The enactment of draft Foreign Education Bill will not only dramatically enhance profile of higher education in India but help it save outflow of about 7.5 billion of foreign exchange per annum as large number of Indian students go abroad to receiving higher education, reveal findings of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

With smooth passage of Foreign Education Bill in Parliament, foreign universities would be allowed to set up their campuses in the country which would be a step in the right direction.  This will also prevent brain drain as students that go overseas for higher education, usually prefer to serve overseas land rather than opt to return to their motherland which in itself is a great loss of human resources, feel the ASSOCHAM.




Releasing it’s findings, ASSOCHAM President, Dr. Swati Piramal said that Indian students going abroad, cost the country a foreign exchange outflow of $ 10 billion annually and a legislative framework to provide foreign universities to open their campuses in India could prevent at least 3/4 of students number as they would prefer to study here.

According to estimates made by ASSOCHAM, over 5 lakh students choose to go overseas every year to obtain higher education which include professional courses in engineering, medical and management.

The reason as to why large number of Indian students prefer to go to foreign universities is that such institutions in India have capacity constraints which deny them space.  Secondly, many abroad going students have a perception that foreign education is qualitatively superior that provides skills to help them find better placement.

The Bill after Parliament approval and with due assent from the President of India is expected to widen the definition of FDI in higher education and is anticipated to not only shake up the market but also open exciting possibilities for top teaching, said Dr. Piramal.

The ASSOCHAM is of the view that after foreign universities are allowed to open their campuses in India, it’s domestic higher education which currently is run on high subsidies would also be deregulated and fill-in a sense of greater competition, benefits of which would be ripened by these students.

Currently, higher education in India is so subsidized that on an average an engineering or management students in reputed institutions pay $ 120 per month as fee while the amount is between $ 1500-5000 in equivalent institutions in country like USA, Canada, Australia, Singapore and Britain.

A country like Australia earns nearly $ 15 billion annually from around 4 lakh foreign students while the number of foreign students that are currently receiving higher education in India is less than 30,000.  This is despite the Indian higher education is highly regulated and is also criticized for not imparting necessary skills as required by Indian industry to employ such students.

According to ASSOCHAM, the foreign universities have already put in place elaborate plans to set up their shops in India especially in places like New Delhi, Hyderabad, Chennai, Chandigarh, Pune, Mumbai and even Dehradun and are keenly waiting for this Bill to become an Act.

The ASSOCHAM has appealed the all political parties to extend their support to UPA government so that it’s smooth passage is ensured in the Parliament and education sector which is a key segment of Indian economy is also opened up for foreign direct investments.

The Bill which has already been cleared by the Cabinet has some cause of concern about provision which allows foreign education institutions to have their own admission processes and fix fees.  However, the law of land applicable to private institutions should be applicable to foreign universities aspiring to set up campuses in India, feels the ASSOCHAM.  Currently, the fee for private engineering and medical colleges is fixed by state level committee headed by a private Judge.  There is no mechanism to finalise the fee structure in private universities which the current Bill should ensure that the management of foreign universities do not exploit the Indian students and unnecessarily take advantage of free flow of education, said Dr. Piramal.




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