Should Foreign Educational Institutes Be Allowed in India? Let’s Debate!

India opened its doors to foreign educational institutes in India in November 2023, and permitted them to set up campuses in the country. The UGC regulations are in line with the commitments set out in the National Education Policy. It also adheres to the government’s vision of internationalisation of education in India.

UGC’s fresh guidelines allow top 500 global universities to set up campuses in India. These guidelines provide autonomy in curriculum design, freedom to set admission criteria and fee, and award internationally recognized degrees within India.

 

Foreign Educational Institutes in India: Introduction & Context

After UGC’s guidelines about arrival of foreign educational institutes in India, a debate followed. The University of Southampton has already set up its campus in Gurugram, so has the University of Liverpool and Lancaster University in Bengaluru, the University of York, the University of Aberdeen, and the University of Bristol in Mumbai.

Foreign universities present both opportunities and challenges. The focus should be on creating a regulatory framework that maximises benefits while minimising risks.

With 40 million higher education students and limited quality institutions, foreign universities can democratize access to world-class education. The entry of foreign educational institutions into India represents one of the most significant reforms in higher education policy in recent decades. 

• With 15 foreign universities approved to establish campuses in India under the National Education Policy (NEP) 2020 and UGC regulations 2023, this presents opportunities and challenges for India’s education ecosystem. 
• While it offers opportunities for global integration and academic excellence, it also raises concerns about equity, access, affordability, inclusivity, and alignment with national priorities.
• As CAT aspirants, understanding this multifaceted issue is crucial for demonstrating analytical thinking and awareness of contemporary educational policy.

 

 

Foreign Educational Institutes in India: Current Affairs & Policy Background

Recent Developments (2024-2025)

• The University of Southampton became the first foreign university to open its campus in Gurugram (August 2024)​
• Deakin University (Australia) began operations at GIFT City, Gujarat (July 2024)​
• 5 more universities approved: Illinois Institute of Technology (USA), University of Liverpool (UK), Victoria University (Australia), Western Sydney University (Australia), and Istituto Europeo di Design (Italy)​
• 9 UK universities received approvals during PM Starmer’s India visit (October 2025)​

 

Policy Framework

• NEP 2020 advocates for “internationalisation at home” to retain Indian students and attract global talent​.
• UGC Regulations 2023 allow the top 500 globally ranked universities to establish autonomous campuses​.
• Eligibility criteria: Only universities ranked in the top 500 globally or with subject-specific expertise can apply​.
• GIFT City model: Establishing campuses in India (e.g., GIFT City, Navi Mumbai). Deakin University (Australia) joined hands with IIM Bangalore before launching its campus in GIFT City. 
• Initial operations were limited to special economic zones, but they are now expanding nationwide.

 

Benefits: The Opportunity Perspective

Let’s discuss the benefits of the foreign educational institutes in India:

Faculty Excellence & Global Pedagogical Practices

The presence of foreign educational institutes in India can promote research-based teaching. Foreign universities bring evidence-based teaching methodologies, moving away from traditional rote learning​.

Global institutions’ student-centric approach emphasises critical thinking, problem-solving, and analytical skills rather than memorisation. Technology integration in advanced learning management systems, virtual labs, and digital resources will be introduced, which many Indian institutions lack.

Globally recognised professors and researchers with diverse perspectives​ will be accessible. Faculty with strong corporate ties will provide real-world insights and networking opportunities. There will be multiple opportunities for Indian students to have research mentorship. Students will get exposed to a multidisciplinary approach and can access liberal arts education and interdisciplinary learning​.

 

Brain Drain & Economic Advantages – Macro & Micro Level

• Retention of talent: Every year, lakhs of Indian students spend almost $13-15 billion in aggregate studying abroad​
• Cost advantage: Studying at foreign campuses in India costs 60-70% less than going abroad​.
• No visa complications: Eliminates visa process risks, travel costs, and foreign exchange fluctuations for students.
• Accessibility: Students remain close to family support systems while accessing global education. Students from tier-2/tier-3 cities can access global education without visa hassles​.
• Reduced opportunity cost: Earlier entry into the workforce due to time saved on visa processes and travel.

