Could foreign education institutions set up shop in India and be able to repatriate funds?
A bill was introduced in the Parliament in 2010 which suggested that foreign universities be allowed to operate in India and has been stuck since then. A positive and decisive move on these lines will also go a long way in making a difference to education in India.
Education Special Economic Zone (SEZ) is a novel concept which is now being tried in countries like South Korea and United Arab Emirates (UAE). For realty companies, this could be a big opportunity to expand their presence in the higher education sector.
SEZ are restricted zones where India’s regular tax laws do not apply. Establishing these institutions here would allow them to consolidate their holding within their established global corporate structure. Once the bar on ‘repatriation of profits’ is lifted and it is allowed with reasonable restrictions, it could potentially be a game changer.
If the novel policy move does sail through the government processes, it could be a huge boost for India’s higher education sector. It could open the doors for the best of global education institutions to establish a direct presence in India, something that they have shied away from given the laws governing the sector. At present some of these institutions have a presence in India through a partnership with Indian education institutions while some markets allow select courses for professionals. Any global institution could also help set up an ecosystem that will surely raise the bar for the education delivery in the country.
It could also serve as the hub for other Asian citizens to come to India and study at a reputed global institution. For realty companies, this opens the door for opportunities within SEZs that have not existed earlier.
A liberal policy, tweaked to Indian conditions and implemented well, could send the right signals to the world that India is willing to work with the best in the world and prepare its educated workforce with the best education for the future. Above all, this will depict the India of the future – one that is willing to change and adapt to the new environs.
