EPG Economic and Strategy Consulting, 78 Pall Mall, London, SW1Y 5ES

www.economicpolicygroup.com

Recent changes in higher

education regulation in India28 September 2017, London

Pratik Dattani

Introduction

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• Current education regulation in India• How current education regulation allows tie-ups with foreign

institutions • Edtech regulation in India• A word on the internationalisation of Indian education• Future changes in the regulation of higher education

Indian higher education is undergoing some changes, which will hopefully make it easier for foreign universities to

collaborate

Introduction

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“The law is an ass”

- Mr Bumble in Charles Dickens’ Oliver

Twist (1838)

Current education regulation in India (I/II)

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“programs of education, research and training in engineering technology, architecture, town planning,

management, pharmacy and applied arts and crafts and such other programme or areas as the Central

Government may, in consultation with the Council, by notification in the Official Gazette, declare”.

Technical education

Some professional councils

e.g. Medical Council, Bar

Council, Pharmacy Council

Current education regulation in India (II/II)

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Higher education

UniversitiesDeemed

universitiesColleges

Change in regulation of Distance Education in 2013 – now under purview of UGC.

How current education regulation allows tie-ups with foreign

institutions (I/II)

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• Twinning: Study in India, and equivalent amount of study abroad – UGC (Promotion

and Maintenance of Standards of Academic Collaborations between Indian and

Foreign Educational Institutes) Regulations, 2012

Indian

education

entity

Foreign

education

entity

Student

Fees

Payment

for share

How current education regulation allows tie-ups with foreign

institutions (II/II)

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• Deeper collaboration: Need Indian institution with Grade B or above, 5 years of

experience of offering degree programs

• 100% FDI allowed in education under automatic route, but not in Society or Trust, so

has to be done through a for-profit Education Services Company

Indian

education

entity

Foreign

education

entity

Collaboration

agreement

Collaboration

MoU

Approved

education

entityApproval for MoU

Student

Fees

Edtech regulation in India

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• India does not have any specific law or regulation for regulating education offered

through online. However, it could be considered distance learning, depending on

how the course is structured.

• Potential Edtech models of engagement: offshore entity, Service Provider in India,

license arrangement in India, services arrangement in India

• Things to bear in mind: copyright, NDAs, IP license agreement, treatment of

goodwill, term of the license, algorithms not patentable in India.

Indian

entity

Foreign

entity

Learner

A word on the internationalisation of Indian education

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• Foreign students in India: 30,423. In China: 450,000 and growing at 10% yoy. The

number of foreign students in India fell last year. India has 0.63% foreign students.

• 81% of the foreign students in India are from Asia and Africa. Characteristics:

Disproportionately male (except NRIs), students don’t stay on for postgrad.

• In theory, according to the Association of Indian Universities:

• 75% of universities have an office to advise international students

• 62% try to market towards foreign students

• 26% use foreign consultants to recruit international students

• 39% have programmes geared towards international students

• In practice, rather different.

• UK universities can help Indian universities with internationalisation.

Future changes in the regulation of higher education (I/II)

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National Knowledge Commission in 2005 recommended establishment of Independent

Regulatory Authority for Higher Education (IRAHE)

Sought to replace the UGC, the AICTE and the NCTE.

Higher Education and Research (HER) Bill, 2011

Sought to establish National Commission for Higher Education and Research (NCHER) to

replace the UGC, the AICTE and the NCTE. Objectives were:

• Promote autonomy

• Specific requirements to award degree

• Norms for establishing and winding up education institutions

• Norms for academic quality

Foreign Education Institutions Bill, 2010

Sought to enable foreign universities to set up campuses. Characteristics to note:

• Foreign institution needed to maintain at least INR500m corpus

• Did not allow for repatriation of funds

• Requires institution to have track record of 20 years in home country

• Standing Committee on HRD said: independent regulator should monitor curriculum,

salary, fees etc, approvals given only on short-term basis first, government would need to

establish incentives for the surplus funds to be used within India

Future changes in the regulation of higher education (II/II)

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• MHRD ranking of Indian universities last year, best will get greater autonomy

• New Higher Education Empowerment Regulation Agency (HEERA) could be set up:

EPG Economic and Strategy Consulting, 78 Pall Mall, London, SW1Y 5ES

www.economicpolicygroup.com

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