How to Set Up a Foreign University Campus in India — UGC FHEI Guide

Setting up Campuses of Foreign Higher Educational Institutions (FHEIs) in India under FHEI Regulation 2023

Introduction

India is rapidly emerging as a high-potential destination for global higher education expansion, driven by its demographic dividend, growing demand for quality education, and a strong policy push towards internationalisation. The introduction of a dedicated regulatory framework for Foreign Higher Educational Institutions (FHEIs) marks a pivotal shift, enabling reputed global universities to establish an on-ground presence and directly engage with one of the world’s largest student markets. This presents a compelling strategic advantage for foreign institutions, allowing them to expand their global footprint, diversify revenue streams, and deliver globally benchmarked education within a cost-effective Indian ecosystem.

For foreign universities, this is not merely an expansion opportunity, it is a strategic entry into a dynamic education ecosystem aligned with industry needs, employability outcomes, and competency-based learning models. The policy environment is increasingly designed to facilitate global collaborations, promote academic excellence, and integrate international best practices within India’s higher education landscape.

Through regulations introduced by the University Grants Commission (UGC), India now allows top-ranked foreign institutions to set up campuses, offering programs comparable to their home campuses while maintaining global standards. This creates a unique value proposition for global education delivered within India, reducing cost barriers for students while expanding institutional reach for universities.

This knowledge paper is positioned as a strategic guide for foreign universities evaluating India as a destination. The regulatory framework governing the establishment of FHEIs in India is currently divided into two distinct pathways. The first is the University Grants Commission Regulations titled UGC (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023, which apply to mainland India. The second is the International Financial Services Centres Authority Regulations titled IFSCA (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022, which are specifically applicable to institutions operating within the GIFT International Financial Services Centre (IFSC) (FOREIGN UNIVERSITY CAMPUSES at GIFT CITY – Eduprogress, 2025). The present discussion focuses on the UGC FHEI Regulations, 2023. These regulatory frameworks represent significant policy initiatives aligned with the objectives of the Ministry of Education under the National Education Policy (NEP) 2020, particularly in promoting the internationalisation of higher education and enhancing global academic collaboration in India (UGC FHEI, 2023). It outlines the legislative framework, entry pathways, ecosystem dynamics, and implementation roadmap for establishing an FHEI in India, along with the role of Eduprogress in enabling end-to-end support from market entry strategy to institutional development, ensuring a seamless and compliant establishment journey.

 

Why Foreign Universities Are Entering India

1. Large, Underserved Market with Strong Demand

India offers one of the world’s largest student bases, with demand for quality education far exceeding supply—ensuring high enrollment potential and revenue visibility.

2. First-Mover Advantage in a Liberalised Policy Environment

Reforms by the University Grants Commission provide a clear entry pathway, allowing early entrants to secure premium positioning.

3. High-Return, Scalable Revenue Model

Multi-program offerings (UG, PG, executive, certifications) enable diversified income streams with strong lifetime value per student and long-term revenue stability.

4. Cost-Efficient Operations with Faster Payback

Lower infrastructure and operational costs compared to global markets improve margins and accelerate breakeven timelines.

5. Policy-Backed and Investor-Friendly Ecosystem

Government reforms actively promote foreign university participation, cross-border collaborations, and innovation—ensuring a stable and growth-oriented investment environment.

6. Industry-Aligned Demand and Employability Focus

Growing demand for talent in technology, business, healthcare, and emerging sectors ensures strong program relevance and placement outcomes.

7. Strategic Gateway to Regional Markets

India acts as a hub for South Asia, enabling expansion into adjacent high-growth education markets.

8. Strong Brand Positioning and Premium Potential

Foreign universities can leverage global brand equity to command premium positioning while remaining cost-effective for students.

9. Talent, Research, and Collaboration Opportunities

Access to a large, skilled talent pool enables research, innovation, and strong industry-academic partnerships.

