What are the regulations announced for foreign universities in India?

Does this mean that universities like Oxford, Cambridge, or Harvard can now open campuses in India?

Technically, yes. But it will ultimately depend on whether those universities find the Indian market attractive enough to invest in a branch campus in the country.

The UGC has said that universities in some European countries have shown a “keen interest” in setting up India campuses. Over the next few months, the UGC will reach out to Indian missions abroad to take the proposal forward, and will hold talks with ambassadors of various countries to apprise them of the regulations.

In response to an email on Thursday, a spokesperson for the University of Birmingham told The Indian Express that while the university does not currently plan to open a branch campus in India, “We are always open to opportunities for partnership working.”

“We would also point Indian students towards the excellent study opportunities available at the University of Birmingham in both the UK and Dubai,” the spokesperson said.

In September 2022, responding to a question on whether its planned to establish a campus in India or launch courses in collaboration with Indian universities, the University of Oxford had told The Indian Express by email: “We have no plans for an overseas campus and are not in discussion regarding joint/ dual degrees or twinning programmes.”

Responding to the same question in September last year, King’s College London had said it had signed a Memorandum of Understanding with the government of Telangana regarding “collaborative research projects, staff and student exchanges, as well as curriculum development and upskilling” in Telangana Pharma City.

What criteria has the government laid down for foreign universities?

In the draft regulations announced by chairperson Dr M Jagadesh Kumar on Thursday, the UGC said universities that are placed in the top 500 — either in the overall or the subject-wise category — in global rankings such as QS, can apply to enter India.

Universities that do not participate in such rankings must be “reputed” in their countries to be able to apply. The draft regulations do not specify a metric to judge the ‘reputation’ of the university.

Highlights of UGC’s draft

Will the government regulate the fee structure of foreign educational institutions in India?

No, the government will have no say in this matter. The foreign universities will have full freedom to decide the fee structure and admission criteria for both Indian and overseas students.

They will also get a free hand in hiring faculty, either from India or abroad, and will not be expected to mandatorily follow reservation policies in admissions and employment.

However, the draft regulations do say that the fee structure should be “transparent and reasonable”. Dr Kumar said the universities were unlikely to make their fees prohibitive, as that would deter students. “Based on an evaluation process, full or partial need-based scholarships may be provided by the FHEI (foreign higher educational institution) from funds such as endowment funds, alumni donations, tuition revenues, and other sources,” the draft regulations say.

Why did previous attempts to allow foreign university campuses in India fail?

The coalition governments that ran India for many years up to 2014, faced several pulls and pressures. The left parties, which have strong ideological and economic reservations against the entry of foreign capital in higher education, had a much larger electoral presence in national politics during this period.

The BJP, which was in the Opposition then, too had opposed the move. The RSS-affiliated Swadeshi Jagran Manch adopted a resolution against the UPA government’s Foreign Educational Institution Regulation Bill, saying it would “open floodgates for such foreign educational institutions whose sole objective is to only earn profit”.

Despite enjoying a formidable majority in Lok Sabha and governments in many states, the BJP-led Centre even now has chosen the regulatory route rather than legislation for this reform.

Also, it is only now that the UGC has proposed that foreign universities will be allowed to repatriate funds to their parent campuses. This was not the case earlier — and most foreign players found this requirement restrictive.

However, as India looked to set up IIT campuses abroad, there was a rethink in this position. In 2016, the NITI Aayog strongly pitched for foreign education providers to be allowed into India. The draft regulations say that all cross-border flow of funds, including through repatriation, will be covered by the Foreign Exchange Management Act, 1999.

How does this proposal relate to the National Education Policy (NEP), 2020?

The NEP, 2020, says that “top universities in the world will be facilitated to operate in India”, and “a legislative framework facilitating such entry will be put in place, and such universities will be given special dispensation regarding regulatory, governance, and content norms on par with other autonomous institutions of India”.

In a way, the draft regulations released on Thursday only seek to institutionalise the NEP’s vision.

What safeguards has the UGC proposed to secure the interests of Indian students?

The draft states that the UGC will have the right to inspect the campuses at any time. Dr Kumar said that they will not be outside the purview of anti-ragging and other criminal laws. The draft says the UGC shall impose a penalty and/ or suspend/ withdraw its approval at any time if the university’s “activities or academic programmes are against the interest of India”.

Asked whether the clause leaves room for misuse, the UGC chairman said that in the unlikely event of such an occasion arising, aggrieved parties could always seek legal recourse.

The draft regulations also require the foreign universities to submit audit reports and annual reports to the UGC “certifying that [their] operations…in India are in compliance with FEMA 1999” and other relevant government policies.