Are foreign branch campuses compounding inequity in India?

In a significant move to elevate higher education to an international level under the National Education Policy (NEP) 2020, India has recently approved proposals from the University of Bristol, the University of York and UNSW Sydney to establish campuses in the country.

On 9 June, the Ministry of Education issued Letters of Approval (LoAs) to the three universities. This means 18 foreign universities are now either operational, approved, or in the process of establishing campuses in India, according to the announcement of the government.

However, many academics and students observe that most of the foreign universities are focusing on economically advanced regions such as Mumbai, Gujarat, Karnataka, Maharashtra and GIFT City, while maintaining no presence in states like Madhya Pradesh, Bihar, Rajasthan and Northeastern (NE) states.

The three universities also follow the same trend, with the University of Bristol and the University of York set to open campuses in Mumbai, whereas the University of New South Wales (UNSW) will establish campuses in Bengaluru.

The location choices of foreign universities closely mirror India's existing economic and educational geography, according to Aarti Srivastava, professor and head, Department of Higher and Professional Education, National Institute of Educational Planning and Administration, New Delhi.

She told University World News: “Foreign universities are not creating new educational hubs but locating themselves within existing centres of economic and academic concentration.”

Experts note that regions chosen by foreign higher education institutions host numerous multinational companies, R&D centres and startups, alongside excellent connectivity to other parts of the country and the world.

These attributes generate abundant opportunities for internships and placements for students, making these states attractive gateway for international institutions.

Referring to the latest AISHE (All India Survey on HE conducted by the Ministry of Higher Education) data, Srivastava said these states account for a disproportionately large share of universities, research institutions and higher education enrolments.

Many states have no foreign campus

However, experts note that many other states have not emerged as destinations for foreign universities despite their large student populations, as they lack robust infrastructure, good international connectivity, quality living facilities and strong industry ties.

According to Srivastava, GER (Gross Enrolment Ratio) in higher education is below the national average in Bihar – which is located in the east, bordering Nepal and is the poorest state – and has relatively few universities per million population compared with the southern and western states preferred by foreign higher education institutions.

On the other hand, the states of Madhya Pradesh, in Central India and Rajasthan, bordering Pakistan in the West, have large enrolments but comparatively lower concentrations of globally ranked universities and research-intensive institutions.

All these states have limited research infrastructure, a lower presence of multinational industries and low levels of industrialisation, reducing opportunities for academic-industry partnerships, she said.

“Several Northeastern states have GER levels above the national average, but the absolute size of the student market is relatively small,” Srivastava pointed out.

Connectivity challenges, limited international exposure and comparatively lower concentration of globally ranked universities and research-intensive institutions reduce the attractiveness of Northeastern states for foreign providers, she added.

Widening educational disparities

Many experts argue that foreign university campuses and premium international programmes will primarily open in major urban and industrial centres, potentially widening the existing educational disparities between states and across different social groups.

Dr Vidya Yeravdekar, pro-chancellor, Symbiosis International University, told University World News: “There is a genuine risk of regional concentration if market forces alone determine where foreign universities establish campuses.

“Institutions naturally gravitate towards locations with stronger demand and lower operational risk.

“However, if this trend continues without policy intervention, it could widen existing regional disparities in access to international-quality education.”

She said India’s internationalisation strategy should therefore balance commercial viability with national equity objectives so that students from a wider range of regions also benefit from global higher education opportunities.

Srivastava cautioned that the concentration of foreign universities in select preferred regions could lead to talent, research and investment concentration.

But she added that internationalisation can also generate system-wide benefits through joint degree programmes, research collaboration, faculty exchanges as well as online and hybrid education models.

“The impact therefore depends on whether internationalisation remains geographically concentrated or becomes networked across the country,” she added.

States have final say

Experts note that while the country’s higher education regulator, the University Grants Commission (UGC), determines the regulatory framework for foreign universities in India, the final decision regarding location often hinges on state-level factors.

“Higher education investments are long-term commitments and foreign universities seek regulatory stability, quality infrastructure, availability of skilled faculty, research funding opportunities and industry collaboration,” said Yeravdekar.

“State governments that offer efficient approvals, strong urban infrastructure, innovation ecosystems and partnerships with industry are more likely to attract globally reputed institutions. In many cases, state-level readiness can be as important as national policy in determining investment decisions,” she said.

Srivastava said research on international branch campuses by organisations such as the UNESCO and the World Bank shows that institutional location decisions depend heavily on governance and ecosystem factors.

She said states like Karnataka, Maharashtra, Gujarat and Telangana benefit from well-developed innovation ecosystems, whereas GIFT City offers regulatory flexibility not found elsewhere.

“Foreign universities evaluate the complete ecosystem rather than only national policy provisions,” she added.

Measures to avert campuses clustering

Experts believe that if India wants foreign universities to open campuses in locations beyond major cities, both Union and State governments must create a more attractive environment for investment in smaller or less-developed areas.

Yeravdekar agrees that incentives could help balance commercial considerations with broader educational goals.

“Rather than mandating locations, the Union government and the University Grants Commission could encourage expansion into underserved regions through measures such as infrastructure support, research grants, tax incentives where appropriate, access to land, collaborative models with state universities and funding for innovation and skill development.”

Many educationists emphasise linking foreign university campuses with local industries so that courses align with regional economic needs and graduates gain better employment opportunities.

Srivastava suggested the establishment of educational zones in eastern and central India similar to GIFT City and fiscal and infrastructure incentives for foreign universities intending to locate in underserved regions.

She also emphasised the need to strengthen research capabilities and expand initiatives like the National Research Foundation to support universities in educationally disadvantaged states.

Srivastava further said: “State governments must strengthen their governance capacity by enhancing university autonomy, improving leadership quality and reforming recruitment processes. They should also develop ‘knowledge clusters’ that bring together universities, research centres, industries and innovation hubs.

According to her, investment in infrastructure is crucial for the smooth operation of international campuses.

“The challenge for policymakers is that India’s educational demand is increasingly concentrated in states such as Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan and parts of the north-east, while international educational investment is concentrating elsewhere,” she said.

Yeravdekar said: “If foreign university campuses remain concentrated in a few metropolitan regions, students in less-developed states may continue to face barriers related to cost, relocation and unequal access to international learning opportunities.

“Over time, this could reinforce regional disparities in human capital development, innovation capacity and employment outcomes.”

“Conversely, a more geographically balanced expansion could stimulate local research ecosystems, improve regional talent retention, strengthen state economies and contribute to a more inclusive model of higher education internationalisation across India.”