Higher Educational in India:

Challenges and Opportunities

Prof. Raghunath Shevgaonkar ,Vice Chancellor, University of Pune

Overview of IHEComplex, multi-layered, pyramidal system, with a variety of institutions, controlled by different apex bodies.

Over 23,000 institutions with about 14 million students (third highest in the world, after U.S. and China) and 500,000 teachers

Central universities 39State universities 251 Deemed universities 130Private universities Few18,064 degree colleges (42% privately owned)+ 6500 vocational institutions,

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Regulating Authorities

University Grants commission (UGC)All India Council of Technical Education (AICTE)Medical Council of India (MCI)Indian Council for Agricultural Research (ICAR)National Council for Teacher Education (NCTE)Dental Council of India (DCI)Pharmacy Council of India (PCI)Indian Nursing Council (INC)Bar Council of India (BCI)Central Council of Homeopathy (CCH)Central Council for Indian Medicine (CCIM)Council of ArchitectureDistance Education CouncilRehabilitation CouncilState Councils of Higher Education

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Market Size and Challenges

• Indians spent nearly $4 billion each year to send their children abroad for education .

• Why can’t this demand be met within the country?

• How to expand capacities?

• Quality vs. demand: reservations, privatization; policy dilemmas and challenges

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Higher Education-A Global Business

Higher education market soaring at about 7% annually: according to the Economist, the fees alone are more than $30 billion annually.

The privatization of education has resulted in several universities turning into corporations. It has also put pressure on universities actively to recruit students, especially foreign students, who pay a higher rate.

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Issues in Global Higher Education To what extent can HE be franchised: an encashable brand

certifies a student for a price without imparting education

Is higher education a marketable commodity for private consumption or a public good/service?

WTO is a means of regulating this exchange, but this will have world wide implications, for instance under the MFN (Most Favored Nation) principle or equality and non-discrimination-for instance, to treat foreign and domestic suppliers on par

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FOREIGN EDUCATIONAL INSTITUTIONS

(REGULATION OF ENTRY AND OPERATIONS) BILL, 2010

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• A number of Foreign Educational Institutions have been operating in the country and some of them may be resorting to various malpractices to allure and attract students.

• There is no comprehensive and effective policy for regulation on the operations of all the foreign educational institutions in the country.

• Due to lack of policy or regulatory regime it has been very difficult to make meaningful assessment of the operations of the foreign educational institutions and

• Absence of such meaningful assessment has given rise to chances of adoption of various unfair practices besides commercialization.

Introductory Remarks

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Statement Of Objects And Reasons

• The enactment of a legislation regulating entry and operation of all the foreign educational institutions is necessary to maintain the standards of higher education within the country as well to protect the interest of the students and in public interest.

• The object of the proposed legislation is to regulate entry and operation of foreign educational institutions imparting or intending to impart higher education or technical education or practice of any profession in India (including award of degree, diploma and equivalent qualifications by such institutions) and for matters connected therewith or incidental thereto.

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Provisions of the Bill…(1) The Foreign Educational Institutions (Regulation of Entry and

Operations) Bill, 2010, inter alia, provides-

(a) that the foreign educational institution shall,• (i) not impart education in India unless it is recognized and

notified by the Central Government as a foreign education provider under the proposed legislation;

• (ii) offer and impart education which is in conformity with the standards laid down by the statutory authority, and is of quality comparable, as to the curriculum, methods of imparting education and the faculty employed or engaged to impart education, to those offered by it to students enrolled in its main campus in the country in which such institution is established or incorporated;

• (iii) maintenance of the corpus fund of not less than fifty crore rupees or such sum as may be notified from time to time by the Central Government; 10Shevgaonkar VC UoP

Provisions of the Bill …(2)

(b) that the Central Government may, (i) refuse to recognize and notify a foreign educational institution

as foreign education provider if it is not in the interest of sovereignty, integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality or sensitivity of location of the foreign educational institutions;

(ii) withdraw the recognition and rescind the notification of a foreign education provider on the grounds of violation of the provisions of the proposed legislation or the University Grants Commission Act, 1956 or any other law for the time being in force and on such withdrawal or recession of notification, the Central Government shall make necessary alternative arrangements;

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Provisions of the Bill …(3)

(c) that any person who, being associated with an educational institution or a foreign educational institution not being a foreign education provider which has not been recognized and notified under the proposed legislation,

offers or gives admission to any person as student or collects fee or awards any degree, diploma or publishes or releases any advertisement which is misleading or gives wrongful information or fails to publish disclosures as required under the proposed legislation,

shall be liable to a penalty of not less than ten lakh rupees which may extend to fifty lakh rupees in addition to refund of the fee and confiscation of any gains made out of it;

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Provisions of the Bill …(4)(d) that any foreign education provider, which has been

recognized and notified under the proposed legislation, who contravenes the provisions of clause 5 of the proposed legislation relating to

quality of programmes offered in India,

use of income from corpus fund, and investment of surplus in generated revenue or

the provisions of the University Grants Commission Act, 1956 ,

shall be liable to a penalty of not less than ten lakh rupees which may extend to fifty lakh rupees and the forfeiture of the corpus fund in whole or part thereof;

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Important Points of Note • “Any foreign varsity entering India will have to create a $12-

million corpus fund and profits will not be allowed to be expatriated to shareholders.” - Kapil Sibal, Minister for MHRD

• Many unresolved issues here, including who will be permitted, what affirmative action policies will be imposed, fee structures, urban-rural divide, repatriation of profits, and so on.

• It is unlikely that a private university will be free from any regulation on admission and fee.

• Setting up campuses in India may not be a commercially viable proposition

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Conclusion

• Higher education sector in India is in transition• New thinking and fresh opportunities are in the offing• Right time for institutions in UK to think of long-term

plans• Those with existing agreements and exchange

programmes may be at an advantage.• Mutually beneficial long-term relationships possible• Collaborative programmes with Indian universities may

be a good option.

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