The global education landscape is on the cusp of a significant transformation as India emerges as an attractive destination for foreign universities to set up for-profit campuses. With its vast market potential, regulatory reforms, and strategic advantages, India offers a promising opportunity for international educational institutions looking to expand their global footprint.
Market Growth and Potential
India is the second-largest higher education market globally, with over 43 million students enrolled, a Gross Enrolment Ratio (GER) of 28%, across 1,200 universities and more than 58,000 colleges and institutions. The Indian government aims to achieve a 50% GER by 2035.
The Indian education sector is projected to surpass $300 billion by 2030, up from approximately $200 billion currently, growing at a CAGR of over 7%. The higher education component is expected to contribute about 50% of the total market, highlighting the immense potential for growth and investment in this sector.
Flexibility and Autonomy
In 2023, foreign universities and institutions were permitted to set up for-profit campuses initially at GIFT City and subsequently across the country. This regulatory shift provides complete flexibility and autonomy in setting up operations, offering courses, recruiting faculty, charging fees, and repatriating profits.
National Education Policy (NEP) 2020
The National Education Policy (NEP) 2020 has been a game-changer for the Indian education system. One of its key highlights is the emphasis on internationalization, which encourages foreign universities to establish campuses in India. The NEP 2020 aims to transform India into a global knowledge hub by allowing top 100 universities in the world to operate in India. This policy reform aligns with the broader goal of making Indian education more inclusive, accessible, and globally competitive.
Strategic Entry Models
Foreign universities can enter the Indian market as fully owned entities or through joint ventures (JVs) with existing higher educational institutions or strategic investors. There are no limits on the minimum shareholding of a foreign investor, making the entry process more attractive and accessible. JVs are particularly favored as they reduce upfront cash investments and share the risks of entering a new market.
Regulatory Framework
The University Grants Commission (UGC) and the International Financial Services Centres Authority (at GIFT City) are the key regulators responsible for providing approval for foreign universities. A detailed project report, mandatory documentation, and projected financial statements are required during the application process, ensuring a structured and transparent entry pathway.
Initial Success Stories
- Australia’s Deakin University became India’s first foreign university campus at GIFT City, Gujarat. The university received more than 3,500 expressions of interest for just 100 seats in its Master’s Programme in Cybersecurity, showcasing the high demand for top global education in India.
- The University of Wollongong (UOW), another Australian university, has also announced plans to establish a campus in India. UOW aims to leverage India’s large and growing student population and provide high-quality education at a lower cost compared to studying abroad. This move highlights the growing trend of international universities recognizing India’s potential as a key market for higher education.
- Originating from its acclaimed roots in the UK, Shrewsbury International School is globally recognized for its commitment to academic rigor, holistic development, and nurturing leadership qualities among students. This prestigious institution is now established in India, located in the vibrant city of Bhopal, inviting applications for the Academic Session 2025.
Related Article: India’s first Shrewsbury International School opens admissions for academic session 2025 in Bhopal
The Way Forward
India’s demographic dividend, with its large English-speaking population and a growing middle class with increasing disposable incomes, positions the country as the next growth engine for the higher education sector globally. Education remains one of the top three expenditures for Indian households, making the proposition extremely attractive for foreign universities.
How IME Can Help?
India Market Entry (IME) is a boutique consulting firm specializing in assisting global education stakeholders navigate India’s vibrant education sector. IME’s core competency lies in strategic business development, providing expertise in legal and regulatory compliance, market entry strategies, and operational setup.
For foreign universities looking to expand into India, partnering with IME can ensure a smooth and successful entry. With our deep understanding of the Indian education landscape and robust network of local partners, IME is well-positioned to help international institutions capitalize on the opportunities that India presents.
Sources:
- British Council: India releases updated higher education statistics
- Pearson: India’s vision for a globalised future
- Annual Status of Education Report 2023
- Education Times: Why India is an attractive destination for foreign universities to set up for-profit campuses
- The Hindu: Foreign Universities Can Now Set Up Campuses in India
- NEP 2020 and Internationalization
- Joint Ventures in Indian Higher Education
- UGC: UGC Regulations for Foreign Universities
- Deakin University’s India Campus at GIFT City
- UOW India
- India’s Growing Middle Class and Education Spending
