Internationalisation of Indian Higher Education

• 28 Oct 2025

For Prelims: National Education Policy (NEP) 2020, Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India Regulations 2023, Gross Enrolment Ratio (GER), Make in India, Digital India, Public-Private Partnerships.                                                     

For Mains: Significant Policy Reforms Driving Transformation in India’s Higher Education Sector, Emerging Prospects and Challenges Linked to the Entry of Foreign Universities in India.

Source: IE

Why in News?

17 foreign universities mainly from the UK and Australia, have received approval to set up campuses in India under UGC’s 2023 regulations. This move aligns with National Education Policy (NEP) 2020 and comes amid growing demand for quality higher education in India.

How is India Advancing Global Partnership in Higher Education?

• NEP 2020 Vision: Guided by the principles of Access, Equity, Quality, Affordability, and Accountability, NEP 2020 aims to establish India as a global education hub. 
  • It allows top 100 global universities to operate in India, fostering international collaboration, student and faculty mobility, and academic credit transfer to elevate the entire education ecosystem to global standards.
• UGC’s Regulations 2023: To operationalize the NEP 2020's vision, UGC’s (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations 2023 was enacted, permitting top-ranked Foreign Higher Educational Institutions (FHEIs) to establish campuses in India. 
  • Eligible FHEIs must be ranked within the top 500 QS World University rankings. 
  • These institutions are mandated to maintain the same academic standards, curricula, and degree equivalence as their parent campuses abroad.
  • They are granted operational autonomy, including flexibility in faculty recruitment—both Indian and foreign—and are not bound by existing fee caps applicable to Indian universities.

What Factors are Driving Foreign Universities to Establish Campuses in India?

• Demand Surge for Quality Higher Education: With over half its population under 30 and a Gross Enrolment Ratio (GER) below 30%, India presents a vast untapped higher education market. 
  • Rising incomes, a growing middle class, English proficiency, and demand for global learning make it an attractive destination for foreign universities.
• Supportive Policy Environment: NEP 2020 promotes the internationalisation of education, inviting top global universities to India, while UGC’s 2023 regulations provide a supportive framework for establishing their campuses.
• Declining International Students: Recent data shows a sharp decline in Indian students abroad due to stricter immigration policies, including restrictions on foreign students bringing dependents and other measures to reduce immigration in the UK, US, and Canada.
• Diversification of Revenue: With stagnant domestic enrolments and declining public funding, universities in the UK, Australia, and Canada see India as a strategic market for revenue diversification and financial stability.
• Strategic Global Partnerships: Indian campuses strengthen institutional ties, promote research collaboration and student exchange, and build a talent pipeline for future postgraduate recruits and global alumni networks.
  • E.g., UK–India Education and Research Initiative (UKIERI) promotes bilateral student and faculty exchange.

What are the Implications of Internationalising India’s Higher Education?

• Global Competitiveness: Foreign universities introduce global curricula, teaching standards, and quality assurance, elevating India’s academic ecosystem while attracting innovation and research funding.
• Curbing Brain Drain: Highly skilled talented students may now stay in India, reducing the massive annual outflow of billions of dollars spent on studying abroad.
• Systemic Improvement: The presence of foreign universities will drive Indian institutions to innovate, enhance quality and competitiveness, while their governance models and industry-academia linkages can serve as a blueprint for systemic reform.
• Alignment with National Goals: Courses in high-demand fields like AI, Data Science, and Finance will build a skilled workforce aligned with Make in India and Digital India, while fostering a diverse and cosmopolitan academic environment.
• Affordable International Degrees: Earning a foreign degree in India is far more affordable than studying abroad — e.g., Southampton University’s 2026 fees for Undergraduate (UG) courses (Rs 13.86–23.10 lakh) are about half of UK on-campus costs.

What are the Key Challenges in Setting Up Foreign University Campuses in India, and How can They Be Addressed?

Challenges	Way Forward
Autonomy Challenges: Limited autonomy on fees, curriculum, faculty; complex UGC approvals.	Stable Regulatory Framework: Fast-track single-window clearances; transparent policies on autonomy, taxation, and fund repatriation.
Financial Viability: Balancing affordability with costs; meeting enrollment targets for break-even.	Sustainable Financial Models: Phased investments; public-private partnerships; allow surplus repatriation with reinvestment clauses.
Competition Challenges: Intense competition from IITs/IIMs; student skepticism on degree value.	Strategic Academic Partnerships: Joint degrees, credit transfers; collaborative research on India-specific themes.
Quality Assurance Issues: Attracting top faculty; ensuring no dilution of curriculum/pedagogy standards.	Robust Monitoring & Evaluation: Define success via research, employability, and community impact metrics.
Infrastructure Barriers: Land acquisition, taxation, labour laws, and infrastructure readiness.	Cultural Integration: Adapt curricula to Indian context and values; promote local skills and knowledge economy.

Conclusion

India's framework for foreign universities, driven by NEP 2020 and UGC 2023, aims to transform higher education by enhancing quality, curbing brain drain, and fostering global competitiveness. Success hinges on balancing foreign autonomy with national interest, ensuring affordability, and creating sustainable, mutually beneficial academic partnerships for long-term impact.

Drishti Mains Question:

Q. Examine how National Education Policy (NEP) 2020 and UGC Regulations 2023 facilitate the internationalisation of higher education in India and assess their policy implications

Frequently Asked Questions (FAQs)

1. What is the policy framework for foreign universities setting up campuses in India?
NEP 2020 and UGC Regulations 2023 permit top-ranked Foreign Higher Educational Institutions (FHEIs) to establish campuses, promoting internationalisation and quality parity.

2. Which eligibility criterion must foreign universities meet under UGC rules?
FHEIs must be ranked within the top 500 globally (overall or subject-wise) or demonstrate exceptional domain expertise as per UGC assessment.

3. How does the entry of foreign universities align with India's national development goals?
It supports goals like 'Make in India' and 'Digital India' by creating a skilled workforce in high-demand fields, curbing brain drain, and fostering research and innovation within the country.

UPSC Civil Services Examination, Previous Year Question (PYQ)  

Prelims

Q. Which of the following provisions of the Constitution does India have a bearing on Education? (2012)

1. Directive Principles of State Policy  
2. Rural and Urban Local Bodies  
3. Fifth Schedule  
4. Sixth Schedule  
5. Seventh Schedule  

Select the correct answer using the codes given below:  

(a) 1 and 2 only  

(b) 3, 4 and 5 only  

(c) 1, 2 and 5 only  

(d) 1, 2, 3, 4 and 5  

Ans- (d) 

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Mains

Q1. Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (2021)

Q2. How have digital initiatives in India contributed to the functioning of the education system in the country? Elaborate on your answer. (2020)