UK Universities Expanding into India to Address Financial Struggles at Home

Prime Highlights: 

Facing financial struggles at home, UK universities are opening campuses in India to tap into a rapidly growing education market with over 40 million students. 

The University of Southampton has launched its first campus in Gurgaon, India, offering a unique opportunity for students to earn a UK degree at a lower cost. 

Key Background: 

UK universities are increasingly looking to India as a solution to their financial difficulties, establishing campuses to tap into a rapidly growing domestic market. With over 40 million students, India represents an emerging goldmine for higher education institutions facing budget shortfalls at home. The University of Southampton has already taken the lead, opening a campus in Gurgaon, a satellite city of Delhi, offering what it calls “the first campus of its kind in India.” 

This trend is gaining momentum, with several UK universities, including Newcastle University, Surrey, and Coventry, actively considering plans to expand into India. Prof. Chris Day, Vice-Chancellor of Newcastle University, expressed his strong belief in the potential of India, noting a wave of announcements from British universities seeking to capitalize on this opportunity. 

The Indian higher education sector underwent significant regulatory changes in 2023, allowing foreign universities to establish their campuses. According to Prof. Aarti Srivastava, head of the National Institute of Educational Planning and Administration in Delhi, UK universities are keen to benefit from India’s large demographic, as the cost of living remains relatively low compared to the UK. This makes a foreign degree more accessible to Indian students, offering a boost to their long-term employability prospects. 

In the 2022-23 academic year, more than 125,000 students from India enrolled in UK universities. However, shifting visa policies and rising competition from global education providers have led to uncertainty. By establishing campuses in India, UK universities aim to tap into the domestic market that cannot afford to study abroad. Nick Hillman, director of the UK’s Higher Education Policy Institute, emphasized that India offers unparalleled potential for the next wave of internationalization for UK universities. 

Additionally, the Indian government’s goal to enroll 50% of young people in tertiary education by 2035 presents further opportunities for UK institutions. With private universities charging higher fees, UK universities are positioning themselves as competitive alternatives, particularly in specialized fields such as business management. However, this expansion has faced criticism from some quarters. Jo Grady, general secretary of the University and College Union, condemned the practice of universities pursuing risky international ventures while reducing staff at home. She warned that such projects could lead to financial loss and undermine universities’ core responsibilities.