Assessing the Impact of India's No-Employment Policy for International Students: Financial Wellbeing and Career Development Consequences
Abstract
This study investigates the impact of India’s no-employment policy on the financial wellbeing and career development of foreign students, including their perceptions of the no-employment policy. Descriptive statistics are used to analyse the quantitative data. Based on survey responses from 150 international students from different disciplines and different level of study, findings indicate significant financial challenges associated with the policy, leading to dependence on external support, frequent financial stress, and negative effects on mental health and academic success. Most students (82.7%) believe their financial wellbeing would improve if they could work part-time, while 64.7% reported borrowing funds to manage expenses, and 60.7% experienced mental health impacts from financial stress. Additionally, many students feel disadvantaged in career readiness, with 84.6% stating that the inability to gain work experience leaves them unprepared for future opportunities. Qualitative responses further reveal that policy restrictions drive some students toward informal, unregulated work, exposing them to lower wages and exploitation. A majority (over 80%) consider the policy unfair and isolating, with some unaware of these restrictions until after arrival. The study recommends allowing part-time work, paid internships, and research or teaching assistant roles for doctoral students to mitigate these issues, enhancing students’ financial stability and professional development in India.
Keywords:
International students in India
Financial wellbeing
Career development
Part-time employment restrictions
Student mental health
Financial stress
1. Introduction
International students are individuals who migrate to another country with the aim of pursuing a tertiary (or higher) degree. In other words, anyone who is enrolled in an institution of a country other than their own country and is physically in the host country is called an international student.
Definition
“Internationally mobile students are individuals who have physically crossed an international border between two countries with the objective to participate in educational activities in the country of destination, where the country of destination of a given student is different from their country of origin” (UNESCO).
This movement of students to foreign countries in pursuit of higher education has a significant impact on individuals, institutions, and societies globally. International student mobility provides the opportunities for education excellence, cultural exchange, and economic growth (OECD, 2023). In 2021, there were more than 6.4 million international students studying abroad. The majority of these students are from countries with middle or low per-capita income, such as China and India, and who are mostly enrolled in high-income countries (UIS, 2023).
International students from middle or low per-capita income countries often need some sort of income to meet the relatively higher living expenses in their host country, which most of the time leads them to hold a part-time job beside their full-time studies. Part-time employment while being enrolled in a university has a long history, and a considerable number of university students are engaged in some form of part-time employment. Some students spend longer time in their part-time jobs than their classes (Robotham, 2012). Most of the countries that host international students allow these students to have part-time employment, and a huge number of these students hold part-time jobs while studying. There are different motivations for students to have part-time employment, with the majority of them holding part-time employment due to financial pressures (Robotham, 2012).
Beside the fact that India is the second country with the largest students studying abroad, this country has been successful in attracting international students to study in India. In 2021-22, the number of international students enrolled in Indian institutions was around 46,878, which came from 170 countries. India’s neighbouring countries, such as Nepal and Afghanistan, constitute the highest number of these students (Ministry of Education, 2022). International students pursue various courses in Indian institutions; undergraduate courses with 74.8% have the highest number of these students, followed by post-graduate courses with 15.8% of international students (Ministry of Education, 2022).
Despite India's growth in attracting international students, the country does not allow them to engage in any part-time or full-time paid employment. This restriction poses significant challenges to international students, who often rely on work opportunities to support their financial needs, gain practical experience, and enhance their career prospects. As a result, these students face unique struggles in balancing their academic pursuits with the financial pressures and limited avenues for skill development. This study aims to explore the far-reaching consequences of India's no-employment policy on the financial well-being and career development of international students. To address this, the study seeks to answer these three questions. First, how does the no-employment policy impact the financial wellbeing of international students? Second, how does the policy affect international students' ability to gain professional experience during their studies? Third, what are the perceptions of international students regarding the no-employment policy?
The study contributes to the growing literature by bringing to light the impact of the no-employment policy on the financial wellbeing and career development of international students and exploring these students’ perceptions regarding this policy.
The next section presents a literature review on the employability of international students around the world and its impact on different aspects of their lives. Then, the study provides an overview of the research methodology and data collection approach, followed by a data analysis section. In the final section, the study presents the results, conclusion, and recommendations.
