a-game-changer-for-india-s-higher-education

India’s higher education sector resembles a set of islands of excellence adrift in a sea of mediocrity. Barring a few bright spots, the country’s position in the global higher education sector has nothing much to cheer about. A plethora of factors—lack of quality teaching and research, poor infrastructure, outdated curriculum, continued focus on rote learning, poor synergy between universities and industry and lack of genuine autonomy—has been preventing the higher education sector from unleashing its full potential.

Despite having over 1,100 universities, including central, state, deemed, private universities and institutes of national Importance, the academic and research standards do not measure up to the international standards. If India has to reap the benefits of the knowledge economy, more private resources need to flow into the education sector. Educational experts have been calling for drastic overhaul of the system to bring it on par with global standards.

 

While the desired levels of research and internationalisation of Indian campuses remain weak points, the higher education sector also suffers from funds crunch, and its largely linear model with little focus on specialisation and innovation. There can be no two opinions about the need to reform the higher education sector to ensure that the country realises its full potential in the emerging knowledge economy.

 

Enter foreign universities

Shedding decades of dogmatic resistance, the decision to allow foreign universities to set up campuses in the country must be seen as a key component of educational reforms that is long overdue. The Union Education Minister Dharmendra Pradhan’s recent announcement that 15 foreign universities are expected to establish their campuses by 2025-26 is a welcome development. With the recent approval from the University Grants Commission (UGC) to establish its first overseas campus in Bengaluru, the UK-based University of Liverpool has joined a growing list of international institutions showing eagerness to launch their operations in India. It is the second member of the prestigious Russell Group to launch a campus in India, after the University of Southampton in Gurugram.

 

Two Australian universities have already commenced operations in Gujarat. Any established institution that offers an exceptional learning experience, with a strong research culture, is a welcome addition to India’s burgeoning but flawed educational landscape.

 

In 2023, the UGC heralded a major policy shift when it unveiled draft norms for allowing, for the first time, foreign universities into the country with autonomy to decide the admission procedure, fees structure, and even repatriate funds back home. For decades, the higher education sector remained a prisoner of colonial structure, designed to churn out clerks and stifle innovative thinking. Unfortunately, the structural flaws were allowed to continue to impair the growth needed to achieve real transformation. Political posturing and fear-mongering had delayed the much-needed reforms.

 

Transformative impact

At a time when there is a consistent rise in the number of students leaving the country to pursue higher education abroad, the establishment of full-fledged campuses by reputed foreign universities on Indian soil would certainly help plug the brain drain. 

 

In fact, the exodus of students in search of greener pastures abroad exposes the chronic shortcomings of India’s higher-education system—limited world-class programmes, a thin research culture and syllabi that lag global benchmarks. In 2024, a record 13.35 lakh students went abroad to pursue higher education. Given the inadequate opportunities and poor quality higher education at home, a large number of Indian students go abroad every year in search of greener pastures. Foreign universities, if allowed to operate here, will help students gain access to global pedagogy and research culture without bearing the costs of overseas education.

 

According to the Economic Survey 2022-23, India needs 800–900 universities and 40,000–45,000 colleges in the next decade to meet projected demand from 43 million new students. Foreign university campuses can help ease this pressure, at least partially. Moreover, research and innovation can get a big boost. These campuses can foster innovation hubs akin to Silicon Valley–Stanford or Oxford–Thames Valley clusters. As per NITI Aayog, retaining students could save $15-20 billion annually in foreign exchange.

 

Currently, just over a quarter of India’s 18-23-year-olds are enrolled in a college or university, leaving a vast potential market open for foreign education providers. The entry of foreign universities can lead to improved quality of education and increased global exposure.

 

Challenges ahead

However, there are specific challenges and concerns that the government needs to address to ensure successful implementation of the policy. Navigating Indian regulations remains a complex task. These bureaucratic hurdles can be a significant barrier for foreign universities seeking smooth entry into the Indian market.

 

There are concerns that the exorbitant fee collected by these universities could be out of reach for many Indian students. Without strong faculty, curriculum depth or student support, flashy marketing can damage credibility and long-term trust.

 

The government must fine-tune its policy to allow only top-tier institutions with academic depth, offering programmes that align with India’s skill gaps. Collaboration with Indian universities needs to be encouraged to offer joint degrees and set up research hubs.

 

The experts also suggest that offering foreign universities 20 to 30-year licences, time-bound clearances and explicit guarantees on academic freedom would signal that the government is courting long-term investment. In return, regulators can insist on transparent governance, audited performance metrics and regular reviews, ensuring that academic quality does not slip even as autonomy is protected.

 

Tax breaks and other incentives can be tied to concrete commitments like generous need-based scholarships, credit-transfer pathways that link foreign campuses with nearby state universities, and joint research funds that serve national priorities. In order to harness the full potential, the processes must be inclusive, and quality-driven. If executed well, this initiative could help India emerge as a global provider of world-class education.

 

Mushrooming campuses

Over the last two decades, overseas branch campuses have mushroomed across the globe. The US universities alone run over 70 foreign campuses, most of which are clustered in China and the Gulf countries. Interestingly, the funding of most of the foreign campuses of American universities mainly comes from the host countries’ governments.

 

While India has offered no such financial or infrastructural support, it is hoped that the formidable size of the target segment would be attractive enough for the foreign universities to consider India as a potential destination.