 

National Economic & Strategic Benefits

• FDI inflow: Significant foreign investment in education infrastructure and technology.​
• Employment generation: Creation of jobs for faculty, administrative staff, and support services​.
• Knowledge economy: Positioning India as a global education hub attracting international students​.

Also read: CAT Exam Preparation

 

Challenges: The Concern Perspective

Now let’s discuss the challenges of allowing foreign educational institutes in India:

Equity & Access Concerns

• Socioeconomic Stratification: The dual education system will create parallel tracks that may increase social stratification.
• Fee structure impact: Annual fees ranging from ₹8-25 lakhs may create new barriers for middle-class families. Hidden costs like additional expenses for international curricula materials, technology fees, and activity charges may also impact.
• Geographic bias: 80% of approved campuses will be in metropolitan areas, limiting rural student access​.
• Language barriers like English-medium instruction may bring disadvantages to the students who come from vernacular education backgrounds.
• Resource diversion may occur, and Government attention and policy focus will shift from strengthening public education to supporting foreign private universities.
• Merit vs. affordability: Talented but economically disadvantaged students will be on the verge of being excluded due to the expensive fee structure of global educational institutions.
• Lecturer Jobs: Professors in smaller institutions might face employment uncertainty as students flock to international campuses. The government could consider public–private collaborations or faculty upskilling initiatives to preserve inclusivity and professional dignity.

Globally, Malaysia and the UAE have shown that thoughtful regulation — including scholarships and diversity quotas — can reduce this inequality.

 

Quality Challenges of Foreign Educational Institutes in India

• Parent vs. branch campus disparities: Research shows a 30%-40% difference in resource allocation and faculty quality​ between the parent location and the branch campuses.
• Limited program offerings: Compared to comprehensive parent institutions, most branch campuses offer only 2-3 programs. Other infrastructure constraints, like smaller libraries, laboratories, and recreational facilities compared to main campuses, will make many Indian institutions inferior in quality.
• Commercialisation: Foreign institutions may prioritise revenue and profit over service. The lack of academic integrity may lead to potential quality dilution. Concerns like low enrolments, high costs, and several other local issues will crop up.

 

Geopolitical & Strategic Risks

• Intellectual property risks: Research conducted in India may benefit foreign economic interests.
• Political dependency: Bilateral relationships rather than national interests will influence education policy decisions.
• Data security concerns: Student and research data potentially accessible to foreign governments.

 

Regulatory & Operational Challenges – Systemic Issues

• Multi-layered approvals: Clearances from the central government, state, and local authorities​will be required. Additionally, frequent policy changes may create planning difficulties for universities.
• Compliance costs: Due to such regulatory requirements, all the policy dependencies will experience timeline delays and an estimated 15-20% higher operational costs.

 

 

Way Forward: What Should be the Right Way Ahead?

With the UGC’s approval to the foreign educational institutes in India, we have observed the benefits and challenges on the Indian education system. Now, let’s look at the possible ways forward with the policy:

Phased Implementation

Start with select institutions in specific domains, such as technology and management. The performance of such institutions can be regularly assessed based on their academic quality, results, placements, and social impact. The gradual expansion can happen based on successful metrics.

 

Regulatory Enhancements

• UGC and NAAC should have quality assurance mechanisms. These mechanisms can ensure that foreign campuses uphold global standards while aligning with Indian values.
• Foreign campuses must collaborate with Indian higher education, industrial campuses, and research institutes to improve outreach in Indian regions.

 

Flexible Governance: 

Foreign institutions should be required to develop an operationally easy-to-use model. The model must also be financially transparent and ethical. The foreign universities must be accountable to Indian laws, student rights, and anti-exploitation norms.

 

Tips

• Use current data to reference specific universities, dates, and statistics from recent developments.
• Acknowledge valid concerns even while supporting a position.
• Connect global trends to specific Indian challenges and opportunities.
• Showcase various perspectives and impact on students, parents, domestic institutions, and employers.

 

Also read: How to Prepare for CAT GDPI Topics

 

Conclusion

The entry of foreign educational institutes in India is a paradigm shift that requires careful consideration. It is an opportunity whose success depends on selecting world-class institutions, ensuring affordability, and accessibility.