobility from India might change the UK higher education sector in terms of demographics and financial benefit.  At that point I described the HESA data as ‘tantalising’ but with the 2019/20 enrollment data available by country and university it’s clear that things have moved quickly.  And there may also be lessons for US universities to consider as they ponder their post-pandemic international recruitment strategies.

The top line numbers from HESA DATA show that the total number of Indian students enrolled in UK higher education grew by 27960 (101.7%) between 2018/19 and 2019/20 compared to a growth of 20,790 (17.2%) for Chinese students.  For each country the growth in the number of undergraduates year on year was around 8,000 but India had an additional 19,000+ enrolled graduates year on year compared to around 12,000 for China.  It is the first sign of a new order for markets of origin with India sending over 5,000 more first year students than China in 2019.

More importantly, the distribution of Indian students by type of institution has proved to be significantly different to that of Chinese students.  One way to illustrate this is a comparison between the universities that saw the biggest year on year growth in each. It is striking that all of the universities with the greatest increase in the number of Chinese students are in the Russell Group but none of those with the most significant increases in Indian students are in the Group.

TABLE 1: Top Ten overall increases for Chinese and Indian Enrollments between 2018/19 and 2019/20

 Change in total enrolled Chinese student yoy from 2018/19 to 2019/20Change in total enrolled Indian students yoy from 2018/19 to 2019/20
Edinburgh141050
East London-151710
Leeds123545
Bedfordshire301595
Southampton1190-10
Hertfordshire-1351575
Sheffield115015
Northumbria901510
UCL106525
Kingston1601265
Manchester88575
Ulster-151230
Birmingham86010
Central Lancashire-1051180
Newcastle85550
Middlesex-110915
Kings College72550
Greenwich-185840
Nottingham72530
Coventry-85810
Note: To maintain consistency private and specialist universities excluded from table.  Of the private universities BPP registered a year on year growth of 1640 from India but a fall of 95 from China.  The London based University of the Arts showed a year on year growth of 790 from China and an additional 70 from India.

Source: HESA

Digging deeper indicates that location is not the main driver of these vastly differentiated enrollment patterns.  The situation for several cities with two main universities is shown below.  Manchester Metropolitan shows relatively balanced numbers but they are small changes and the differential is swamped by the University of Manchester’s growth in Chinese students.

TABLE 2: Selected cities showing change in university enrollments year on year

 China – student change yoyIndia – student change yoy
Birmingham86075
Birmingham City50800
Nottingham72550
Nottingham Trent-150270
Manchester88525
Manchester Metropolitan5070
Sheffield1150-10
Sheffield Hallam-135185

Source: HESA

What becomes clear is that lower ranked universities are securing a significantly greater proportion of the growth in Indian students.  This supports the notion that the changing importance of the two main source markets could have a major impact on the financial strength in different parts of the sector.  But the underlying drivers of the recruitment patterns are less obvious.      

It is likely that lower ranked universities represent better value for money in terms of fees, accommodation and other costs of study which is likely to be particularly attractive to self-funding students.  There is also a propensity for lower ranked universities to make offers at lower grades which means a less competitive route to selection and enrollment.  Several are located in areas that the UK census has shown have strong communities with contacts in India but that would not explain the differences within cities that have two universities.

The differences in performance are very striking and it raises a number of questions about the longer- term strategy of universities that are not currently recruiting heavily from the Indian market.  It seems possible that as numbers from China stabilise or even go into decline there will be greater competition for the growing numbers from India.  It is probably best for lower-ranked universities to make the most of this moment in the sun but if they have the opportunity to develop a solid local community and optimise their contacts with alumni the impact may be long lasting.

More troubling for some universities might be their failure to recruit strongly from either of these major markets in 2019/20.  There are some well-known names and reasonably ranked institutions that seem to be suffering as the big city Russell Group universities excel in recruiting students from China but who do not appear attractive to students from India.  It is interesting but seems counter intuitive that the two with the greatest loss from China year on year are partnered with pathway operators with traditional strengths in the country.

