Mozammil Ahmad* and Ananya Roshyan**

The Indian higher education sector has undergone transformative measures with the introduction of regulations by the University Grants Commission (UGC) to establish India as a global education hub. This article examines these measures’ regulatory nuances and potential implications for stakeholders. It highlights the progress made through the UGC regulations, such as the 2016 Regulations and the recently introduced 2022 and 2023 Regulations. These regulations aim to ensure quality education, promote collaborations, and protect national interests while facilitating partnerships with top-ranked foreign institutions. The article also emphasises the need for a balance between academic autonomy and safeguarding national interests.

Introduction

Education, an engine for personal growth and national development, has witnessed transformative measures from regulatory bodies and the government. The draft Regulations introduced by the UGC aimed to establish India as an accessible global education hub. However, a crucial question emerges: Do these regulations adequately address the diverse aspirations of Indian students seeking international education, considering the nuanced regulatory and policy landscape? Simultaneously, the government’s approval for foreign universities to establish campuses within India’s borders introduces a new paradigm of interdisciplinary research and global collaboration.

A closer look at these regulations and their functionalities is relevant in light of recent developments. India has granted approval to two Australian Universities – Deakin University and the University of Wollongong, to establish offshore campuses in Gujarat International Finance Tec-City (GIFT) City. This represents a significant stride towards expanding educational opportunities in India.

Moreover, India’s Foreign Direct Investment (FDI) Policy allows 100% FDI in the education sector through the automatic route, meaning that no prior approval is needed from the Reserve Bank of India or the Government of India. This makes India a desirable destination for foreign institutes looking to establish an offshore campus. Also, it is important to note that India’s education market is rapidly growing and is expected to reach $313 billion by 2023.

This article offers an in-depth examination of India’s evolving regulatory landscape concerning integrating foreign educational institutions into its higher education system. It first traces the regulatory journey from the initial 2016 guidelines to the most recent 2022 and 2023 regulations, scrutinizes key facets of these regulations, discusses their evolution over time, and identifies critical gaps within the current framework. Next, the article explores seven crucial issues, including the balance between national interests and academic autonomy, contradictions in the regulations, financial accessibility, the shift toward collaborative partnerships, eligibility criteria, streamlined approval processes, and the need for clarity regarding dual regulations. Ultimately it underscores the necessity of a comprehensive and adaptable approach to facilitate the growth of India as a global education hub while addressing these pressing concerns.

Evolving Regulatory Landscape

To begin with, it is important to take note of The Yash Pal Committee Report (2009),which advocated for Indian universities to embrace foreign university collaborations. These partnerships would empower institutions with autonomy, funding, and quality enhancements. By leveraging global expertise, India can drive research, innovation, and global competitiveness in higher education. 

The first initiative taken by the Indian government in this direction was the Foreign Educational Institutions Bill, introduced in 2010, aimed to regulate the entry and operations of foreign educational institutions in India. The bill required foreign institutions to maintain a minimum corpus fund of Rs 50 crore, with a significant portion dedicated to development. However, the bill lapsed in 2014 without being enacted into law, leaving its potential untapped.

Post the failure of this initiative, the UGC came with the University Grants Commission (Promotion and Maintenance of Standards of Academic Collaboration between Indian and Foreign Educational Institutions) Regulations, 2016(hereinafter 2016 Regulations) which introduced the collaboration between Indian and foreign educational institutions. These regulations aimed at ensuring quality education for students and maintaining academic standards. They outlined eligibility criteria for foreign institutions, established an approval process, and prohibited programs that threatened national security and integrity. 

The National Education Policy was revised in the year 2020 in view of 2016 regulations. The new policy aims to transform India’s education system by focusing on key issues. It emphasises early childhood care, multilingualism, a 5+3+3+4 curriculum structure, holistic development, vocational training, digital literacy, teacher training, technology integration, flexible learning, and inclusive education to promote equity and quality education. The selected universities, e.g., those from among the top 100 universities in the world, would be facilitated to operate in India.

Building upon these regulations, the UGC introduced new regulations – University Grants Commission (Academic Collaboration between Indian and Foreign Higher Educational Institutions to offer Twinning, Joint Degree and Dual Degree Programmes) Regulations, 2022 (hereinafter 2022 Regulations). The regulations expanded collaborative possibilities by introducing specific programs such as twinning, joint degree, and dual degree programs. Eligibility criteria were strengthened, requiring foreign institutions to rank globally within the top 500. The regulations emphasised protecting national interests and maintaining higher education standards while facilitating collaborations.

In 2023, UGC recently brought about the University Grants Commission (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023 (hereinafter 2023 Regulations) to further enhance academic collaborations. The eligibility criteria were further strengthened, mandating that foreign universities be ranked within the top 500 globally. The regulations give autonomy to the institutions in the educational realm. However, the autonomy is qualified by the condition that no course offered by universities should endanger India’s national interest or the standards of higher education, neither should the operation of any foreign institution be contrary to the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency, or morality. These provisions are a substantiated version of what was incorporated in the 2016 regulations.

