India¡¯s higher education sector presents an unparalleled opportunity. With the world¡¯s largest youth population and a target to increase its gross enrolment ratio in higher education to 50 per cent by 2035 ¨C nearly doubling student numbers to 80 million ¨C the demand for high-quality education far outstrips domestic supply.

The country¡¯s National Education Policy 2020, coupled with the University Grants Commission¡¯s 2023 regulations, provides a framework for foreign universities to establish international branch campuses (IBCs) in India. They will be able to operate with significant autonomy in admissions, fee structures and curricula while ensuring oversight.

Recent developments underscore the growing interest of global institutions. The University of Southampton is set to open India¡¯s first IBC in Gurugram by July 2025, while Australian universities such as Deakin and Wollongong have already established campuses in Gujarat¡¯s Gift City. Western Sydney University plans to launch a campus in Bengaluru by 2025. The latest announcement came from the University of Surrey, which is partnering with international education company GUS Global Services?to open in Gift City by the summer of 2026.

These initiatives align with India¡¯s ambition to become a global education hub and to attract 500,000 international students under the ¡°Study in India¡± programme. Yet while the policy has immense potential, the question remains: is it too late for IBCs to make a meaningful impact in India?

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Capacity is one major issue. The world¡¯s largest IBCs are in China. Xi¡¯an Jiaotong-Liverpool University has 25,000 students, while the University of Nottingham Ningbo has 10,000. Most large branch campuses, established 20 or more years ago, tend to peak at 4,000 to 6,000 students. Even if India¡¯s IBCs eventually rival the size of those in China, they won¡¯t come close to meeting Indian demand.

But might they still boost the overall quality of Indian universities? The model there is that the local faculty they recruit learn best practice from them and them spread it around the sector when they move to other institutions. Yet while that may have been true for the UAE 20 years ago or Malaysia 30 years ago, India¡¯s higher education system has improved dramatically even since discussions on opening up to IBCs began a decade ago.

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Prestigious domestic institutions such as the Indian Institutes of Technology and Indian Institutes of Management now offer world-class programmes that attract international students and provide them with global exposure. So do private universities such as Ashoka, Shiv Nadar, O.P. Jindal and Shoolini.

Moreover, Indian institutions already actively collaborate with prestigious universities worldwide through joint programmes and research, exchanging innovative ideas and best practices. A growing number are receiving accreditation from renowned international bodies. For instance, Indian business schools are acquiring AACSB and EFMD accreditation, guaranteeing that they align with the top 1 per cent of business schools worldwide.

For India, then, the issue is not so much about learning from foreign institutions as about figuring out how to diffuse best practice from its top local institutions to the lower tiers.

Nor will branch campuses address affordability, which represents a significant challenge for many Indian students. Tuition fees at IBCs are often markedly higher than at domestic institutions, including private ones. In the Indian context, private partners ¨C such as GUS with Surrey ¨C will inject considerable funding into IBCs, but they will expect a high return on investment, a goal likely to be achieved through high fees.

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The evolution of these partnerships will warrant close scrutiny as well. Although precise financial data can be elusive, personal observations ¨C and a succession of closures over the years ¨C suggest that many IBCs struggle to deliver acceptable returns. Depending on the country, employing foreign faculty can be 50 to 75 per cent more expensive than hiring local instructors, so if an IBC aims to provide a truly ¡°foreign experience¡± in India, costs will inevitably escalate. On the other hand, if it chooses to recruit only local faculty, it risks sacrificing a key differentiator from local institutions.

Perfecting this balancing act will be critical if IBCs are to thrive. But that will only be made harder by the rise of online education platforms and hybrid learning models, which has transformed access to international degrees. Students can now obtain credentials from top global universities without leaving their homes or incurring the high costs of physical campuses. By 2023, for instance, 58 per cent of all MBA students at US universities were enrolled in online programmes, and India¡¯s online education sector is projected to generate nearly $240 billion (?186 billion) by 2027.

Rather than competing directly with established domestic institutions, foreign universities should focus on collaborative models that leverage local strengths. But that need not involve establishing an IBC at all. Dual-degree programmes, split between India and the overseas partner, offer cheaper international degree options. Foreign institutions may even open within an Indian university, complementing its offerings; see, for example, France¡¯s Kedge Business School, which has within Vijaybhoomi University, a private?institution?near Mumbai.

Additionally, branch campuses should add value to the local landscape by prioritising niche areas where domestic capacity is limited. Examples could include advanced STEM fields or interdisciplinary programmes combining technology with humanities.

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In short, if they are to make a meaningful local impact, overseas universities will have to recognise the progress that India has made and move beyond traditional IBC operating models. Only by embracing innovative partnerships that align with India¡¯s unique needs and aspirations will they be able to fulfil their own.

is deputy vice-chancellor (research and enterprise) at the University of Cyberjaya, Malaysia.

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