Skip to content
Search

Latest Stories

The hidden benefits of overseas students

by NADEEM BADSHAH

CAMPAIGNERS have welcomed a landmark report which found that international students provide a £22 billion boost to the UK economy – and have urged ministers to relax immigration rules.


The research found that a typical student from outside the EU was worth at least £102,000 to Britain in tuition fees and the tax they pay. And the total benefit of overseas students was £22.6 billion over the period of their courses.

Researchers at consultancy firm London Economics and the Higher Education Policy

Institute found that the economy benefited by around £87,000 per non-EU student from tuition fees alone. The figure was £4,000 for the amount of money spent by overseas students living in the UK.

And international students who stay and work in the UK for a decade after graduating contribute £3.2 billion in taxes. However, but a further £150 million in revenue is lost each year because of the government’s restrictions on post-graduation employment since 2012.

Labour MP Tanmanjeet Singh Dhesi told Eastern Eye: “The report very clearly demonstrates,with evidence, what many of us have been arguing for a long time now – that the benefits of overseas students to the UK economy are immense.

“In particular, the revenue generated for the nation from non-EU students makes up the lion’s share of the total economic benefits from international students – £17.5 billion

out of the £22.6 billion.

“This important fact is often overlooked when those of right-wing political persuasion

engage in the immigration debate and talk down the students’ contributions and the benefits to our country.”

The report found non-UK graduates do not take jobs from Britons as they often secure work in highly qualified areas, including economics and science, or in sectors short of

workers such as teaching and nursing.

Overseas students earn more than their British counterparts in almost every subject with significant differences in maths and economics due to their determination and knowing several languages.

In maths an overseas graduate’s median earnings after five years are £49,000 compared

with £34,000 for a British student. For economics, it is £45,000 as against £37,000.

Amit Kapadia, executive director of the Highly Skilled Migrants Forum, told Eastern Eye: “The government needs to further build measures to reward and encourage international students for choosing UK as their preferred destination instead of other countries.

“Even after the event of Britain exiting the European Union it’s very likely that the £5.1 billion generated by students from European countries for the year 2015/16 could be met and exceeded if the government ensures various schemes to encourage international

students to opt for UK as their preferred destination.

“There should be long-term measures to assure and encourage potential international

students by not just addressing issues which have been identified in previous studies but

also by ensuring absence of (or low) racial discrimination and safe (or low crime) environment and equality in job opportunities.

“These are important factors influencing the decision of international students coming

from countries such as India, China, etcetera, when deciding on their preferred

host country.”

Students from India account for the third largest group – outside those of EU countries

– in UK universities, figures in February showed.

There has been a rise in the number of students from the south Asian country and also more students of Asian origin have enrolled in British universities, according to figures from admissions service UCAS.

The number of applicants from India increased from 4,470 in 2018 to 4,690 in January

this year. China and Hong Kong are ahead of India with 15,880 and 5,100 applicants respectively.

Hollie Chandler, a senior policy analyst at the Russell Group of research universities, said: “The UK needs to improve its visa policy and ensure a welcoming environment.

“A two-year post-study work offer would enhance the UK’s appeal as a top study destination and help the UK retain talented graduates who benefit our society and economy."

Last month (March) the Department for Education (DfE) said international students will be given visa extensions of up to a year to look for work in the UK as part of a package of government measures to boost numbers of overseas students after Brexit.

The move represents a break with current policy where students are allowed to stay for only four months after graduation.

More For You

Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
Getty Images

Economy shows no growth in July amid political turbulence

UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.

The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.

Keep ReadingShow less
India’s IT sector

India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.

iStock

India’s IT sector faces uncertainty as US proposes 25 per cent outsourcing tax

INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.

Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.

Keep ReadingShow less
Rachel Reeves

'Our economy isn't broken, but it does feel stuck,' Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.

Getty Images

Reeves signals possible changes to business property taxes ahead of budget

CHANCELLOR Rachel Reeves said on Thursday she is considering changes to business property taxes to support small firms looking to expand, as part of her plans to boost growth.

Reeves’ comments come ahead of her annual budget on November 26, at a time when concerns about possible tax rises and inflation are weighing on businesses and households.

Keep ReadingShow less