With 990 universities and 40,000 colleges, India has one of the largest networks of higher education systems in the world. However, its Gross Enrolment Ratio (GER) of 26.3% in higher education is notably lower than that of other BRICS countries such as China (51%) and Brazil (50%), and even lower when compared to European and North American nations (80% or more).

Recognising the need for reform in the higher education sector, particularly in improving access and quality, the National Education Policy (NEP) of India has been developed. According to reports, India will require an additional 1,500 new higher education institutions by 2030 to accommodate a significant influx of students.

On July 29, 2022, the Union Cabinet approved a new National Education Policy that seeks to bring about several changes in the education system. Among these changes is a reform that permits foreign universities to establish campuses in India. This policy recognizes the immense value that foreign universities can bring to the table and has acted as a catalyst, ushering in a new era of openness and inclusivity in the Indian academic landscape.

The NEP has addressed various issues that previously demotivated foreign providers in the regulated higher education sector, such as lack of regulatory frameworks, complex FDI policy, inability to award degrees, and burdensome evaluation processes. The policy has created an environment of openness and inclusivity, recognizing the immense value that foreign universities can bring to the table in transforming the education sector in India.

How Did the 2010 Bill Restrict Foreign Institutions?

• Foreign institutions only allowed to collaborate through partnerships or projects
• No option to set up campuses in India
• Required to provide a corpus fund deposit of Rs 50 crore
• Foreign institutions subject to the same admission quotas as Indian institutions
• Foreign institutions subject to the same fee structures as Indian institutions
• Restrictions made it challenging for foreign institutions to establish a presence in India
• Restrictions limited growth and development of the education sector in India

What’s Different Now?

• Foreign universities that establish campuses in India will be granted autonomy in designing their own admission process and determining the criteria for inviting domestic and international students.
• Foreign entities with campuses in India will be authorized to set the fee structure, provided it is deemed "reasonable and transparent."
• There are no limitations on the recruitment of staff and faculty members from both India and other countries for foreign entities with campuses in India.
• Foreign campuses in India are not permitted to provide online or distance learning courses.
• Certifications awarded to Indian students must be on par with degrees conferred by reputable foreign institutions in their respective countries.
• Foreign educational institutions will be permitted to carry out cross-border fund transfers, maintain foreign currency accounts, make remittances, repatriate earnings, and sell the proceeds, under the Foreign Exchange Management Act (FEMA), 1999.
• The approval granted for these campuses will be for a period of 10 years, with an option for renewal in the ninth year. Additionally, these universities are prohibited from offering courses that may pose a threat to national interests.

Critics Raise Concerns over India's National Education Policy

• Critics have raised concerns about the potential impact of the National Education Policy (NEP) on education inequality and local institutions.
• The NEP may drive up the cost of education and create challenges for local institutes, as foreign providers could take advantage of the market.
• The entry of foreign providers could widen the education gap and limit opportunities for students from lower-income backgrounds, despite the policy's aim to create a more inclusive education system.
• Local institutions may struggle to compete with foreign providers who have access to greater resources and funding.

Challenges Faced by Foreign Institutions Setting up Campuses in India

Brand promise: Ensuring Consistent Quality Education and Student Experience Across Multiple Campuses:

Maintaining the reputation and brand promise of the home campus becomes particularly challenging when dealing with multiple locations in different countries, cultures, and regulatory environments.This is especially true for foreign institutions that want to set up a campus in India, where they must navigate complex regulatory frameworks and cultural differences. These challenges can lead to a lack of standardization and uniformity in academic programs, as well as a potential disconnect between the experiences offered at different campuses.

Educational imperialism:

Foreign universities to enter the Indian education system could lead to educational imperialism, where the foreign institutions may impose their values, perspectives, and educational systems onto Indian students and institutions, thus threatening the diversity and autonomy of the Indian education system.

Commercialisation and commoditization of knowledge production:

Many developing countries have started relying on educational services as a key source of income, resulting in institutional trade becoming a multi-billion dollar business. To increase their revenue, foreign universities are establishing International Branch (IB) campuses in various locations worldwide, with a clear objective of commercializing and commodifying knowledge production.

Which institutions have taken the first leap?

Australia's Deakin University and the University of Wollongong have been granted permission to establish offshore campuses in Gujarat International Finance Tec Cit (GIFT) City. The University of Wollongong is renowned for being the first foreign university to set up a campus in the UAE, while Deakin University is ranked 266th in the QS World University Rankings and is among the top 50 young universities globally. It is worth noting that Deakin has chosen India as the location for its first offshore campus

As India works to transform its education system, it will be important to address the concerns raised by critics of the NEP. While the policy has the potential to bring in new resources and opportunities for students, it must be implemented in a way that ensures equal access to education and supports local institutions. The future success of India's education sector will depend on finding the right balance between openness and inclusivity, and protecting the interests of all stakeholders involved.

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