Global Degrees, Local Campuses

Acquiring qualifications from foreign universities was once a luxury only aristocrats and royalty could afford. Now it is a necessity for youth from the middle classes, especially in STEM streams, to secure a decent job either abroad or at home. A finding by the Erasmus Impact Study says that academic competence acquired through international courses greatly helps employability. Foreign institutions of higher learning in specialised fields like artificial intelligence, biotechnology, or renewable energy provide access to cutting-edge research facilities. Tech-led entrepreneurship has encouraged new employment avenues in the gig economy and in data-related fields. Hence, the beeline for enrollment in reputed institutions abroad.

Currently, over 1.3 million Indian students are pursuing higher education in 101 countries, making India the world’s top source of international students. However, reportedly, in 2024, the student migration has declined sharply by 15 per cent, and in 2025, there is a 50–70 per cent drop in US applications and a staggering 93 per cent plunge in Canadian study permits. This reversal is largely attributed to policy crackdowns, hikes in fees, and enhanced financial and academic qualifications, not to mention racial discrimination and violence against Asians. The average cost for a 2-year master’s abroad is estimated between ₹40–80 lakhs, excluding living expenses. But ironically, contrary to the dreams of global opportunities that attracted students to move out of their country, 40 per cent of them are reportedly returning jobless, facing OPT/TPD limits (1–3 years).

Taking note of the scenario of student migration, NEP, way back in 2020, had incorporated a vision to transform the Indian higher education narrative into one of global standards, focusing on research, critical thinking, and problem-solving. The dual purpose is to position India as a global education hub, and also to curb the $28–30 billion annual outflow from Indian students enrolled abroad. Translating the vision into reality, a revolutionary scheme was rolled out in 2023, permitting world-class universities, ‘ranked in the top 500 globally’, to establish their own autonomous campuses in India either independently or through joint ventures with Indian companies. More than a dozen Foreign Higher Education Institutions (FHEIs) were invited through Letters of Intent (LOIs).

Correspondingly, the UGC issued guidelines in 2023. FHEIs were allowed to operate either under University Grants Commission (UGC) guidelines or in Gujarat International Finance Tec-City (GIFT City), a central business district in Ahmedabad. The FHEIs will offer courses through certificate, diploma, degree, research, and other programs at the undergraduate, postgraduate, doctoral, and post-doctoral levels in a variety of subjects and programs. Importantly, it was mandated that qualifications obtained in FHEIs shall enjoy the same recognition and status as if they were conducted in the home jurisdiction and also shall be equivalent to any corresponding degree awarded by the Indian Higher Educational Institutions. With regard to governance, the FHEIs will undergo a quality assurance audit and submit the report to the Commission. Besides, FHEIs are subjected to annual reporting, maintenance of accounts, and mechanisms for addressing student grievances. Similarly, the Exchange Control Regulations (Foreign Exchange Management Act) and the Foreign Contribution (Regulation) Act (FCRA) will apply to FHEIs as well.

The policy has paid dividends with Deakin University and the University of Wollongong from Australia setting up their campuses in Gujarat’s GIFT City, and the University of Southampton in Gurugram, while other universities like Western Sydney University and Victoria University are erecting campuses in locations like Greater Noida and Noida. The Illinois Institute of Technology, US, and Istituto Europeo Di Design (IED), Italy, have received approvals to set up their campuses in Mumbai. However, no Ivy League or Oxbridge institutions, or solid mid-tier globals (top 100–400), better than many Indian privates, have responded yet. Other popular, well-ranked institutions expected to open their campuses are the University of Bristol and the University of Liverpool.

Nevertheless, most FHEIs that are expected to operate by 2026 are yet to set up their campuses. A combination of regulatory, financial, and operational issues seems to be impeding the momentum. A multi-layered approval process involving UGC, the Ministry of Education, and local governments, not to mention field-specific bodies like AICTE, is said to be the reason behind the delays. Secondly, the rule of non-profit status compels the FHEIs to register as trusts, complicating the process. Thirdly, an investment risk holding back the FHEIs is the requirement of a full-fledged campus, which makes the project capital-intensive; and absent subsidies, and with limits on surplus repatriation, the pricing can go higher than available global options while returns are uncertain. For example, Texas A&M closed its Qatar campus after 20 years due to similar reasons.

According to Statista, the education industry in India is estimated to reach $225 billion by fiscal year 2025. But with the current infrastructure, as experts feel, a huge gap persists between demand and supply. Pushing the GER towards 50 per cent by 2035, as envisioned, would necessitate tripling the current portfolio of universities and more than doubling the colleges, which the government cannot accomplish alone.

Entry of FHEIs in the Indian higher education sector, at this juncture, can be a game-changer as they can help reduce migration, facilitate expansion, and also set standards of excellence that encourage competitiveness. But a revision of the guidelines may be necessary in order to fully realise the dream of internationalising Indian higher education. For instance, the criterion of “top 500 global ranking” excludes many strong but unranked institutions, such as those in the US. The experiment of South Korea can be tried, where world-class institutions successfully collaborated with local ones. Preferential treatment to FHEIs can deliver better results in place of subjecting them to a ‘license raj’. Though some reliefs were granted, like relaxing the land size norms, simplification of procedures, tax holidays, and exemptions are necessary for enhancing ease of doing business, just as the FHEIs in GIFT City exclusively enjoy. A framework of minimum restrictions and maximum autonomy, along with self-regulatory mechanisms, can help expedite the process of commissioning.

The FHEIs, on their part, inter alia, must build effective corporate networking towards ensuring quick placements since demand and placement are prime concerns of Indian students who pursue expensive courses either on loans or on the lifetime savings of their parents. Absent such assurance, the enrolment may suffer as aspirants would prefer to opt for the parent campuses of FHEIs abroad. It is estimated (Forbesindia.com) that by 2027, if 5–7 campuses hit 70 per cent enrollment with scholarships and local collaborations, it could revolutionise access and innovation. But an affordability mandate and parallel investment in Indian universities are necessary to prevent inequalities from exacerbating.

In 2016, according to Dr Choudaha (Beyond $300 Billion: The Global Impact of International Students), 5.1 million post-secondary students hugely contributed to the economies of host countries to the tune of $300 billion, alongside other benefits such as “academic, research, experiential, and cultural dimensions contributing towards an inclusive, innovative, and interconnected global society”. India, as the leader of the Global South, can leverage the opportunity to boost economic prospects as well. For example, US higher education, as a major export, generated $44 billion in revenue in 2019 alone, while it was about $51.0 billion and $35.9 billion to the economies of Australia and the UK, respectively.

Views expressed are personal. The writer is a former Additional Chief Secretary of Chhattisgarh