The Canadian Trade Commissioner Service June (II) 2012 Contact: firstname.lastname@example.org India NewsWatch: Education Sector India NewsWatch is a package of news articles compiled by the Canadian Trade Commissioner Service (TCS) to help Canadian businesses stay on top of new developments. Look for TCS Insights in blue. Disclaimer: India NewsWatch is a compilation of articles from various media, packaged for the convenience of TCS clients. As such, the opinions and information in the included articles do not reflect the views of the Canadian Trade Commissioner Service (TCS) or the Government of Canada. Users should be aware that information from media and other sources may not be subject to the Official Languages Act and may be available only in the language(s) in which it was originally written. EDUCATIONUGC to let only top 500 foreign universities enter growing concern in recent years that fake foreign varsitiesIndia were duping students. Now, over 600 foreign educationTimes of India, June 3, 2012 institutions operate in the country.In an attempt to rein in fly-by-night operators who have The UGC put its plan to allow foreign universities to setset up shops in India, the Universities Grants up campus on hold after a large number of members feltCommission (UGC) has made its approval mandatory for that there was need for greater deliberations. "It was feltall collaborations between foreign and Indian educational that there was need for more detailed deliberations withinstitutions. The new regulations approved by the UGC statutory councils from different areas of study, includingon Saturday give existing institutions six months to get technical, medical, law and architecture, said Prakash.approval. A UGC member said that several members questioned the need to allow foreign varsities to function as "deemedThe UGC has also laid down dual criteria to ensure that universities. Considering the overwhelming view, thequality academic institutions are allowed to run joint decision was deferred.degree or twinning courses. Only those foreigninstitutions will be allowed to collaborate who figure in the Factfiletop 500 of the Times Higher Education World University * Foreign education institutions have increased from 144Ranking or the Shanghai Jiaotong ranking. (2000) to 631 (2010) * The maximum number were from the UK (158), followedThe Indian varsities should have received the highest by Canada (80) and the US (44)accreditation grade from the National Assessment and * Of the 60 foreign education providers, who haveAccreditation Council (NAAC) and the National Board of programme collaboration with local institutions, only 25Accreditation (NBA) to be eligible for a tie-up with a local institutions were affiliated to Indian universities orforeign institution. approved by regulatory bodies * Only 32 of the 49 foreign institutions operating under"We would like only quality academic institutions to twinning arrangements have approval or affiliationestablish programmes here to protect students interests. (Source: Association of Indian Universities)We will issue a public notice and also put up a list on our The new regulations approved by UGC:website detailing approved institutions so that students * Only those foreign institutions that figure in the top 500are not duped," Prof Ved Prakash, UGC acting chairman, of global ranking by Times Higher Education Worldsaid. University Ranking/Shanghai Jiaotong University can enter into collaborationThe degrees will be awarded by the Indian universities for * Only those Indian institutions which have been given thetheir acceptability in India. Institutes failing to abide by the highest grade by NAAC, NBA can partner a foreignguidelines would be penalized. The UGC is empowered institutionto stop grants in case of public institutions while it canrecommend to the Centre withdrawal of recognition in TCS Insights: According to the Times Higher Educationcase of deemed universities. World University Ranking and the Shanghai Jiaotong ranking, only 22 Canadian universities make it to the topThe guidelines come at a time when the Foreign 400 and/or 500. This list excludes a number of CanadianEducational Institutions (Regulation of Entry and universities which are active in India but do not fall underOperations Bill) 2010 has been pending before the ranking. It is unclear whether the restriction onParliament for the past two years. There has been partnerships also applies to community colleges, a