TABLE 3: Universities with the largest year on year loss of students from China (2018-19 to 2019-20)

UniversityChina – year on year change in total enrollmentsIndia – year on year change in total enrollments
Sussex– 34010
East Anglia– 26040
Hull– 2005
NOTE: I’d like to commend the University of Hull for their experiment in charging postgraduates starting in 2021 the same as Home students. It will be interesting to see how it works out.

 Source: HESA

As noted the University of Hull has embarked on an aggressive marketing ploy to charge postgraduate students the same fee as home students in 2021. As far as I am aware this is unique in the UK higher education system and it will be interesting to see how it works out. It’s certainly better than those universities that will continue to discriminate in favour of all European Union students who are now deemed international but are being allowed home student rates.

For UK universities there is unlikely to be any Government opposition to the growing numbers although experience shows it’s always possible for U-turns in policy.  As recently as 4 March, 2021, Minister for Future Borders and Immigration Kevin Foster said, “As we rebuild from the global pandemic we want the world’s brightest talent, who aspire to a career at the highest levels of business, science, the arts and technology to see our United Kingdom as the natural place to fulfil their aspirations.   The changes announced today will ensure once they have received a gold standard qualification from one of our world leading education institutions they can easily secure the status they need to continue living, working and fulfilling their dreams in the UK.”

It sounds great news for recruitment but I am reminded of a Government statement with the words, “We want high quality international students to come here. We want them to study at genuine institutions, whose primary purpose is providing a first class education. And we want the best of them – and only the best of them – to stay on and work here after their studies are complete.” This statement was made by then Home Secretary, The Rt Hon Theresa May, in 2011, shortly before the UK post-study work visa was removed.  It would probably only take an economic setback and rising numbers of unemployed graduates to see post-study work for international students being viewed less favourably by a Government that is still posturing about border control.

For US universities keen to make the most of revitalized interest from international students it is worth considering how recent research from IDP might dictate their engagement and offer strategy.  A survey of more than 800 prospective international students in more than 40 countries who are interested in studying in the US – with more than half of respondents based in India – found that more than three quarters (76%) have improved perceptions of the US since the 2020 presidential election, with 67% stating they are now more likely to study there.  What is clear from the UK experience is that the opportunity to recruit from India is available to almost all institutions if they can get the fundamentals right.

Critically, the emerging facts from the UK suggest that value in the cost of study is likely to be as significant a driver of interest as rankings.  Post study work is an important outcome but students, particularly those that are self-financing, will be equally interested in being able to minimize their outgoings during the course.  Making appropriate adjustments and moving decisively to work in market with a compelling message will be vital for institutions wanting to maximise international enrollments post-pandemic.

SEVIS Report Suggests India Woes for US Higher Education

The January 2020 reporting from SEVIS* reveals a continuing decline in international student enrollments from Asia in the US.  The figures also point to growing problems with higher education enrollments by students from India.  Even post-study work program Optional Practical Training (OPT), which has propped up the recent headline numbers presented by Open Doors, may be struggling

Over the three-year period** from December 2017 the SEVIS Data Mapping Tool shows a decline of 70,194 student visa holders*** from Asia – a drop of 7.6%.  The percentage of the total from Asia has fallen from 77.2% to 75.47% over the period.  Tables 1 and 2 look at aggregate SEVIS numbers while tables 3 and 4 look at specific levels of study.

Table 1 – SEVIS Data Mapping of Asian Student Visa Holders December 2017 to January 2020 

Source: SEVIS

Digging further into the data by country the latest numbers show particular reductions in the number of visa holders from China and Indian.  The 2017 to 2018 loss for the two countries was just over 11,000 but this accelerated with a drop of a further 20,000 from 2018 to January 2020.  Particularly troubling was the rapid decline in Indian visa holders where a 3,500 fall from 2017 to 2018 became a further decline of 14,200 to January 2020.

Table 2   SEVIS Data Mapping of China and India Student Visa Holders December 2017 to January 2020 

Source: SEVIS

SEVIS also provides an opportunity to see which type of student visa holder has been most affected by the decline.  There are a number of categories but the focus will be on students listed in the Doctoral, Masters and Bachelor’s category as these are most relevant to universities and colleges.  China and India show quite different patterns with the latter suggesting a rapidly worsening situation for higher education enrollment.

