The University Grants Commission (UGC) recently came out with draft regulations for the establishment of campuses of foreign institutions in India. The National Education Policy, 2020 had envisaged this, as part of making India a global education hub. Anvitii Rai looks at what the new regulation entails and the potential from this

Why the draft regulation has been brought?

The draft regulations, announced on January 5, 2022, will form the basis of the regulatory framework for foreign higher education institutions (FHEIs)willing to set up campuses within India. The regulation will specify the “special dispensation regarding regulatory, governance, and content norms on par with other autonomous institutions of India”. Establishing a robust framework would be necessary to ensure that the quality that foreign institutions are renowned for is not lost.

It aims to, as envisaged in NEP 2020, provide “an international dimension to higher education in India, enable Indian students to obtain foreign qualifications at affordable cost, and make India an attractive global study destination”.

The broad framework of rules

Initially, the approval to FHEIs will be granted for 10 years, and they are required to set up the campuses within two years. The institutes will be allowed to offer only full-time courses in offline mode. The faculty for the campuses will be expected to be on a par with those in the parent campuses, with them being expected to live in India—instead of the university using their services as guest faculty, with the appointed faculty visiting a few times.

Rules are also set for fee structure, which should be reasonable and on a par with the other autonomous institutes in the country. Finally, FHEIs must offer courses that are not contrary to “the sovereignty and integrity of India; security of the State; friendly relations with foreign States; public order, decency, morality; and the standards of higher education in India”.

Support to FHEIs

FHEIs have been provided support in a different manner—autonomy. They will have the freedom to design their own courses, decide the requisite qualifications of faculty, and establish fee structures. Cross-border remittances to parent campuses will be allowed, governed under the Foreign Exchange Management Act (FEMA).

Who can start campuses in India

The NEP 2020 stated that the top 100 institutes in the QS rankings would be eligible to apply; however, the draft regulations have expanded the range to the top 500 institutes. In addition, institutes which are “reputed in their home jurisdictions” as well as top institutes specialising in a particular area will also be permitted to apply. However, the rankings to be used for qualification haven’t yet been specified.

Where the draft regulation falls short

As precedents for the successful operation of foreign campuses show, the host country has either provided either subsidies or land to the FHEIs; for instance, Dubai, which has seen institutes like New York University (NYU) as well as other institutes like University of Birmingham to set up their campuses there, provided land. However, the draft regulations for FHEIs in India maintain that the onus for obtaining land as well as constructing the requisite infrastructure will be on the FHEIs. Thus, there are apprehensions over the institutes that will eventually apply to set up their campuses.

Academics also are sceptical about the draining of Indian funds to foreign nations, which the setting up of FHEIs in India seeks to resolve. This is because the FHEIs will be allowed to remit funds to their parent campuses, making the provision contradictory to the stated goal.

Other than that, there have been concerns over the competition to Indian private institutes and the quality of faculty that will be appointed in the FHEIs, as they will have the liberty to decide the qualifications. Besides, not allowing online and distance learning by FHEIs has also been criticised by experts.

  • 1.8 million Indian students abroad by 2024, per one estimate
  • 1.3 million in 2022, as per MEA data; 800,000 in 2019, before the pandemic
  • `5 billion forex outgo in FY22 from students going abroad