Some colleges reportedly plan to end a English test that has been part of their entrance process, a move that would seemingly reduce demand for English-language study.
He said that the government's plans take a more "flexible" approach towards universities, particularly on students' Englishlanguage requirements and working during study.
Mr Cameron said there was no limit on the number of Indian students that could come to British universities, as long as they had an Englishlanguage qualification and a place to study.
He said he hoped common sense would now prevail so that students could come into the UK to studyEnglish with a lower level in the language, equivalent to having studied it for 150 to 200 hours.
"In particular, GCSE qualifications in core subjects such as Englishlanguage are used by learners as either a passport to employment or to further study, " a spokesperson said.