Advantages Of Fdi In Higher Education

The purpose of this paper is to examine how Foreign Direct investment (FDI) can be Leveraged to enhance its impact on Higher Education. This paper attempts to discuss the possibilities of bringing quality, excellence and more opportunities in “Higher education” through the FDI route. FOREIGN DIRECT INVESTMENT: Education sector is growing day by day and gaining lots of importance in the world and India as well. Education Industry is likely to grow by the Gross Enrolment Ratio (GER) by 2020. Foreign Direct Investment up to 100% is allowed in most of the sectors more significantly, Thus the role of private sector in higher education has significantly increased in the last decade & the growth of the this sector alone, estimates, to

INTRODUCTION

Foreign direct investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased.

Businesses that make foreign direct investments are often called multinational corporations
(MNCs) or multinational enterprises (MNEs).

Foreign Direct Investment has always been a matter of concern for India, when it comes to education sector 100% FDI is allowed by the Government but, besides its advantages, it has some limitations or disadvantages also. In this paper an attempt has been made by the authors to highlight the good and bad effects of FDI in Education Sector.

In India, education is the key to nation-building. It is also a well-accepted fact that providing the right knowledge and skills to the youth can ensure the overall national progress and economic growth. The Indian education system recognizes the role of education in instilling the values of secularism, egalitarianism, respect for democratic traditions and civil liberties and quest for justice. The education sector in India is evolving and has emerged as a strong potential market for investments in training and education sector, due to its favorable demographics (young population) and being a services-driven economy. Further, India’s expanding role in sectors such as software development, generic pharmaceuticals and healthcare, would require the country to invest into learning and training segment as well. The

This sector offers huge untapped market. The higher education sector, owing to its huge potential, holds very

promising prospects. Increase in number of Educational Institutions in India has been remarkably rapid. India faces a big challenge to provide education to young people, especially in far-flung locations. The present paper makes an attempt to study the current scenario of FDI in education sector highlighting the positive and negative impacts of it on the society and economy as a whole. The research approach is exploratory in nature. This paper has major implications for educationists who intend to reap the benefits of FDI as well as Government who need to frame suitable policies.

The education sector in India is divided into two sub segments; the key segment comprises of schools and higher education, while the other segment comprises of coaching classes, pre- schools and vocational trainings. The Government of India has recently ignited reforms by opening up certain sectors to foreign investment, which would ideally result in increased economic growth and employment generation. Government of India has permitted foreign direct Investment (FDI) up to 100 per cent through the automatic