In 1921, the Secretary of State for India appointed a committee to look into the adequacy of arrangements and relations with Indian students in Britain. The committee was chaired by Lord Lytton, the son of the former Viceroy of India. Despite intentions to visit India as well (the trip was cancelled because the Indian Legislative Assembly voted against releasing funds for their travel), the committee visited and interviewed a number of representatives from British universities, including Indian students themselves.

The Report estimated that there were 1450 Indian students in the UK in October 1921, with approximately 550 arriving each year. The three main reasons for Indians to study in Britain were (1) for a better chance of employment in India, particularly in the government services; (2) because educational facilities were more extensive in Britain; and (3) for lawyers to be called to the Bar.

The Report concluded that the development of education in India was crucial, and suggested creating an Indian Bar. They also agreed that more information needed to be provided in India to potential students before they travelled to Britain, as many students arrived in Britain without a place at any university. The committee explained that difficulties between British and Indian students were not a result of 'racism' but political barriers and wanted to encourage Indian students to get more involved in university life, particularly through sports. The committee also advised that an official organization needed to be created for students of technical and industrial subjects to insure adequate practical training and experience was provided for them when they were in Britain.