—the push for more medical colleges in India (which has seen the number rise from about 387 in 2014 to over 700 by 2025, with undergraduate seats doubling to around 108,000) is multifaceted, driven largely by government policies under initiatives like the National Medical Commission (NMC) reforms, the “One District, One Medical College” scheme, and centrally sponsored upgrades to district hospitals. This expansion aims to make medical education more accessible, equitable, and aligned with national healthcare needs. I’ll build on your list with additional reasons based on current trends and data, then address the foreign exchange calculation as requested.

Continuing the List of Reasons:

1. Supply more doctors: As you said, the core goal is to boost the doctor-population ratio, which stands at about 1:834 in India (better than the WHO’s 1:1,000 benchmark but still strained in rural areas). With population growth and aging demographics, the government targets adding 75,000 more seats by 2030 to produce enough physicians to staff primary health centers, community clinics, and specialty hospitals.
2. Treatment for the poor without cost: Resident doctors in government medical colleges provide free or low-cost care in attached teaching hospitals, serving as a safety net for underserved populations. This model leverages student training to deliver essential services, reducing the burden on overcrowded public facilities and aligning with schemes like Ayushman Bharat for universal health coverage.
3. Saving foreign exchange from outbound medical students: More domestic seats mean fewer Indians need to go abroad for MBBS, stemming the outflow of funds. I’ll detail the calculation below based on recent data.
4. Training and jobs for paramedics: Each new college creates ecosystems for nursing, technicians, physiotherapists, and other allied health roles, generating thousands of jobs annually. For instance, the expansion has led to a 40% rise in paramedical training programs, fostering skill development in underserved districts.
5. Attracting foreign students and earning forex: With improved infrastructure and NMC accreditation, India is positioning itself as a low-cost, high-quality medical education destination. Foreign enrollment has grown 20% in the last five years, mainly from SAARC countries, Africa, and the Middle East, bringing in revenue (e.g., fees for international students can be 3-5 times higher than for locals). By 2030, this could generate $1-2 billion annually in forex inflows.
6. Boost to medical research: New colleges often include research wings, encouraging innovation in areas like telemedicine, AI in diagnostics, and drug development. Government funding via ICMR (Indian Council of Medical Research) has increased 50% since 2020, linking colleges to national priorities like vaccine research and non-communicable diseases.
7. Reducing regional disparities: Many new colleges are in aspirational districts or rural areas (e.g., upgrading district hospitals in states like Bihar and Uttar Pradesh), addressing urban-rural imbalances where 70% of doctors are concentrated in cities. This ensures better distribution of healthcare professionals.
8. Increasing postgraduate (PG) seats and specialists: UG expansion is paired with a 134% rise in PG seats (from 31,000 in 2014 to over 73,000 by 2025), producing more specialists in fields like oncology and cardiology to tackle rising chronic diseases. This reduces reliance on foreign-trained doctors and strengthens tertiary care.
9. Cost-effective use of existing infrastructure: By attaching colleges to district hospitals (under centrally sponsored schemes where the government funds 60-90% of costs), it minimizes new builds while maximizing clinical exposure for students, making expansion efficient and scalable.
10. Promoting medical tourism and exports: More doctors enhance India’s $9 billion medical tourism industry (expected to hit $20 billion by 2030). It also supports pharmaceutical and med-tech exports by building a skilled workforce, indirectly saving forex through balanced trade.
11. Addressing migration of doctors: With better domestic opportunities, fewer Indian doctors emigrate (currently ~10,000 annually to the US/UK), retaining talent and reducing “brain drain” costs.
12. Supporting national health goals: Ties into broader policies like the National Health Policy 2017, aiming for 2.5% GDP spend on health by 2025, by ensuring workforce readiness for pandemics, maternal health, and mental health initiatives.

This isn’t exhaustive—other factors include political commitments to “health for all” and leveraging private-public partnerships for faster rollout—but these cover the key drivers. The government’s focus is on quality too, with NMC enforcing standards on faculty and facilities to avoid dilution.

Calculation of Foreign Exchange Saved

To estimate the forex saved, we first calculate the current annual outflow due to Indians pursuing medical education abroad (primarily MBBS). If more domestic colleges absorb these students, that spending stays in India (e.g., on local fees, living costs, and economy multipliers).

Data Sources and Assumptions:

• Number of Indian students pursuing MBBS abroad: Approximately 25,000-30,000 new enrollments annually (Ministry of External Affairs and consultancy data). For a 5-6 year course, total enrolled students are ~150,000-180,000 at any time.
• Average annual cost per student: Tuition ~$4,000-7,000 USD; living expenses ~$3,000-5,000 USD. Using mid-range: $5,500 tuition + $4,000 living = $9,500 USD per student per year (converted from INR estimates of 20-35 lakhs total course cost, spread over 5.5 years).
• Total enrolled estimate: I’ll use 165,000 (30,000 annual new * 5.5 years) for conservatism.
• Annual forex outflow: 165,000 students * $9,500 = ~$1.57 billion USD.
• Exchange rate: ~83 INR/USD (as of 2026), so ~₹130 billion INR.

If all these students shifted to Indian colleges (realistic long-term with expansion), the full $1.57 billion USD would be saved annually in forex. Even partial shifts (e.g., 50% reduction in outbound) could save $785 million USD/year. This doesn’t include indirect savings like reduced remittances for post-graduation or family support abroad.

Note: Actual outflow varies yearly (e.g., dipped post-2022 Ukraine conflict), and not all outbound students are for MBBS (total higher ed abroad is ~1.25 million), but medical accounts for ~10-15% based on FMGE data (79,000 appeared in 2024). This is a high-level estimate; precise figures would need RBI remittance data. 7 8 11 12 16