FDI in Higher Education Presentation

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    PRESENTED BY:

    POONAM ILAG

    SHRADDHA JADHAV

    FDI IN HIGHEREDUCATION

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    HIGHER EDUCATION

    Education is included among the a basic needs of

    humans.

    Higher education has tremendous significance for

    developing countries like India.

    It enhances a countrys sustainability in an

    increasingly knowledge-based world economy.

    It has the potential to enhance economic growth

    and reduce poverty.

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    FDI

    Foreign Direct Investment

    At present India is allowing 100% FDI in higher

    education.

    The rise in the number of students studying

    abroad has resulted in excessive demand of FDI.

    The US, UK, Australia and New Zealand are the

    main beneficiaries (large exporters).

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    OBJECTIVES

    Need of FDI in higher education in India.

    Analyzing the role of regulatory bodies in inviting

    the foreign universities.

    To study the role in FDI in Indian higher

    education

    Impact of FDI in education sector in other

    countries.

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    STRUCTURE OF HIGHER EDUCATION

    India is the third largest higher education system in

    the system in the world (after China and the USA).

    In 2006, a report submitted by the National Instituteof Educational Planning and Administration warned

    against a commodification.

    India is home to the worlds biggest pool of scientific

    and knowledge workers, and as well as engineers.

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    Cont.

    India is the largest higher education system inthe world with 17973 institutions,348universities and 17625 colleges.

    Every year nearly 0.4 million Indians go abroadfor higher studies spending approximately $12bn.

    This leads to Brain Drain as most of themrarely comes back to India after completing theircourses.

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    Countries Percentage of students pereducational institution

    1. U.S. 82.4

    2. U.K. 60.1

    3. Philippines 31

    4. Malaysia 27

    5. China 13

    6. India 12

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    NEED FOR FDI IN HIGHER EDUCATION

    To solve the problem of enrollment rate.

    Indian money and talent going abroad will come in

    check.

    Infrastructure will improve.

    FDI in education would generate employment.

    Some new methods and technology will be used in

    teaching.

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    ARGUMENTS FOR PROMOTING FDI

    Increased Investment in HE leading to

    Increased Institutions

    Enhanced Access

    Opportunities of International Qualification

    Improved Infrastructure

    Technological Innovation

    Quality Improvements

    Research & Development

    Resource Use Efficiency

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    ARGUMENTS AGAINST PROMOTING FDI

    Cosmetic Curriculum Innovation with aggressive

    Marketing will mislead students.

    Vulgar use of Marketing Communication for 2nd or 3rd

    tier institutions.

    Create false impression of quality by increasing

    convenience and flexibility for students.

    Degrees awarded by foreign institutions by partnering

    with unapproved domestic institutions will not be

    recognized in India.

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    Cont

    Many of the programs offered by institutions are not

    recognized in their own countries.

    Students in pairing programs have not been able to

    obtain visas to study abroad at the Foreign partner's

    campus.

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    FEATURES OF FOREIGN EDUCATIONALINSTITUTIONS BILL

    Foreign institution can not provide degree to Indian

    student unless such institution is confirmed by Indian

    Government.

    At least twenty years of establishment in its own

    country.

    Have to maintain a fund of at least 500 million rupees.

    Quality of education, curriculum, the faculty employed

    will be in accordance to guidelines of UGC.

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    Cont

    70% of income raised from fund should have to be

    utilized in higher education only.

    Institution has to publish prospectus explaining all

    the details.

    In case of violation of any guidelines, a penalty

    along with tuition fees should be refunded to the

    student.

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    FINDINGS

    The primary reason for a large number of students

    seeking professional education abroad is lack of

    capacity in Indian Institution.

    FDI in higher education will solve the problem of

    enrollment rate as we are in a situation of less supply

    high demand.

    India may move towards practical study based learning

    rather than routine learning.

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    SUGGESTIONS

    Should monitor the quality of the

    programs.

    Revenue generated by foreign institutions

    should be invested in primary education so

    that the base will also get stronger.

    Alternate education must be promoted.

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    CONCLUSION

    Therefore we conclude that, provision of adequate

    infrastructure with more effective registration and

    certification systems, which will-

    prevent unapproved institutions from partnering,

    protect and inform consumers,

    enable good quality foreign institutions to enter the

    Indian market.

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    REFERENCES

    1. Meenal Lodha (2011), International Journal of Multidisciplinary

    Research Globalization of higher education through FDI: A step

    to be taken or not in india, Vol.1 Issue 3.

    2. N.S.Varghese (2009), Research paper by InternationalInstitute for Educational Planning, Globalization, economic crisis

    and national strategies for higher education development.

    3. Vijay Vir Singh (2010), FDI in Higher Education in India:

    Regulatory Bottlenecks and Options Investment & Economic

    Regulation.