By Rajneesh De, APAC News Network
In the early weeks of 2023, the UGC unveiled draft regulations apparently paving the way for foreign universities and other institutions to establish physical campuses for the first time in India. UGC Chairperson M Jagadesh Kumar subsequently stated that foreign universities and Higher Education Institutions (HEIs) will need a nod from the UGC to set up their campuses in India.
The first Indian campuses of these prestigious foreign universities may come up within two years, according to Kumar. These universities will incidentally be allowed to control the admissions procedure, the cost of attendance, and the repatriation of their cash.
The UGC has already communicated with 55 ambassadors of overseas countries based in New Delhi where these top universities are located as well as with the Indian ambassadors in these countries. There is going to be an online application process, and subsequently UGC will give them a letter of intent (LoI). Within two years of this permission being granted, these universities are expected to build campuses in India and start their academic programs.
Dissecting the Announcement Modalities and Analyzing the Context
This UGC announcement has opened a veritable Pandora’s box in the academic and governance world with arguments flying in both favoring and opposing the move. Before analyzing the pros and cons threadbare, it would be prudent to have a more detailed look at the modalities involved.
The announcement is in keeping with the National Educational Policy 2020, whereby the NEP 2020 had proclaimed that “A legislative framework facilitating such entry will be put in place, and such universities will be given special dispensation regarding regulatory, governance, and content norms on par with other autonomous institutions of India”.
Initially, permission would be granted for ten years, with renewal being subject to the fulfillment of initial requisite conditions. The foreign universities would have the freedom to devise their own curricula and admission process. Only live, full-time classes in physical mode would be permitted, thus ruling out online or distance education. Cross-border movement of funds would be in accordance with the Foreign Exchange Management Act (FEMA). As per the draft, fees are to be “reasonable and transparent”, the presumption being that education is a not-for-profit activity.
No such foreign university would be allowed to establish an Indian entity or extension without permission from the UGC. Furthermore, the foreign university granted permission would “not offer any program which jeopardizes the national interest or the standards of higher education” in India. The operation of FHEIs shall not be contrary to the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency, or morality.
Two types of foreign universities would be allowed to set up Indian campuses. Top 500 universities globally fall into the first category. But those who have a high ranking in particular subjects or specific domain wise specializations or are highly regarded in their respective fields in their home jurisdiction would also be eligible. More importantly, the foreign institution would be expected to start setting up their Indian campus and building infrastructure within a period of two years.
Furthermore, foreign faculties appointed to teach in the Indian campuses would be expected to live in India, not just come in from time to time from abroad. The foreign universities would also have to ensure the quality of education imparted at their Indian campuses is on par with their main campus. There would also be safeguards in place to protect enrolled students in case of unforeseen disruption, discontinuation, or closure of the Indian campus.
The draft regulations, which include the requirement of the submission of an Annual Report and maintenance of annual accounts, also empower UGC not only to permit, but also to inspect, regulate, interpret, and terminate FHEIs. Cross-border movement of funds and maintenance of Foreign Currency Accounts, mode of payments, remittance, repatriation, and sale of proceeds, if any, shall be as per FEMA, 1999. An audit report shall be submitted annually to the commission certifying that the operations of the FHEIs in India are in compliance with the Act and related rules.
The FHEIs may not promote their programs in their native countries or in any other countries outside of India by acting as a representative office of the parent entity. The FHEIs also need to lay out a plan that in the case of a course or program disruption or discontinuation or closure of the campuses, what will be the alternative arrangements to safeguard the interests of the affected students, including reallocation to the course or program.
The UGC’s latest move follows its notification of May 2, 2022 on academic collaboration between Indian and FHEIs. Under that notification, three possibilities were offered for collaboration between Indian and foreign universities.
First, the “Twinning Programme”, which enables an Indian institution to partner with universities abroad. The second possibility is the “Joint Degree Programme”. Here, both the Indian and the foreign university will jointly develop curricula, but award one degree upon the completion of the course. The third possibility, the “Dual Degree Programme”, is to be jointly designed and offered by both institutions, with two separate degrees being offered on the completion of the requirements of both programs.
In a recent development, the IITs will also be starting operations overseas under the new brand name “India International Institute of Technology”.
India has more than 1,000 universities and 42,000 colleges. But despite being home to one of the world’s largest higher education systems, India’s gross enrolment ratio (GER) in higher education is just 27.1% — among the lowest in the world.
The outflow of students to universities abroad has skyrocketed in recent years. Better educational quality and outcomes abroad have driven the increase, as well as factors such as higher standards of living, gaps in the Indian education system leading to a supply-demand imbalance, and upward income mobility of Indian households.
