ABSTRACT
Transnational education (TNE) is typically theorized through Jane Knight’s knowledge diplomacy framework, which emphasizes cooperation and mutual benefit, or Jenny Lee’s soft power perspective, which highlights geopolitical competition. This article argues that both frameworks fail to explain zone-based TNE, where universities operate within Special Economic Zones explicitly designed for capital accumulation. Drawing on Quinn Slobodian’s analysis of zones, this article examines Deakin University’s campus in Gujarat International Finance Tec-City (GIFT City), India as an illustrative case of how zone-based TNE operates through transnational capitalist coordination rather than diplomatic or strategic purposes. The GIFT City case reveals three reconfigurations: capital interests predominate over diplomatic ideals; universities minimize regulatory oversight through an asymmetric arrangement; and educational provision becomes human capital development for zone-based employment. Unlike non-zone TNE, these reconfigurations are structurally embedded in the zone’s design rather than negotiated case by case, constituting a qualitatively distinct form of internationalization. These dynamics challenge nation-state-centric frameworks, revealing how spatial arrangements enable universities and states to coordinate regulatory exemptions that prioritize capital mobility over public accountability.