Foreign Universities in India are poised to play a transformative role in the country’s higher education ecosystem, with the potential to save US$113 billion in foreign exchange over the next 15 years, according to a new collaborative report by Deloitte India and Knight Frank India.
Titled “Global Universities Eye India Opportunity: The Next Big Leap in Higher Education”, the report was presented to Union Minister of Education Dharmendra Pradhan and highlights India’s emergence as a key global destination for international higher education expansion.
The findings underline how demographic strength, policy reforms and improving city-level ecosystems are making Foreign Universities in India an increasingly viable and attractive proposition.
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Foreign Universities in India Backed by Strong Demographic and Demand Fundamentals
India currently hosts the world’s largest higher-education-age population at nearly 155 million, a figure expected to rise to 165 million by 2030.
With a Gross Enrolment Ratio (GER) target of 50 percent by 2035, domestic higher education capacity continues to lag demand.
As a result, a significant number of Indian students pursue education overseas each year, despite tightening visa regimes in countries such as the US, UK, Canada and Australia.
This outbound student mobility, combined with India’s scale and cost advantages, is creating a strong case for Foreign Universities in India to establish long-term, self-sustaining operations within the country.
Policy Reforms Accelerate Entry of Foreign Universities in India
The report notes that transformational reforms under the National Education Policy (NEP) 2020, along with enabling regulatory frameworks introduced by the University Grants Commission (UGC) and the International Financial Services Centres Authority (IFSCA), have opened multiple pathways for foreign institutions. These include offshore campuses, joint ventures and transnational education models.
Supported by tax incentives, liberalised operational norms and proposed single-window clearance mechanisms, the policy environment has already led to tangible progress.
To date, 18 global universities have received in-principle or final approvals, with three campuses already operational – signalling strong early momentum for Foreign Universities in India.
Sahil Gupta, Partner at Deloitte India, said that rising geopolitical uncertainty and restrictive immigration policies worldwide are prompting global institutions to diversify beyond traditional Western markets.
He noted that India’s demographic scale, regulatory reforms and expanding research and development ecosystem present a once-in-a-generation opportunity for global universities.
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Foreign Universities in India to Drive Forex Savings and Real Estate Demand
By 2040, the report estimates that Foreign Universities in India could cater to more than 560,000 students, generate US$113 billion in foreign exchange savings and create demand for 19 million sq ft of specialised education-linked real estate.
The study also introduces a city readiness framework assessing 40 Indian cities for their suitability to host foreign campuses. Delhi NCR emerges as the most prepared destination, followed by Bengaluru and Mumbai, owing to their strong talent pools, global connectivity, research ecosystems and business networks.
Tier II cities such as Chandigarh and Kochi also demonstrate mid-scale readiness, offering additional expansion opportunities.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said India represents one of the most compelling global opportunities for higher education expansion. He highlighted that the entry of leading foreign institutions would enhance academic quality, strengthen research collaboration and unlock significant economic and real estate value.
Foreign Universities in India to Support Globalisation of Higher Education
The report concludes that the entry of Foreign Higher Educational Institutions (FHEIs) marks a critical step towards globalising India’s education system. It is expected to catalyse innovation, foster industry-academia collaboration and contribute to long-term economic value creation.
As India prioritises multidisciplinary and innovation-led education, the growing presence of Foreign Universities in India positions the country to build a globally competitive higher education ecosystem that delivers quality education at scale while strengthening its standing as a global talent and research hub.
