A proposed legislation that will allow foreign universities to set up campuses in India was recently cleared by a Group of Ministers (GoM). Once approved by the Cabinet and passed as law, the Foreign Education Providers (Regulation) Bill will grant deemed university status to such private institutions.

The proposal allows for the universities to set up campuses in India on their own and not by the franchisee route. Prior approval of the University Grants Commission and certification from the embassy of the country of its origin would be the prerequisites.

In an announcement, Commerce Minister Kamal Nath said: “A consensus has been achieved on the ingredients of the Bill. It looks into all aspects of education in India, and the need for quality education …… The intent is to create more educational opportunities. A number of safeguards will be incorporated, including government supervision.”

Earlier this year, the commerce ministry had come out with a 24-page document — Higher Education in India and GATS — supporting FDI in the sector. Commerce Secretary G K Pillai had then suggested that the idea was to evolve a consensus on opening up higher education to foreign investment, even 100 per cent FDI.

The primary motivator in this step was to reduce the annual outgo on education- currently amounting to approx. $4 bn, by allowing foreign institutions to set up shop in the country.