Accelerating Decline from India

A breakdown of the India student visa holder numbers shows that the number listed at Master’s level fell by around 7,000 from 2017 to 2018 and then a further 19,850 to January 2020.  A modest upswing of around 3,300 in Bachelor’s and, a more encouraging, 5,400 in Doctor’s complete the picture.  If the Master’s level deterioration continues there will need to be continuing growth in other categories to take up the slack.

It has been noted in many quarters that the UK’s reinstatement of a benevolent post-study work visa regime is already providing attractive to students from India.  Visas granted to students from India were up 63% year on year to September 2019.  With the full implementation of the new regime for students starting their degree in Fall 2020 it is widely anticipated that this will be a bumper year for enrollments in the UK and may bring more challenges for the US.

Table 3 SEVIS Data Mapping of India Master’s, Bachelor’s and Doctoral Level Student Visa Holders  (December 2017 to January 2020)

Source: SEVIS

China Stable But Pipeline May Be Thinning

The China breakdown is showing that the same three categories are reasonably robust but that there has been a decline in Secondary, Associate and Language levels.  This is a development which might, over the longer term, impact on the pipeline of students moving on to higher education.  With the range of potential US enrollment challenges relating to Chinese students growing there is plenty of reason to be concerned that Fall 2020 and beyond will be impacted.

While coronavirus is a rapidly developing issue that is likely to disrupt recruitment of Chinese students to all countries there is little doubt that recent rhetoric and actions in the US have also done damage that may be lasting.  With friendlier tones taken by competitor countries and the availability of better value, good quality options for an increasingly economically pressed middle class in China it may be that even maintaining enrollment levels will be a struggle.  While the decline in China’s 18-year old population has leveled out it will not return to the volumes seen in the last decade in the near future.

Table 4 SEVIS Data Mapping of China Master’s, Bachelor’s and Doctoral Level Student Visa Holders showing also combined Secondary, Associate and Language Holders (December 2017 to January 2020)

Source: SEVIS

As has been noted it is difficult to get to the underlying picture on enrollments because of the intermingling of different visa types and the particular issues related to the historical growth of visa holders doing OPT.  The rapid drop in the numbers for India would, however, suggest that there is a degree of market movement and that US Consul General Joel Reifman’s thoughts on relations between the two countries needs some work.

If, as suggested by some commentators, the size of the decline in Indian Master’s students is partly due to them reaching the end of OPT and not being replaced by incoming students this might suggest that students are becoming used to selecting countries that offer a better path for work or citizenship.  That does not seem like particularly good news for the longer term.   There are plenty of competitors willing to offer alternatives.

Notes

*SEVIS is the web-based tool that the Department of Homeland Security uses to maintain information on non-immigrant students, exchange visitors and their dependents.

**The SEVIS data is not exact to the month on a year by year basis.  The charts reflect the month of publication for the figures shown. 

***The term ‘student visa holder/s’ is used to describe the aggregate numbers shown by SEVIS for the region, countries and/or levels of study shown. 

Post Study Work May Change UK University Enrolment Growth Patterns

The BBC’s claim that ‘UK universities see boom in Chinese students’ shows a lack of subtlety in understanding the dynamics of growth at different institutions.  The latest HESA data available at individual university level shows that just seven universities took 51% of the 16,990 student growth in Chinese enrolments between 2014/15 and 2017/18. But there are intriguing signs that the incoming surge of Indian students might bring a new dynamic to the market.

While China still dominates, the latest HESA data (for 2018/19 entrants) shows that Indian ‘first year entrants’ to the UK in 2018/19 grew by 42% (around 5,250) year on year with comparative China numbers up around 13%.   We also know that in the year to September 2019 the UK saw continuing and notable increases in Tier 4 study visas to students from China and India with visas to Chinese nationals up 21% to 119,697 and those to Indian nationals up 63% to 30,550.  Anecdotal evidence suggests that post-study work rights are driving applications from India even harder for 2020/21.

