Overview  

India has one of the largest higher education systems globally, ranking behind only China and the United States. Over the past two decades, India has significantly increased its emphasis on higher education. Its student recruitment market, while still maturing, is one of the fastest-growing sources of outbound students, surpassing China in annual growth prior to the pandemic. In the 2024-2025 academic year, the number of Indian students studying in the United States increased by 9.5%, reaching an estimated 363,019 students.

According to 2024 University Grants Commission (UGC) statistics, India has 1,186 universities, including 493 state universities, 138 deemed universities (autonomous institutions recognized for high performance), 57 central universities (established by the Department of Higher Education), and 498 private universities. India also has 165 Institutes of National Importance, which receive special recognition and funding from the government. Additionally, the Institutions of Eminence initiative supports 20 institutions (10 public and 10 private) in becoming world-class teaching and research centers. Together, these institutions offer a wide range of degrees and diploma programs.

The UGC serves as the central regulator, providing grants, coordination, and standards for higher education institutions (HEIs). India’s higher education sector is divided into two segments: regulated and unregulated. The regulated segment includes central, state, and private universities, professional colleges, and technical and research institutions. The unregulated segment encompasses online education, vocational training, finishing schools, professional development, and coaching classes. Factors such as the supply-demand gap, private sector participation, IT sector growth, demand for a skilled workforce, increasing foreign direct investment (FDI), disruptive innovation, and online education have driven significant growth in this sector.

As of March 2026, the National Education Policy (NEP) 2020 continues its phased implementation, focusing on the 5+3+3+4 structure and transforming higher education with the Higher Education Commission of India (HECI) acting as a single, centralized governing body. Key developments include a strong push for skill-based education, vocational training, and the complete overhaul of old academic structures.

Currently, degrees from foreign universities are not recognized by the UGC, but many foreign universities partner with top Indian private or autonomous HEIs to offer twinning or dual-degree programs. In April 2022, the UGC approved regulations to ease academic collaboration between Indian and foreign HEIs, encouraging student and faculty mobility and enhancing research partnerships. These regulations aim to help Indian HEIs achieve higher global academic rankings and enable public and private UGC-recognized universities to collaborate with foreign institutions to offer premium programs.

In November 2023, the UGC announced regulations allowing foreign higher education institutions (HEIs) to establish campuses in India. Eligible foreign HEIs must rank within the top 500 globally or demonstrate outstanding expertise in a specific area. They can set up campuses independently, in collaboration with other foreign HEIs, or through joint ventures with Indian institutions or companies. This framework fosters academic collaboration between Indian and foreign institutions. For more information, visit: UGC Foreign Higher Educational Institutions.

Leading Sub-sectors

• Study Abroad: During the 2024-2025 academic year, 363,019 Indian students studied in the United States, accounting for approximately 30% of the total foreign student population. Of these, 11% were undergraduate students, 49% were graduate students, and 39.6% pursued Optional Practical Training (OPT). Indian students traditionally favor STEM and business studies. During the 2024-2025 academic year, 43.4% of Indian students studying in the United States studied mathematics and computer science, 22.8% pursued engineering, and 11.3% chose business studies.
   
• Undergraduate and Graduate: India became the largest contributor of undergraduate and graduate international students to the United States during the 2024-2025 academic year. With 50% of India’s 1.4 billion population under the age of 25, demand for higher education will continue to grow. However, limited scholarships and rising costs of U.S. education remain challenges for attracting Indian students.
  Indian students consider factors such as university rankings, OPT options, and financial aid when choosing a university. U.S. institutions should emphasize niche offerings, campus safety, on-campus employment, and campus life in their marketing efforts. Leveraging alumni networks, including graduates from India, is highly recommended for recruitment.
   
• Community Colleges:  Community colleges, especially those with well-established and reputable transfer programs with four-year U.S. universities, have generated growing interest among Indian students in recent years. These institutions are known for affordable tuition, international immersion programs, and academic credits that are recognized by four-year universities.  However, a key drawback for students applying to community colleges is the high rate of visa refusal.  Awareness of many of these institutions is still in the nascent stage and will require additional marketing outreach to raise awareness among prospective Indian students. India currently ranks seventh for international students studying at U.S. community colleges. 
   
