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Foreign Universities in India: Impact, Scope and Challenges Ahead
India’s higher education system is witnessing a historic transformation through the internationalisation of higher education, opening doors for foreign universities to establish campuses in the country.
Jul 3, 2025
TL;DR
India’s higher education system is witnessing a historic transformation through the internationalisation of higher education, opening doors for foreign universities to establish campuses in the country. Based on the recommendations of the National Education Policy (NEP) 2020, the University Grants Commission (UGC) incorporated provisions for the entry of Foreign Higher Education Institutions (FHEIs) into India through the 2023 regulations. This move aims to retain Indian students who might otherwise pursue education abroad, while also encouraging international students to choose India to fulfil their educational aspirations. This blog explores the impact, scope, and potential challenges of establishing FHEIs in India.
Table of Contents
Policy Context And Regulatory Framework
After the University Grants Commission (UGC) guidelines of 2021, which aimed to foster international collaboration in education, the UGC released a notification on November 7, 2023, titled “Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India (2023).” This introduced regulations for the internationalisation of higher education in India. The UGC Regulations, 2023, were established under the UGC Act, 1956. These allow foreign institutions to operate in India under a defined set of rules and offer Twinning, Joint Degree, and Dual Degree programmes in collaboration with Indian universities (University Grants Commission, 2023).
The procedure and compliance criteria outlined by the UGC involve several steps. The university must rank within the top 500 globally in either the overall or subject-wise category (Clause 3(a) and (b)). A foreign university wishing to establish a campus in India must apply online via the UGC portal and pay a non-refundable processing fee (Clause 4(2)). It must also provide approval from its parent institution’s governing body (Clause 4(3)(a)) and submit information for the UGC to assess its readiness—such as infrastructure capacity, location, programme details, fee structure, faculty availability, and financial viability (Clause 4(3)(b))—as well as demonstrate quality assurance (Clause 4(3)(c)) and accreditation (Clause 4(3)(d)). A Letter of Intent (LOI) is issued following a rigorous evaluation by a Standing Committee constituted by the UGC (Clause 4(8)).
Further directives include that the fee structure must be reasonable and transparent (Clause 5(2)); FHEIs will have autonomy in setting criteria for appointing faculty or staff both within and outside India (Clause 6(2)), with the requirement that foreign faculty reside in India for a reasonable duration (Clause 6(3)). No fees may be collected before UGC approval is granted (Clause 7(1)). Additionally, FHEIs must ensure the quality of education is equivalent to that of their home institution (Clause 7(2)); they are not permitted to offer distance education (Clause 7(3)), must notify the UGC before starting a new programme (Clause 7(4)), maintain fiscal sustainability (Clause 7(8)), uphold India’s national interest and sovereignty (Clause 7(11)), comply with the Foreign Exchange Management Act, 1999 (Clause 7(12)), and the Foreign Contribution (Regulation) Act, 2010 (Clause 7(14)), and safeguard the interests of Indian students (Clause 9).
The notification further clarifies that any disputes arising under these regulations will fall under the exclusive jurisdiction of the Indian judiciary (Clause 12). The UGC also retains the authority to restrict, suspend, withdraw, or cancel approval for FHEIs that fail to comply with the rules or act against national interests (Clause 11(3)).
As of the current academic year, around 15 universities have received approval to open campuses in India, including the University of Southampton, the University of Liverpool, and others (Lalitha, 2025).
Fheis In India: What Does It Imply?
The entry of FHEIs in India is both enticing and challenging. This historic shift in Indian higher education will not only impact the higher education space in India but also influence India’s bilateral relations with the countries of origin of these institutions, the economy (one aspect being the increase in FDI in education), urban infrastructure development through university building, and socio-cultural transformation through knowledge sharing and cultural exchange.
The impact of FHEIs on the Indian higher education landscape—for both Indian universities (public and private) and students—is an ongoing debate. For students, it is argued to open the gateway to world-class education at a reasonable cost on home soil, offering diverse learning experiences and opportunities for international academic collaboration and research. Foreign universities may create a “win-win” opportunity for Indian students who do not wish to immigrate abroad. Students will have access to varied educational options, international exposure, cutting-edge pedagogical models, and opportunities to collaborate with global academic communities (Kumar, 2023).
However, some critical questions remain. One such question is: Will the FHEIs serve only the affluent, or are there provisions for inclusive education to ensure they don’t widen the educational divide? The future of FHEIs in India is certainly enticing for students, but issues of equity, affordability, socio-cultural differences, economic disparities, and the digital divide must be addressed proactively (Gupta, 2025).