The Canadian Trade Commissioner Service Everywhere You Do Businessnumber of which also have active partnerships in India. UGC strongly opposed the proposal to allow the foreignThe Trade Team India Education team, along with our universities when a Bill was already pending inAdvocacy colleagues, are keeping a close eye on Parliament. Also the UGC Act, 1956 would not bedevelopments and will be communicating more on this applicable to foreign universities without amendments.issue as it develops in future editions of Newswatch. “The UGC chairperson and the Higher Education Secretary concurred with the objections and agreed to defer the item,” UGC sources told The Hindu.UGC defers plan to allow entry of foreign varsities The panel members approved the regulations on jointThe Hindu, June 3, 2012 programmes as it was felt it was necessary to curb the ‘fly-by-night operators in the country. Once the regulations come into effect, such operators will have to wind up.The University Grants Commission (UGC) on Saturday As of now, only technical and management courses ofdeferred a controversial proposal to allow the entry of foreign institutions are allowed in India as they areforeign educational institutions within the existing legal regulated by the All India Council of Technical Educationframework. However, it gave ‘in principle approval to (AICTE) Act. However, a large number of courses acrossregulations on collaborative and joint courses. the board are being conducted in an unregulated manner.‘The Foreign Educational Institutions (Regulation of Entry The UGC in 2003 mooted a proposal on regulation ofand Operations) Bill 2010, is pending in Parliament as entry and operation of foreign universities but did notseveral parties are opposed to some of the provisions pursue it after it was brought to the notice of the UGC bywhich would allow foreign universities to operate in India. its legal experts that the UGC Act does not permitThe Parliamentary Standing Committee has made regulation of foreign universities.several recommendations to the Bill and they were being S. Vaidhyasubramaniam, Dean of Sastra University, saidconsidered by the government. the decision to allow only top 500 foreign universities inThe move by the UGC was seen by some of the collaborative mode was a good first step in the interest ofacademic experts, who do not wish to be identified, as the existing faculty crisis and poor research productivity inallowing the foreign universities to come in without a Indian higher education.legislative framework. They are also of the view that such Such collaboration should begin with Post Graduate anda move would be in violation of the provisions of the UGC Ph.D. programmes only, he said.Act, 1956.The UGC approved ‘in principle regulations on allowing TCS Insights: Another indicator that the situation is stilltwinning and joint degree programmes between the “top fluid, Tthis article throws light on the feedback of Indianranking foreign educational institutions and the best universities with regard to the new regulation- whichIndian universities.” Only the best universities of the allows collaboration between the top 500 universities ofcountry would be allowed to have tie-up with the the world and the best universities in India- passed by theinternationally accredited 500 foreign universities and the University Grants Commission.. Indian universities thatcourses would have to be completed in both universities. are favouring the regulation are the best in the country;As per the guidelines, foreign universities entering into the response from Indian universities/ and colleges thattie-ups with Indian partners should be among the top 500 does notn’t meet the eligibility criteria as per theranked by the Times Higher Education World University regulation hasve yet to be seen.Ranking or by Shanghai Jiaotong University. The degreeswill be granted by the Indian universities.The Hindu had on Friday reported that the Human Debt worries rise for students eyeing foreign schoolsResource Development Ministry was trying to identify Mint, May 31, 2012possibilities of allowing the foreign educational institutionsinto the country as it was finding it hard to push through New Delhi: As the rupee’s slide continues unabated,the Foreign Educational Institutions (Regulation of Entry Natasha Kumar knows she’ll need to take on a larger debt burden to achieve her dream of going to Singaporeand Operations) Bill, 2010 in Parliament due to lack of for her master’s degree.numbers in Rajya Sabha.The UGC called a special meeting and the only two items Kumar, currently a B. Tech student at the privately runon the agenda had the possibility of allowing foreign Amity University in Noida, will have to pay around Rs. 18educational institutions to enter as ‘deemed universities lakh for her course at Nanyang Technology University (NTU) in Singapore. “I am suffering for non-academic reasons. Had I done theunder Section 3 of the University Grants Commission Act, course a year earlier, I would have paid some 20% less 21956, or as private universities under the State laws, and than now,” said Kumar. Kumar, who has a 50% meritdrafting regulations on twinning programmes and joint scholarship at Amity, said she won’t abandon the plan asdegree programmes. NTU is a globally recognized institute.According to informed sources, some members of the
