HE growth will need massive infrastructure drive – Report

India faces the challenge of educating the world’s largest higher education population. In meeting its current aim of increasing the gross enrolment ratio (GER) to 50% by 2035, the country faces two imperatives – rapid expansion of academic infrastructure and repositioning itself in the global higher education ecosystem.

Two recent reports illustrate the scale of the challenge, while trends in outbound student mobility and the emergence of foreign university campuses reveal how student preferences are shifting.

According to a recent report by real estate consultancy ANAROCK Capital, India will need around 12,000 hectares of new campus land and about 2.7 billion square feet of academic infrastructure by 2035 to meet future demand.

Achieving the 50% GER would require about 25 million additional higher education seats, implying an investment of approximately US$100 billion based solely on the construction of academic facilities – excluding land costs and student housing.

The report, titled The Academic Real Estate Supercycle, states that this massive expansion could become the largest higher education construction drive in the world.

Shobhit Agarwal, CEO of ANAROCK Capital, cited the Union Budget’s recent proposal to develop five new university townships as evidence that strengthening education infrastructure has become a national priority.

Higher secondary (pre-college) GER has risen from 19.5% in 2010 and 2011 to 62.3% in 2021 and 2022, significantly increasing the number of people eligible for college. This increase is even greater for girls, whose enrolment ratio has increased 3.3 times, from 19.8% in 2001 and 2002 to 66% in 2021 and 2022.

Although institutional capacity has increased, ANAROCK’s conclusion is clear: existing infrastructure is insufficient to meet both policy expectations and demographic realities.

This shortfall has resulted in “demand leakage”. India has become one of the world’s largest sources of internationally mobile students, with 1.34 million Indians studying abroad, essentially exporting unmet domestic demand.

Enabling regulatory framework

This scenario may now change. Higher education regulator the University Grants Commission’s new rules allow foreign universities ranked among the top 500 in the world to open campuses in India without affiliating with a domestic institution.

Several global universities have already committed to branch campuses, encouraged by the government's policies and incentives offered by individual state governments.

Rahul Choudaha, higher education expert and COO of the University of Aberdeen, Mumbai, said one of the biggest enablers for the arrival of foreign universities is the change in India's regulatory stance, which has become more welcoming in the last two years.

“At a time when options for global mobility are shrinking and the uncertainties of recovering educational investments are rising, students and parents are seeking new alternatives. The arrival of foreign universities is expanding choices enabled by a regulatory framework,” said Choudaha to University World News.

According to Choudaha, there is a growing segment of students in India that seeks better quality education with global exposure at a lower cost than fully fledged study abroad. For these students, foreign campuses in India can offer international degrees and experiences without leaving the country.

Dr Mona Khare, dean (academics and research) at the National Institute of Educational Planning and Administration in New Delhi, told University World News: “There is already a shift away from erstwhile popular student destinations like the US and the UK to many other European and also countries like Japan, Singapore, and Dubai.”

These shifts in student mobility trends are likely to gain momentum in the coming years, she said.

Smart planning

A second report, India’s 155 Million Student Mandate, published jointly by Knight Frank India, Deloitte India, and QS Quacquarelli Symonds, places this shift in a global context.

India is home to 155 million people aged 18 to 23, the world's largest higher-education age group. This, combined with reforms under the National Education Policy (NEP) 2020, has transformed how universities around the world view India – not just as a source of international students, but also as a destination for offshore campuses.

For decades, Indian enrolment sustained universities in the US, UK, Canada, and Australia. That model is now under pressure as those countries face declining demographics, rising tuition and housing costs, and tightening visa systems. In contrast, India offers scale, policy clarity, and long-term demand stability.

The study looked at 40 major cities and found that higher education in India is spread across several key centres.

Shishir Baijal, chairman and managing director of Knight Frank India, said: “While government policy allows foreign higher education institutions to come to India, success depends on smart planning.

“Factors like teacher housing, good transportation, access to hospitals, and proximity to employers are now crucial to maintaining quality and long-term growth. Some Tier-2 cities are being seen as the next big opportunity.”

Khare said: “Improving India’s higher education system could attract both local and neighbouring Asian students. However, success depends on genuine quality, not just infrastructure.”

Strong ties between universities, industry, and India’s rich knowledge traditions can help make India a global education leader, Khare added.

Indirect impact

According to Choudaha, although foreign universities are coming to India, their total enrolment will remain modest compared to India's large higher education system of over 40 million students.

Their impact will be more indirect, particularly by expanding options for students, faculty, and administrators. Increasing competition is expected to drive demand for skilled talent, which will encourage greater professionalism and improved quality standards at institutions.

Choudaha further said: “Foreign universities are also likely to engage through flexible models such as twinning programmes, academic partnerships, research collaborations, and capacity-building initiatives. Competitive pressure will force institutions to either open campuses or strengthen other avenues of international collaboration in India.”

Foreign higher education institutions are exploring – and will continue to explore – engagement with India through transnational education models, Choudaha added.

Studying abroad is changing, not declining

Furthermore, fewer Indian students are going abroad. Data from the Ministry of External Affairs shows that in 2025, just over 1.2 million Indians will study abroad, a 5.7% decrease from 2024.

Most students and academics believe that foreign university campuses in India are a high-quality option but not a complete replacement for studying abroad. These campuses can help retain talent in India, reduce costs, and provide a quality education locally.

However, the full experience of studying abroad – global networking, research exposure, and access to the international job market – is still difficult to match, said Abhishek Thakur from Pune, who is planning to study abroad.

Khare said international universities are already seeing India as an important partner.

“With the majority of the foreign countries facing a demographic downturn for college-going populations, India is being targeted as the new pasture of young aspiring student populations. The government too is [encouraging] reputed foreign universities to open branch campuses in India and start joint courses and dual degree programmes.

“The recently announced university townships in industrial and logistic corridors in the Union Budget of 2026 and 2027 is one such important initiative. But, we are yet to see how it unfolds in reality,” said Khare.