10. Flexible Investment Models and Exit Opportunities

Options such as JV/PPP models reduce risk, while multi-campus expansion and institutional scaling create long-term value and exit potential.

 

Legislative & Regulatory Framework

Role of University Grants Commission (UGC)

The approval process for an FHEI to set up a campus in India is governed by the University Grants Commission (UGC) Regulations for the Establishment and Operation of Campuses of Foreign Higher Educational Institutions in India, 2023

Overview of FHEI Regulations (2023)

The Regulations aim to facilitate the entry of Foreign Higher Educational Institutions (FHEIs) into India, in line with the recommendations of the National Education Policy 2020, and to provide an international dimension to higher education in India. These Regulations outline the conditions and requirements for Foreign Higher Educational Institutions to set up their campuses in India. These Regulations aim to ensure that the education imparted on campus is on par with that of the main campus in the country of origin and that its operations comply with applicable laws and Regulations.

Eligibility criteria for foreign universities

FHEIs planning to establish campuses in India should have secured a position within the top 500 in the overall category of global rankings, as decided by the Commission from time to time, or should have secured a position within the top 500 in the subject-wise category of global rankings/ should possess outstanding expertise in a particular area, as decided by the Commission from time to time.

Key compliance requirements

It must also comply with Indian laws (e.g., FCRA, FEMA) and be able to operate through an appropriately constituted entity in India (e.g., a standalone campus or a joint venture with an Indian HEI or company).

 

Approval Process for Foreign Higher Educational Institutions (FHEIs) in India

1. Check eligibility

  • FHEIs proposing to establish campuses in India are required to secure a position within the top 500 of internationally recognised global university rankings, either in the overall category or in specific subject-wise rankings, as determined by the Commission from time to time. Alternatively, institutions possessing exceptional expertise in a specialised academic or research domain may also be considered eligible, subject to the approval of the Commission. In addition, such institutions are required to comply with the provisions of the Foreign Contribution (Regulation) Act (FCRA) and the Foreign Exchange Management Act (FEMA) governing foreign funding and financial transactions in India.

2. File online application

  • The FHEI applies online through the designated UGC FHEI portal, submitting a detailed application with supporting documents (profile, rankings, programmes, governance, finances, etc.) (UGC FHEI, 2020).
  • It can apply for one or more campuses in India, each with a separate application.

3. Standing Committee review

  • A UGC Standing Committee examines the application and makes recommendations within about 45–60 days of receiving a complete file.
  • The committee looks at the institution’s credibility, proposed programmes, infrastructure plan, and benefit to Indian education.

4. In‑principle approval & Letter of Intent

  • Based on the committee’s view, UGC grants in‑principle approval and issues a Letter of Intent (LoI).
  • The FHEI must set-up the campus within two years from the LoI; extensions may be granted in exceptional cases.

5. Campus setup and readiness

  • The FHEI secures land, builds infrastructure, hires faculty and staff, and completes all statutory and legal formalities (including FCRA/FEMA if donations are involved).
  • Once ready, the FHEI informs UGC that the campus is prepared to commence operations.

6. Final approval to start operations

  • The Standing Committee reviews the campus readiness and recommends final approval.
  • UGC issues a notification allowing commencement of academic activities; only after this can the FHEI admit students and charge fees in India.

7. Post‑approval obligations

  • The FHEI must get prior UGC approval before launching any new programme and comply with all reporting and legal requirements.
  • It retains autonomy in admissions, fees, and faculty recruitment, but stays within the regulatory framework.

 

Strategic Support by Eduprogress and Research Private Limited for Foreign Universities in India

1. Strategy, Feasibility & Market Entry
Developing data-driven project reports and feasibility studies, combined with market insights and location analytics, to enable informed entry and investment decisions in India.

2. Regulatory & Policy Alignment
Providing end-to-end advisory and approval support in alignment with University Grants Commission regulations and National Education Policy 2020 frameworks.