A report by India-based business consulting firm Redseer on higher education abroad estimates that the number of Indian students opting for higher education abroad grew from 440,000 in 2016, to 770,000 in 2019. That is set to grow to around 1.8 million by 2024. Overseas spending was poised to grow from current annual $28 billion to $80 billion (€18.5 billion to €74 billion) annually by 2024.
Pro-School Arguments Argue Raising Standards and Global Knowledge Economy
The pro school believes these developments will internationalize Indian higher education like never before. They must therefore be welcomed. With foreign universities setting up Indian campuses, UGC will have to upgrade its regulatory apparatus considerably. Several leading foreign universities already have India offices. For speedy and responsible clearance of “Letters of Intent”, however, the present sluggish and quasi-governmental bureaucratic set up of UGC may not prove equal to the task.
Most of its officials have little experience when it comes to foreign educational institutions, let alone studying abroad. A similar difficulty may present itself when it comes to the yearly review, campus visits, and other forms of monitoring and intervention. Political interference in the name of ideological conformity to political party doctrines or, contrarily, the real dangers of interference and influence from abroad cannot be underestimated either.
Foreign universities in India, moreover, will pose a huge challenge to Indian public and private universities. The former, especially in humanities and social studies, may continue to attract good students, especially from disadvantaged sections. Foreign universities will presumably not have reservations. Those seeking quota benefits, therefore, will be confined to government-funded universities.
But this also means that those who can afford it will clearly prefer foreign universities over their Indian counterparts, even the private ones already established in India whose fees are very high already. The latter are often owned by powerful business houses or politicians and therefore it will not be surprising if they try to curb or contain the foreign institutions from getting a level playing field in India.
Foreign universities, like the best of private universities, will apparently opt for global standards of curricula, pedagogy, and research. Forces opposing them are likely to try to impose their own agendas, whether driven by religious, linguistic, caste, or regional considerations.
In this scenario if the Indian higher education sector truly opens up, it will be one step forward in India’s aspiration to become a knowledge society. After all this pro school of thought truly believes that not protectionism and shuttering the intellectual borders, but competition and collaboration with the best will help usher in a true Indian renaissance.
Naysayers Argue Lack of Clarity and Destruction of Level Playing Field
Notwithstanding this strong advocacy by the pro school of thought, everything is not hunky dory and it would be wise to assess what the naysayers are arguing. Many educators are skeptical about how much of an impact the move will make. For them this is more a cosmetic move just for optics and they rather believe the more immediate need is to reform the current university system, where individuality is suppressed.
Some feel that few stakeholders are jumping the gun as it is not yet clear that the top foreign institutions that are being targeted by this scheme would have any interest in coming to India. Varying political ideologies and considerations often restrict the space for any independent, critical analysis and this shortcoming would certainly be on the minds of those who lead the foreign universities that are being invited here.
Establishing universities and campuses is a challenging proposition, not to mention developing courses, creating research facilities, hiring faculty workers and relocating international workers, among other considerations. The new regulation allows the foreign institution free play, and they are given more freedom, which unfortunately is not given to the Indian institution, claim some academicians opposing the move.
For instance, the foreign universities can fix their fees, the admission norms, and have full freedom in faculty appointments. Will this lead to destruction of a level playing field and whether it would prove out of bounds for many meritorious students from economically weaker sections is another valid concern. The radical thought believes the policy will harm, dilute and destroy the Indian higher education system, leading to commercialization.
More moderate but opposing voices feel it would be difficult to fathom whether this is a workable as a business model. After all anyone enrolls in a foreign university, the experience of being on a campus overseas, and benefitting from that is often more important in decision making. Education is more than just classroom teaching and acquiring skill sets to deal with reality. Many students opt to go abroad for the experience, and for the income opportunity overseas which is not available in India.
In conclusion, it would be wise to remember that this is not the first time a proposal has been made to allow foreign universities into India. In 2010, a bill to this effect — prepared by the then government — generated a lively debate. The bill had prohibited the repatriation of surplus earnings, but could not be passed due to lacking consensus among political parties. Ironically, the section opposing the move then has tacitly supported it this time which is bound to cause confusion.
Some academicians believe that India should be a leader in international education by tapping into its reserves instead of asking foreign universities to raise the bar. Instead of enabling the creation of international campuses of universities from developed countries, India needs to focus on becoming a global higher education destination in its own right. And while the names of Oxford, Yale, Harvard or Stanford are freely being flouted, the naysayers do not believe any top-ranked universities would set up campuses in India, and for good reasons.