2. Literature Review
The key motivations for internationalisation of higher education are commercial advantages, knowledge and language acquisition, enhancing curriculum, and addressing financial challenges of educational institutions (Altbach & Knight, 2007). Internationalisation of higher education leads to cultural exchange among international and domestic students, which develops cross-cultural skills and enhances their employability (Volet & Ang, 2012).
Although the number of students who study abroad is increasing each year (OECD, 2023), there are some unique challenges faced by these students. Sherry, et al. (2010) discuss the challenges international students face in adapting to a new culture: language barriers, financial difficulties, and a lack of social support. Their study reveals that many international students struggle with spoken English more than written communication, and they often feel socially excluded in their host communities. Financial problems, exacerbated by limited employment opportunities and high tuition fees, add to their difficulties and often lead to mental stress among international students (Arthur & Flynn, 2011; Sherry, Thomas, & Chui, 2010; Smith & Khawaja, 2011).
While studying abroad comes with a lot of challenges, international students found part-time employment a solution for some of these difficulties. More than half of international students who are engaged in some form of part-time employment consider financial difficulties as their primary reason to engage in part-time employment (Andrade & Evans, 2009; Barron, 2007; Curtis & Williams, 2002; Ford, Bosworth, & Wilson, 1995; Sorensen & Winn, 1993). Financial situation is among the leading factors associated with higher stress of international students when compared to domestic students (Amanvermez, et al., 2024; Neri & Ville, 2008).
Tomlinson (2008) argues that part-time work provides students with transferable skills, enhances employability, and bridges the gap between academic learning and the demands of the job market. Most international students believe that their part-time employment not only assists them with their financial issues but also helps them gain practical experience such as teamwork and communication, which will help them in their future careers (Barron, 2007; Lucas & Lammont, 1998; Tomlinson, 2008). Moreover, having part-time employment helps international students to build networks with locals, which is beneficial in improving their mental health and keeping them happier (Neri & Ville, 2008).
Balancing full-time studies and part-time employment is another challenge that comes with having part-time employment. According to Manthei & Gilmore (2005), having a part-time job leaves less time for studies than required (Manthei & Gilmore, 2005). New students in particular find it difficult to balance their studies and a part-time job, which causes most of them to suffer from stress (Jogaratnam & Buchanan, 2004). However, later studies suggest that having part-time employment while studying has no significant destruction to their studies and marks (Barron, 2007; Curtis, 2005).
India’s higher education system has a history of contributing to regional capacity building in neighbouring countries. India's long-standing tradition of attracting international students, especially from Asia and Africa, offers these countries a way to enhance their human capital through education (Lavakare, 2018; Yeravdekar & Tiwari, 2014). Although India, like every other country, has significantly worked on its higher education to make it an optimum choice for both domestic and international students, AISHE final reports show no improvement in attracting international students to Indian higher education institutions. The total number of international students studying in Indian higher education institutions is illustrated in Fig. 1 (AISHE, 2018; 2019; 2020; 2021; 2022).
Fig. 1
Number of International Students Enrolled in Indian Higher Education Institutions
Shinde & Ngan (2020) discussed the motives and obstacles of international students studying in Indian universities and found that the academic knowledge and English speaking environment, particularly in classes, are the primary motives that attract international students to India. However, financial concerns, local language barriers, safety concerns, and emotional adjustment were found to be challenges faced by international students in India.
The research gap I am addressing in my study is the limited exploration of how India's no employment policy specifically affects the financial wellbeing and career development prospects of foreign students. While previous literature has extensively covered the financial struggles of international students and the benefits of part-time employment in alleviating these challenges (Barron, 2007; Curtis & Williams, 2002), there is a lack of focus on the consequences of restrictive employment policies in developing countries like India. Existing studies on international students in India (Shinde & Ngan, 2020) emphasises the financial difficulties and cultural barriers but do not delve into the compounded impact of the prohibition on student employment, which is critical for their financial stability and career development. This study aims to fill that gap by assessing the broader implications of such policies on international students' overall experience in India.
3. Methodology:
1.
