Foreign Universities coming to India?
India has long been a victim of brain drain, with indigenous whiz kids packing off to foreign universities, and never returning. Around 150,000 students are currently studying in the U.S., Britain, Australia, and elsewhere. An additional 100,000 depart every year to pursue foreign degrees.
Arguing that a fast-track economy such as India’s needs a deep pool of skilled managers to secure its economic future, the Manmohan Singh government is trying to open up the country’s heavily regulated educational system to foreign direct investment, reported the Businessweek.
There are fissures in the government on the issue though. While Commerce Secretary Gopal Krishna Pillai told reporters last month, “If they are allowed to set up shop in our country, this money can be saved,” the Union Human Resource Development Ministry, which has a big say in national educational policy, isn’t thrilled by the idea. Add to that the issue of whether the quota system would apply to overseas schools entering the market, and the scene becomes quite muddy.
In the midst of concerns about the quality of Indian students emerging from the domestic higher education system-A study last year by McKinsey concluded that only 25 percent of India-trained engineers and 15 percent of the system’s finance and accounting professionals had the skill set to work for a multinational company-the view to allow foreign universities to set up shop in India is fast gaining ground.
“With our rigid boundaries in education, we are losing out enormously in a changing environment,” says Indira Parekh, president of a soon-to-be-launched group called the Foundation for Liberal & Management Education in Pune. Moreover, with McKinsey Nasscom estimates of India having the potential to grab 50 percent of the estimated $110 billion global outsourcing market expected by 2010, the issue of a quality workforce assumes primary importance.
Presently, India’s educational system in rural areas is in desperate need of investment. Nationwide, only 15 percent of the 200 million-plus student population makes it to high school, and only half those students actually graduate.
Recognizing India’s potential as the third biggest educational market in terms of enrollment behind China and the U.S., many foreign universities have shown interest in the country. “If the students can’t move to the schools, the schools will move to the students,” says Subir Gokarn, chief economist at India’s largest rating agency, Crisil.
A few foreign schools, in fact, have already started setting up field offices and research centers to explore the possibilities of bigger investment down the road. The Indian School of Business in the southern state of Hyderabad was set up in 2001 in association with Kellogg, Wharton, and London Business School for managerial training. The University of Michigan’s business school also opened an economic research center in Bangalore two years ago.
It’s a tough question as to whether foreign universities be allowed to take the next step and set up campuses in the country. A lot depends on whether New Delhi removes the regulations standing in the way.
I would like to see a continuation of the topic
Maximus
December 20, 2007
Being the Economics professor for the management students, my experience says that there exist a tremendous gap between the skill required in the corporate world and the kind of education imparted by the present system. In such scenario, the MNCs themselves will take a lead to get the quality education in India in some form or other. University status, affiliations hardly matter for the corporates so long as the quality output is delivered.
“Demand will create it’s own supply”
Ms. Rama
March 9, 2008