Over 5.6 Lakh Indian students could benefit from foreign universities establishing campuses in India, by 2040

The report places this opportunity in the context of India’s large but under-served higher education market. Around 53 million students are currently enrolled in tertiary education in India, while nearly 7.6 lakh students went abroad for higher studies in 2024.

Despite having one of the world’s largest higher-education-age populations, India’s Gross Enrolment Ratio stands at about 34 per cent, significantly lower than the 80 per cent or higher levels seen in developed economies.

The government has set a target of increasing GER to 50 per cent by 2035, which would require total enrolment to rise to about 72 million students. According to the report, this gap between demand and domestic capacity continues to drive large-scale outbound mobility, even as visa rules and post-study work options tighten in major destination countries.

Global pressures reshaping university strategies

The study notes that universities in advanced economies are facing mounting pressures from multiple directions. International student flows, which traditionally helped offset declining domestic enrolments, have been disrupted by geopolitical uncertainty, shifting diplomatic priorities and stricter immigration regimes.

At the same time, intensified global competition and the growing influence of international rankings are affecting access to funding, partnerships and academic talent. In this environment, with conventional revenue sources under strain, universities are reassessing their operating models and increasingly looking at offshore campuses and transnational education as strategies for long-term resilience.

Policy reforms and early entrants in India

India’s regulatory landscape is presented as a critical enabler of foreign university entry. Reforms under the National Education Policy 2020, along with frameworks notified by the University Grants Commission and the International Financial Services Centres Authority, allow foreign universities to operate through independent campuses, joint ventures and other transnational models.

The report notes that 18 foreign universities have so far received letters of intent, in-principle approvals, readiness licences or registrations from UGC or IFSCA. Among them, Deakin University and the University of Wollongong have established campuses in GIFT City, while the University of Southampton has set up operations in Gurugram, marking the first operational foreign university campuses in India.

The report introduces a city readiness framework assessing 40 Indian cities on parameters such as talent availability, infrastructure quality, connectivity, research ecosystems and global business linkages. Delhi-NCR emerges as the most prepared market for foreign university campuses, followed by Bengaluru and Mumbai. The study also finds that several Tier 2 cities, including Chandigarh and Kochi, demonstrate mid-level readiness and could offer alternative expansion pathways, depending on institutional scale and academic focus.

Real estate demand and forex implications

Beyond academic capacity, the entry of foreign universities is expected to have significant economic and real estate implications. By 2040, the projected student base could generate demand for around 19 million square feet of specialised, high-quality education infrastructure, including teaching, research and student accommodation facilities.

The report estimates that the availability of globally aligned programmes within India could result in foreign exchange savings of USD 113 billion by reducing the need for students to pursue education overseas.