The country’s complicated regulatory framework may provide a challenge for foreign universities looking to open campuses in India, analysts caution.
As outlined in the 2020 National Education Policy, India seeks to internationalise its higher education system and address brain-drain, while foreign universities are eager to take advantage of the rising demand from Indian students.
According to fresh data, the number of Indian students studying abroad in the US increased by 35% year over year in 2022–2023. In the UK, the number of international students granted study visas surpassed Chinese students in 2023.
Top international universities can now apply to open campuses under new rules announced by India’s University Grants Commission, but there are concerns about how this will actually operate in reality.
Regarding the laws, Satyendra Shrivastava, a senior lawyer at Consortia Legal, stated that “there is no clarity on what the nature of the legal entity of that campus will be.”
“It raises more questions than it does answers about how this might operate.”Additionally, it appears that this is more of a declaration of intent because it noticeably lacks the specifics of how this would be accomplished.
According to Indian law, the majority of Indian universities are not-for-profit, but new rules for international campuses permit money to be returned home.
Foreign universities may be governed by the Foreign Exchange Management Act of 1999 and the Foreign Contribution (Regulation) Act of 2010 of the country, depending on how they are organised. The type of business entity will also dictate the amount of taxes that it must pay.
After releasing the first draft of the regulations, which required universities to rank in the top 500 globally either overall or by subject, the University Grants Commission has loosened its position on rankings.
In an apparent attempt to raise the possibility of exceptions to the ranking criteria, the regulator has now added that institutions with “outstanding expertise in a particular area, as decided by the Commission from time to time” may also be eligible.
Institutions can form joint ventures with Indian enterprises or higher education institutions, allowing private companies to collaborate with international universities in India.
While online learning is still prohibited, certifications obtained at branch campuses will be accepted in India, forcing several universities to reorganise their curricula.
According to Amarjit Singh, CEO of the India Business Group, a London-based firm with teams throughout India, “the regulations have been quite a long way in the making.” Because Indian students will be able to attend the top courses in the world on campuses at home, it will be a game changer for the country’s education system.