Foreign universities — especially from the UK, Australia, US, Canada, and Italy — are starting to open campuses in India, mainly in GIFT City (Gujarat) and Navi Mumbai.

• This is happening because India’s 2020 National Education Policy (NEP) and the UGC’s 2023 regulations made it easier for foreign universities to set up in India. 

Why Are Foreign Universities Interested in India?

• Demographic Decline and Underutilization of University Infrastructure:
  • After WWII, many Global North countries massively expanded their higher education sectors.
  • Now, due to declining birth rates and falling domestic enrolments, their university infrastructure is underutilized.
• Growing Dependence on International Students:
  • Cuts in public spending on education led universities to depend heavily on international students who pay higher tuition fees.
  • For instance, International students form 22% of total enrolment in the U.K., 24% in Australia, 30% in Canada, and 27% at Ivy League schools in the U.S.
• Recent Policy Changes Abroad:
• • Countries like Australia, Canada, and the U.K. have begun capping or restricting international student intake, causing financial strain.
  • Universities are now looking to India to compensate for lost international student revenue and to diversify income sources.

Opportunities in India

• Large Youth Population and a rising gross enrolment ratio (currently under 30%) signal long-term potential.
• Growing Economy: Rising incomes will enable more families to afford costlier foreign-branded education.
• Quality Gap: India lacks sufficient high-quality higher education institutions (HEIs). Foreign campuses could fill the quality gap.
• Access to Global Degrees:  Students who want foreign degrees but plan to work in India may prefer branch campuses over studying abroad.

Challenges for Foreign Universities

• Affordability: The Indian market is price-sensitive—many students cannot yet afford international-level tuition.
• Mixed Track Record Globally: Branch campuses in other regions (China, Southeast Asia, West Asia) have seen closures and financial losses.
• Initial impact: Even if several campuses open, their student intake will be small at first.
• Uncertain Reception: The initial response from Indian students will be critical to the success and scalability of these campuses.

Regulatory Framework: UGC (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023.

Key features

• Eligibility Criteria: 
  • Foreign universities must be ranked within the top 500 in either overall global rankings or subject-wise global rankings, as recognised by the UGC.
  • Those intending to receive foreign contributions must comply with the Foreign Contribution (Regulation) Act (FCRA), 2010.
• Programmes Offered:
  • Eligible institutions are permitted to offer certificates, diplomas, undergraduate, postgraduate, doctoral, and post-doctoral research programmes. 
  • Cannot offer programmes  in online or open and distance learning (ODL) modes, though up to 10% of lectures may be conducted online. 
  • Must obtain UGC approval before starting any new programme.
• Operational Restrictions:
  • Foreign universities cannot establish  franchise arrangements or set up study centres, learning centres, or representative offices in India or abroad. 
  • Must use their own infrastructure, land, and resources in India.
  • No annual fee to UGC (only a one-time application fee is required).
• Collaboration and Campuses:
  • Two or more foreign universities can collaborate to set up a joint campus in India—each must independently meet the eligibility criteria.
  • Each university can set up more than one campus, but must apply separately for each campus.
• Student Admission and Scholarships:
  • °Can admit students and collect fees only after receiving official UGC notification.
  • May offer merit-based or need-based scholarships and fee concessions to Indian students.
• Institutional Autonomy: 
  • Full autonomy in recruitment of faculty and staff, as per their own recruitment norms.

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