Business OpportunitiesEducation trend 2010: What lies ahead?
Last year saw some significant reforms in the education sector, ranging from scrapping of CBSE’s class X board exam to enacting of a law to make education a fundamental right of every child. This year however, say experts, the sector might see even more significant happenings. Business Standard lists some:
- 2009: A year of reforms in education - Thinking out of the cage - Companies may be allowed to set up universities - CBEC should make clarifications available to public - CBSE board exams from first working day of Mar "10 - CBSE to start teachers" training programme
Decision on Foreign Universities Bill
The Ministry of Human Resource Development (MHRD) is keen to introduce the Foreign Educational Institutions (Regulation of Entry and Operations, Maintenance of Quality and Prevention of Commercialisation) Bill, during the budget session of Parliament, scheduled to begin in February.
MHRD officials say the bill was to be examined by the cabinet and recommendations were to be proposed during the winter session of Parliament in December 2009. However, the cabinet is likely to examine the bill and propose recommendations in January.
The bill proposes to allow for 100 per cent foreign direct investment (FDI) in higher education. This, it is hoped, will help provide cheaper and better education, beside saving India billions of dollars in foreign exchange outgo. It also proposes to bring foreign education providers under the administrative umbrella of the University Grants Commission (UGC), which means the admission process and fee structure of these institutes will be regulated by the UGC. Educationists, however, say this should be allowed only if the institutes offer the same quality of education here as they do in their home countries. It is assumed that foreign universities would come in only if they are allowed to levy international fees and pay international salaries.
14 Innovation Universities
The Ministry of Human Resources Development plans to set up around 14 Innovation Universities. According to MHRD sources, Ivy League universities — Yale, Harvard, Princeton and MIT have volunteered to collaborate. The idea of Innovation Universities is developing a “brain gain” policy to attract talent from all over the world.
HRD Minister Kapil Sibal had, in August 2009, announced setting up of 14 Innovation Universities in the country under the Eleventh five-year plan.
The MHRD plans to draft a separate legislation to notify the formation of these universities, MHRD sources said. Sibal, during his visit to the US this October, had met with officials of Harvard, Yale and Massachusetts Institute of Technology and had discussed the prospects of setting up Innovation Universities in India along with partnership and collaboration with Indian institutions to push research and development. India and Singapore will also cooperate with each other in setting up the universities, Sibal had said earlier. Sam Pitroda who headed the National Knowledge Commission (NKC) is said to be drafting the details for establishing innovation universities. Pitroda will soon meet Prime Minister Manmohan Singh and discuss the matter. An announcement on the details of the universities could come up during the Republic Day ceremonies.
Private investment in the sector
Around 350 private equity funds are waiting to invest in the education sector in the country. Analysts say the PE funds are flush with cash but India lacks big investment opportunities due to lack of big universities or academic institutions. Thus, PE money is finding its way into the ancillary services in education like coaching classes and test preparation, pre-school education, vocational training and books. For example, in 2009 Mumbai-based Matrix Partners India invested Rs 100 crore in FIIT-JEE, an institution that trains students for IIT and All India engineering admission tests. Likewise, Career Launcher and Mahesh Tutorials have raised $10 to $12 million each a few months ago.