Context: Foreign universities looking to set up campuses in India are like a “new fruit” in the market and pose no threat to top-rung B-schools in India.
Regulation on setting up foreign university campuses in India:
In line with NEP 2020, the University Grants Commission (UGC) regulates foreign universities to establish campuses in India. The guidelines of UGC:
- Eligibility Criteria: Two categories of Foreign Higher Education Institutions (FHEIs) are eligible to seek permission to open campuses in India: Universities ranked among the top 500 globally (either overall or in specific subjects), and respected institutions from their home countries.
- Approval Procedure: The UGC will establish a permanent committee to evaluate each application on its merits, considering factors such as the credibility of the educational institutions, the programs they intend to offer, their ability to enhance educational opportunities in India, and the proposed academic infrastructure.
- Fee Structure: The university will decide how much to charge for tuition and other fees. The fee structure will be clear and fair.
- Faculty: They will have the freedom to hire faculty and staff from India and other countries, and decide the qualifications for hiring faculty and staff.
- National Interest: FHEIs must not offer any program or course that jeopardizes India’s national interest or higher education standards. The operations of FHEIs should align with India’s sovereignty, integrity, and security, as well as promote good relations with other countries, uphold public order, decency, and morality.
Benefits of establishing Foreign University Campuses in India:
- Quality-upgradation: Foreign university campuses often come with advanced teaching methodologies, state-of-the-art infrastructure, and experienced faculty, can lead to an overall improvement in the quality of education provided in India.
- Development of internationally relevant curriculum: Foreign universities typically offer programs that are aligned with global industry trends and standards, by establishing their campuses in India, they can introduce courses and curriculum that are internationally recognized and relevant, thus better preparing students for global careers and enhancing their employability.
- Reduce the need for foreign exchange: The presence of campuses of foreign universities may ease the tendency to shift abroad for higher studies and will help reduce the need for foreign exchange. Currently, around 11.3 lakh Indian students are studying abroad, with estimated annual spending ranging between US$ 13-30 billion every year. (Rajya Sabha: 2022)
- Boosting Research: Enrollment in M. Phil and PhD courses remains notably low in India, expected that campuses of FHEIs will improve enrolments in research courses and help improve the ecosystem in India.
- Cultural Exchange: Having foreign universities in India can foster cultural exchange and understanding between India and other countries and also would attract students from other countries to come to India for their higher education, thereby boosting the Indian economy.
The impact may be limited due to following challenges:
- Affordability: UGC regulations allow FHEls to decide their fee structure which may primarily cater to wealthy and make education unaffordable for marginalised sections.
- No-incentive for FHEIs: In absence of government funding, FHEIs require huge investment on their part for setting and operating campuses, which may not incentivise them to set up campuses in India.
- Quality: UGC regulations include "reputed FHEls" in their home country eligible to open campuses in India. However, home reputation without standard assessment is subjective criteria which can be manipulated, raising quality concerns.
- Multiple global rankings: Such as the QS, Times Higher Education, Financial Times Rankings etc., and the regulations have not elaborated which rankings shall be considered for eligibility criteria.
- National security clause is too restrictive in nature: Some of the terms like morality and decency are subjective based on cultural differences, may make foreign faculty reluctant to join Indian campuses.
Challenges to India’s Higher Education:
- Dilution of quality of education: With foreign universities focused on making a profit, there is a fear that they would compromise on the quality of education to attract more students.
- Lack of focus on the needs of the Indian Education: With foreign universities focused on their interests, there is a fear that they would not consider the specific needs of the Indian higher education system, could lead to a mismatch between the education provided by foreign universities and the needs of the Indian job market.
- No-Affirmative Actions: Absence of any kind of affirmative action in FHEIs campuses in India will further reduce weaker sections' access to higher education, can further widen the educational disparity among students.
- Not a level playing field: FHEIs can operate as for-profit institutions and will be permitted to repatriate surplus funds abroad. In contrast, Indian public Higher Education Institutions (HEIs) are not for-profit entities and are required to reinvest any surplus funds. This distinction will place FHEIs on a different footing compared to Indian HEIs.
Way Forward:
- The Higher Education Commission of India (HECI) should establish standards and uniform guidelines for both Indian and Foreign HEIs to ensure quality education and regulatory coherence across the higher education sector.
- International accreditation for Indian HEIs would enhance their global reputation and competitiveness.
- Offering scholarships to students from backward classes and marginalized sections to study at Indian campuses of FHEIs would promote inclusivity and access to quality education.
- The government should establish clear guidelines and regulations for accreditation of foreign universities in India, can help ensure that these institutions operate in a way that is consistent with Indian laws and regulations.
- Extending National Assessment and Accreditation Council’s (NAAC) benchmark for assessing universities to FHEIs would ensure that foreign institutions operating in India are held to the same standards of quality and excellence as Indian universities, would contribute to maintaining consistency and fairness in evaluating educational institutions, thereby safeguarding the quality of education.