India is rapidly moving from being the world’s largest exporter of students to one of the most strategically important destinations for global higher education expansion, as international universities confront slowing demographics, rising costs and tightening visa regimes in traditional markets. A new joint report by Knight Frank India, Deloitte India and QS Quacquarelli Symonds (QS) argues that India’s higher education story is no longer aspirational but structural, anchored in scale, policy reform and city-level readiness.
Titled India’s 155 Million Student Mandate, the report highlights that India is home to the world’s largest 18–23 age cohort, comprising nearly 155 million young adults. This demographic reality, combined with regulatory reforms under the National Education Policy (NEP) 2020, is fundamentally reshaping how global universities view India — not merely as a source of outbound students, but as a destination for offshore campuses and long-term academic presence.
From outbound market to offshore campus hub
For decades, India has fuelled global universities with international enrolments, particularly in the US, UK, Australia and Canada. That model, however, is under strain. Rising tuition costs, housing shortages, visa uncertainty and political sensitivities around immigration have made international expansion riskier for universities dependent on foreign students.
India, by contrast, offers what the report describes as a “once-in-a-generation convergence” of policy clarity, demographic depth and economic momentum. Regulatory frameworks enabling foreign universities to operate in India have reduced entry barriers, while the scale of domestic demand provides insulation against global volatility.
Yet the report is careful to caution that regulatory approval alone does not guarantee success. The real differentiator, it argues, is city-level execution.
Why cities — not countries — will decide success
Using a proprietary multi-criteria assessment framework, the study evaluates 40 Tier-1 and Tier-2 Indian cities across parameters such as global connectivity, industry depth, talent ecosystems, socio-economic maturity and real estate scalability. The conclusion is clear: India’s higher education opportunity is polycentric, not uniform.
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Delhi NCR, Bengaluru and Mumbai emerge as immediate anchor markets. These cities combine international connectivity, dense corporate and research ecosystems, and mature commercial real estate markets — factors critical for flagship campuses, executive education and industry-linked programmes.
“Policy enables entry, but it is spatial strategy that determines success,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. “Campus location, infrastructure quality and access to scalable, institutional-grade real estate are now fundamental to academic excellence, student experience and long-term sustainability.”
In practical terms, this reflects real-world constraints universities face — from faculty housing availability and transit connectivity to proximity to employers and healthcare infrastructure. Without these, even well-funded academic initiatives struggle to scale.
Tier-2 cities emerge as strategic frontiers
While Tier-1 cities offer speed-to-market, the report identifies select Tier-2 cities — including Chandigarh Tricity, Kochi and Goa — as high-potential frontiers for the next phase of expansion. These cities offer contiguous land parcels, lower operating costs and suitability for residential, research-led or discipline-specific campus formats.
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For global institutions under pressure to maintain capital discipline, this tiered strategy allows for phased expansion — flagship visibility in metros, paired with scalable academic depth in Tier-2 locations.
Sahil Gupta, Partner at Deloitte India, noted that India offers a pragmatic response to global headwinds in higher education. “Tightening visa regimes, rising costs and demographic stagnation in traditional markets are accelerating institutional mobility. India’s advantage lies in its ability to align student aspirations, industry ecosystems and infrastructure readiness — but that alignment has to happen at the city level.”
Rising global student confidence in Indian cities
The report cross-references its findings with data from the QS Best Student Cities 2026 and the QS International Student Survey 2025, which show a marked improvement in the global perception of Indian cities, particularly on employability and affordability — two of the most decisive factors for international students.
Delhi emerged as the world’s most cost-competitive student city and featured in the global top 50 for employer activity. Mumbai re-entered the global top 100, benefiting from strong employer recognition and global exposure. Bengaluru and Chennai recorded some of the sharpest global gains in employer activity, reflecting sustained industry demand for graduate talent.
This shift is significant when viewed against declining rankings for traditional education hubs such as London, New York and Sydney, where affordability pressures are increasingly weighing on student decisions. Indian cities, the report notes, are delivering globally benchmarked degrees at a fraction of the cost, without sacrificing career outcomes.
“Scale, affordability and employability are converging in India,” said Dr Ashwin Fernandes, Chair, QS India and Vice President for Strategic and International Engagement at QS. “Our data shows Indian cities improving rapidly in global perception, driven by strong career outcomes and value for money.”
Real estate: the silent determinant
One of the report’s more grounded findings is the central role of real estate and urban infrastructure in shaping academic outcomes. Based on projected enrolment trends, the vertical campus requirement for foreign higher education institutions in India is estimated to reach 19 million square feet by 2040.
This demand will not be evenly distributed. Accessibility, transit integration, proximity to industry clusters and the availability of institutional-grade space will directly influence faculty attraction, student experience and long-term operational resilience.
A strategic imperative, not an option
The report concludes that India is no longer an “emerging option” for global universities, but a strategic imperative for institutions planning their 2030–2050 internationalisation strategies. Those that align academic strengths with India’s urban ecosystems, student aspirations and real estate realities stand to gain long-term scale and relevance.
For India, the opportunity extends beyond education exports. If executed well, offshore campuses could deepen research capacity, improve global rankings, generate high-skilled employment and embed Indian cities more firmly into global knowledge networks.
The next phase, however, will test execution — not intent.
