Rise of foreign universities in India: Boon or threat to Indian institutions?

“The function of education is to teach one to think intensively and to think critically. Intelligence plus character – that is the goal of true education.”

– Dr Martin Luther King Jr.

India’s higher education environment is stirring with a new energy, especially with the introduction of National Education Policy (NEP) 2020. The country is inviting world-class foreign universities with open arms to set up campuses on its land, marking a bold move in reshaping the future of education.

The aim is to provide Indian students global exposure while being at home, to raise academic standards, and to restore India’s lost glory as a global hub of learning. The move is not only about new campuses and foreign names, but it’s about reclaiming the nation’s legacy.

India’s centuries-old legacy in the field of education has always been unmatchable. With educational hubs like Nalanda and Takshashila attracting scholars from China, Korea, Japan, and beyond, ancient India was once the beacon of global knowledge.

These institutions were more than centers of learning; they were thriving ecosystems of dialogue, ideas, and innovation.

However, historical disruptions, ranging from colonial occupation to internal decline and policy neglect, led to a steady erosion of India’s position as a knowledge powerhouse. Over time, the luster of these academic institutions faded.

Today, despite having an extensive network of universities, the country sees thousands of its brightest minds migrating overseas every year in pursuit of superior education. This phenomenon, known as brain drain, has long troubled policymakers and educationists alike.

The NEP 2020 presents a turning point in reversing this trend. Among its several visionary reforms, one of the most transformative is the move to allow globally reputed foreign universities to establish campuses in India.

In January 2023, the University Grants Commission issued a draft regulation permitting such institutions (ranked within the top 500 globally) to set up operations in India. The intent is clear: to make world-class education accessible at home and foster healthy competition that propels Indian universities to raise their standards.

Early responses to this policy signal promising changes. Australia’s Deakin University and University of Wollongong have announced plans to open campuses in GIFT City, Gujarat.

Dr Ravi Kumar Jain, Director of the School of Management at IILM University, Gurugram, emphasizes that while the arrival of foreign universities presents an exciting academic opportunity, the process must be guided by thoughtful regulation and long-term vision.

According to him, “It brings with it global best practices, Western academic constructs, innovative pedagogies, and healthy competition that can push Indian institutions to elevate their standards. While we embrace such collaborations, it is crucial to ensure that our indigenous institutions remain protected and empowered, to be not just globally competitive but also deeply rooted in local relevance.”

He highlights the need for blending ancient Indian wisdom with modern frameworks, integrating holistic education models with futuristic technologies like AI and quantum computing, and creating learning environments that are both technologically advanced and culturally resonant.

The University of Birmingham from the UK is exploring options, and New York University has reportedly entered into discussions. These signals of interest mark the beginning of what could become a new chapter in India’s higher education story.

Foreign universities bring with them globally recognized curricula, advanced research methodologies, student-centric pedagogy, and a culture of innovation.

Their presence in India means that Indian students can now access top-notch international education without incurring the financial or emotional burden of relocating abroad. This not only offers savings for families but also creates broader access to quality education.

Collaborations with these institutions can foster a more dynamic academic ecosystem. Indian students would benefit from global exposure, diverse cultural interactions, and the opportunity to engage in international research networks.

Exposure to cross-disciplinary thinking, problem-solving, and experiential learning can sharpen students’ critical thinking and creativity, attributes essential for navigating the modern global workforce.

A direct benefit would be the reduction in brain drain. When students find global-quality education in their own country, their inclination to seek it elsewhere reduces significantly.

Such collaborations are already showing results. Professor Prakash Gopalan, President of NIIT University, highlights how their international partnerships with institutions like the University of Indianapolis and Victoria University of Wellington are shaping global-ready students.

He remarks, “By bringing in global best practices, breakthrough research, and innovative learning models, foreign universities add momentum to India’s already thriving academic landscape… The key lies in collaboration over competition.”