The proposed regulations propose a structured approval process similar to the 2022 regulations, promoting transparency and quality control, with an aim to facilitate collaboration while preserving credibility and standard of higher education.

By ensuring that collaborations do not compromise on these crucial aspects, the UGC is taking a proactive stance in maintaining the sanctity of the Indian higher education system. The UGC’s initiatives reflect a forward-thinking mindset that seeks to provide students with diverse learning experiences while safeguarding the nation’s interests. By partnering with top-ranked foreign institutions, Indian universities can enhance their research capabilities, offer globally competitive programs, and attract international talent.

However, uncertainties surrounding the policies governing the establishment of foreign universities in India raise important questions about striking a balance between protecting national interests and maintaining academic autonomy.

Challenges

The 2023 regulations are a leap from the 2016 regulations. However, they still lack clarity in certain respects and might pose certain challenges in the process of implementation. Some of these challenges are:

1. Evolving Emphasis on Protecting National Interest:

As per Section 3(3)(b) of the 2016 regulation, programs compromising national security and territorial integrity are prohibited. The 2023 draft regulations, specifically Section 7.8, expand this to include programs that jeopardise national interest and higher education standards. Section 7.9 mandates that foreign institutions operate in line with India’s sovereignty, integrity, security, foreign relations, public order, decency, and morality. 

Though aimed at safeguarding, these broad provisions may be seen as restrictive and potentially limit academic freedom. While foreign institutions are promised autonomy in academic, administrative, and financial matters, this assurance is weakened by the condition that they must adhere to the regulations prescribed by the UGC and the Indian government. Moreover, the provision prohibiting actions conflicting with India’s sovereignty, integrity, security, foreign relations, public order, decency, or morality may discourage top-tier universities that strongly value their academic independence.

To strike this balance effectively, engaging in open dialogues with foreign institutions, understanding their concerns, and addressing them through transparent policies is imperative. Establishing clear regulations that provide flexibility within the regulatory framework and allow for meaningful academic partnerships can enhance the reputation and global competitiveness of Indian higher education.

2. Navigating Contradictions: Unraveling the Duality of the Draft 2023 Regulations

The recent 2023 draft regulations emphasise the need for foreign educational institutions in India to provide education of the same quality as their main campuses. However, achieving this quality parity may require higher operational expenses, increasing students’ financial burden. This raises concerns about accessibility and affordability, potentially hindering student access to education. 

Further, the “decoy effect” also plays a significant role here and influences the decisions made by the students while choosing an institution. Decoy effect refers to a cognitive bias which is created when a third option is presented to the consumers such that it is superior to Option No. 1 but slightly inferior to Option No. 2. In the present case, this bias would influence the students to prefer studying at prestigious institutions abroad, even if it means paying slightly more.

Balancing cost, perceived value and student decision-making becomes crucial in striving for quality parity. While achieving quality education is commendable, addressing the complexities and contradictions within the provision is essential. Resolving the tension between operational expenses, student affordability, and the appeal of studying at renowned overseas campuses is paramount.

3. Evolving Partnerships: The Transition from Academic Collaboration to Joint, Dual, and Twinning Programmes

While navigating these contradictions, it is essential to acknowledge the evolving nature of partnerships between Indian and foreign institutions. The 2022 regulations, building upon previous regulations from 2016, focus on joint degrees, dual degrees, and twinning programs, aiming to encourage partnerships and reduce the need for students to study abroad. By compressing the total expenditure for foreign programs into a shorter period, these collaborations may offer a more cost-effective option. 

The UGC’s efforts reflect a strategic approach to enhance educational opportunities and address the financial burdens of studying abroad, benefiting both students and institutions. Embracing evolving partnerships opens up avenues for knowledge exchange, research collaborations, and cross-cultural experiences. It enables Indian institutions to tap into the expertise of global institutions while retaining their unique identity and catering to local needs.

4. Setting the Bar: Evolving Eligibility Criteria for Academic Collaborations

Although the 2016 regulations lacked specific eligibility criteria, they served as an initial framework for collaboration. While they aimed to ensure quality education and maintain academic standards, the absence of clear regulations for foreign institutions seeking collaboration left room for ambiguity. Recognizing this gap, the 2022 regulations introduced eligibility criteria, requiring foreign institutions to be ranked within the top 1000 of renowned global university rankings. This step forward provided a benchmark for assessing foreign institutions’ reputations and encouraged collaborations with established universities. 

Looking ahead to the proposed 2023 regulations, it is evident that the bar for collaboration is set to be raised even higher. The draft regulations mandate that foreign higher education institutions (FHEIs) seeking partnerships in India must now be among the top 500 globally. While aiming to ensure collaborations with prestigious institutions, this move also narrows down the eligibility pool. It may limit opportunities for partnerships with institutions that fall slightly below the top 500 but still offer valuable academic resources and expertise even though India is the second largest market for e-learning and has attracted 100% foreign direct investment (FDI) in the education sector. 

