India is positioning itself as an emerging force in the global international education market. The government’s primary policy think tank, NITI Aayog, recently outlined a high-growth scenario in which India could host as many as 1.1 million international students by 2047, provided that major structural barriers are addressed and the capacity of the higher education sector is improved. This ambitious projection underscores the potential for growth within the purpose-built student accommodation (PBSA) sector in India, which is increasingly attracting the attention of investors and developers.
Higher Education in India
India’s higher education system is already one of the largest in the world and is expanding at a remarkable pace. According to the latest All India Survey on Higher Education (AISHE) data, in the academic year 2021-22, nearly 43.3 million students were enrolled in higher education institutions across the country, a notable increase from 41.4 million in the previous year. This 4.6% year-on-year growth highlights the ongoing demand for higher education in India.
The long-term trajectory is even more impressive; since the 2014-15 academic year, when enrolment stood at 34.2 million students, total enrolments have surged by 26.5%. To meet this escalating demand, the number of universities in India has expanded significantly, growing by nearly 60% over the last decade to reach 1,213 institutions by 2024. This rapid expansion presents a compelling case for the development of additional PBSA to accommodate the increasing student population.
International Students in India
While India has traditionally been known as a talent-exporting nation, the inbound market for international students is now reaching new heights. In a recent parliamentary update, the Minister of State for Education, Sukanta Majumdar, disclosed that India currently hosts a record 72,218 international students from nearly 200 countries. This figure marks a significant increase from the 46,878 students recorded during the previous AISHE cycle in 2021-22, demonstrating the rapid recovery and growth of inbound student mobility following the pandemic. The top source countries for these international students include Nepal, Afghanistan, the United States, Bangladesh, and the United Arab Emirates.
The NITI Aayog report highlights a concerning statistic: the current ratio of inbound to outbound students is approximately 1:28, with around 1.33 million Indian students studying abroad as of 2024. This situation has prompted the government to position the strategies outlined in the report as a means to reverse India’s “brain drain”, which has been exacerbated by the focus on promoting international exposure through outbound student mobility.
International Student Growth Trajectories
The NITI Aayog report presents various projection scenarios for the growth of international students in India. Through compound annual growth rate (CAGR) benchmarking, conservative lower bounds and aspirational upper bounds indicate that India could reach between 85,000 and 130,000 international students by 2030. This figure is expected to expand to between 123,000 and 244,000 by 2035, and potentially reach between 300,000 and 1.1 million by 2047.
Additionally, an “internationalisation intensity” model, which employs global benchmarking standards, forecasts that India could see 150,000 international students by 2030. This number is anticipated to accelerate to 359,000 by 2035, ultimately approaching 789,000 by 2047. Such projections illustrate the significant potential for growth within the Indian higher education system and the corresponding demand for PBSA.
The Growth of Foreign Branch Campuses
The establishment of foreign universities opening campuses in India represents a transformative shift in the nation’s higher education landscape. This development not only offers international credentials to domestic students but also enhances India’s global educational profile, making the country more attractive to international students.
For instance, Australia’s Deakin University and the University of Wollongong have already launched campuses in Gujarat International Finance Tec-City (GIFT City), marking a significant first for the country. More recently, the University of Southampton inaugurated its campus in Gurugram. Several other universities are in the pipeline, having received formal approval to establish campuses: Coventry University has received in-principle approval for a GIFT City campus, targeting a 2026 opening; the University of Liverpool received UGC approval in May 2025 for a Bengaluru campus slated to open in August 2026; and Western Sydney University received UGC approval in July 2025 for a Greater Noida campus, also set to open in August 2026.
The Supply Gap
Market analysis from Colliers India reveals a substantial and growing accommodation deficit in the Indian student housing sector, regardless of the potential increase in international student numbers. As of 2025, the demand for student accommodation is estimated at approximately 12 million beds, yet institutional capacity currently stands at just 4 million. This discrepancy creates an immediate gap of around 8 million beds. In the coming years, the number of students needing to relocate to pursue their tertiary studies is projected to surge from 11.3 million in 2021-22 to a staggering 31 million by 2036, further intensifying this structural imbalance unless significant development of purpose-built student accommodation occurs in major educational hubs.
Looking Forward
For PBSA investors and developers, India’s roadmap to 2047 presents a compelling case for long-term potential, albeit one that is balanced by significant operational complexities. The current structural deficit of approximately 8 million beds serves as a powerful driver for investment opportunities. However, the slow entry of institutional capital thus far reflects a market still grappling with localized challenges, such as fragmented land acquisition, complex regulatory frameworks, and cultural preferences regarding housing.
While the current momentum suggests that the sector is advancing, international developers are likely to find that forming strategic local partnerships is crucial for successfully navigating these “ground-level” realities. As India continues to align its infrastructure with its global education ambitions, a unique opportunity arises to fill the existing supply gap and help shape the evolving standards of organised student living within this remarkably diverse market.