The Canadian Trade Commissioner Service Everywhere You Do Business“I cannot hold my plan for a year or so. Now I have no next few months.”choice but to take more loans,” she said. In April 2011,one Singapore dollar was around Rs. 36; now it’s more Costs vary across courses, with an international MBAthan Rs. 43.5. about 25% more expensive than a regular master’s degree, he said.Studying abroad has always been a costly affair, with USuniversities charging $15,000 to $50,000 (approximately The weaker rupee may make students more choosy, saidRs. 8.46 lakh to Rs. 28.21 lakh on Thursday) for a year. Amit Agnihotri, who runs management education websiteIn the UK, course fees range between £7,000 and 25,000 MBAUniverse.com.a year (approximately Rs. 6.11 lakh and Rs. 21.84 lakhon Thursday). While some payments such as lodging and “It may not affect the Ivy Leagues because of theirboarding are made in advance, tuition fees have to be pedigree but it will certainly hamper tier-II foreign collegespaid every semester. Thus students who have already that get the bulk of the Indian students,” he said.got admission also feel the pinch. Conversely, Indian business schools that have foreignThe rupee, which touched a record low of 56.515 to the guest faculty will also be feeling the pain. “When thedollar in intra-day trade on Thursday, has depreciated by rupee depreciates, Indian business schools have to paymore than 23% against the US currency in the last one more,” he said.year. In May alone, the rupee has declined by around6.51% on account of the uncertainty in global markets. Some countries see opportunity in the currency fluctuation—Canada for instance.The rupee’s decline is especially nerve-wracking forthose seeking a mid-career improvement in qualifications. “In Canada, the institutes are publicly funded (hence relatively less costly), the cost of living is cheaper and“The depreciating rupee is going to have a huge hole in they can work while studying,” said Simon Cridland,our savings,” said Maya Nair. Her son, who’s in the counsellor and head, advocacy programme, Canadianmerchant navy, plans to get a master’s degree in a high commission in New Delhi.related field from City University London. Gupta of Jamboree said though that the Canadian dollar,“My son is 37 and married, and perhaps wants to settle too, has appreciated in the last five or six years, so thedown with a more secure job than what he is doing now. advantage may not be that decisive.A masters degree will help his career path,” said Nair, asenior citizen in Delhi. “We are worried it’s going to havean impact on his plan.” The rupee’s slump is forcing students to be more hardnosed about what to study and where, says Paroma Bhatt, who has got admission to the World Trade InstituteOver 100,000 Indians go abroad every year to study. in Switzerland for a master’s degree in international lawWhile the US continues to be the leading choice in this and economics.respect for Indians, Australia, the UK, Canada andSwitzerland are some of the other key destinations.According to the US-based Institute of International “Serious students are looking for courses which will giveEducation, there were some 103,895 Indian students in returns on investment. So, people are opting for lessthe US in 2010-11, down 1% from the previous year. This costly countries and for sure courses with a better shelfnumber includes new and old enrolments. More than life,” she said.27,000 Indian students went to Australia last year andsome 12,000 to Canada, according to official statistics. Opinion among officials at banks and other lenders is mixed about whether the rupee’s slide will lead to a drop “When the dollar is strengthening against the rupee, it’s in loans, as students forego plans to study abroad, or abound to affect the cost of education, especially stay and rise in loans, as aspirants go forth regardless.other expenses,” said Vineet Gupta, managing director ofJamboree Education Pvt. Ltd, an education company that “If the rupee continues to trade above 52 to a dollar forhelps students who want to study abroad with the next few months, the demand for foreign study loansinternational entrance coaching and consulting. “When will start reducing,” said a senior official with a Delhi-the course fee goes up, let’s say 10 or 15% because of based public sector bank.non-academic reasons, it definitely hurts students.” 3While aspirants are worried about the rupee decline, “wehave not seen students dropping the plan if they have agood offer. The (decline) has happened quickly in the lastthree months or so. Hence, its impact will be seen in the
