My college administration is forcing us to install Cyberoam Firewall SSL certificate so that they can view all the encrypted traffic to "improve our security". If I don't install the certificate than I won't be able to use their network.

What are the ways I can protect my privacy in such a situation? 
Will using a VPN be enough to hide all my traffic or there are other ways?

Don't install their certificate on any device/OS installation which you ever want to use for private activity. Once you do, your traffic is subject to MITM attacks even if you are not using your college's network. Such an attack requires having the private key for the certificate you installed, but in practice this is quite easy because these "security products" are so badly designed, and often use either very weak key generation or use a fixed private key that's the same for all deployments and available to any of their customers. In a comment that's since been moved to chat, TOOGAM wrote:


  Specific problem known about this specific vendor's certificate  "It is therefore possible to intercept traffic from any victim of a Cyberoam device with any other Cyberoam device - or to extract the key from the device and import it into other DPI devices"


If you don't need resources on their network, just use wifi tethering on your phone or get a dedicated 3G USB dongle or similar for use when you're on campus. Alternatively, if non-HTTP traffic is not subject to the MITM, you may be able to use a VPN without installing the certificate. In this case, just get a cheap VPN provider or VPN to your home network if you have one.

If you do need access to resources that are only available from the campus network, install another OS in a virtual machine with the MITM CA installed only in the VM, and use the browser in the VM for accessing these resources.
