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23-Jun-25

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India Welcomes Foreign Universities: Opportunities and Hurdles Ahead

Context:

India is entering a transformative phase in higher education, as top international universities prepare to establish branch campuses in the country. Enabled by the UGC’s 2023 regulations and guided by the National Education Policy (NEP) 2020, this initiative aims to expand academic access, elevate educational standards, and position India as a global learning hub.
So far, seven U.K. universities, five from Australia, and one each from the U.S., Italy, and Canada are navigating the approval process to begin operations in India.

Why Are Foreign Universities Eyeing India?

1. Shrinking Enrolments in the Global North

Post-WWII expansion in higher education across developed nations is now facing a slowdown, driven by demographic decline. International students have become critical to sustaining institutions:

U.K.: 22% international students
Australia: 24%
Canada: 30%
U.S.: 6% overall, but ~27% at elite universities like the Ivy League

With tightening visa policies and rising anti-immigration sentiment, foreign institutions are turning to direct international expansion—India being a key target.

2. India’s Expanding Education Market

India has over 40 million students in higher education, but a gross enrolment ratio below 30%. The country offers:

A large, young, and aspirational population
Increasing urbanization and income levels
Significant demand for quality education and global exposure

3. Gaps in Quality and Access

While top institutions like the IITs and IIMs are globally respected, most Indian universities lag in teaching quality, infrastructure, and research. Foreign universities can help fill this gap by offering:

Globally benchmarked curricula
International faculty and pedagogy
Local access to globally recognized degrees

This also caters to students who wish to earn a foreign degree but are unable or unwilling to study abroad due to cost or personal reasons.

Key Challenges and Concerns

1. Affordability

India’s large student base is price-sensitive. Even at domestic campuses, foreign university fees may remain out of reach for many. Affordability and scholarships will be crucial for broad-based success.

2. Mixed International Experience

Foreign branch campuses in countries like China, Malaysia, and Kazakhstan have had varying success—with some closing due to low enrolments or regulatory hurdles. India presents its own complex mix of:

Bureaucracy and regulation
Diverse student expectations
Economic disparities

3. Limited Short-Term Impact

Initial student intake and campus footprint will likely be modest. The scale and sustainability of this model will depend on:

Student interest and feedback
Reputation and recognition of the campuses
Adaptability to Indian conditions

Policy and Regulatory Landscape

The UGC’s Foreign Higher Educational Institutions (FHEI) Regulations, 2023 provide the legal foundation for this shift. Key features:

Full autonomy in curriculum design, admissions, and faculty hiring
Permission to repatriate surplus income
Eligibility limited to top 500 globally ranked institutions or those with proven excellence in niche areas

This liberalized approach aligns with the NEP 2020 goal of internationalizing Indian education and enhancing global competitiveness.