Foreign colleges inch closer to India

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The union cabinet last month approved the Foreign Educational Institution (Regulation of Entry and Operation) Bill, 2010, paving the way for foreign universities to set up fully fledged operations in India. The bill, which will regulate the entry and operation of foreign educational institutions offering college degrees, is expected to be brought before parliament shortly.

Although 100% foreign direct investment through the automatic route has been permitted in India’s education sector since 2000, the current legal framework in the country does not allow foreign educational institutions to grant degrees.

GraduatesThe Indian education sector is largely untapped by foreign entities and only a few distance learning and other similar collaborations currently exist. “It is estimated that nearly 150 foreign institutes offer courses with Indian varsities under a twinning arrangement, i.e. a part of the course in India and the remaining abroad, but most of them do not have all the required accreditation they need from regulatory bodies,” Seema Jhingan, a partner at LexCounsel, told India Business Law Journal.

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