Do not put restrictive conditions or reservations, but promote to increase the availability, the rest will follow.
Over the years, we see the migration of Indian Students for higher studies to various countries. While migrating to US for research work has been common since long, but in recent years, we are finding students moving out for basic medical courses too to countries like China, Philippines, Ukraine etc.
The major reason being acute shortage of qualified medical professionals in the country mainly due to scarcity of seats in medical colleges. This is the reason for large-scale migration of students to foreign shores. Once graduating from the foreign country, they easily establish clinics, even if not getting practicing License from relevant authorities. Such Medical Practitioners can be found in Tier-III cities and smaller towns.
One of the main reason for shortage of seats in medical colleges is tough postures by Medical Council in giving the permission. The Cost of education at Private Medical Colleges are exorbitant, one of the reason is high regulatory cost, though overcharging to benefit from crisis is another reason.
Only Long-term solution is increasing the capacity of existing medical colleges, besides upgrading District Hospitals as medical colleges. Private Sector should also be encouraged to upgrade their hospitals for medical colleges.
The regulatory mindset of administration, specially the know all bureaucrats, is the biggest hindrance to all this.
We need not put any restrictions, reservations and conditions. Let the capacity rise multi-fold. The cost and competition will follow. Once there is enough capacity, to attract good students, Private Sector will themselves offer merit-based scholarships.
States may also provide some subsidy like Tuition Fee support for students to keep the cost of education lower. Consumption of goods and services by students will improve the GST Collections.
Let the better senses prevail.