In a major reform push in higher education, the Centre may not only allow foreign universities to set up campuses in India but also permit them to repatriate profits from operations.
A senior official told BusinessLine that a whole gamut of reforms, including moving the sector out of the ‘not-for-profit’ category and allowing repatriation of profits by foreign universities, is under consideration. The Commerce Ministry has initiated inter-ministerial consultations on reforming the higher education system.
The Centre is working to make it easy for foreign universities to set up campuses in India in collaboration with local partners. They will also be able to award their degrees.
“Foreign universities will be allowed to introduce their own curriculum, bring their own teachers and also pay their own levels of salaries,” the official said. There is as yet no clarity on the fees the universities can charge.
Another official added: “It is futile to think that reputed universities like Harvard will open a campus in India if they are not allowed to repatriate the profit they make.”
The reforms will allow easier university collaborations in the country, and also encourage Indian universities to set up branches in other countries and make distance-education easier.
The UPA Government, too, had attempted to reform the sector by introducing the Foreign Educational Institutions (Entry and Operations) Bill in Parliament in May 2010, but it lapsed last year.
For-profit shift While many of the reforms being considered by the BJP-led National Democratic Alliance government are on the lines of the lapsed Bill, the key difference is the suggestion on profit making and allowing foreign investors to repatriate their profits.
“We have asked for a Committee of Secretaries (CoS) to be set up. But we will need another round of inter-ministerial consultations before that can happen as some issues need to be ironed out,” the official said.
The CoS, when formed, will be headed by the Cabinet Secretary and have Secretaries from key Ministries, including Human Resource Development (HRD), Commerce & Industry, Law, and Finance. It will make recommendations to the HRD Ministry, which will then decide on the implementation.
“Whether the old Bill is revived with changes or a new Bill is drafted are issues that the HRD Ministry will decide,” the official said.
Tough environment Foreign universities have so far kept away from India because of the high level of regulations, but some, including the University of Chicago, the Harvard Business School and Deakin University have opened research centres in India.
The Government also hopes students from neighbouring countries such as Nepal, Sri Lanka, and Bhutan as also from West Asia will come to the campuses of foreign universities in India rather than travel to the West.
“We not only hope to save foreign exchange by retaining our own students, who would have otherwise travelled abroad, but plan to turn net foreign exchange earners with students from neighbouring countries enrolling in foreign universities in India,” the official said.