The Hindu Business Line : More study needed on foreign universities in India

Recently, a team of university presidents from the US visited India to sell Brand USA in education. Further, the government is in the process of setting up an expert committee to lay down the standards and procedures to be followed for screening applications from foreign universities that want to establish independent campuses in India.

For quite some time now, foreign universities have been trying to attract students from India to study. As the universities of the West increasingly felt the pinch in government grants, they had to look for additional sources of revenue, and admitting foreign students at full fees became an attractive option. Many Indian students took this route to get a foreign degree and that was a passport to a job abroad. Even youth from not so affluent families joined in the migration as banks were willing to provide education loans liberally and at competitive rates.

Not a new concept

There are some Indians who baulk at the idea of allowing foreign investment in Indian education but they forget that globalisation in education is not a new concept in India. India boasts of Nalanda as having been a great seat of higher education, which attracted students from all parts of the globe.

Over time the wheel turned. During the British Raj, many Indian students went to universities in the UK. Post-Independence, the flow of Indian students turned more towards the US.

A new phase is also about to start when, along with Indian students going to foreign campuses, foreign universities are looking to open campuses here.

What are the likely consequences of this initiative?

One, India will have to open up its education sector to foreign investment as part of its World Trade Organisation commitment. Foreign universities are looking for new markets as well as inexpensive locations and India fits the bill perfectly. Many Indian students and their parents are willing to spend huge sums of money for a degree from a university with good brand value.

Indian companies wishing to spread their wings abroad are also keen to have their managers trained by institutes with a global focus. There are not many such universities or institutes of higher education in India, and foreign universities seek to fill this gap. Indian students are also benefited, as foreign degrees will become affordable in campuses in India.

The cost of setting up and running campuses in India with good infrastructure and facilities would be considerably less than it would be in any western country. So, it would be a win-win for foreign universities.

According to the National Knowledge Commission estimates, Indian students studying abroad spend about $4 billion every year.

Not comparable

Though the low cost may make the foreign universities more accessible, the question about replicating the home-country experience remains. For, a Harvard or an MIT is what it is because of its ability to attract high-quality faculty and students and the continuing interaction between them. Getting a few professors from such places on temporary teaching assignments in India cannot provide the same learning environment. So, students, if given a choice, would still want to go to Harvard or MIT in the US rather than to the Indian campuses.

Some of the major benefits may come through the effect of competition. As Indian universities would face stronger competition from foreign universities, they will be forced to improve the quality of education they provide. Many would seek to collaborate with foreign universities to improve their image and product quality. Foreign universities would also find this advantageous as they will have access to already existing physical infrastructure, faculty and support staff. The exchange of faculty and students between the foreign and the Indian campuses would promote collaborative research activities and offer faculty and students an exposure to different environments which is very essential to succeed in today's fast-integrating world. But even with reputed foreign universities opening campuses, India may not attract too many foreign students because of the disadvantages vis-à-vis food, language, climate, and social life.

So, many foreign students (especially from China, South-East Asia and Africa) may prefer Singapore or Australia to India.

Thus, even if foreign universities are allowed to set up shop in India, the migration of students from India will not stop as the quality and the global market value of a degree obtained from a US campus would typically be higher than one obtained at an Indian campus.

However, more Indian students would get access to quality education at a reasonable cost. The quality of education in Indian universities would improve.

(The author is a former Professor of Economics, IIM Calcutta. He can be reached at alokray15@yahoo.com)