Two Australian public universities have expressed their interest in setting up campuses in GIFT City, Gujarat. This move has come after years of attempts to draft legislation to allow foreign universities to establish campuses in India. While there are advantages to having foreign universities in India, there are also challenges that need to be addressed.
Attempts to Draft Legislation
The government had attempted to pass the Foreign Education Bill in 1995 and 2006, but it failed to get enough support in the Parliament. The Foreign Educational Institutions Bill was introduced in 2010, but it lapsed in 2014. The National Education Policy, 2020 allowed for selected universities, such as those in the top 100 globally, to establish campuses in India. In the Budget Speech of 2022, the Finance Minister announced a new route for setting up foreign universities in GIFT IFSC. In January 2023, the UGC released guidelines for setting up foreign universities.
Advantages of Allowing Foreign Universities
There are several advantages to allowing foreign universities to establish campuses in India. Firstly, it would be beneficial for students as it would provide the same quality of education without students relocating. Secondly, it would reduce the foreign exchange outflow as international branch campuses help in reducing the outflow. Thirdly, foreign universities may increase the enrollment ratio by providing more options for higher education and potentially attracting more students to pursue degrees. Fourthly, by having foreign universities in India, the country can become more competitive globally in terms of education and research. Fifthly, having foreign universities in India can foster cultural exchange and understanding between India and other countries. Finally, it could help to boost research in India as enrolments in M.Phil and PhD courses are very low.
Challenges
There are several challenges that need to be addressed to allow foreign universities to establish campuses in India. Firstly, regulatory challenges such as the multi-layer regulatory framework governing different aspects of higher education and multiple bureaucratic approvals required to operate in India could deter foreign higher educational institutions from investing in India. Secondly, the fees charged by foreign institutions are often much higher than those charged by Indian institutions, which could make higher education less accessible to students from lower-income families. Thirdly, many reputed foreign higher educational institutions operate on a not-for-profit basis and have no materialistic motives to go offshore. Fourthly, a casual look at foreign institutions in other countries shows not a great picture. Finally, foreign higher educational institutions(FHEI) can be for-profit institutions and they’ll be allowed to repatriate surplus funds abroad. Indian public HEIs are not ‘for-profit’ and have to reinvest the surplus. This will put FHEIs on a different pedestal than Indian HEIs.
Way Forward
To address the challenges and allow foreign universities to establish campuses in India, there are several ways forward. Firstly, the government should establish clear guidelines for the establishment, operation, and accreditation of foreign universities in India. This can help ensure that these institutions operate in a way that is consistent with Indian laws and regulations. Secondly, instead of allowing foreign universities to establish standalone campuses in India, the government could encourage them to collaborate and partner with existing Indian institutions. This could help to mitigate competition and ensure that the benefits of foreign universities are shared with Indian institutions and students. Finally, setting up Education Excellence Zones (EEZs) could result in knowledge production being clustered in India, and FHEIs could be invited into these EEZs for true inter-university excellence and competition.
MCQs on The Pros and Cons of Allowing Foreign Universities in India
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What is the Gross Enrollment Ratio (GER) in higher education in India?
A. Among the highest in the world
B. Among the lowest in the world
C. Average compared to other countries
D. Cannot be determined from the given information
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What is one advantage of having foreign universities in India?
A. Reduced fees for students from lower-income families
B. Increased competition for Indian universities
C. Improved cultural exchange and understanding
D. Decreased enrollment in research courses
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What is one challenge facing the establishment of foreign universities in India?
A. Lack of clear and transparent regulations
B. For-profit foreign institutions repatriating surplus funds abroad
C. Indian public HEIs being for-profit institutions
D. Lack of interest from foreign higher educational institutions
