Foreign Education Investment in India - Divergent Insights

Foreign Education Investment in India

Foreign Education Investment in India

Foreign Education Investment in India





In the recent years, more and more private institutes have shown up across India. The number of such educational bodies has seen massive growth in the past decade. The size of the private sector is about twice that of the public sector in terms of the number of institutions and student enrolments. India has over 31,000 institutions of higher learning, a number which is among the highest in the world. But with the young Indian population aspiring to obtain world-class education, foreign educational institutes have been eyeing the Indian market for investment opportunities. A recent change in the University Grants Commission (UGC) regulations was aimed at helping foreign universities enter India. Moreover, there are many institutes which have set up their campuses in various locations across India with the promise to provide the world standard of education.



Business Situation:


  • Client wanted to enter Indian market by offering a world class campus and a full scaled boarding experience for students till 12th grade.
  • They wanted to understand the acceptance of foreign schools amongst parents, students in India
  • Identify feasibility of the launch and recommend on a go-to-market strategy for them.


Finding Facts:


  • Identify reasons for parents and students to be interested in undertaking education at foreign universities
  • Engage with well-known faculty and map the true market sentiment
  • Identify the existing competition in the market
  • Exposure to the concept and gathering unbiased reactions
  • Government acceptance towards foreign institutes entering India


Solutions Suggested:


  • Audience acceptance towards the idea
  • Explain parents’ willingness to pay to pay for education and their interest levels
  • About faculty’s willing to participate in the education institute
  • Share an opinion from Govt officials and access their willingness to open doors for foreign institutes in India.




  • Clear opinion about the feasibility of their plan
  • Suggestions for devise a program – list of expectations, pricing, promotion strategy.


Our Understanding & Suggestions:


  • But there are certain factors which may help foreign investors to grow in an already established education sector.
  • Focus on government policies and regulations which permit foreign players from entering the market. The relevant expenses for permissions and formal paperwork will play an important role in deciding the affordability of these institutes. This is an important factor since the Indian consumer is very price-sensitive, due to which the education provided by Indian institutes may be the only alternative for most Indian students. Even in the case of intensive segmenting, only the upper-middle and elite classes may be able to afford the institute fees. With many boarding schools charging around Rs. 800,000 per year, and most institutes charging all the way up to Rs. 2.5 million and above for a course, it isn’t a surprise if an average Indian student thinks twice before getting enrolled in the course. Therefore, the course will have to be strategically designed to reduce cost and make it more affordable for aspiring Indian students.
  • Understand why an Indian student would want to enroll in a foreign institute set up in India. When it comes to high school, graduation and post-graduation ambitions, the number of international students from India has seen a steady increase over the years. Yet, there are many who aspire to go abroad but may lack financial support or may have certain personal commitments; and there are also many who just want a better standard of education without having to leave the country. Such students may find foreign institutes in India to be a great alternative in helping them fulfil their ambitions. Better facilities, world-class infrastructure, accessible campuses, and an experienced panel of professors may very well attract a large number of students.
  • In addition to these factors, specifically for post-graduation better placement opportunities through tie-ups with top companies of Indian and international origin will play a crucial role in gaining the trust of the students and play a pivotal role in establishing one’s brand name in an already competitive market.