India Could Retain $113 Billion by 2040 Through Foreign University Expansion, Deloitte and Knight Frank Report

India could retain an estimated $113 billion in foreign currency by 2040 if it strengthens the domestic presence of foreign universities, according to a joint report released by Deloitte India and Knight Frank India on Thursday.

The report states that enabling Foreign Higher Education Institutions to establish campuses in India could significantly curb the remittances currently flowing overseas for education. To support this expansion, the country may require nearly 19 million square feet of vertical campus space.

National Education Policy 2020 Driving Structural Shift​

The transformation is being accelerated by the National Education Policy 2020, which aims to reposition India from a student exporting nation to a global knowledge hub. With 53 million students currently enrolled in tertiary education, demand for higher education continues to surge.

To meet the government’s target of achieving a 50 percent gross enrolment ratio by 2035, student enrolment is projected to rise to around 72 million. This increase is expected to intensify pressure on high quality academic infrastructure.

Elite Education Gap Highlights Infrastructure Shortfall​

The report underscores a critical shortage of opportunities in elite education. In 2025, about 54,000 students cleared all levels of the Joint Entrance Examination for engineering. However, the Indian Institutes of Technology were able to offer only 18,000 seats, exposing a significant gap between demand and available capacity.

According to Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, the sector is undergoing a historic transformation, with 18 international universities already receiving approvals or commencing operations.

Focus on STEM and High Readiness Education Hubs​

The sustainability of foreign campuses will depend on prioritizing academic portfolio over enrolment volume. The report recommends a strong focus on STEM, artificial intelligence, data science, and management programmes.

From a real estate and infrastructure perspective, Delhi NCR, Bengaluru, and Mumbai are identified as high readiness hubs due to strong corporate ecosystems. Tier 2 cities such as Chandigarh, Kochi, and Jaipur are also emerging as viable destinations owing to governance standards and infrastructure development.

The report adds that long term success will depend on building strong faculty pipelines and governance models that preserve academic autonomy while aligning with Indian regulatory frameworks.