India’s higher-education sector is set for a major expansion over the next decade, fueled by rising student enrolments, demographic trends, and policy initiatives under the National Education Policy (NEP) 2020, according to a report by ANAROCK Capital.
The report estimates that achieving the NEP target of a 50% Gross Enrolment Ratio (GER) by 2035 will require 25 million additional student seats. This demand will necessitate the development of nearly 2.7 billion square feet of academic infrastructure, spanning around 30,000 acres of land.
Construction-focused investment for academic facilities alone is expected to reach approximately USD 100 billion, excluding land acquisition and student housing costs.
Enrolment Growth and Policy Targets
India’s higher-education enrolments have increased from 27 million in 2010–11 to 45 million in 2022–23, reflecting population growth and higher participation rates. NEP 2020 aims to expand access to higher education, targeting a GER of 50% by 2035.
Growth in the feeder pipeline has been notable, with higher-secondary GER (Classes XI–XII) rising from 19.5% in 2010–11 to 62.3% in 2021–22. Female participation has grown rapidly, with GER for girls increasing from 19.8% in 2001–02 to 66% in 2021–22, compared with a 2.4-fold increase for male students over the same period.
Institutional Capacity and Infrastructure Challenges
India’s higher-education base has expanded substantially. The number of universities rose from 760 in 2015 to 1,338 in 2025, while the total number of higher education institutions (HEIs) grew from 51,534 to 70,018.
Despite this growth, existing campus infrastructure remains insufficient to meet projected enrolment demands, particularly in terms of built-up space and academic facilities.
Entry of Foreign Universities
Regulatory reforms through the 2023 Foreign Higher Educational Institutions (FHEI) Regulations now allow top-ranked foreign universities to establish independent campuses in India under University Grants Commission oversight. These universities can offer their own degrees, operate with academic autonomy, and develop dedicated infrastructure.
Currently, three foreign universities operate in India, while thirteen more plan to establish campuses. Several states have introduced fiscal incentives and education zones to support this growth.
Investment Models and Development Strategies
Some new entrants, particularly private and foreign institutions, may adopt asset-light models initially, by leasing existing or purpose-built facilities. While this approach reduces upfront capital costs for operators, developers and property owners must invest in the required infrastructure.
Global Positioning and Student Mobility
India currently has 1.34 million students studying abroad, capturing less than 1% of the global student market. Additionally, only 11 Indian institutions are in the top 500 global university rankings, compared with greater representation from the US, UK, Australia, and Canada.
Addressing infrastructure gaps, alongside regulatory and institutional reforms, will be critical for India to expand domestic higher-education capacity and improve its global academic standing over the next decade.
