Foreign Universities in India: Impact on Higher Education

The entry of foreign universities in India, facilitated by the UGC (FHEI) Regulations, 2023 and envisioned in the National Education Policy (NEP) 2020, marks a significant reform in India’s higher education landscape. Read here to understand the impact of Foreign Universities on Higher Education in India.

The entry of foreign universities into India represents a transformative moment in the country’s higher education landscape.

Backed by the National Education Policy (NEP) 2020 and enabled by the UGC (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023, this shift seeks to integrate Indian academia with global standards.

With universities from the U.K., Australia, the U.S., Italy, and Canada in the process of establishing campuses in GIFT City and Navi Mumbai, this move has the potential to transform India into a regional hub for knowledge and innovation. However, the implications are multifaceted.

What Is Driving the Entry of Foreign Universities in India?

1. Demographic & Economic Opportunity

• India’s demographic dividend: Over 50% of the population is under age 30.
• Gross Enrolment Ratio (GER) in higher education is under 30%, indicating huge untapped potential.
• Rising middle-class income, English proficiency, and aspirations for international degrees at lower costs make India an attractive education market.

2. Global Push for Market Diversification

• Foreign universities, especially in the UK, Australia, and Canada, face:
  • Declining domestic enrolments due to ageing populations.
  • Cuts in public funding for higher education.
  • Stricter visa regimes and student caps following COVID-19, as well as migration debates.
• These pressures have encouraged institutions to seek new, growth-friendly markets, such as India.

3. Revenue Diversification and Global Visibility

• Establishing campuses in India (GIFT City, Navi Mumbai) allows foreign institutions to:
  • Diversify their revenue streams.
  • Tap into India’s expanding education sector.
  • Reduce reliance on outbound Indian students.

4. Collaboration with Indian Institutions

• India hosts several globally ranked institutions (e.g., IIT Bombay, IISc Bangalore, Delhi University).
• Foreign universities are entering strategic partnerships rather than building standalone campuses.
  • Example: Deakin University (Australia) has partnered with IIM Bangalore before launching its GIFT City campus.

Opportunities and Prospects for Foreign Universities in India

1. Access to a Large Youth Population
   • India has one of the world’s largest student populations, with over 40 million enrolled in higher education—an attractive market for institutions from ageing societies with declining enrolments.
2. Untapped Demand for Global Education
   • A growing aspirational middle class seeks international quality education domestically, especially in STEM, business, and liberal arts.
   • Presence in India helps reduce dependency on outbound Indian students and creates diversified revenue streams.
3. Policy and Regulatory Reforms
   • NEP 2020 and UGC’s 2023 guidelines provide a clear legal and operational framework, enhancing ease of entry.
   • Academic and operational autonomy in GIFT City is particularly attractive.
4. Strategic Academic Expansion
   • Institutions can build brand equity in emerging markets.
   • Establishing a campus in India provides a launchpad for broader engagement with South Asia and Africa.

Why Are Foreign Universities Dependent on International Students?

1. Demographic Changes
   • Post-WWII expansion led to massive HEI infrastructure in the Global North.
   • Falling birth rates have caused domestic enrolments to stagnate or decline, especially in countries like Japan, Germany, and Italy.
2. Revenue Generation
   • International students pay significantly higher tuition fees than locals.
   • They help compensate for cuts in public funding to universities (especially in the UK, Australia, and the US).
3. Academic Diversity and Prestige
   • A strong international cohort enhances global rankings, research collaborations, and cross-cultural exchange.

Potential Impacts on Indian Higher Education

Positive Impacts

• Enhancement of Quality and Competition: Foreign HEIs can raise academic standards and foster healthy competition among Indian institutions.
• Improved Research and Innovation: Collaboration with global institutions may improve India’s research output, patents, and international academic visibility.
• Reverse Brain Drain: High-quality education within India may reduce the need for outbound migration, retaining talent and capital.
• Development of Global Campuses: It may transform Indian cities like GIFT City into regional academic hubs, boosting the education economy.

Challenges and Risks

• Exclusivity and Affordability: High tuition fees may create elite enclaves, inaccessible to most Indian students.
• Regulatory Oversight: Ensuring academic accountability, transparency, and non-exploitative practices will require robust regulation.
• Competition for Talent: May lead to a brain drain of faculty from Indian universities to better-paying foreign campuses.
• Cultural and Curriculum Misfit: Standardised foreign curricula may lack local relevance or neglect Indian socio-economic realities.

India’s Global Academic Outreach

• India is not just a recipient but also an exporter of academic excellence:
  • IIT Madras has launched a campus in Zanzibar (Tanzania).
  • IIT Delhi is opening a campus in Abu Dhabi (UAE).
• These moves reflect India’s ambition to become a global knowledge hub, reinforcing its soft power.

Way Forward

• Strong Regulatory Mechanism: UGC must ensure that foreign campuses maintain academic parity with their home institutions and comply with Indian laws.
• Inclusion and Access: Mandate scholarship quotas, need-based aid, and outreach to underrepresented groups.
• Mutual Learning and Collaboration: Promote joint degrees, research partnerships, and faculty/student exchanges with Indian institutions.
• Balancing Globalisation with Localisation: While embracing global standards, ensure preservation of cultural, constitutional, and linguistic values in pedagogy.

Conclusion

The arrival of foreign universities in India can be a game-changer, enhancing global competitiveness, raising academic standards, and making India an attractive education destination.

However, it must be managed carefully to ensure that it complements rather than crowds out India’s public education system.

With equitable access, regulatory vigilance, and academic collaboration, foreign HEIs can become partners in India’s journey towards a globally benchmarked, inclusive higher education system.

Read: Education in India