Context:

India is witnessing a transformative moment in its higher education sector with globally reputed foreign universities preparing to set up campuses within the country. Enabled by the UGC (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023, and inspired by the vision of the National Education Policy (NEP) 2020, this move could reshape the academic landscape. Locations such as GIFT City (Gujarat) and Navi Mumbai have been identified as early sites for these institutions. As of mid-2025, seven universities from the UK, five from Australia, and one each from the US, Canada, and Italy have initiated or secured regulatory approvals.

Drivers of Foreign University Interest in India

• Demographic and Economic Potential:India hosts over 40 million students in higher education, with a Gross Enrolment Ratio (GER) below 30% (AISHE 2021–22), indicating untapped potential. A growing urban middle class, rising aspirations, and the need for globally competitive education have made India an attractive destination.
• Global Decline in Student Numbers:Countries in the Global North face declining domestic enrolments due to falling birth rates. In 2023, international students accounted for 22% in the UK, 24% in Australia, and 30% in Canada. Top U.S. universities reported up to 27% international enrolments, underscoring their reliance on overseas students for revenue.
• Policy Tightening in Host Nations:Visa caps and policy restrictions in Australia, the UK, and Canada have constrained student inflows. Consequently, foreign institutions are exploring in-country campuses in emerging markets like India to maintain their global reach and financial sustainability.

Opportunities and Advantages

• Academic Diversification: Indian students will gain access to internationally benchmarked curricula, faculty, and research ecosystems without the need to go abroad.
• Cost-Effective Alternative: For students unable to afford international education, foreign campuses in India provide a more affordable and accessible option.
• Quality Enhancement: The presence of foreign institutions could push Indian universities to raise academic standards through competition and collaboration.
• Regional Education Hub: India may also attract students from South Asia and Africa, enhancing its regional soft power.

Challenges Ahead

• Affordability: Tuition fees at foreign university campuses may still be beyond the reach of average Indian households, potentially limiting their impact to elite segments unless subsidized.
• Mixed Global Precedents: Similar ventures in China and Southeast Asia have seen varied success, with some facing regulatory and financial hurdles.
• Regulatory and Cultural Complexities: India’s bureaucratic processes, socio-cultural diversity, and policy uncertainties could pose operational challenges.
• Modest Initial Scale: In the short term, student intake and institutional presence are expected to be limited, with success depending on market response and adaptability.

Regulatory Framework and Future Outlook

The UGC’s FHEI Regulations, 2023, provide foreign institutions with autonomy in curriculum design, faculty recruitment, admissions, and repatriation of surplus funds. Only top 500 globally ranked universities, or those with exceptional expertise in niche domains, are eligible. These reforms reflect India’s commitment to making higher education globally competitive.

If effectively implemented, foreign campuses can act as catalysts for academic reform, foster global partnerships, and elevate India’s position as an education hub. However, ensuring affordability, equitable access, and academic integrity will be key to long-term success.