Medical education in India is in total mess
It would be better that some seats are kept for foreign students ( in excess of the so called NRI category.) which a different price slab so as to partly subsidize the fees for Indian students as is the norm followed in developed nations like US, UK, Australia. The entry norms for foreign students should be tweaked to encourage high paying foreign candidates so that meritorious Indian students can study at the subsidized fee.
According to a Supreme Court judgement, cross subsidy is not allowed.
At the risk of being accused of contempt of court I must say that it is not a practical decision.