The approval of FHEIs to open their campuses in India presents an exciting avenue for these universities but also poses several impediments that must be navigated strategically. To begin with, the scope of FHEIs in India may include utilising the demographic edge, government policy support (NEP 2020 aims to internationalise higher education), fostering global academic collaboration, enhancing reputation, and promoting skill development and innovation in India (Charantimath, 2024). However, there are critics of FHEIs entering India. For instance, Philip and Eldho, in their article titled “Boom in foreign university branch campuses: Can they deliver quality education?” critically argue that the idea of opening branch campuses in India is challenging. The reasons presented in the article include difficulties in navigating the highly competitive Indian higher education landscape, rigidity in offering courses focused only on emerging sectors, sidelining India’s emphasis on cultural and social sciences, the need to maintain a reputation beyond marketing—as students and parents make informed, critical choices—and adapting to the local needs of Indian students in terms of academic infrastructure (Mathews, 2025).
For Indian universities—both public and private—FHEIs will boost a competitive environment, enabling Indian institutions to improve their rankings, strengthen collaborations with foreign universities for research and global best practices, enhance academic infrastructure, and innovate pedagogical approaches. However, complexities exist. Indian institutions may lose top talent (students and faculty) due to brain drain, and they will need to revise their curriculum and pedagogy to compete with FHEIs and emerge as world-class institutions.
Way Forward
To navigate the era of globalising higher education and emerging competition, India must learn from countries that have already established FHEIs. For example, the case study by Shah and Goyal, titled “Foreign Universities in India: Lessons and Learnings from Global Experiences” can serve as a roadmap. It analyses cases across countries such as China, the UAE, South Korea, and Malaysia, which have welcomed FHEIs and leveraged the benefits. To quote one such case, South Korea has ensured strong policy backing through initiatives like Brain Korea 21, the Study Korea Project, and the World-Class University Project to boost R&D and global competitiveness. The country also follows strict accreditation and compliance rules, allows FHEIs to operate under a Special Act that focuses on Free Economic Zones, promotes strong collaborative models such as UNC Chapel Hill–Korea University, and enforces fee parity between foreign and Korean universities.
UGC should encourage foreign universities to relocate or establish their Centres of Indian Studies within India itself, For example, University of Southampton ‘The India Centre for
Inclusive Growth and Sustainable Development’, deepening its engagement with India’s culture, history & society, while also fostering academic collaboration with India scholars.
To conclude, picturising FHEIs in India presents both exciting and challenging prospects. It is up to the policymakers, the government, and the students to make the best of this opportunity. Only time will unfold the realities.
References
Charantimath, P., 2024. Foreign universities in India: Challenges and opportunities. Deccan
Herald, 9 September. Available at:
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Gupta, V., 2025. Vineet Gupta of Ashoka University on foreign universities in India: A boon or
a threat? ABP Live, 13 March. Available at:
https://news.abplive.com/brand-wire/vineet-gupta-of-ashoka-university-on-foreign-universities-i
n-india-a-boon-or-a-threat-1757307 [Accessed 5 June 2025].
Kumar, M. J., 2023. UGC chairman M Jagadesh Kumar writes: Indian campuses of foreign
universities are a win-win for students and institutes. The Indian Express, 11 January. Available at:
https://indianexpress.com/article/opinion/columns/ugc-chairman-indian-campus-foreign-universi
ties-8374024/ [Accessed 6 June 2025].
Lalitha, S., 2025. 15 foreign universities to open campuses in India this academic year. The New
Indian Express, 26 May. Available at:
https://www.newindianexpress.com/nation/2025/May/26/15-foreign-universities-to-open-campus
es-in-india-this-academic-year [Accessed 4 June 2025].
Mathews, P. G. A., 2025. Boom in foreign university branch campuses: Can they deliver quality
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https://www.thehindu.com/education/boom-in-foreign-university-branch-campuses-can-they-deli
ver-quality-education/article69571715.ece [Accessed 7 June 2025].
Shah, K. K. & Goyal, Y., 2023. Foreign universities in India: Lessons and learnings from global
experiences. Observer Research Foundation, 20 October. Available at:
https://www.orfonline.org/research/foreign-universities-in-india-lessons-and-learnings-from-glob
al-experiences [Accessed 5 June 2025].
University Grants Commission, 2023. University Grants Commission (Setting up and
Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023.
Available at:
https://www.ugc.gov.in/pdfnews/Setting%20up%20and%20Operation%20of%20Campuses%20o
f%20Foreign%20Higher%20Educational%20Institutions%20in%20India.pdf [Accessed 4 June
2025].
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