FDI Boost in Higher Education Sector: India 2020 Budget
The Union Budget 2020 of Indian government announced Feb 01 had a huge allocation to the Education Sector. About Rs 99.3k Crores (about USD 1.3bil) roughly, this is a massive markup and brings higher education sector into the limelight. The big departure from what was common till date, ie., simple student exchange programs between a participating foreign university and its Indian counterpart, this opens up several sector-changing possibilities that was so far not possible.
The government has also confirmed in a post-budget clarification that it is open to considering External commercial borrowings for the education sector, within norms to be announced. Also an FDI investment from foreign university, could be allowed to repartiate some of its India earnings back to parent country. Although Indian education sector already had an automative FDI route of investment, it was somewhat lost in confusion and did not help too much. The current FDI changed rules, are clearly serious about opening up education sector for foreign investment.
The current ed-sector contribution is only about 3.1% of GDP, a pathetic fraction of what it takes to build leadership in a global knowledge econnomy. And the current Government is willing to go all out to change that. More on this from this Mint article: https://www.livemint.com/education/news/govt-plans-to-ease-rules-on-foreign-investment-in-education-sector-11581358606272.html Photo credit: VarIndia.com