The Indian education sector, especially universities, is likely to attract investors from the UAE.
After the Indian Government announced plans to open up the Indian higher education sector, especially its universities, for foreign direct investment, a number of Non-Resident Indian business groups and local businesses are showing interest in Indian educational projects. Leading Indian businessmen in the UAE have welcomed the move.
Ram Buxani, prominent NRI businessman and President of ITL Cosmos Group who has campaigned for opening up the Indian education sector for foreign investment, especially NRI investment, said even in Western universities most of the students and faculty are Indians.
"By opening the higher education sector for foreign investment, we will be stopping the drainage of huge foreign exchange and protecting our heritage and culture. In US universities, Indian students are learning American history and develop foreign values. By allowing Indian universities with foreign investment, we are going to export Indian values and heritage."
"It is a welcome step, which should have come decades ago. I made a representation several years ago to the Federation of Indian Chamber of Commerce and Industry to open up Indian higher education sector for foreign investors." He said a number of NRI investors will be keen to enter the Indian higher education sector.
Sunny Varkey, Chairman, Global Education Management Systems (Gems), said: "The move to open up higher education and universities to foreign direct investment is a very good step and I believe not only investors from the UAE but also other parts of the world will be looking curiously at India."
He said the move will help improve the quality of higher education in India and the government should do the same thing with the primary classes. Sunny said the company currently runs many schools in India and their business partners in the UAE may participate in future Indian projects.
A major private equity partner from the UAE, which is part of the Varkey Group, may also participate in the Indian education projects, Varkey said. Earlier reports suggested that the Dubai-based Gems Education was planning to open 100 new schools in India.
Professor TP Ghosh, of the Institute of Management Technology, Dubai, and an education expert, said: "It is likely that many foreign universities will start projects in India. I believe the UAE investors will also be keen to enter the Indian higher education field. There could be more partnership in the education field."
Bharat Shah, prominent Indian businessman and member of the Indian Business and Professional Council, said: "Many NRI investors from the UAE are keen to start universities and colleges in India. In the current global situation, Indian students in Australia and other foreign countries are not safe and NRIs and foreign investors can build good universities in India."
He said if the Indian Government is serious about attracting foreign investors to the education sector, it is a good step. However, if the government is going to insist on giving 30 per cent seat reservation, it will not suit NRI investors. He said India and China are the best investment destinations and NRIs in the UAE will grab the investment opportunities in Indian universities.
The National Knowledge Commission of India said more than 160,000 Indian students are currently attending colleges and universities abroad, spending roughly $4 billion (Dh14.6bn) annually.
More than 76,000 of the estimated 580,000 foreign nationals studying at the university level in the United States are Indian.
India has over 400 universities and nearly 21,000 colleges serving the current student base. In order to achieve its target of 21 million students annually going for higher education by 2012, India needs to invest huge amounts on its higher education infrastructure.
Many of the foreign universities – California State University, Long Beach; Cornell University, Rice University, Champlain College, Columbia University, Carnegie Mellon University, Georgia Institute of Technology and Ohio University – have started their fully owned operations in India or are planning partnerships with other universities. Education industry sources say that some of the American universities, which are present in the Middle East, may expand their operations to India now.
According to one report, student enrolments in India have grown to more than 12 million from just 100,000 in 1947. There are a whole new class of education providers, including private institutes, distance education providers, self-financing courses in public institutions and foreign education providers.
India has the third largest higher education system in the world (after China and the US) in terms of enrolment – more than 10 million per year. In terms of the number of institutions, India has the largest higher education system in the world with 17,973 institutions (348 universities and 17,625 colleges).
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