3.1 Research Design: this study employs a quantitative approach to investigate the impact of India’s no-employment policy on foreign students’ financial wellbeing and career development. The survey method was selected to gather data from a larger sample to generalize the findings across the foreign student population in India. This approach allows quantifiable insights into students’ perceptions and the specific financial and career challenges they face due to this policy. Also, one open-ended question was asked of the respondents to share their unique experience if they thought it was not covered in our questions.
2.
3.2 Population and Sample: The target population for this study comprises foreign students currently studying in Indian universities. The survey was distributed across various universities with a sizable foreign student population, considering multiple academic levels and fields of study. A sample of 150 participants was selected for achieving reliable and valid reasons. Participants are recruited through a combination of purposive (Palinkas, Wisdom, Duan, & Hoagwood, 2015) and snowball sampling (Atkinson & Flint, 2001) techniques. It allows respondents to refer other foreign students, hence facilitating broader outreach.
3.
3.3 Data Collection: Data is collected using a structured questionnaire with four sections. The first section captures demographic information, then financial wellbeing and stress, followed by a career development section, and ends with students’ perceptions of the no-employment policy. Participants are asked to indicate their level of agreement on a 5-point Likert scale, from “Strongly Disagree” to “Strongly Agree.”
The questionnaire was distributed online to facilitate accessibility and ensure anonymity. This approach allows students to provide honest responses. A pilot test was conducted with a small number of participants to refine the survey for clarity and reliability.
4.
3.4 Data Analysis: Descriptive statistics, such as mean, standard deviation, and frequency distributions, were calculated to summarize the survey responses. Cronbach’s Alpha was used to assess reliability and internal consistency – that is, how well sets of statements work together to measure a single construct. The analysis focuses on the impact of India’s no-employment policy on foreign students’ financial wellbeing and stress, career development, and students’ perceptions of the policy. Thematic analysis is used to analyse open ended question.
5.
3.5 Ethical Consideration: the study adhered to ethical research standards. It ensures informed consent, confidentiality, and voluntary participation. Participants were provided with an overview of the study’s purpose and assured of the anonymity of their responses.
4. Results:
Demographic information such as participants' nationalities, Indian states of residence, field of study, and age were excluded from the data analysis, as these details were not directly relevant to the study’s objectives. The participant group included students from various academic levels, including undergraduate, master’s, and doctoral programs.
4.1 Financial Wellbeing:
The aim of collecting data in this section is to understand how India’s no-employment policy for international students affects their financial wellbeing while studying, as shown in Table 1. A high Cronbach’s Alpha 0.901 indicates strong internal consistency.
|
Statement
|
N
|
Mean (SD)
|
Strongly Disagree (%)
|
Disagree (%)
|
Neutral (%)
|
Agree (%)
|
Strongly Agree (%)
|
|---|---|---|---|---|---|---|---|
|
1. I rely heavily on financial support from my family or external (e.g. scholarship) sources.
|
150
|
3.98 (1.277)
|
8.0
|
8.7
|
8.0
|
28.0
|
47.3
|
|
2. I find it difficult to cover my monthly expenses (rent, tuition, food, etc.).
|
150
|
3.79 (1.032)
|
2.7
|
10.0
|
19.3
|
41.3
|
26.7
|
|
3. I have had to borrow money to meet my expenses while studying in India.
|
150
|
3.67 (1.151)
|
4.7
|
14.7
|
16.0
|
38.7
|
26.0
|
|
4. I experience frequent financial stress that impacts my mental health
|
150
|
3.57 (1.206)
|
6.7
|
15.3
|
17.3
|
36.0
|
24.7
|
|
5. My financial situation negatively affects my academic performance
|
150
|
3.66 (1.158)
|
5.3
|
13.3
|
17.3
|
38.0
|
26.0
|
|
6. My financial wellbeing would significantly improve if I could work part-time in India
|
150
|
4.20 (1.093)
|
4.7
|
5.3
|
7.3
|
30.7
|
52.0
|
|
7. The inability to work legally in India has led to financial difficulties
|
150
|
4.14 (1.123)
|
5.3
|
5.3
|
8.7
|
31.3
|
49.3
|
| Source: (Primary Data) | |||||||
In Table 1, the respondents are asked to indicate their level of agreement or disagreement with the given statements. The result suggests that no employment policy significantly impacts international students’ financial well-being. It leads to dependency on external financial support, financial stress, and negative effects on mental health and academic performance. The highest mean score (4.20) is associated with the statement that students’ financial wellbeing would improve if they could work part time in India, with a notable 82.7% (agree + strongly agree). Without employment, students struggle with meeting financial obligations monthly (68% agree or strongly agree). Over half of the students (64.7%) needed to borrow money to manage their expenses. Furthermore, 60.7 percent of students reported that frequent financial stress affects their mental health. Beyond personal well-being, a high percentage of students indicate that financial challenges affect their academic performance and overall experience in India.