3. Facilitate & Support obtaining approval from the BoG of the Foreign University
Delivering comprehensive support and presenting key documents, including due diligence and essential reports, to secure board approval for establishing a campus in India.

4. Academic Excellence & Program Design
Designing globally benchmarked, industry-integrated academic programs that enhance employability and align with future workforce needs.

5. Campus Development & Infrastructure Planning
Creating scalable, compliant campus master plans optimised for long-term growth, operational efficiency, and capital effectiveness.

6. Institutional Setup & Talent Acquisition
Establishing governance frameworks and supporting recruitment of high-quality academic leadership, faculty, and administrative teams.

7. Partnerships, Branding & Student Outreach
Building strategic industry and academic collaborations while driving targeted branding and student recruitment initiatives.

8. End-to-End Project Execution
Delivering seamless support from concept to commissioning, ensuring timely execution and sustainable institutional growth.

 

List of Foreign Universities in India (FHEIs)

The following are some of the many institutions part of the evolving ecosystem of Foreign Higher Educational Institutions (FHEIs) that are already operational or are expected to become operational in India:

  • Birkbeck, University of London, Bengaluru, Karnataka
  • Illinois Institute of Technology, Mumbai, Maharashtra
  • Istituto Europeo di Design, GIFT City, Gujarat
  • Lancaster University, Bengaluru, Karnataka
  • University of Aberdeen, Mumbai, Maharashtra
  • University of Bristol, Mumbai, Maharashtra
  • University of Liverpool, Bengaluru, Karnataka
  • University of New South Wales, Bengaluru, Karnataka
  • University of Surrey, GIFT City, Gujarat
  • University of Western Australia, Mumbai, Maharashtra and Chennai, Tamil Nadu
  • University of York, Mumbai, Maharashtra
  • Western Sydney University, Greater Noida, Uttar Pradesh
  • Deakin University (Australia), GIFT City, Gujarat.
  • University of Wollongong (Australia), GIFT City, Gujarat.
  • Queen’s University Belfast (UK), GIFT City, Gujarat.
  • Coventry University (UK), GIFT City, Gujarat.

A detailed blog on the establishment and operation of Foreign Higher Educational Institution (FHEI) campuses in GIFT City has already been published on this platform. It specifically examines the regulatory framework under the IFSCA Regulations, 2022, and the evolving landscape of international branch campuses in GIFT City (FOREIGN UNIVERSITY CAMPUSES at GIFT CITY – Eduprogress, 2025).

 

Who We Are

Eduprogress and Research Pvt. Ltd. is a specialised higher education consulting firm supporting institutions from concept to commissioning. With strong domain expertise, it partners with universities, promoters, and investors to build future-ready education ecosystems aligned with global standards.

With a deep understanding of India’s and global higher education landscapes, Eduprogress enables institutions to enter, establish, and scale their presence in the country while fostering academic, industry, and research collaborations. It ensures alignment with local regulatory frameworks and quality standards.

The firm offers end-to-end services, including feasibility studies, DPRs, regulatory advisory aligned with the University Grants Commission, academic planning, campus development, recruitment, and student outreach- ensuring institutions are compliant, competitive, and globally benchmarked.

Eduprogress acts as a trusted partner for building and scaling high-impact educational ventures in India.

 

References

UGC FHEI. (2023). Ugc.Ac.In. https://fhei.ugc.ac.in/FAQ/Index#:~:text=What%20is%20the%20purpose%20of,the%20applicable%20laws%20and%20Regulations.

‌UGC FHEI. (2020). Ugc.Ac.In. https://fhei.ugc.ac.in/

Mehta, N. (2026, April 27). International Universities Opening Campuses in India. The Red Pen. https://theredpen.in/blog/international-universities-opening-campuses-in-india/

FOREIGN UNIVERSITY CAMPUSES AT GIFT CITY – Eduprogress. (2025, January 16). Eduprogress. https://eduprogress.co.in/foreign-university-campuses-at-gift-city/