Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010the tuition fees. But tuition fees in particular vary widely. For example, the annual tuition fee for ManipalSchool in Pokhara is around US$13,000 for non-Nepalese students, but some students receive partial or fullscholarships. 118 The number of foreign students is currently around 320; so the overall tuition fees could bearound US$4 million. Typical fees for other medical degrees are usually around US$5,000-10,000 per year. Inthe absence of detailed data, we estimate that the total exports are above US$10 million, but an appropriatesurvey would be required to get a more accurate number.With a significant share of revenue being generated from tuition fees in Indian-owned medical colleges, it isclear that they cannot fully be counted as Nepalese export revenue. In fact, they may well count as Indianexport revenue through ‘mode 2’ (commercial presence) and ‘mode 4’ (Indian teaching staff in medicalcolleges). Therefore, the overall importance of education services exports would be overstated if one classifiesall revenue from tuition fees as ‘export’ (see also Box below).Types of Exported Services: Most foreign students in Nepal visit universities and out of those a large share isenrolled in medical or technical studies (62 per cent for Tribhuvan University, see SAWTEE 2008).Current Export Destinations: The majority of foreign students in Nepal are from India. This is confirmed bya survey done by SAWTEE (68 per cent from India) and also by the respondents in several universities. Mostother students come from the rest of the SAARC region or are non-resident Indians from the USA and othercountries.Potential Export Destinations: The main potential is most probably within the region, in particular India.Dynamism of Exports: There is no data to allow for a proper analysis of trends, but from the anecdotal evidencethat it is available, it appears that the inflow of foreign students into Nepal has only slightly increased in recentyears.Export Prospect: No quantitative assessments can be made about export prospect. Nevertheless, there ispotential for education exports in areas that are linked to Nepal’s history and culture such as religious orlanguage studies. For the remainder, the potential depends a lot on the Indian market and how Nepaleseschools compare with those in India in terms of access, costs, quality and whether the degrees are recognizedin India. If Nepal becomes competitive in all of these areas, which is currently not assured, in particularregarding the recognition of degrees, then there could be a large potential for Indian students (and colleges)to move to Nepal, which is then in fact a mixture of ‘mode 3’ import and ‘mode 2’ export.Index 2: World Market ConditionsGlobal Market for Education Services: Globally, exporters of higher education services are predominantlydeveloped countries (EU, USA, Australia, and Japan). These countries host the majority of students studyingabroad, whereas the number of foreign students in developing countries, and in South Asia in particular, isvery small. Source countries are both developed and developing countries. China is leading, followed byIndia, with shares of 15 per cent and 6 per cent respectively. However, only 1 per cent of India’s tertiary-levelstudents are studying abroad. Nepal, in contrast, has a much higher share of 5 per cent and a total number ofstudents abroad of 14,575 (UNESCO, 2009).Globally, 2.7 million students are studying abroad (UNESCO, data from 2007), and this number has grown by 4per cent annually since 1995. BoP statistics show part of the expenditure of trade in education (242 - Personaltravel - Educational expenditures). Measured by this, global exports of education services were US$40 billion.However, there is a range of difficulties in defining and measuring global trade in education; so this number118Source: http://www.educationworldonline.net/index.php/page-article-choice-more-id-2022110NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT