Australia’s Deakin University became the first foreign university to have established its campus in India, marking the dawn of a new era in the history of Indian education. The move was lauded by Australia’s High Commissioner to India and as more than 3,500 expressions of interest were received for 100 seats, the move is already a hit. It is also an indication for all foreign universities of the demand for top global education in India. Here is a brief look at how this rule will affect the Indian education system.
The Change of Tide in the Education System
Liberalisation in the early 1990s set the tone and pace for the growth of the Indian economy. A similar trend is expected to transform the entire landscape as the higher education sector is opened up for foreign investments. As foreign universities are establishing their campuses in India, it will have a significant impact in realising India’s vision of becoming a developed country and a leading provider of human resources.
In time to come, Indian parents will have the option to choose between MIT Mumbai and Cambridge Chandigarh for their children’s education. This setup will be beneficial both for students and foreign universities dropping their anchor on Indian education. Indian students will benefit from access to top faculty, alumni benefits, and an envious lifelong tag. All this will be enjoyed at marked-down prices. On the other hand, foreign universities will reap benefits from large market size, permissions to set up ‘for-profit operations’, and flexibility in offering programmes.
How Does the Entry Permission Look Like
Foreign universities will have the option to establish a fully-owned campus or a joint venture with an existing educational institution in the country. No limits have been placed on the minimum amount of shareholding as a foreign investor. Since the majority of the expenditure is on having the infrastructure, including the land and the buildings, it is quite likely that the majority of the foreign institutions will enter the Indian market through joint ventures with an existing institution or a developer.
Entering a new market through joint ventures will reduce the risks and upfront costs. For Indian partners, this means a win-win situation as they join hands with the best education institutions and tap the for-profit business model.
Outcome of Opening the Doors of the Indian Education Sector
To say the least, it will have both positive and negative impacts on the Indian education sector. Indian students wishing to pursue quality higher and professional education will benefit immensely from the policy. There will be opportunities to conduct research and provide for gainful employment. However, institutions in India will have to gear up for a war.
It will increase competition among native institutions and foreign universities. There are two aspects to this, the first is the collaboration between the two institutions, Indian and foreign, in this case, both of them are set to gain from the collaboration. The Indian part will provide the infrastructure and the foreign part will provide the technical expertise offering world-class education. Unfortunately, not every Indian institution will be able to collaborate, so they will have to fight for students on their own.
Indian institutions that are not able to enter a collaboration will have to upgrade themselves and attain the level that is provided through foreign collaboration. Those who will be able to do that will survive and stay in the competition, but those who will not be able to compete will perish, ultimately. In this changing scenario, the only party who is set to gain are the students, as the only option they will be left with is top-quality world-class education.
The fight will not be just between those in joint ventures vs those who are not, but between government universities and private universities. Public institutions will also have to upgrade themselves for there will be a limit to the aid they can have. A point of consideration is affordability since not every student will have the financial means to enrol on the Indian campus of a foreign university, so it will increase the gap between those who can financially access top-quality education and those who cannot.
The Dream of Living and Studying in a Foreign Land
The initial success of new educational setups by foreign universities does not ensure that they will capture the entire market. They should be aware of people whose purpose in pursuing education overseas is to ultimately settle down in a foreign land. This clan of people will not be interested in enrolling in the local campus of a foreign university. The biggest attraction is the facility to work while you are studying and the opportunity to earn in foreign currency. This means foreign institutions coming here will still be required to fight for students.
Presently, some developed countries are vouching that international students should return to their home country once their education is complete. By establishing their campus in India they will try to solve this problem of theirs. These countries will not have to worry about developing housing infrastructure or providing other commodities as the number of international students increases in their countries.
Affect on the Labour Market for Developed Countries
A point to be noted here is that developed economies like Canada, Australia, the US, the UK, and others promote education exports to overcome labour shortages. Time and again these economies have faced the need for qualified professionals who can contribute to the growth of the economy. Now, if these economies encourage their institutions to set up campuses in India it may impact the flow of international students to these countries.
Somehow, down the line, these economies will not go full-fledged in setting up their campuses in India, because it will have a long-term economic impact. This concern is not without examples as education export was used as a means to recover from the post-pandemic economic slowdown. In all probability, these economies will not turn their back on this fact. If you are planning to study at an overseas university, prepare well to apply for a study visa by talking to overseas education consultants in Chandigarh.
The Way Forward
The advent of foreign universities on Indian land is like a new craze and even as the latest setups have tasted success, it is just a battle won. There are both pros and cons for overseas institutions planning to capture the Indian market. Fortunately, there are only positives for Indian students as they pursue the world’s best education not only overseas but also in their home country.
