A report by Deloitte India and Knight Frank India suggests that India could keep $113 billion in foreign currency by 2040 if it supports a stronger domestic presence for foreign universities. This move would require about 19 million sq. ft. of vertical campus space for Foreign Higher Education Institutions. The report points out that foreign universities could help reduce the remittance outflows currently lost to overseas education.
The National Education Policy 2020 is driving a shift in India from being a “student-exporting nation to a global knowledge hub.” With 53 million students currently enrolled in tertiary education, there is a surge in demand. To achieve the government’s target of a 50 percent gross enrolment ratio by 2035, the report estimates that enrolment will need to increase to about 72 million.
The report also highlights a significant gap, noting “a critical shortage of opportunities in elite education.” It mentions that in 2025, while around 54,000 students cleared all levels of the JEE for engineering, the prestigious Indian Institutes of Technology (IITs) could only offer 18,000 seats. This disparity underscores the mismatch between student aspirations and the availability of high-quality infrastructure.
According to Shishir Baijal, International Partner, Chairman, and Managing Director at Knight Frank India, India’s education sector is witnessing a historic transformation. With 18 international universities already approved or commencing operations, the momentum is evident. The report recommends that the sustainability of foreign campuses should prioritize academic portfolio over enrolment volume, focusing on fields like STEM, AI, data science, and management.
The real estate services firm identifies Delhi NCR, Bengaluru, and Mumbai as high-readiness hubs due to their corporate depth. It also highlights emerging Tier-2 cities such as Chandigarh, Kochi, and Jaipur for their strong governance and infrastructure. The success of talent and governance hinges on developing robust faculty pipelines and governance models that maintain academic autonomy while aligning with Indian regulations.
