Foreign universities are unlikely to gain major ground in India's higher education market in the near term, as students and families continue to prioritise return on investment over brand value in a highly price-sensitive sector.
Kindly note the image has been posted only for representational purposes.Photograph: Kind courtesy The University of Sydney
Key Points
- Indian students and parents are comparing foreign campuses with domestic institutions, weighing global exposure against cost, placements, and long-term outcomes.
- Industry experts believe foreign universities will struggle to gain significant market share in the near term due to the highly price-sensitive nature of Indian families.
- Costs at foreign campuses in India, such as Deakin University and University of Wollongong, are comparable to or even higher than some of India's most expensive private institutions.
With the new academic session getting underway, the first batch of several foreign university campuses in India is set to test whether global brand appeal can translate into enrolments in a market where students and families remain sharply focused on return on investment.
Students and parents are making like-for-like comparisons between foreign campuses in India and established domestic institutions, weighing global exposure and brand value against cost, placements, and long-term outcomes, experts said.
The Second Wave of Foreign Campuses
Several institutions are planning their first cohorts this year, aligned with the August-September academic intake cycle, including the University of Liverpool, the University of Aberdeen, and the University of York.
Others, such as the University of Bristol and Illinois Institute of Technology, are expected to launch programmes in the 2026-2027 academic year.
This marks the second wave of foreign universities beginning academic sessions in India, after the University Grants Commission's 2023 regulations allowed top-ranked global institutions to establish fully autonomous branch campuses with control over admissions, fees, and curriculum.
Deakin University in Gujarat International Finance Tec-City became the first foreign university to begin operations in India in 2024, followed by the University of Wollongong later that year. The University of Southampton inaugurated its Gurugram campus in 2025.
Market Evolution, Not a Threat Yet
"At this stage, it's more of a market evolution than a direct threat. The impact, if any, will first be visible in the premium segment," said Ashish Gupta, cofounder and chief executive officer of EdNex Global.
India, Gupta said, sees around 750,000 to 800,000 students go abroad annually, many of whom choose high-cost destinations such as the US, the UK, and Australia, and could consider foreign campuses within India as an alternative.
Foreign universities are unlikely to gain major ground in India's higher education market in the near term, as students and families continue to prioritise return on investment over brand value in a highly price-sensitive sector, according to industry experts.
"Over 60 per cent of Indian families are highly price-sensitive, which means interest doesn't always convert into action unless return on investment is clear," Gupta said, adding there has been no material shift in application trends towards foreign campuses in India so far, despite rising curiosity.
"The cost of studying abroad typically ranges from ₹25 lakh to ₹60 lakh, while domestic options remain considerably cheaper," Gupta said.
"Unless pricing becomes more accessible or financing options improve, scale will remain limited. For now, it is an alternative for a specific segment, not a mass-market competitor," Gupta added.
Cost Comparisons and Specialised Fields
Even compared with some of India's most expensive private institutions, foreign university campuses are not necessarily cheaper.
Master's programmes at Deakin University cost around ₹27 lakh in total, compared with roughly ₹39 lakh for the one-year postgraduate programme at the Indian School of Business, among the country's most expensive courses.
At the undergraduate level, the bachelor of business at the University of Wollongong is priced at about ₹35 lakh, higher than undergraduate programmes at Ashoka University, which cost ₹30 lakh to ₹40 lakh overall.
There may be increased competition in specialised fields such as business management, data science, and international relations, said Sudhir Kumar Pandey, director of international admissions and outreach at Noida International University.
However, he said India's higher education market remains heavily outcome-driven, with a majority of students prioritising job prospects over institutional brand.
The Advantage of Indian Institutions
"While foreign universities will primarily focus on full-time programmes, executive education and upskilling pathways are expected to continue growing independently without any perceptible threat," said Ranjita Raman, chief executive officer of Jaro Education.
Established institutions, including Indian Institutes of Technology, Indian Institutes of Management, National Institutes if Technology, and top National Institutional Ranking Framework-ranked universities, she added, continue to command strong trust on outcomes -- in other words, top-tier placements in a rapidly changing job market.
Foreign universities, she said, will need to prove their value to compete at scale. One of the key strengths of Indian institutions, Raman said, lies in their deep integration with the domestic industry ecosystem, built over time through strong placement networks, alumni bases, and programmes aligned with local market needs. It will take time for foreign universities to build comparable networks.