• Secondary Education: The Indian market for high school and other U.S. secondary education options remains underdeveloped. Cultural factors, along with bourgeoning numbers of international schools in India, are among the largest obstacles that limit demand.  

Table: Indian Students in the United States by Academic Level

Source: IIE Open Doors Report 2025

Opportunities 

• Twinning Programs:  In a twinning arrangement, students begin their studies in India and finish with a partner institution overseas. Indian HEIs are finding it easier to establish partnerships with overseas institutions that allow for such agreements.  A growing number of Indian academic institutions are showing interest in exploring collaboration with foreign institutions for twinning programs.
   
• Dual Degree Programs:  The National Education Policy allows Indian students to earn a dual degree, one each conferred by an Indian and a foreign HEI.  Credits acquired may be counted toward a degree; however, schools must conduct proper due diligence to ensure their agreements are sufficiently robust to facilitate these types of programs.  Indian universities are willing to collaborate with foreign institutions offering world class degree programs. 
   
• Curriculum Development:  Many Indian universities are seeking to offer more balanced, articulate, and well-structured programs that meet international standards, and are open to collaborating on curricula development with top-ranked foreign universities.
     
• Student Exchange Programs:  Student exchange and specialty short-term programs are of interest to Indian institutions (at high school and college level) because they enhance students’ cross-cultural exposure and provide a global perspective.  Exchange students attend courses at overseas universities for intervals of two weeks up to full semesters.  Indian schools are receptive to working with U.S. institutions to develop student exchange partnerships, particularly for specialized programs.
   
• Faculty Exchange Programs: Faculty exchange programs allow faculty members to teach or conduct research at an overseas partner university or college. Indian schools are enthusiastic about collaboration with overseas institutions to develop these programs.
   
• Joint Research Programs:  Joint research programs advance academic, commercial, and social research through collaboration with foreign universities, providing opportunities for young researchers to hone their skills, especially as collaboration between Indian universities and industry is limited.  Indian institutions would like to engage with industry to develop science parks, incubation centers, and technology transfer units.
    
• Representatives and Recruiters:  Several U.S. institutions have appointed representatives in India to conduct promotional and student recruitment activities.  The U.S. Commercial Service helps U.S. schools to find in-country partners to serve as representatives to facilitate expansion in the Indian market.   
   
• Online Programs:  According to local industry sources, the market for online education in India is expected to exceed $29 billion by 2030.  The COVID-19 pandemic accelerated this trend as Indian schools, like other school systems worldwide, are moving to online courses. Demand for skill development through online certifications on digitized platforms has led to several vocational training companies offering online courses to increase their reach in the Indian market.
    
• Professional Training Services:  India’s professional training services market, which includes executive education providers, skilling and training companies, and schools offering courses to mid-career professionals in , has witnessed robust growth in recent years due to high economic growth, a dominant services sector that contributes more than 50% to India’s GDP, and the entry of many new foreign companies into the Indian market.  U.S. institutions providing professional training services in Data Science/AI, Digital Marketing, Cybersecurity have opportunities to establish strategic alliances with partners in India. 
   
• Service Providers:  Non-Indian universities may establish partnerships with Indian education institutions to provide expertise and services such as staff and teacher training, curriculum development, setting up affiliations, and school administration.
   
• Digital Marketing Strategies: Social media has emerged as one of the most effective tools to recruit international students.  For example, U.S. universities have been engaging digital media experts and using virtual reality and other 3-D animation tools to provide virtual tours of their campuses.  Well-known social media platforms such as Facebook, Instagram, and YouTube, are the top apps being used to recruit international students.

The U.S. Commercial Service offers virtual tools to U.S. schools to assist in their recruitment efforts.  Customized programs such as Virtual Education Fairs, and Virtual Connection Programs are helpful to U.S. academic institutions seeking Indian partners in expanding their recruitment efforts and facilitating partnerships between U.S. and Indian universities. 

For more information, please contact U.S. Commercial Service Industry Specialist Sneha Mishra.