Foreign universities operating in India could serve more than 5.6 lakh students by 2040, generate USD 113 billion in forex savings and create 19 million
sq ft of specialised demand for high-quality education-linked real estate, according to a new report. Titled 'Global universities eye India opportunity', the report examining global setup trends, policy provisions, real estate imperative, and strategic opportunities for foreign universities in India, has been published by Deloitte India and Knight Frank India. "By 2040, foreign universities operating in India could serve over 5,60,000 students, generate USD 113 billion in forex savings and create 19 million sq ft of specialised demand for high-quality education-linked real estate. The study also presents a first-of-its-kind city readiness framework evaluating the potential of 40 Indian cities," the report noted. "Delhi-NCR emerges as the most prepared market, followed by Bengaluru and Mumbai, each offering deep talent pools, connectivity, research ecosystems and global business networks. Tier 2 cities such as Chandigarh and Kochi also display mid-scale readiness, offering diverse expansion pathways for international institutions," it added. The report said that while international students have traditionally acted as a buffer to this downward pressure on domestic enrolment, the mobility has weakened in recent years due to geopolitical uncertainties and shifting diplomatic priorities, leading to visa restrictions, tighter immigration policies and limits on post-study work rights. "Layered onto these challenges, global competition and the weight of international ranking metrics are compounding the pressure as they directly influence the universities' ability to secure funding, partnerships, and talent. "In essence, with tapering traditional revenue streams and growing competition, universities across advanced economies are compelled to reassess their operating models and explore new strategies to remain competitive and resilient in an evolving landscape," it said. Three universities -- Deakin University (GIFT City), University of Wollongong (GIFT City) and University of Southampton (Gurugram) -- are the first few FHEIs that have already established their base in India under UGC or the IFSCA regulations. Currently, a total of 18 foreign universities have received either Letter of Intent, in-principle approval, readiness license or certificate of registration from UGC or IFSCA to set up campuses in India. "In India, 53 million students are currently enrolled in tertiary education. Additionally, nearly 7,60,000 students went to international universities in 2024. Despite these large numbers, India's Gross Enrolment Ratio (GER) remains at 34 per cent, well under the 80 pc-and-above levels seen in developed markets. "Furthermore, the government has set a target of reaching 50 pc GER by 2035, which will require a total of 72 million students to be enrolled in higher education. This appetite for globally aligned sectoral demand allows universities to use their core domestic curriculum and industry linkages while setting up their offshore campuses in India," the report said.
