Education is one of the merits goods. This is believed that consumption of Merit good is often generated positive externality where the social benefits of the consumption exceed the private benefit. Internationalization of education is an old concept but it has taken the accelerator after the 1991 reforms in India. After India signed the GATS in 1996, restrictions unlocked in India for privateers to enlarge the higher education opportunities and created wider scope for foreign students to learn in India. Acceptance of LPG has also devastated the traditional means and modes of education in that place established advanced education system. Today International of education has taken the wider scope; it includes partnership, linkages through MoU, research initiatives along with the academic mobility of students and teachers. In these days learners and teachers are more intensively migrating internally and externally for education purpose. Increasing enrolment of foreign students in Indian education institutions is the good sign. As per the AISHE2017-18 report, there were about 46,144 foreign students from 166 (out of 206 countries) countries across the world enrolled in Indian higher education institutions. Major proportion of such students came from adjoining countries like Nepal, Afghanistan, Bhutan, Bangladesh, and Sri Lanka. Karnataka is the hub for foreign students, this is proved from the data that of the total foreign students’ enrolment in India high of about 26.10 (12041 students) has taken the admition in Karnataka’s higher education institutions. The present study has intended to make growth trend analysis of foreign students in Karnataka in particular and country as a whole. The issues relating to the gender wise programme wise and state wise comparison of the enrolment of the foreign students has also carried out. This study is purely based on secondary data for its analysis. Secondary data was collected from books, journals, periodicals, and reports of the authorized departments. Various years AISHE reports, published by the MHRD, were extensively used under the study.