The Canadian Trade Commissioner Service Everywhere You Do BusinessAn executive at the country’s largest lender State Bank ofIndia said loans may rise. “The admission season forforeign universities will start in a few months. Students Govt plans credit guarantee fund for education loanswill start applying for study loans from next month. Only Mint, June 6, 2012then we will know if there is a dip in demand,” he said.“But given the depreciating rupee, students may go in for New Delhi: India is setting up a Rs. 5,000 crore credithigher loan amounts.” guarantee fund to facilitate easy education loans to needy students by providing protection against defaults toPrashant Bhonsle, country head, Credila Financial banks.Services Pvt. Ltd, a unit of HDFC Ltd, said that with the“rupee depreciating, the loan application amounts have The move was endorsed at a meeting of the Centralseen an increase. If students are getting into the Advisory Board on Education (CABE), the highestuniversity of their choice, they are going ahead with the education advisory body to the government thatenrolment even if their fees are seeing an increase comprises academicians, industry experts and statebecause of the rupee’s movement”. education ministers, human resource development (HRD) minister Kapil Sibal told reporters Wednesday.On the other hand, students who aren’t getting intoinstitutions of their choice may choose to wait for another “CABE members endorsed the initiative to create the fundyear, he said. to ensure better flow of credit to deserving students. It will be worth Rs. 5,000 crore,” Sibal said.TCS Insights: The strengthening of the dollar against the The move comes after finance minister Pranabrupee might encourage students to look for affordable Mukherjee mentioned such an initiative in his Marchstudy destinations which represent better value. In this budget speech. Both HRD and finance ministries haveenvironment, the active promotion Promoting Canada as discussed the measure once and further talks are goinga quality option will continue to be important to counter to take place soon to finalize “structural issues and finalstudents who may be concerned that a change to the modalities”.unknown could represent a compromise on quality.ofCanada’s strengths will be even more important. According to the HRD ministry, banks will give 1% of the loan amount to the fund and if a student defaults, the fund will ensure that 75% of the loan amount is returned.AISECT partners with NSDC to empower youth “Besides, once this is in place, we need not require anyTimes of India, June 6, 2012 collateral security for availing loans up to Rs. 750,000.” Currently, it’s Rs. 4 lakh for students whose familyBhopal based AISECT, has partnered with the National income is less than Rs. 4.5 lakh per year.Skill Development Corporation (NSDC) with a mission toempower around 1.3 million youth across semi-urban and A finance ministry official said that given the fiscalrural India over the next ten years. Under this alliance, constraints, a 1% contribution from banks to build up theAISECT will work as a national partner of NSDC to corpus may not be sufficient. “It will mean morespread quality skill development training across the sponsorship from central government,” said a financecountry and placement of students. ministry official requesting anonymity. “During the finalization of the modalities, we hope to solve theseCommenting on this collaboration, Santosh Kumar issues.”Choubey, chairman, AISECT Group said, "Through thispartnership, AISECT, which has an extensive reach in the In 2011-12, India had a fiscal deficit of 5.76% of grossrural and semi-urban areas through a network of over domestic product (GDP) and aims to reduce this to 5.1%10,000 centres spread across 27 states and three union in the current fiscal.territories, will contribute significantly to the objective ofcarrying out skill development on a large scale in the Several banks under the umbrella of the Indian Banks’unorganised sector." Association (IBA) started education loan schemes in 2001. The risky nature of educational loans has madeTCS Insights: AISECT ( the All India Society for banks wary of approving such loans though.Electronics and Computer Technology), established in1985 is an IT Training and Educational services network R.P. Sisodia, joint secretary with the HRD ministry, toldwith a spread of over 8000 franchisee centres across 27 CABE that banks are worried about non-performingstates and 3 Union Territories in the country. AISECT assets (NPAs) rising. Hence, only 3% of Indian students pursuing higher education have availed education loans 4has an extensive reach across India. Partnering withorganizations such as AISECT could provide a good in the country. The HRD ministry did not give anyopportunity for Canadian vocational education providers specific time limit for implementing the scheme.to reach out to the Indian market. An IBA official who is part of the discussion said the Rs.
