Higher Education Sector In India

COMPETITION LAW CONCERNS IN THE HIGHER EDUCATION SECTOR IN INDIA

Overview

The education offered by the higher education institutions in India is, in general, average in terms of quality. The course structure is not adapted to the changing needs of the times and the curriculum is such that it curbs entrepreneurial antics and creativity. Most higher education institutions, particularly those in the public sector, lack proper infrastructural facilities. The standards of education are further marred by faculty shortages and difficulties in attracting and retaining quality teaching staff. As per the data provided by the National Assessment and Accreditation Council (NAAC), as of

The government’s education policy, so far it relates to the higher education sector, is formulated to serve the material interests of these politicians and civil servants rather than in the interest of general welfare. The situation has improved considerably following the advent of liberalization, globalization and privatization but the practice of politicians and civil servants setting up non-profit trusts to acquire land for higher education purposes has limited the benefits of the inflow of private and foreign investment. Also, although the Government has permitted 100% investment in higher education under the FDI Policy, the regulations prescribed by the All India Council for Technical Education (AICTE) for setting up technical institutions specifically prohibit direct or indirect investment. Similar issues are being faced for investment in universities and professional institutions, which permit only Society/Trust and Section 25 Companies as entity options.

As a result, gaining entry into the higher education sector is an ordeal for private and foreign participants and the public-sector institutions, knowing that they are not faced with any competition, are lulled into a sense of complacency and do not feel the need to better their

With the President of India being the ex-officio visitor of the IITs and several Members of Parliament and Union Ministers being on the Board of Governors of numerous public-sector educational institutions (IITs , IIMs etc), the regulatory policies are framed so as to give an unfair advantage to the government-funded or government-aided educational institutions over the private and foreign players.

The anti-competitive practices of the government and its departments in the Indian higher education sector include:- forbidding profit-making and re-investment of surpluses for capacity enhancement, thereby limiting or restricting technical or scientific development relating to educational services to the prejudice of consumers; indulging in practices resulting in denial of market access through necessity of central or state legislation for establishing higher educational institutions and in turn, the need for government patronage, fee control, stipulations regarding course curriculum,