Foreign Universities in India: Boon, Bane, or a Mixed Bag for Students?

In recent years, the idea of foreign universities establishing campuses in India has shifted from speculation to policy. Under the UGC’s 2023 regulations, top global institutions (ranked among the top 500) may set up branches in India, offering joint, dual, and full degree programmes.  In 2025, 15 foreign universities have been cleared (or are in the process) to open campuses across India.

This blog critically examines both the opportunities and risks of these developments, aiming to answer: Will foreign universities in India be a boon or a bane for Indian higher education?

Why the Push for Foreign Campuses?

• Stem the outflow of students/brain drain

Every year, many Indian students travel abroad seeking top-tier education, resulting in a significant outflow of foreign exchange and talent.  Foreign campuses promise to keep more students in India while giving them access to a ‘global brand’ on Indian soil.

• Raise academic standards/pedagogical innovation

Foreign universities can bring global teaching practices, research orientation, multi-disciplinary curriculum frameworks and better infrastructure.  The hope is that competition will push Indian universities to upgrade.

• Cost advantages

Studying at a foreign campus in India could be far cheaper than going abroad — tuition, living costs and travel burdens drop.  For students from smaller cities or lower-income backgrounds, this could be a more attainable ‘global education.’

• Regulatory shifts and institutional openness

The UGC’s 2025 regulations streamline recognition of foreign degrees (equivalence within 15 days) through an online portal.  Also, India has already issued 12 Letters of Intent (LoIs) to foreign higher education institutions to set up campuses in cities like Bengaluru, Delhi NCR, Mumbai, Chennai, and GIFT City, Gujarat.  Some campuses, including Southampton in Gurgaon, have already begun operations.

The Boons: What Foreign Campuses Could Deliver

Foreign campuses in India have the potential to create significant benefits across several areas. In terms of access and inclusion, they allow more students, especially those from smaller towns and semi-urban regions, to experience ‘foreign’ quality education without having to leave home. Regarding competition and ecosystem uplift, the presence of these institutions may encourage Indian universities to innovate, improve infrastructure, and become more accountable. Degrees granted by reputed foreign institutions also carry strong global recognition, enhancing both mobility and employability for students. Additionally, collaboration and knowledge networks can flourish as foreign campuses establish partnerships with local research centres, industries, and startups. Another advantage is the reduction in foreign exchange burden, as India can save on the outflow of student spending overseas.

A practical example of this model is the University of Southampton’s campus in Gurugram, which offers BSc and MSc programs. Students can pursue abroad-style education locally while also having the option to spend semesters abroad, combining the best of both worlds.

The Bane: Risks, Challenges, and Caveats

• Equity concerns and affordability
  Foreign institutions may set high fees that many Indian students cannot afford. This could exacerbate inequality in access rather than equalise it.
• Brain drain within India
  Top talent (faculty, researchers) might gravitate to foreign campuses, starving Indian universities of human resources.
• Undermining local institutions
  Prestigious foreign brands might overshadow homegrown universities, especially regional or public ones with fewer resources.
• Regulatory complexity and recognition issues
  Although UGC has streamlined equivalence, the rulebooks are new and evolving. Mistakes or loopholes could lead to confusion over recognition, accreditation and validity of degrees. Also, not all foreign collaborations are approved — UGC has warned of unapproved foreign tie-ups (twinning, dual, joint degrees) whose degrees may not be recognized.
• Cultural dissonance and misfit curricula
  Global curricula may clash with local contexts, languages, societal needs and may undervalue regional knowledge systems or indigenous topics.
• Profit motive vs academic mission
  Foreign entrants might prioritise financial returns over academic integrity, especially if regulation is weak.
• Uneven distribution
  Campuses may concentrate in metro or economically strong regions, leaving rural or backward states further behind.
• Institutional viability risk
  If student demand falls or funding lapses, some campuses may struggle or close, leaving stranded students.
• Replication of global inequalities
  If foreign campuses only cater to elite disciplines (business, data, AI) and resource-heavy fields, the rest of higher education may continue being neglected.

Key Conditions and Safeguards for Success

To tilt the balance closer to ‘boon,’ the following should be emphasised:

• Transparent fee regulation: Though foreign campuses will have autonomy, safeguards are needed to prevent exorbitant costs.
• Local partnerships and integration: Foreign campuses should partner with Indian universities, research bodies and industry to root themselves in local needs.
• Equity quotas/scholarships: To ensure inclusive access, a portion of seats should be reserved or subsidised for underprivileged students.
• Quality assurance and accountability: Regular audits, oversight by Indian accrediting agencies and performance metrics must hold them to high standards.
• Contextual curriculum adaptation: Curricula should adapt to India’s socio-economic realities, languages, sustainability and societal challenges.
• Faculty exchange and capacity building: Foreign campuses should not siphon Indian academic talent, but contribute to capacity building in local institutions.
• Geographic spread and regional access: Incentives to set up campuses beyond Tier-1 cities.
• Clear transition mechanisms: For students shifting in or out of foreign campuses, clear rules for credit transfer, equivalence, etc.

Boon, Bane, or Balanced?

Our assessment leans toward a ‘conditional boon’—foreign university campuses can bring transformative benefits to Indian higher education, but only if the policy framework, regulatory oversight, and equity safeguards are robust. Without these, risks such as inequality, academic fragmentation, and ‘prestige parasitism’ could become real.