The University Grants Commission (UGC) notified the final regulations that will allow foreign universities to set up campuses in India with complete autonomy to decide their admission processes and fee structure, even as the commission itself will retain the power to keep a close watch on the operations of these universities. The entry of foreign varsities is expected to provide more opportunities to Indian students and increase the depth of the higher-education sector in India. In turn, the universities will be able to tap into a huge and expanding market in one of the fastest-growing major economies of the world. A draft of the UGC (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023, was released by the Commission in January this year. The guidelines have been prepared in line with the National Education Policy (NEP) 2020 that envisioned that “top universities in the world will be facilitated to operate in India”.
According to the final guidelines, no Foreign Higher Educational Institutions (FHEIs) can set up campuses in India without UGC’s approval and, at the time of application, should have secured a position in the top 500 in the overall category of global rankings as well as subject-wise category of global rankings put out by the UGC. “In the case of two or more than two Foreign Higher Educational Institutions intending to collaborate to establish campuses in India, each Foreign Higher Educational Institution should meet the eligibility criteria”, according to the final guidelines. The guidelines allow the FHEIs to decide their fee structure and suggest they provide “free concession” to Indian citizens. Based on an evaluation process, they may also provide full or partial merit or need scholarships from endowment funds, alumni donations, tuition revenues, and other sources.
FHEIs have the autonomy to recruit faculty and staff from India and abroad according to their own recruitment norms, including qualifications, salary structure, and other conditions of service. “However, the Foreign Higher Educational Institution shall ensure that the qualifications of the faculty appointed shall be at par with the main campus in the country of origin,” the guidelines added. The guidelines also stated that the cross-border movement of funds and maintenance of foreign currency accounts, mode of payments, remittances, repatriation, and sale of proceeds, if any, shall be as per the Foreign Exchange Management Act, 1999, and its rules. To apply, FHEIs have to submit mandatory information on the UGC portal along with the application. They are also required to submit an undertaking that states that the quality of education and the qualifications awarded to the students on their Indian campus will be at par with that of the main campus in the country of origin.
UGC will then constitute a standing committee to examine the application on the basis “on merit, including the credibility of the educational institutions, the programmes to be offered, their potential to strengthen educational opportunities in India, and the proposed academic infrastructure, and make recommendations,” the guidelines said. In the final version of the guidelines, the time period to make recommendations before UGC has been increased from 45 days from the date of receipt of the application, as suggested in the initial draft, to 60 days. Upon approval, the FHEIs will have two years to set up their campuses in India. While the draft said that “the permission shall be granted initially for a period of ten years”, the final guidelines do not detail the length of the permission. The universities also need to undergo a quality assurance audit and submit the report to the Commission when seeking an extension. While the universities only have to pay the one-time application fee, they must make separate applications for each proposed campus, UGC chairperson M Jagadesh Kumar.
The universities are not allowed to open “learning centres, study centres, or franchises that may act as representative offices of the parent entity…. They are required to seek prior approval from the commission before starting any new programme in their campus in India”, the guidelines added. The final guidelines allow the Commission to keep a close watch on the operations of universities, including right to inspect the campus, infrastructure, academic programmes and overall quality and suitability. In case of violation of norms, the Commission can impose a penalty and/or suspend or withdraw the FHEIs approval at any time, the regulations said. The FHEIs are also expected to submit annual reports to UGC with details of the programmes offered, the number of students admitted and passed out, and qualifications awarded.
“These regulations aim to ensure that the education imparted in the campus of these universities is at par with that of the main campus in the country of origin and that its operations comply with the applicable laws and Regulations,” Kumar said.
