The announcement in Budget 2022 that world-class foreign universities and institutions would be allowed to operate in Gujarat International Finance Tec-City (GIFT) city, ‘free from domestic regulations’ but bound by IFSCA (International Financial Services Centres Authority) has shown that the government has attempted to add a new chapter in the long saga of India’s tryst with allowing foreign universities to enter Indian higher education market. While it is to be seen when and how the announcement sees action, this move appears to be a token, given the fact that considerations of allowing foreign universities are discussed in draft bills being considered in the Parliament. However, it has broader implications for the higher education space in India. Right from concerns of profit repatriation, duration of degree offered, equity, affordability, faculty poaching, reservations, disputes and other regulatory issues, allowing foreign universities to operate in India, a move that could have several positive externalities, has been mired in controversies.
As per a Rajya Sabha response by the Minister of State for External Affairs, a total of 11,33,749 Indian students were enrolled in foreign universities. Of these, a little over 2 lakh were in the US (1,67,582 in 2020-21 academic year as per US embassy report), similar numbers in Canada, little under 1 lakh in Australia and nearly 4 lakh in Gulf countries. Even though there has been a dip in admissions due to Covid-19 (for example, 13% lower in the US), it is a temporary blip, for the hunger of foreign degrees by the aspirational section of Indian society is only rising.
As per an ASSOCHAM report titled Reforms in Higher Education - Strategy towards Global Knowledge Hub 2020, about 4.5 lakh students spend 13 billion US dollars annually for higher education abroad. As per the 2015 Open Doors Report, Indian students were estimated to contribute 3.6 billion US dollars to the US economy (about Rs 24,000 crore that year, when the higher education budget was Rs 13,000 crore). As per a consulting firm, RedSeer’s report, based on the fact that Indian students studying abroad grew from 4,40,00 in 2016 to 7,70,000 in 2019, these figures could reach 18,00,000 by 2024.
While these figures are indicative of the inclination of Indian students to acquire a foreign degree for its sheer value, it does not reflect important reasons for such choices like that of experiencing the culture, the work environment, living in the best cities of the world and more. And thus, while foreign universities may offer degrees in India, it will possibly reduce the outflow marginally.
The Indian legislature's tryst with allowing foreign universities in India has been a long one and mired in political and ideological battles. The NDA government which has announced the plan to allow foreign universities to come to GIFT City had been strongly opposed to the idea for a long time. The Foreign Educational Institutions (Regulations of Entry and Operations) Bill was first tabled in 2010 and met stiff resistance. It was revived after the NDA government took over in 2014. Initially the Commerce Ministry (in fact the foreign university in SEZ model was floated by it in 2016) and followed by NITI Aayog were vociferous supporters of entry of foreign universities in India, but the Law Ministry had raised concerns about the matter. The HRD ministry was initially opposed to the idea but later came around to support it.
Later, the NDA government in order to clean the messy house of higher education regulation in India tabled the ‘Draft Higher Education Commission of India (Repeal of University Grants Commission Act, 1956) Bill in 2018’ which made way to do away with the overarching University Grants Commission (UGC). In September 2019, adhering to its new intent, the NDA government made a provision in the Higher Education Commission of India Bill which permitted the operation of such universities in India. Close on the heels, the landmark National Education Policy 2020 under the “internationalisation” head, stated that top 100 universities (it does not state based on which ranking system) would be allowed to operate in India and mentions that “legislative framework facilitating such entry will be put in place, and such universities will be given special dispensation regarding regulatory, governance, and content norms on par with other autonomous institutions of India”.
While one has to wait for the fine print, there are several concerns that such an announcement raises. The first is, why GIFT city? To have a level playing field, all states should have been allowed to attract foreign universities. After all, higher education is in the Concurrent List. This also assumes significance since students pursuing degrees abroad predominantly hail from rich states like Punjab, Maharashtra and Andhra Pradesh, which could demand such SEZ model based foreign university entry in their states.
The second question pertains to selection of foreign universities. While it is understandable that India wants the best foreign universities to come and operate, the “top 100” cap perhaps would not encompass the wide range and variety of quality education providers abroad. Only recently, a few Indian universities have broken into the top 200 (as per QS rating) category. Thirdly, if unshackling from unwarranted regulations is the mantra, the same should be extended to Indian universities as well. All these concerns are in addition to the fundamental questions about fees, affordability, equity and more as stated earlier.
In the Atmanirbhar scheme of things, that India should bend the rules (‘free from domestic regulations') to allow foreign universities to operate, might sit odd. But Indian universities have to make a lot of progress to be counted as world-class universities. The why of it is a different debate altogether, but foreign universities by operating in India can bring better quality teaching, spur competition, generate skilled human resource, reduce outflow of students, and more. Only time will tell how this budget announcement plays out.
Sambit Dash is an Assistant Professor in the Department of Biochemistry at the Manipal Academy of Higher Education. Views expressed here are the author’s own.