Foreign universities can now set up campuses and offer degrees in India without having a local partner
The Foreign Education Providers’ Bill is still awaiting parliamentary approval. Tuesday’s announcement, which is effectively an executive order, doesn’t need to be approved by Parliament and could see a rush of foreign universities to enter India.
To foreign universities, the move presents an opportunity to tap a country with a population of 1.2 billion. To Indians (at least those who can afford it), it is an opportunity to receive quality education without leaving India (and without paying in dollars). And to India, it could mean significant foreign direct investment.
The department of industrial policy and promotion (DIPP) and the department of economic affairs (DEA) have agreed to allow overseas universities to operate as so-called Section 25 or non-profit companies under the newly passed Companies Act, the human resource development (HRD) ministry said on Tuesday.
Companies registered under Section 25 of India’s Companies Act cannot distribute profit or dividends to members, which means that the foreign universities cannot repatriate money—a constraint that was criticised by at least one expert....