The single window clearance policy should be implemented for foreign education providers. The host country seeks to attract foreign education providers and encourage international collaboration in the education sector by adopting a single window clearance policy. This policy simplifies administrative procedures, reduces bureaucratic hurdles, and promotes a more conducive environment for foreign institutions to set up campuses or offer programs. Striking a balance between reputation and inclusivity is crucial to foster diverse collaborations and catering to the evolving educational needs in India.

5. Streamlining the Path: Enhancing the Approval Process for Academic Collaborations

The process of obtaining approval has also undergone significant change with each passing regulation. The 2016 regulations which for the first time formalised the idea of collaboration between Indian and Foreign educational institutions, required Indian Higher Educational Institutions (IHEIs) to obtain approval from UGC prior to any collaboration. The power vested with UGC in this regard was very subjective. The regulations did not specify any approval that the FHEIs had to seek.

Moving forward, the 2022 regulations did away with the requirement for IHEIs to obtain approval from UGC and have made the process of collaboration easier by prescribing for approval from the appropriate authority of IHEI such as the Board of Governors/Board of Management/Syndicate/Executive Council for academic collaboration with any Foreign Higher Educational Institution.

The proposed 2023 regulations have taken a significantly different approach from the earlier two regulations and have prescribed that all the FHEIs meeting the eligibility criteria must apply online to the UGC, providing relevant documents, and a standing committee assesses the applications.

However, as with any regulatory framework, it is essential to consider the potential challenges and areas for improvement. The standing committee’s role in assessing applications raises concerns regarding subjective discretion and possible biases. Establishing clear evaluation criteria to guide the committee’s decision-making process is crucial to ensuring consistency and fairness. Furthermore, ongoing consultations with relevant stakeholders, such as academic experts and industry leaders, are necessary to refine the approval process. Incorporating their perspectives can provide valuable insights and help address any shortcomings or gaps in the regulations. A collaborative and inclusive approach will lead to a more comprehensive and practical framework.

6. From the Pinnacle to the Periphery: Analysing the Deviation of Universities from the Top 100 to 500

In the NEP 2020, Section 12.8 stated the facilitation of foreign universities from the top 100 rankings. UGC regulation 2022, Section 5(1), required foreign universities to be within the top 500 rankings in the QS World Universities. The Draft UGC regulations of 2023, Section 3(3.1), also emphasised the top 500 requirements for overall or subject-wise global rankings. The draft regulations prioritise the reputation of educational institutions in their home country, relying on the standing committee for unbiased evaluation. 

However, this approach raises concerns about subjective discretion and the potential influx of lower-quality institutions. Expanding eligibility criteria may pose risks by allowing institutions that could harm the education system. This may be restrictive in terms of the wide scope it provides for undermining academic freedom. 

Earlier regulations released by the Government (October 2022) regarding establishing campuses by Foreign Universities in the GIFT City (Gandhinagar) were exempted from the regulations set by the UGC. Therefore, the applicability of UGC regulations on the foreign universities establishing their campus in the GIFT City is still a grey area

In order to avoid ambiguity, the government must release a notification clarifying the applicability of these regulations in the universities to be established in the GIFT city.

Conclusion

Resolving the intricacies surrounding India’s evolving higher education regulations necessitates a collaborative approach. The government, the University Grants Commission (UGC), academic experts, and pertinent stakeholders must engage in meaningful discussions and consultations to identify and rectify regulatory ambiguities. Open dialogue and the exchange of perspectives will bridge gaps and create a more robust regulatory framework.

Moreover, it is essential to ensure that the regulations cater to the diverse needs of Indian universities. Clear guidelines regarding the application of components like the academic bank of credits, the multiple entry and exit system, and online delivery percentages will enable institutions to embrace innovative educational approaches. Additionally, addressing admissions reservations, crucial for inclusivity and equal opportunities, should be explicit within the regulations.

The government’s focus should be on regulatory development and public policy measures that encourage foreign universities to establish campuses in India. Today, just two foreign universities are opening campuses in India, limited to the Gift City. However, tomorrow, there could be many more. A streamlined single-window approval process and a holistic environment have to be created to facilitate this expansion. By addressing these concerns and constructing a robust regulatory framework, India can enhance its appeal to foreign institutions, fostering global collaborations and emerging as a prominent global education hub. This comprehensive, inclusive, and adaptable approach will set the stage for a brighter future in higher education for India.

*Mozammil Ahmad is a Lawyer with a reputed law firm based out of New Delhi in India. He completed LL.B. from Campus Law Centre, University of Delhi, in 2021.

**Ananya Roshyan is a 4th-year law student from the O.P Jindal Global University, India.