Foreign universities in India could save $113 billion in forex over 15 years

Foreign universities setting up campuses in India could help the country save as much as $113 billion in foreign exchange over the next 15 years, while catering to more than 5.6 lakh students and creating demand for nearly 19 million sq ft of education-linked real estate, 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', comes at a time when India is emerging as a key destination for global universities looking to diversify beyond traditional Western markets. Several global universities are setting up shop or have already established physical campuses in India, including Australia's Deakin & Wollongong in Gujarat's GIFT City, UK's Southampton in Gurugram, and upcoming ones like Queen's University Belfast, Lancaster, Surrey, Coventry, and Western Sydney.

India already hosts the world’s largest higher-education-age population at around 155 million, a number projected to rise to 165 million by 2030. With the country targeting a gross enrolment ratio (GER) of 50% by 2035, the report flags a widening gap between domestic capacity and demand. That gap has been pushing hundreds of thousands of Indian students to study abroad each year, even as stricter visa norms in countries such as the US, UK, Canada and Australia don't help, of course.

This outbound flow, combined with India’s scale and relative affordability, is now encouraging foreign universities to establish long-term operations within the country. Reforms under the National Education Policy (NEP) 2020, along with new regulatory frameworks from the University Grants Commission (UGC) and the International Financial Services Centres Authority (IFSCA), have made it easier for global institutions to operate through offshore campuses, joint ventures and transnational education models.

Already, 18 foreign universities have received in-principle or final approvals, with three campuses operational, indicating early momentum. “India’s demographic scale and the policy reforms introduced by UGC and IFSCA have created a once-in-a-generation opportunity for global universities to build long-term, self-sustaining operations in India,” said Sahil Gupta, partner at Deloitte India.

By 2040, the presence of foreign universities could translate into substantial economic impact. Besides serving over 560,000 students and saving $113 billion in forex outgo, their entry is expected to drive demand for specialised academic infrastructure, including research facilities, student housing and innovation hubs, spanning about 19 million sq ft.

“India today presents one of the most compelling prospects for global higher education expansion,” said Shishir Baijal, chairman and managing director of Knight Frank India, adding that the entry of foreign institutions could elevate academic quality, deepen research collaboration and unlock new real estate and economic opportunities across the education ecosystem.

The study also evaluates the readiness of 40 Indian cities for hosting foreign campuses. Delhi NCR emerged as the most prepared market, followed by Bengaluru and Mumbai, supported by strong talent pools, global connectivity and mature research ecosystems. Tier-II cities such as Chandigarh and Kochi also show mid-scale readiness, offering alternative expansion pathways.