In addition to the quantitative survey data, an open-ended question invited respondents to share any additional thoughts or experiences related to the no-employment policy for foreign students. Out of 6 responses received, 4 participants expressed that the policy’s restrictions forced them to seek informal employment arrangements. These arrangements often lacked formal contracts, leaving students vulnerable to exploitation, lower wages, and limited job security. As one of the respondents noted:
I work in a restaurant without any formal contract. As I am not allowed to work legally, my employer pay me less than Indian workers. Whenever I asked for a raise, they told me if you do not want to work with this salary, you can leave, knowing that I can not find job anywhere else.
4.2 Career Development:
The aim of this section is to understand how students perceive the impact of India’s no-employment policy on their career development, including professional experience, employability skills, networking opportunities, and future prospects. With high internal reliability (Cronbach’s Alpha = 0.931), indicates consistent responses across the statements (Table 2).
|
Statement
|
N
|
Mean (SD)
|
Strongly Disagree (%)
|
Disagree (%)
|
Neutral (%)
|
Agree (%)
|
Strongly Agree (%)
|
|---|---|---|---|---|---|---|---|
|
1. The no-employment policy has negatively impacted my ability to gain professional experience
|
150
|
4.13 (1.053)
|
4.7
|
4.0
|
9.3
|
37.3
|
44.7
|
|
2. I feel disadvantaged compared to students in countries where foreign students are allowed to have a part-time job
|
150
|
4.28 (1.043)
|
4.7
|
2.7
|
8.0
|
29.3
|
55.3
|
|
3. Gaining work experience while studying is crucial for my future career
|
150
|
4.23 (1.039)
|
4.0
|
4.0
|
8.7
|
31.3
|
52.0
|
|
4. I have not been able to secure internships or part-time jobs because of the employment restrictions
|
150
|
4.14 (1.062)
|
4.0
|
4.7
|
12.0
|
32.0
|
47.3
|
|
5. I would be more confident about my career prospects if I could gain work experience during my studies
|
150
|
4.28 (0.991)
|
3.3
|
4.0
|
6.7
|
33.3
|
52.7
|
|
6. The inability to work during my studies in India will have a long-term negative impact on my career
|
150
|
3.86 (1.056)
|
2.7
|
9.3
|
19.3
|
36.7
|
32.0
|
|
7. Having a part-time employment would greatly help students to gain practical skills
|
150
|
4.37 (0.902)
|
2.7
|
2.7
|
4.7
|
34.7
|
55.3
|
|
8. Having a part-time employment is significant for networking
|
150
|
4.30 (0.903)
|
2.0
|
2.7
|
10.0
|
34.0
|
51.3
|
|
9. Students who gain experience during their studies will get better job opportunities after graduation
|
150
|
4.36 (0.838)
|
1.3
|
2.7
|
7.3
|
36.0
|
52.7
|
| Source: (Primary Data) | |||||||
Table 2 reveals that students believe that India’s no employment policy limits their career development, as most respondents express that this policy created a barrier for them to gain professional experiences and internship opportunities. Many students (84.6%) feel disadvantaged compared to those studying in countries where they are allowed to work. Moreover, the responses show that students highly value work experience as a vital component for their future careers. For example, most students view part-time employment as essential not only for practical skills but also for building networks that could be beneficial after graduation. In fact, 88.7% (agree + strongly agree) believe that students who work while studying have a better chance of securing good positions in the future. The inability to gain this experience in India left many feeling unprepared, as they did not have the chance to develop practical skills or establish professional connections, hence feeling less confident.