As foreign campuses set up state-of-the-art facilities and bring in world-class faculty, students who would otherwise have pursued degrees abroad may now choose to remain in India. This could enhance the country’s intellectual capital and retain talent that can contribute to national growth.

Economic implications are also significant. Foreign campuses will generate employment, spur infrastructural development, and even promote educational tourism.

Their collaboration with Indian industries can lead to the emergence of research hubs and innovation clusters, boosting India’s standing in the global academic and technological space.

However, the influx of foreign universities into India also presents a complex array of challenges. One of the main concerns is that elite foreign universities may draw away the best students and faculty from Indian institutions.

Domestic universities, already grappling with funding constraints, rigid regulations, and limited autonomy, may find it difficult to compete, thereby widening the gap between institutions.

Cost is another critical issue. If foreign institutions replicate their original fee structures in India without adequate scholarships or financial aid systems, they risk becoming accessible only to the affluent.

Equally important is the need for curriculum relevance. Many of the programs designed for Western contexts may not address the unique economic, social, or cultural needs of Indian students.

Foreign universities must make deliberate efforts to align their offerings with local realities, both in content and pedagogy. Understanding and integrating local contexts can enrich academic engagement and ensure real-world applicability.

Maintaining consistent quality and integrity of these foreign campuses will be essential. Regulatory bodies like the UGC must create clear guidelines and robust monitoring systems to ensure that only credible, high-quality institutions are allowed entry.

The risk of subpar foreign institutions exploiting the “international” tag for marketing and profit must be mitigated. Without strict oversight, the entry of such institutions could dilute rather than enhance the education ecosystem.

There is also apprehension about the commercialization of education. Some worry that foreign universities may prioritize revenue over academic excellence and treat Indian campuses primarily as profit centers.

Education as a public good must be preserved, and mechanisms must be put in place to ensure that commercial motives do not override the mission of nurturing minds and generating knowledge.

Dr Nihar Amoncar, Pro Vice Chancellor of IILM University, Greater Noida, draws parallels with India’s economic liberalization of 1991.

He said, “Global competition in the Indian higher education market can only fortify the Indian academic ecosystem… Some took this change in their stride, adapted, adopted, and tasted unprecedented success; others who did not or could not respond withered away.”

He believes that the key lies in how Indian universities respond to this change. Instead of fearing foreign institutions, they should look inward to reinvent their pedagogies, invest in faculty development, improve research output, and build meaningful global collaborations.

This collaborative spirit can create synergies that lift the entire higher education sector. Indian institutions can benefit from joint degrees, student and faculty exchanges, and shared research projects.

Successful models already exist: the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) have forged academic ties with top global institutions like MIT, Stanford, and Harvard. These partnerships have helped elevate their academic profile without compromising their core identity.

Looking ahead, the success of this foreign university initiative will hinge on careful policy implementation. Regulatory agencies must act as vigilant gatekeepers, ensuring transparency, accountability, and alignment with India’s educational vision. The policy must be dynamic, open to stakeholder consultation, and grounded in periodic reviews.

Foreign institutions, in turn, must engage with India not just as a market, but as a partner. Their integration must go beyond brick-and-mortar campuses to include Indian faculty recruitment, scholarships for deserving students, contextual research, and active engagement with local communities and industries. A socially conscious, inclusive approach will be the hallmark of meaningful engagement.

The emergence of foreign universities in India is both a window of opportunity and a test of foresight. If managed wisely, it could herald the rise of India as a global academic powerhouse, “a modern-day Nalanda.” If mishandled, it risks creating exclusivity, eroding trust, and compromising educational values.

India stands at a historic juncture. The chance to reclaim its identity as a global center of learning is within reach. Whether this promise is realized will depend not only on the ambition of foreign universities or the vision of policymakers, but also on the collective will of Indian institutions, educators, and civil society to build a world-class, inclusive, and future-ready education system.