India’s higher-education sector is poised for a substantial expansion over the next decade, fueled by increasing student enrolments, demographic trends, and policy goals outlined in the National Education Policy (NEP) 2020, according to a report by ANAROCK Capital.

The report estimates that achieving the NEP 2020 target of a Gross Enrolment Ratio (GER) of 50% by 2035 will require approximately 25 million new student seats. This would necessitate the development of nearly 2.7 billion square feet of academic infrastructure, spanning roughly 30,000 acres across India.

Investment Requirements and Construction Needs

Meeting this expansion will demand construction-led investments of around USD 100 billion, excluding costs for land acquisition and student housing. This represents a significant opportunity for developers, private institutions, and foreign universities to contribute to India’s higher-education growth.

Enrolment Growth and Policy Targets

India’s higher-education enrolments have grown from 27 million in 2010–11 to 45 million in 2022–23, reflecting rising participation and population growth. NEP 2020 aims to expand access to higher education, targeting a 50% GER by 2035.

The higher-secondary GER (Classes XI–XII) has also increased from 19.5% in 2010–11 to 62.3% in 2021–22, with female participation rising faster than male students—from 19.8% in 2001–02 to 66% in 2021–22.

Infrastructure Constraints Amid Institutional Expansion

India’s institutional base has expanded significantly over the past decade. The number of universities rose from 760 in 2015 to 1,338 in 2025, while higher education institutions (HEIs) increased from 51,534 to 70,018.

Despite this growth, existing academic infrastructure remains inadequate to meet projected enrolment demand, particularly in terms of campus capacity and built-up space.

Entry of Foreign Universities

The Foreign Higher Educational Institutions (FHEI) Regulations, 2023, allow eligible foreign universities to establish independent campuses in India under the University Grants Commission. Institutions ranked in the global top 500 can offer degrees, operate autonomously, and develop dedicated infrastructure.

Currently, three foreign universities operate in India, and 13 more have announced plans to set up campuses. Several state governments have introduced fiscal incentives and education zones to support this expansion.

Investment Models and Development Approaches

Some private and foreign institutions may adopt asset-light models, leasing space in existing or purpose-built facilities. This reduces upfront capital expenditure for institutions but shifts infrastructure investment responsibility to developers and property owners.

Global Positioning and Student Mobility

India has roughly 1.34 million students studying abroad but captures less than 1% of the global mobile student market. Currently, only 11 Indian universities feature in the top 500 global rankings, compared with countries like the US, UK, Australia, and Canada.

The report highlights that addressing infrastructure gaps, alongside regulatory and institutional reforms, will be crucial for India to expand domestic capacity and enhance its global higher-education standing in the next decade.