In a bold move to counter the challenges at home, UK universities are expanding their reach to India, a country with one of the world's fastest-growing student markets. But here's where it gets controversial: While some see this as a strategic move to diversify income streams and reduce reliance on capped domestic fees and squeezed research grants, others argue it's a knee-jerk reaction to the immigration debate. This is the part most people miss: UK universities are under financial pressure, with around 45% of English higher education institutions facing a deficit in 2025-26. So, is this a smart move or a risky gamble? Let's dive in and explore the details.
In an office block on the outskirts of Delhi, a first cohort of students gathers for a class in a Business Management degree at the University of Southampton - an institution headquartered nearly 7,000 kilometres (4,350 miles) away. Far from its sprawling green campuses in southern England, Southampton is the first of several British universities setting up in India to tap one of the world's fastest-growing student markets.
The move comes as UK universities face pressure at home over the recruitment of international students, with the government determined to reduce immigration. Southampton opened its campus in August last year with 120 students on a limited range of courses. It plans to expand the site over the next decade to reach 5,500 students.
"The new part of the model ... is that now universities can start thinking about going to the students," Professor Andrew Atherton, vice president of international and engagement at the university, told Reuters during a visit to the campus. "So it's a two-way flow. Some students will come to universities, but the universities increasingly will go to students. And that, to me, opens up much more choice."
Education is one of Britain's top exports, worth 32 billion pounds ($44 billion) a year - more than traditional goods such as cars or food and drink. But universities' long-established model of recruiting international students is under strain. In November, the government announced a levy on international student fees of 925 pounds per student per year, and tightened visa rules on how long foreign graduates can stay in Britain.
A new strategy published last month, aimed at lifting education exports to 40 billion pounds by 2030, emphasized expansion overseas rather than recruitment of international students, who count towards net migration. Stephen Jarvis, vice-chancellor of the University of Surrey, said expansion in India was an opportunity in its own right rather than a knee-jerk reaction to the immigration debate, but added that domestic political wrangling created uncertainty for universities as they try to attract foreign students.
"There is a great talent pool in India that we're all trying to make sure that we get closer to," he said. Surrey plans a new campus in GIFT City, a business hub in Gujarat. Jarvis and Southampton's Atherton were among representatives from 13 universities who joined British Prime Minister Keir Starmer on a trade mission to Mumbai in October.
"It's a fantastic opportunity for us to provide university education in India for people," Starmer told reporters on the trip. "There's no question of visas." Some UK universities are under financial pressure. Around 45% of English higher education institutions face a deficit in 2025-26, according to Office for Students data. Felix Ejgel of S&P said international campuses could help universities "establish a footprint in a target country," but would likely be loss-making initially.
While new campuses require heavy upfront investment, universities need to diversify and reduce reliance on capped domestic fees, squeezed research grants, and international students coming to Britain, said Charlie Jeffery, vice-chancellor at the University of York. "I think we have to move into a much more proactive mode," he said after joining Starmer's trip to Mumbai, where York plans to open a campus later this year. "If universities don't grasp the nettle and shift themselves strategically away from the dependence on those three big buckets ... then they're probably storing up more trouble for themselves."
Indian regulations require degrees to match the standard of courses in Britain, though fees are lower to compete with Indian universities. Courses that have fees of over 25,000 pounds for an international student in Britain cost in the region of 10,000-12,000 pounds for Indian students at the new campuses. Sadhika Mehrotra, 20, a Politics and International Relations undergraduate in Southampton who grew up in Delhi, said she loved studying in Britain but had friends who had been "very much interested in initially coming to the UK for universities" who were now thinking of staying in India. "(It's) in India, but it's an international university, well-established, from the UK, so why not?" she said. "It will have its own perks."
But here's where it gets controversial: While some see this as a strategic move to diversify income streams and reduce reliance on capped domestic fees and squeezed research grants, others argue it's a knee-jerk reaction to the immigration debate. So, what do you think? Is this a smart move or a risky gamble? Share your thoughts in the comments below!
