Source: Eduardo Fuentes

The fall in international student numbers has caused widespread concern across UK universities ¨C and rightly so. Amid a?booming global market for higher education, a drop in numbers reveals one blunt truth: Britain is losing market share.

I¡¯ve just returned from India, where I was getting to the bottom of what we need to do to?stop the decline and restart the growth. Three facts are striking.

First, we are not even at the ¡°end of the beginning¡± of our education relationship. Education leaders in India are very clear about the value of international links. ¡°We want our students to be able to compete as global citizens,¡± one college principal said to me. It¡¯s as simple as that.

The British Council has breathtaking forecasts about the size of the Indian student market. It is not simply that there are more than 600 million people under the age of?25, it is also that Indian students have the biggest appetite to learn abroad. In a country that is clear about the economic virtues of learning English, just 10?per cent of the 1.2?billion population speak English and only 5?per cent speak it well. There is a huge market for us to aim at.

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Second, the British education brand still holds extraordinary lustre ¨C but our competition is increasing dramatically.

In a Q&A with 100 students at the elite Sri?Venkateswara College at the University of Delhi, I heard from India¡¯s future research scientists, biotech entrepreneurs, teachers, journalists and politicians. What is fascinating is how many of these young people consider international experience and connections to be critical to their future success. But plenty are worried about the chances of landing a graduate level job in the UK even if they manage to undertake their undergraduate studies here.

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Timothy Garton Ash, professor of European studies at the University of Oxford, recently argued in a national newspaper that a thesaurus does not contain enough words to describe the folly of the government¡¯s approach; last week, his comments featured in the op-ed pages of The Hindu and Hindustan Times.

I know better than most the challenges of getting the immigration balance right. When I?was immigration minister, I created the UK?Border Agency and introduced the points system. I took immense care to create a system that I thought would work well for UK universities, not least because every British ambassador I met told me that increasing foreign student numbers was the key to expanding our long-term influence in countries where we are not quite the centre of diplomatic attention.

No doubt I did not get everything right. But the signals sent by the reforms of the past three years are heard loud and clear by potential students in India, creating a great wall of noise that makes it harder, not easier, to get the message through about our brilliant UK universities.

That is why it is simply ridiculous that students are in the ¡°net migration target¡±, and that is why David Hanson, the shadow immigration minister, and I will be soon hosting round-table talks with university and further education leaders to discuss how to claw back lost ground. After all, universities in India have plenty of choice in terms of selecting international partners. One leading principal told me that she was partnering with institutions in Germany and Italy because they teach English well ¨C and more cheaply than we do.

Third, we have to think more radically about building a deeper and wider UK-India education relationship.

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Indian vice-chancellors are hungry not just for UK students, but for joint research, faculty and postdocs, beyond the 600 or so education partnerships created through the UK-India Education Research Initiative.

India¡¯s business leaders, like their counterparts in the UK, want a?better supply of more ¡°employable¡± students, and the Indian government has set a target of upskilling an incredible 500?million people within a decade. Like us, Indian policymakers worry about closing the gap between secondary school and university, and that means vast opportunities for our great further education colleges.

So we should be immensely ambitious. If the global race is anything, it is an innovation race. Indian leaders know that they have to double the less than 1?per cent of gross domestic product they currently spend on R&D if they are to put ¡°affordable innovation¡± within reach of the Indian mass market. Frankly, we face the same challenge. The fastest way out of today¡¯s living standards crisis is to increase the number of people working in knowledge-intensive sectors, where wages are 40?per cent higher than the national average.

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You need only look at the extraordinary success of Jaguar Land Rover, a subsidiary of the Indian carmaker Tata Motors, just north of my Birmingham, Hodge Hill constituency, to see what is possible. The fundamentals of our innovation relationship are strong and getting stronger. Developments such as the new Emerging Powers Research Fund, for international scientific collaboration, and Newton International Fellowship scholarships are exactly the kinds of initiatives I?called for in my book Turning to Face the East: How Britain Can Prosper in the Asian Century (2013).

The surest way to put this relationship in the slow lane is to make it ever harder for students, teachers and researchers to get across the border.

For political junkies, it is a good time to be in India, the world¡¯s largest democracy. The country is about to go to the polls and, for the first time in years, a change is on the cards.

During my visit, the finance minister presented his budget, a last chance to put a few poll-winning goodies before the voters. And what was there among the headlines? Big new subsidies for student loans. Indian politicians know the allure of a better education for the world¡¯s biggest middle class. We should be doing more to put those dreams within reach.

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