4.3 Students perception towards India’s no-employment policy
The aim of this section is to understand the general perception of international students on India’s no employment policy, with high internal consistency (Cronbach’s Alpha = 0.862), see Table 3. This section is included to highlight students’ views on the fairness and consequences of the policy, especially since it influences not only their professional development but also their personal well-being and integration into Indian society.
|
Statement
|
N
|
Mean (SD)
|
Strongly Disagree (%)
|
Disagree (%)
|
Neutral (%)
|
Agree (%)
|
Strongly Agree (%)
|
|---|---|---|---|---|---|---|---|
|
1. I was not aware of the no-employment policy before coming to India
|
150
|
3.31 (1.405)
|
15.3
|
17.3
|
12.0
|
31.3
|
24.0
|
|
2. I believe the no-employment policy is unfair to foreign students
|
150
|
4.18 (0.927)
|
2.0
|
2.7
|
15.3
|
35.3
|
44.7
|
|
3. The no-employment policy has limited my options for personal and professional growth
|
150
|
4.03 (0.999)
|
3.3
|
5.3
|
12.0
|
43.3
|
36.0
|
|
4. The Indian government should allow foreign students to work legally during their studies
|
150
|
4.29 (0.952)
|
2.7
|
3.3
|
8.7
|
32.7
|
52.7
|
|
5. The no-employment policy has led to isolation of foreign students from Indian society
|
150
|
3.97 (1.099)
|
3.3
|
8.7
|
15.3
|
32.7
|
40.0
|
| Source: (Primary Data) | |||||||
Table 3 shows that 80% (agree + strongly agree) of respondents believe the policy is unfair, and over 85% think that the government should permit foreign students to work in India. Additionally, respondents feel that the policy limits their opportunity for both personal and professional growth. More importantly, 72.7% think that the policy contributes to students’ isolation from Indian society. Interestingly, about a third of students were unaware of the policy before their arrival, leading to their frustration as they encountered unexpected limitations on their study experience.
5. Discussion
The results stress the effects of the no jobs policy on foreign students’ financial wellbeing, career development, and their attitude towards the policy. The study reveals a comprehensive picture of policy’s limitations and how these restrictions affected students, not only financially, but their overall experience of India and long-term career prospects.
First, students are suffering due to financial stress as they are not allowed to work legally, and thus, they either depend on their families or on scholarship schemes. With 68% of students having reported that they experience challenges in meeting their monthly expenses, and some even reported seeking loans to help them get by. This finding is aligned with the financial struggles of international students discussed by (Amanvermez, et al., 2024; Andrade & Evans, 2009; Barron, 2007). Additionally, the policy has clearly intensified the students’ financial stress. Beyond its effect on financial stability, it introduced mental health challenges for many. This is also discussed in literature by (Arthur & Flynn, 2011; Sherry, Thomas, & Chui, 2010; Smith & Khawaja, 2011). Neri & Ville (2008) also discussed how a part-time job reduces stress and improves mental health caused by financial stress, in contrast with(Manthei & Gilmore, 2005; Jogaratnam & Buchanan, 2004) as they argue that a part-time job gives students more stress and responsibility. The study also reveals that some students believe that financial stress affected their academic performances.
Second, beyond financial stress and mental health, the policy significantly limits students’ career development. Students recognize part-time work as crucial for building practical skills (Barron, 2007; Tomlinson, 2008), gaining professional experience, and establishing networks. This finding aligns with (Tomlinson, 2008), as he argued that part time work provides students with employability skills. The data reveal that many students feel disadvantaged compared to peers in other countries where work opportunities are allowed. The long-term career implications are clear, as students feel that the lack of work experience during their studies may negatively impact their employability and professional confidence after graduation.
Finally, in terms of general perception, students regard the no-employment policy as both unfair and socially isolating. Interestingly, a significant number of students were unaware of these restrictions before coming to India, likely contributing to their sense of frustration. Students also expressed a desire for policy change, believing that the Indian government should allow some form of legal employment for foreign students. They see this as a factor that isolates them from fully engaging with Indian society.
