Foreign universities face challenges in Indian expansion

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Source: The post Foreign universities face challenges in Indian expansiont has been created, based on the article “The real challenge for foreign campuses” published in “The Hindu” on 19th June 2025

UPSC Syllabus Topic: GS Paper2-Issues relating to development and management of Social Sector/Services relating to Education.

Context: India has seen growing interest in foreign universities establishing local campuses after the UGC’s 2023 regulations. While institutions like Deakin and Wollongong have begun operations, early signs suggest rushed implementation. This raises concerns about quality, sustainability, and the long-term value of such initiatives in India’s evolving higher education ecosystem.

Initial Momentum and Growing Interest

  1. Recent Campus Launches: Two Australian universities, Deakin and Wollongong, started classes in Gujarat’s GIFT City, while the UK’s University of Southampton is preparing to admit students in Gurugram.
  2. New Approvals and Expansions: India recently issued Letters of Intent to five more institutions, including the University of York and Illinois Institute of Technology, for proposed campuses in Mumbai.
  3. Concerns About Rapid Implementation: Admissions for some campuses began before crucial details—like faculty and curriculum—were shared, signaling enthusiasm but also raising issues around transparency and preparedness.

Global and Domestic Challenges

  1. Global Headwinds for Transnational Education: Worldwide, universities face uncertainty. In the U.S., the higher education sector has been weakened by domestic political hostility, making foreign expansion less appealing. The Illinois Institute of Technology’s entry is an exception.
  2. Navigating Indias Competitive Landscape: India’s higher education system is already crowded with strong domestic institutions. New foreign campuses will struggle to stand out without unique value propositions.
  3. Market-Driven, Narrow Focus: Most incoming foreign institutions offer high-demand courses in business or technology. This limited scope may fail to distinguish them from top Indian private colleges.

Academic Identity and Reputation Risks

  1. Lack of Institutional Depth: These branch campuses are mostly small, specialised units rather than full-fledged universities with research breadth. Without a broad academic presence, they risk being seen as diploma mills.
  2. Brand vs Substance: In India’s vibrant education market, strong branding alone cannot ensure success. Foreign institutions must deliver high academic standards to avoid diluting their global reputations.
  3. Infrastructure and Campus Perception: Many campuses operate in rented vertical buildings, lacking the feel of a full university. Absence of holistic infrastructure undermines their credibility in students’ eyes.

Domestic Strength and Foreign Competition

  1. Existing Indian Excellence: Institutes like IITs and IIMs are expanding globally and deepening their research and international ties. Joint degree programmes with foreign institutions are also growing in private universities.
  2. No Room for Complacency: Foreign universities cannot assume that their name alone will attract students. They must offer clear academic advantages over well-established Indian institutions.
  3. Reliance on Marketing Over Quality: Some new campuses focus more on advertising than academics. Students today assess faculty quality, curriculum strength, and support systems before enrolling.

Ensuring Long-Term Value

  1. Local Relevance and Institutional Fit: India must assess whether incoming proposals match national priorities. Not all foreign institutions bring equal value, especially without local relevance or long-term commitment.
  2. Avoiding Short-Term Failures: If rushed or inadequately designed, these campuses may fail quickly. Such failures could hurt institutional credibility and slow broader internationalisation efforts.

Question for practice:

Discuss the key challenges faced by foreign universities in establishing sustainable branch campuses in India.

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