FDI IN HIGHER EDUCATION

PRESENTED BY: POONAM ILAG SHRADDHA JADHAV

HIGHER EDUCATION
Education is included among the a basic needs of

humans.
Higher education has tremendous significance for

developing countries like India.

It enhances a countrys

sustainability in an

increasingly knowledge-based world economy.

It has the potential to enhance economic growth

and reduce poverty.

FDI
Foreign Direct Investment At present India is allowing 100% FDI in higher

education.
The rise in the

number of students studying

abroad has resulted in excessive demand of FDI.

The US, UK, Australia and New Zealand are the

main beneficiaries (large exporters).

OBJECTIVES
Need of FDI in higher education in India. Analyzing the role of regulatory bodies in inviting

the foreign universities.

To study the role in FDI in Indian higher

education
Impact of FDI in education sector in other

countries.

STRUCTURE OF HIGHER EDUCATION

India is the third largest higher education system in

the system in the world (after China and the USA).

In 2006, a report submitted by the National Institute

of Educational Planning and Administration warned

against a commodification.
India is home to the worlds biggest pool of scientific

and knowledge workers, and as well as engineers.

Cont.
India is the largest higher education system in

the world with 17973 institutions,348 universities and 17625 colleges. Every year nearly 0.4 million Indians go abroad for higher studies spending approximately $12 bn. This leads to Brain Drain as most of them rarely comes back to India after completing their courses.

Countries

Percentage of students per educational institution 82.4 60.1 31 27 13 12

1. U.S. 2. U.K. 3. Philippines 4. Malaysia 5. China 6. India

NEED FOR FDI IN HIGHER EDUCATION

To solve the problem of enrollment rate. Indian money and talent going abroad will come in

check.
Infrastructure will improve.
FDI in education would generate employment.

Some new methods and technology will be used in

teaching.

ARGUMENTS FOR PROMOTING FDI

Increased Investment in HE leading to

Increased Institutions
Enhanced Access Opportunities of International Qualification Improved Infrastructure Technological Innovation
Quality Improvements Research & Development Resource Use Efficiency

ARGUMENTS AGAINST PROMOTING FDI

Cosmetic

Curriculum

Innovation

with

aggressive

Marketing will mislead students.

Vulgar use of Marketing Communication for 2nd or 3rd

tier institutions.
Create

false

impression

of

quality

by

increasing

convenience and flexibility for students.

Degrees awarded by foreign institutions by partnering

with unapproved domestic institutions will not be recognized in India.

Cont

Many of the programs offered by institutions are not

recognized in their own countries.

Students in pairing programs have not been able to

obtain visas to study abroad at the Foreign partner's campus.

FEATURES OF FOREIGN EDUCATIONAL INSTITUTIONS BILL

Foreign institution can not provide degree to Indian student unless such institution is confirmed by Indian Government.

At least twenty years of establishment in its own country. Have to maintain a fund of at least 500 million rupees.

Quality of education, curriculum, the faculty employed

will be in accordance to guidelines of UGC.

Cont
70% of income raised from fund should have to be

utilized in higher education only.

Institution has to publish prospectus explaining all

the details.
In case of violation of any guidelines, a penalty

along with tuition fees should be refunded to the student.

FINDINGS
The primary reason for a large number of students

seeking professional education abroad is lack of

capacity in Indian Institution.
FDI in higher education will solve the problem of

enrollment rate as we are in a situation of less supply

high demand.
India may move towards practical study based learning

rather than routine learning.

SUGGESTIONS
Should

monitor

the

quality

of

the

programs.
Revenue generated by foreign institutions

should be invested in primary education so

that the base will also get stronger.

Alternate education must be promoted.

CONCLUSION
Therefore we conclude that, provision of adequate infrastructure with more effective registration and certification systems, which will prevent unapproved institutions from partnering,
protect and inform consumers,

enable good quality foreign institutions to enter the

Indian market.

REFERENCES
1.

Meenal Lodha (2011), International Journal of Multidisciplinary

Research Globalization of higher education through FDI: A step

to be taken or not in india, Vol.1 Issue 3.
2.

N.S.Varghese (2009), Research paper by

International

Institute for Educational Planning, Globalization, economic crisis

and national strategies for higher education development.
3.

Vijay Vir Singh (2010), FDI in Higher Education in India: Regulatory Bottlenecks and Options Investment & Economic Regulation.