The Canadian Trade Commissioner Service Everywhere You Do Business5,000 crore corpus will be built over a period of time. the UK.“The government will start with an initial corpus of Rs. Earlier many Indian students would take up small jobs1,000 crore, which will guarantee loans five times that under the post study work clause, which allowed them toamount. So, for the first year, around Rs. 5,000 crore of extend their stay in the UK after completing their studies,education loans will get a credit guarantee,” he said, official sources familiar with the discussions said.requesting anonymity. The government will subsequentlyrelease Rs. 1,000 crore every year to build the corpus, he But this doesnt mean that Indian students cannot work insaid. UK at all, they added.“However, a cabinet note has not been finalized. It is Indian officials said getting a chance to work in UK forpossible that banks may be expected to contribute to the sometime after the studies had been a "major attractioncorpus of the fund along with the central government for Indian students" many of whom come from middle-since the 1% fee will only cover the administrative class backgrounds.expenses of the fund,” he added. Many, including top British universities, had expressedBankers questioned the benefits of such a fund if banks reservations that doing away with this visa categoryhave to contribute towards the corpus. “Where is the would deter overseas students.question of risk mitigation then,” said a banker with aDelhi-based public sector bank, who declined to be But British officials explained that this change in visa rulenamed. under Tier 1 will in no way prevent Indian graduates from finding employment there. The rules under Tier 2 of theWhile Sibal said banks need to provide education loans point-based system will allow all students who graduateat lower rates of interest than those prevailing as from UK universities to apply for working visa providededucation is a priority sector, some authorities don’t feel they have "graduate level job offers".this will necessarily act as a roadblock duringdiscussions. "They can work for three years under this and can extend it for another 3 years," an official said.The HRD ministry believes the interest subventionscheme of the central government takes care of the The UK has also promised to look into the Indiasinterest on such loans for poor students and banks concerns over the issue of "mobility of Indianshould feel secured over this. professionals in UK". India had taken up similar concerns with US secretary of state Hillary Clinton, who visitedTCS Insights: This credit guarantee fund will provide India last month. New Delhi has maintained that barrierseasy access to needy students and at the same time on the free movement of professionals were against WTOprovide protection against default to banks. This will be a norms.l be a good move as it would provide access to educationboth international and domestic for Indian students vying In 2011, UK issued about 32,000 visas to Indian studentsfor quality education. it will make access to international and it was estimated that the non- European Unioneducation easier for Indian students. students bring in 9 billion pound annually to the British exchequer.UK tightens post-study work rules for Indians TCS Insights: This is a major setback for IndianHindustan Times, June 12, 2012 students wanting to pursue higher education in the UK, which in the recent past has introduced stricter visaOdd jobs are not going to be an option for Indian regulations which are a departure from previous work-graduate students once they finish their studies in UK. friendly regulations. Given that the UK is the mostUK has made it clear that under the changed visa rules favoured destination for Indian students wanting to study— aimed at cutting immigration — after getting their abroad (after the US), these new visais regulations maygraduate degrees Indian students can only work in jobs well encourage students to seek to study in countriesthere that match their qualification and only if the which will offer an option for their future, allow students toemployment offer is from a recognised employer. work after the completion of their courses. more actively look at options in other countries. This is one of manyThis was conveyed to India at the annual Foreign Office advantages to studying in Canada which we promote inConsultations held between foreign secretary Rajan all our interactions with contacts, prospective students,Mathai and UK permanent under secretary Simon Fraser and media. 5in New Delhi on June 1.In simple terms, a graduate will not be allowed to work asa pump assistant-a job that doesnt require a degree-in
The Canadian Trade Commissioner Service Everywhere You Do Business For more information on Education Sector consult Education Sector Profile - India (see http://www.tradecommissioner.gc.ca/India) Want to know more? Contact the Education Sector Team in India at email@example.com Disclaimer India NewsWatch is a compilation of articles from various media, packaged for the convenience of TCS clients. As such, the opinions and information in the included articles do not reflect the views of the Canadian Trade Commissioner Service (TCS) or the Government of Canada. Users should be aware that information from media and other sources may not be subject to the Official Languages Act and may be available only in the language(s) in which it was originally written. 6 6