6. Conclusion and Policy Recommendations
In sum, the policy affected various dimensions of foreign students’ lives, from financial wellbeing to professional development and social integration. The data highlights that the inability to work legally creates an environment where students struggle to maintain financial stability, miss out practical work experiences, and feel socially disconnected. These insights suggest that reconsidering employment policies for foreign students may be beneficial, not only to improve their academic and professional experience but to enhance the overall appeal of India as a study destination.
Based on the findings, the following policy adjustments are recommended to enhance the experience of foreign students in India:
Allowing part time employment opportunities – like in other countries, at least 10 to 20 hours per week - could help alleviate financial pressures while allowing students to gain professional experience.
Policies could facilitate paid internships within the academic framework, such as in research projects, academic departments, or partnerships with industry.
Allowing doctoral students to work in research or academic roles relevant to their field of study would provide much-needed support without impacting their academic pursuit. The research and teaching assistant role, common in many countries, could serve as a model for India. It allows students to gain relevant experience.
Allowing legal employment options to international students, can prevent illegal and unregistered employment, hence reduces any potential exploitation in workplace.
While the study provides valuable insights, it is quantitative in nature and may not fully capture the international students’ struggles due to no-employment policy. Further studies are encouraged to address this limitation by applying a qualitative approach, such as in-depth interviews and focus groups, to explore the perceptions and challenges faced by foreign students in India under the no-employment policy.
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Conflict of Interest:The authors declare that they have no conflicts of interest related to this research.
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Funding:
The authors did not receive any specific funding for this study.
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Author Contributions
M.O. Noori was responsible for conception of the study, conducting the literature review, and data collection. K. Mohammady led the data analysis and interpretation. Both authors contributed equally to the study design, manuscript writing, discussion, and revision process.
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Appendix:
1.
Financial Wellbeing and Stress
|
Statement
|
Strongly Disagree
|
Disagree
|
Neutral
|
Agree
|
Strongly Agree
|
|---|---|---|---|---|---|
|
1. I rely heavily on financial support from my family or external (e.g. scholarship) sources.
|
|||||
|
2. I find it difficult to cover my monthly expenses (rent, tuition, food, etc.).
|
|||||
|
3. I have had to borrow money to meet my expenses while studying in India.
|
|||||
|
4. I experience frequent financial stress that impacts my mental health.
|
|||||
|
5. My financial situation negatively affects my academic performance.
|
|||||
|
6. My financial wellbeing would significantly improve if I could work part-time in India.
|
|||||
|
7. The inability to work legally in India has led to financial difficulties.
|
2.
Career Development
|
Statement
|
Strongly Disagree
|
Disagree
|
Neutral
|
Agree
|
Strongly Agree
|
|---|---|---|---|---|---|
|
1. The no-employment policy has negatively impacted my ability to gain professional experience.
|
|||||
|
2. I feel disadvantaged compared to students in countries where foreign students are allowed to have a part-time job..
|
|||||
|
3. Gaining work experience while studying is crucial for my future career.
|
|||||
|
4. I have not been able to secure internships or part-time jobs because of the employment restrictions.
|
|||||
|
5. I would be more confident about my career prospects if I could gain work experience during my studies.
|
|||||
|
6. The inability to work during my studies in India will have a long-term negative impact on my career.
|
|||||
|
7. Having a part-time employment would greatly help students to gain practical skills.
|
|||||
|
8. Having a part-time employment is significant for networking.
|
|||||
|
9. Students who gain experience during their studies will get better job opportunities after graduation.
|
3.
Perception of the No-Employment Policy
|
Statement
|
Strongly Disagree
|
Disagree
|
Neutral
|
Agree
|
Strongly Agree
|
|---|---|---|---|---|---|
|
1. I was not aware of the no-employment policy before coming to India.
|
|||||
|
2. I believe the no-employment policy is unfair to foreign students.
|
|||||
|
3. The no-employment policy has limited my options for personal and professional growth.
|
|||||
|
4. The Indian government should allow foreign students to work legally during their studies.
|
|||||
|
5. The no-employment policy has led to isolation of foreign students from Indian society.
|