With numbers from India growing so rapidly it’s worth considering whether this might impact the growth opportunities of different institutions. 

Reputation and Rankings Key to Chinese Enrolments

In the last four years, where data is available at institution level, seven universities achieved growth of over 600 Chinese student enrolments and growth of 50% or more in their Chinese enrolments.  Strong brand and rankings focus in the China market mean it’s no surprise that five of the seven are Russell Group universities.  The University of the Arts seems to have been able to develop a niche brand in a growing area of study.     

Table 1: Universities Increasing Enrolment from China by over 600 and 50% from 2014/15 to 2017/18

Source: HESA

The obverse is broadly true as well.  Lower ranking universities have, generally, found it more difficult to recruit students from China with the eight showing the biggest numerical losses being over 4,000 enrolments down over the four years.  None of them are ranked above 40 in the Times University Guide 2020.

Table 2: Universities with the Largest Decline in Chinese Student Enrolments 2014/15 to 2017/18

Source: HESA

As an aside, it is interesting to note that the University of Leicester switched pathway operator from Study Group to Navitas during the course of the year.  No doubt they will be hoping for a reversal of fortunes under their new arrangements.  On the other side of things Cardiff University, one of the most successful in recent years as seen in Table 1, has just appointed Study Group so there would appear to be some pressure to perform.  Sunderland and Hull may be wondering whether their involvement with CEG is delivering as needed.

Growth of Indian Students Less Ranking Dependent

We are awaiting the HESA data at institutional level for 2018/19 to see how the growth in Indian student numbers will affect the dynamics.  If 2014/15 to 2017/18 is any guide it could begin to level the playing field with some lower ranked universities able to make ground.  Between those years total enrolments from India grew by 1425 but the seven universities with over 150 additional enrolments grew their Indian numbers by an aggregate 1870.

Table 3: Universities Increasing Enrolment from India by over 150 and 50% from 2014/15 to 2017/18

Source: HESA

It is reasonable to note that the big losers in terms of enrolments from India were also at the lower end of the reputation and ranking scale.  West London (-380). Staffordshire (-340) and Cardiff Metropolitan (-300) showed the most significant losses.  But equally, there were no significant gains made by most Russell Group universities.

It is difficult to find any obvious cause and correlation in the grouping that has done well.  One factor, for some of the institutions listed in the table, is likely to be the value for money they offer in terms of fees and other expenses.  For students taking out personal finance it seems reasonable to assume that universities with lower fees, even if below the top rankings, may be attractive.    

Another factor which may be worth considering is the relative strength of the Indian community in some locations.  London (Queen Mary) is always a strong draw but the most recent UK Census information indicates that in 2011 there were significant communities in Leicester (De Montfort), Nottingham, Preston (UCLAN), Northampton and Newcastle (Northumbria).  All that being said, it is worth noting that the University of Leicester lost 90 Indian students over the period – it may just be that De Montfort is eating its lunch.

Future Disrupted?

What makes it even more tantalising is the recently released top line HESA data on international enrolments in 2018/19.  As one would expect five of the big Russell Group players have been top performers with Edinburgh, Kings College, Leeds, Sheffield and University College London each adding over 1,000 new international students year on year.  Their gains account for around 25% of the overall 23,280 increase in total international student enrolments.

But the data also shows that East London (505), Greenwich (660), Hertfordshire (475), Nottingham Trent (470) and Teeside (490) all had faster year on year growth in international enrolments than Exeter (345), Warwick (385), Lancaster (60) and Newcastle (40).  It’s a little early to call the outcomes and the figures are not available at institutional level by country of domicile.  But there is just a hint that the return of post-study work visas has disrupted enrolment patterns and some lower-ranked universities may have the most cause to be grateful.

Notes:

  1. The term ‘international’ is used here to described students paying international fees and excludes European-union students who pay the same fee as UK students.
  2. The data in the Future Disrupted? Section is taken from HESA data:
    1. HE student enrolments by HE provider and domicile Academic year 2018/19
    1. HE student enrolments by HE provider and domicile Academic year 2017/18

Image by Gerd Altmann from Pixabay