India could be on the cusp of a major shift in its higher education landscape, with foreign universities setting up campuses in the country and potentially saving billions of dollars in foreign exchange, according to a new joint study by Deloitte India and Knight Frank India.
The report, titled Global Universities Eye India Opportunity: The Next Big Leap in Higher Education, estimates that foreign universities operating in India could help save nearly US$113 billion in forex over the next 15 years. It also projects the creation of around 19 million square feet of education-related real estate, underlining the wider economic impact of global campuses coming to India.
The study was presented to Union Education Minister Dharmendra Pradhan and highlights why India is fast becoming one of the most attractive destinations for global universities looking to expand beyond traditional Western markets.
At the heart of this opportunity is India’s sheer demographic scale. The country currently has the world’s largest population in the higher-education age group, at around 155 million people. This number is expected to rise to 165 million by 2030. With aspirations to increase the Gross Enrolment Ratio (GER) in higher education to 50 percent by 2035, demand for quality institutions is growing faster than domestic supply.
As a result, hundreds of thousands of Indian students continue to travel abroad every year for higher studies. This outbound flow has remained strong even as visa rules tighten in popular destinations such as the US, UK, Canada and Australia, and education costs continue to rise globally. The report notes that this mismatch between demand and supply is now encouraging foreign universities to bring their campuses closer to Indian students instead of relying only on international student mobility.
Over the next 15 years, foreign universities could potentially cater to more than 560,000 students within India itself. By doing so, they would significantly reduce the need for Indian students to spend on overseas education, leading to substantial savings in foreign exchange.
Policy reforms have played a crucial role in opening this door. The study points to the National Education Policy (NEP) 2020, along with new regulatory frameworks introduced by the University Grants Commission (UGC) and the International Financial Services Centres Authority (IFSCA). These reforms allow foreign universities to operate in India through independent offshore campuses, joint ventures and other transnational education models.
Tax incentives, more liberal operating norms and proposals for single-window clearances have further improved the ease of entry. As a result, interest from global institutions has picked up pace. So far, 18 foreign universities have received either in-principle or final approvals, and three campuses are already operational in India, signalling early momentum.
Sahil Gupta, Partner at Deloitte India, said global universities are actively looking to diversify their presence amid rising geopolitical uncertainty and stricter immigration policies worldwide. He said India offers a rare combination of scale, cost advantages, an expanding research and development ecosystem, and a strong talent pipeline, making it a compelling long-term destination for international institutions.
The impact of foreign universities will not be limited to classrooms alone. By 2040, the report estimates, their presence could generate demand for about 19 million square feet of specialised, high-quality real estate. This includes academic buildings, research facilities, student housing and innovation hubs linked to education.
To assess where this growth is most likely to happen, the study introduces a first-of-its-kind city readiness framework covering 40 Indian cities. Delhi NCR emerges as the most prepared destination for foreign university campuses, thanks to its connectivity, talent pool, research ecosystem and proximity to policymakers. Bengaluru and Mumbai follow closely, offering strong industry linkages and global business networks.
Interestingly, the report also highlights opportunities beyond the largest metros. Tier II cities such as Chandigarh and Kochi show moderate readiness and could attract niche or mid-scale foreign campuses, offering universities more diverse expansion options and potentially lower operating costs.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said India presents one of the strongest long-term prospects for global higher education expansion. He noted that the entry of leading foreign universities would not only raise academic standards but also strengthen research collaboration, industry-academia partnerships and innovation.
The report concludes that the entry of Foreign Higher Educational Institutions is a key step towards globalising India’s education system. As the country pushes for multidisciplinary and innovation-driven education, foreign universities could play a vital role in building a globally recognised ecosystem that delivers quality education at scale while boosting India’s position as a talent and research powerhouse.
