Foreign Universities allowed to set up Indian campuses

India just took a big step for dramatically enhancing the profile of its higher education. On Monday, the Union cabinet cleared the Foreign Educational Institutions (regulation of entry and operation) Bill, which aims to allow foreign universities to set up campuses in India. The bill, which was adopted without changes, is expected to be introduced in Parliament after the recess of the budget session. If cleared, this would widen the definition of FDI in higher education and is expected not only to shake up the market but also throw up exciting possibilities for top Indian teachers. An excited HRD minister Kapil Sibal said the bill would lead to a “larger revolution than even in the telecom sector’’. While the bill will be opposed by the Left, it shouldn’t face any serious obstacle in Parliament because the BJP is also in favour of the move, even if it raises some objections on a provision or two of the bill. Once it is cleared, some of the top foreign universities, said to be waiting in the wings, are expected to set up campuses in India. The Atlanta-based Georgia Tech University has already bought 250 acres in Hyderabad. Although Yale University is interested in having a presence in India, and welcomed the cabinet clearance, its assistant secretary George Joseph said that there were no plans as of now to set up a campus here. While the foreign universities will follow the national laws, they will not have to give reservation in admission to SC/ST/OBC students. The bill treats them as private universities and even Indian private universities are free of quota-based admissions. And like Indian private universities, foreign universities will have the freedom to fix their fees and admission process. However, the bill makes it mandatory for them to publish prospectus. Also, the bill disallows foreign educational providers from repatriating profits made from the Indian campus through education. With foreign direct investment in higher education already allowed since 2002, the bill stipulates that foreign universities interested in setting up a campus in India will have to deposit a corpus of Rs 50 crore with the body that will register them. The registering body will be the University Grants Commission (UGC). The bill promises time-bound registration to foreign universities, although they will have to go through a series of registrations at various levels. The registering body, after going through the application, will advise the government whether the foreign university be allowed or not. Asked what happens in case a foreign education provider sets up a campus in collaboration with a private Indian university, a ministry source said, “It is the foreign education provider who will have to come for the registration with details of the collaboration.’’
Teachers in India's leading institutes will be in demand, likely to see surge in salaries .At $1,547 (2008 PPP), India has among lowest average salaries for academics, compared to Saudi Arabia's $6,611, Canada's $6,548 and the US's $5,816
Waiting In The Wings Ready to invest in India
• Imperial College (UK)
• Duke College (UK)
• Georgia Tech (US)
• Schulich School of Business (York University) (Canada)
China requires foreign institutions to connect with a Chinese institutional partner and receive govt approval. In Singapore, stringent laws regulate foreign providers. The host country pays the full cost in the Gulf nations .Some countries like Israel with little regulation found that many foreign univs entering the market were substandard