Internationalization of higher education has undergone significant change in the current scenario. The approach to traditional internationalization which was based on international co-operation and rarely a profit making activity were at the center of traditional internationalization has changed significantly from the last two decades. Emergence of the new phase of internationalization of higher education is characterized by self-economic interest of maximizing profit and capturing student market by expanding institutional reach in other countries. The intention of students to go abroad and the functioning of universities has changed substantially in the current scenario. The governance by comparison and competition for international students has made radical change in the governance of institutions. The remaining work is done by the globalization of higher education, essentially motivated by profits rather than by either government policy or goodwill. The observed competition in recent decades in the international higher education market has led to the marginalization of teaching-learning, which is assumed to be the central role of educational institutions. The central focus of the present article is to trace the change in internationalization of higher education in general, with special reference to student mobility and how it is changing the role of educational institutions in the new phase. In connection with this, the present article aims to contribute to the body of knowledge under the broad head of internationalization of higher education.