International branch campuses (IBCs) in India are set to transform the higher education landscape, not by replacing the study-abroad experience, but by democratising access to global degrees through lower costs and stronger local relevance, Rahul Choudaha, professor & chief operating officer at the University of Aberdeen, Mumbai, told FE.
“With major regulatory changes paving the way for top-ranked foreign universities to operate in India, the move will significantly widen the net for students aspiring for international education,” he said. “International branch campuses in India do not replicate or replace the overseas experience; instead, they offer something unique by expanding student choice to earn global degrees at home – at lower cost and with stronger local relevance.”
High demand, financial barriers
He said that, for Indian families, foreign education has long been viewed as an investment in a better future. According to the Ministry of External Affairs, nearly 12.5 lakh Indian students pursued higher education degrees overseas in 2025. Financial commitment remains massive, with families spending $2.92 billion overseas for education in FY25 alone, per Reserve Bank of India data.
“But these numbers represent only those who can afford the premium. Stricter visa norms and uncertain post-study work rules in English-speaking nations have recently softened demand, yet the aspiration for global degrees remains robust,” Prof Choudaha said. “These campuses are not a replacement for the immersive experience of studying overseas, but rather an affordable and locally relevant alternative to earn the same global degrees. These also offer a strong value proposition at the intersection of proximity, safety, and affordability.”
Cost advantage
One of the most significant impacts of IBCs is the potential for cost reduction. Tuition at these campuses is estimated to be 30-40% lower than at the universities’ home campuses.
“When combined with savings on living expenses, total costs could drop by 40-50%, potentially saving families Rs 20-25 lakh annually,” Prof Choudaha explained.
This price correction could address specific demographic disparities. Currently, of the 380,000 Indian students in the US, only about one-third are women, often due to safety concerns and costs. Similarly, only one in six Indian students abroad seeks a bachelor’s degree, as families often feel their children are too young for a three-to-four-year overseas stint.
“Families are often discouraged by high tuition costs of three to four years, and many think that following high school their children are too young to be sent overseas,” said Prof Choudaha. “IBCs offer something unique that can help expand the access to many more students to pursue global degrees, at a lower cost while maintaining proximity to family.”
Regulatory push
Following the National Education Policy (NEP) 2020 regulations issued for the GIFT City (in October 2022) and by the UGC (in November 2023) have accelerated the entry of top-500 global universities.
As of December 2025, 13 universities under UGC regulations and 5 under GIFT City regulations are preparing to offer programmes, with the majority slated to commence in August or September 2026. “This is a significant addition to the domestic landscape, given that only four Indian institutions feature in the top-500 of the Times Higher Education rankings,” he said. “By offering globally recognised degrees at home, IBCs complement the mobility of students with mobility of campuses.”
The economic implications are stark. A recent report by Deloitte India and Knight Frank India projects that, over the next 15 years, foreign universities could serve over 560,000 students, save $113 billion in foreign exchange outflow, and generate demand for 19 million sq-ft of real estate.
Expanding choice
The NITI Aayog has termed the hosting of IBCs a strategic opportunity to retain talent and attract global faculty. For Prof Choudaha, the ultimate winner in this scenario is the student.
“It is also known from other sectors that the expansion of choices only helps everyone: consumers win, the sector grows, and quality improves,” Prof Choudaha said, drawing a parallel to India’s economic liberalisation. “Imagine what would have happened if we were still watching Doordarshan today? Or driving the Ambassador car? The key here is that foreign universities are expanding choices for students, and that is good for all stakeholders, especially students.”