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The Foreign Educational Institutions Bill, 2010 : An Update. Faisal Beg, Trade Commissioner Canadian High Commission New Delhi, India. India: Education Market Overview. India's education system is among the largest in the world
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The Foreign Educational Institutions Bill, 2010 : An Update Faisal Beg, Trade Commissioner Canadian High Commission New Delhi, India
India: Education Market Overview India's education system is among the largest in the world - largest number of higher education institutions (over 18000) - third largest in terms of student enrolment -12.8 million (after US and China) - according to one estimate, India's education market size is worth US$50 billion- higher and professional education segment constitutes 40% of this market - significant growth in the past one decade ………….
….India: Education Market Overview . And yet gross enrolment ratio remains very low (12% which is less than half of world average) . Only a few higher education institutions are of global ranking (e.g, IISc, IITs, IIMs, etc) . A sizeable number of Indian students go overseas for higher education . Education spending going up significantly, especially for infrastructure development . Educational reforms underway -aims at creating a governance structure that can support the transformation process
Rationale for the Bill/Legislation . A number of foreign education institutions operating in India without a comprehensive/effective regulatory regime in place . At present only All India Council for Technical Education (AICTE) has notified regulation for FEPs . The new Bill aims at creating a regulatory regime which is transparent, can maintain standards and protect student interests . The Bill also aims at attracting FDI in education which can help bridge the infrastructure gap in education arena.
Key Features of the Bill . Government permission and notification mandatory for foreign educational institutions for offering education services in India and awarding degrees/diplomas/certificates, etc. . Such services can be offered through conventional method (including classroom teaching method but excluding distant mode) only, independently or in collaboration, partnership or in a twinning arrangement. . FEIs with a standing of at least 20 years to be eligible to apply ……………
……..Key Features of the Bill . University Grants Commission (or its successor) will act as the nodal agency for the approval/notification process. Also, the provisions of the UGC Act 1956 will apply to FEIs as they apply to any other university in India. . Programs offered in India ought to be consistent with the programs offered in home country in terms of quality, content, etc. . Undertaking to maintain a corpus fund of INR 500 million (C$11.34 million) -in effect a collateral.
…….Key Features of the Bill . Income generated out of the corpus can be ploughed back for development purposes up to 75%; the remainder has to be deposited with the corpus; no repatriation allowed. . Penal clauses on default (deposit money can be forfeited) . An Advisory Board created under the provisions of the Act can exempt a foreign institution on the basis of reputation from the above requirements (with a few exceptions).
………Key Features of the Bill . Existing FEIs also required to seek approval under the provisions of the new Act. . Adjudication by a National Education Tribunal (A Bill is pending approval of Parliament) . Time-bound approval process (though, can take up to one year)
Road Map and Prognosis • Year 2004 - Bill drafted on the basis of a position paper by GOI's Ministry of Commerce and Industry • Year 2005 - Draft Bill revised • Year 2007 - More revisions • 2007-2009 - No Progress due to lack of political support • April 2010 - A revised Bill approved by the Union Cabinet & Introduced in Lok Sabha (Lower House of Parliament)
…….Road Map and Prognosis • Sep 2010 - No progress made during Parliament's Monsoon Session (a related Bill, i.e. the National Education Tribunal Bill stalled in the Rajya Sabha -Parliament's Upper House- in the Monsoon Session; Bill subsequently withdrawn • Nov 2010 - Expected to get going during the winter session (No easy ride expected)
Key Concerns . Provisions of the proposed requirement for authorization for existing partnerships, etc and requirement of corpus money will have significant implications for partnership programs involving Canadian and Indian institutions. . Provisions of exemption on the basis of perceived reputation might create unequal operating conditions
……..Key Concerns . Passage of the Bill remains uncertain. Approval process, though time-bound, might still take up to one year; can cause frustrations to those institutions which have a definite entry plan for the Indian market. THANK YOU