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The group of ministers (“GoM”) has, in its meeting held on February 5, 2007, recommended 50% Foreign Direct Investment (“FDI”) in higher education, paving the way for overseas universities to set up campuses in India, in partnership with local institutions.

The GoM has suggested that only well recognized and established universities from both India and abroad should be allowed to set up campuses in India. The Government and the private universities, including deemed universities, would be allowed to forge alliances with overseas players.

To give effect to the proposed FDI in education sector, an amendment may be required to the University Grants Commissions Act, 1956. Also, a separate bill by the name of  'Foreign Education Providers (Regulation) Bill is under consideration which would enable the foreign universities to set up  campuses in India. The proposed bill,  when approved by the cabinet and passed as law, will grant deemed university status to the foreign institutions.

FDI in foreign education may be facilitated through the Regulation of Foreign University Entry and Operation (Maintenance of Quality and Prevention of Commercialization) Bill.

Source: The Financial Express dated 6-2-2007.

-  Ragini Aiyer & Kishore Joshi

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