Can India's plan to allow foreign university campuses help retain local talent, benefit education system?

High-school student Pratyush Taing once thought studying at a top international university would remain a pipe dream because of the costs involved, but India's recent proposal to allow foreign institutions to set up campuses in the country has revived his hopes.

"I am very excited. I am sure that a few top universities will want to come to India because of its human capital," Taing said.

Manya Lama, in her final year of high school, shared Taing's enthusiasm. "I think it's a great idea. The quality of education (at international universities) is certainly better," she said.

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The plan to allow foreign university campuses is part of efforts by Prime Minister Narendra Modi's government to turn India into a global education hub and strengthen its education system, while encouraging local students to remain in the country for further studies.

Only foreign universities placed in the top 500 of overall or subject-wise global rankings will be allowed to set up campuses in India within two years after receiving approval. They can offer degrees at various academic levels, but should ensure the standard of education offered is on a par with that in their country of origin.

The move is also expected to slash the cost of a degree programme and enable students in the country to get top-notch qualifications without having to travel.

Students only pay between US$200 and US$10,000 for state-run and private universities respectively; those looking to study at an elite US college, for example, are expected to fork out about US$50,000 for each academic year for a four-year programme, expenses which can slice off a huge chunk of savings for a middle-class Indian family.

India's education regulator, University Grants Commission (UGC), plans to allow foreign universities to recruit their own faculty and staff, and set the admission criteria and fees for both domestic and overseas students. Private Indian universities have the freedom to determine their own fee structure, while state-run institutions charge a fraction because they are subsidised by the government.

The draft policy regulations are expected to be finalised within weeks.

Experts, however, remain mixed on whether the move will strengthen India's education system. Some, like Prashant Bhalla, president of ManavRachna Educational Institutions, say the plan would create more opportunities for Indian students.

"This will give rise to healthy competition among Indian and to-be-established foreign universities in India. It will create options to help cope with the 'brain drain' concern that India is facing," he said.

According to Amitabh Kant, former CEO of government think tank Niti Aayog, Indian students will end up spending around US$80 billion annually in overseas education by 2024. Allowing foreign universities to set up a campus in India "is a highly welcome move", as it would help arrest the spending trend, he added.

Other academics, however, said it was a misstep.

"The [lower-ranked] universities might have an interest in setting up a campus in India" but top institutions would probably wait to gauge the experience of others before deciding whether to do the same, according to analysts.

"The real problem in India is that public universities need more vibrancy, autonomy and resources. Why not support them with more funding and resources, and give them more space and control? Education must be home grown and strengthened," said Upendra Baxi, emeritus professor of law at University of Warwick and also the former vice-chancellor of the universities of South Gujarat and Delhi.

India has over 40 million students enrolled across more than 1,000 universities and 42,000 colleges, and ranks among countries with the largest higher-education systems in the world. But its education system is not considered among the best.

A 2022 EY Report on higher education in India noted that the Indian Institutes of Technology and Indian Institute of Management - among the country's elite academies for engineering and management, respectively - "do not feature among the top institutions of global repute".

According to the report, academic curriculums in Indian institutes are considered to be lacking in practical industrial skills. The report called for Indian universities to close gaps between curriculum and industry needs, increase focus on research and explore opportunities for international partnerships.

India's higher education enrollment - calculated as a percentage of those eligible - stood at 27.4 per cent in 2017-18. It trailed China's 51 per cent and much of Europe and North America's 80 per cent, according to a report by NAFSA, a non-profit association of international educators.

"While we usher in quality higher education, we need to simultaneously ask how we are getting our kids ready for college," said Sandeep Rai, founder of The Circle, which helps create a network of innovative schools.

India has around 10 million teachers and 17,000 institutes for teacher training. Only 3.8 per cent of graduate teachers are able to pass a basic eligibility test, according to Rai.

Experts say India needs to bump education spending from the current 4 per cent of GDP to around 6 per cent to improve overall standards, with many state-run institutions having enough money to only pay teachers' salaries and administrative expenses.

It is not clear whether foreign universities have expressed any interest following India's policy shift. This Week in Asia reached out to six international universities, none of which said they planned to establish a campus in India.

Even if global universities do set up a base in India, some students say they would still study abroad for the overseas experience.

High-school student Yash Moitra, who has secured a scholarship in economics from a mid-tier US university and hopes to get into an elite institution for graduate studies in the US, said he was sceptical that top universities would come to India.

"It seems too good to be true. I would still prefer to study abroad," he said.

"We have read that Hilary Clinton is going to teach at Columbia University. If Columbia University sets up a Delhi campus, I would still like to go to New York because I would get to learn from such a faculty," he added.

Ramya Vishwanathan headed to the UK for his masters at Cambridge University after completing his undergraduate studies in India.

"I wanted the college experience and I wanted to work overseas," said Vishwanathan, who graduated in September and now works at London-based Stonehaven Consulting.

This article originally appeared on the South China Morning Post (SCMP).

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