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There is a mutually beneficial relationship existing between NRIs and educational institutes in India when it comes to the admission of NRI students. Indian educational institutes get their dollar or pound and the NRIs gets the coveted seat which he might not have gotten as an ordinary resident.

Many NRI parents prefer Indian higher education for their children. In different countries they have different reasons for considering education in India.

In some countries of Africa, Southeast Asia and the Middle East, NRI children cannot get admissions as these countries do not have enough seats and thus give preference to local students.

The success of Indian professionals in IT, engineering and management had further enhanced the reputation of higher education in India. Sending their children to learn at Indian universities and institutes is more and more desirable. The Indian Institutes of Technology (IITs) and the Indian Institutes of Management (IIMs) are considered the touchstone for excellence.

Some NRI parents would select Indian Higher education for their children just to take them closer to their roots and Indian culture.

Due to different factors NRIs are now feeling the pinch when it comes to sending their children to India for Higher education. NRIs have a small quota in most internationally reputed Indian institutes but they have to pay higher fees than resident Indian students. The problem is the shortage of seats. The situation in India is very critical as more and more Indians seek seats in the very same universities and there are not enough of them. Further the reservation of seets complicates it further.

NRIs fall victims to shortcomings in private colleges that charge exorbitant fees for admission and ever decreasing number of seats at government institutes.

Thats why they are now pressing for an exclusive NRI University in India and the government has agreed to it at the annual Pravasi Bharatiya Divas in 2007.

The Indian cabinet approved the policy framework for a Non-Resident Indian/Person of Indian Origin (NRI/PIO) university in India. Under the Indira Gandhi National University, it would draw on the expertise of the NRI doctors, engineers, and many qualified professionals.

Located in an Education Special Economic Zone in a Special Economic Zone under the University Grants Commission Act, it would be set up by overseas Indian trusts or societies with credibility and experience in education under the overall supervision of the government. Tenders were floated to invite suitable overseas trusts.