India Education Institutions

The much-awaited draft regulations for setting up and operating campuses of Foreign Higher Educational Institutions (FHEIs) in India were published by the University Grants Commission (UGC) in Jan 2023.  The draft regulations, if adopted in their current form, may provide FHEIs with considerable autonomy for their operations in India.

The proposed regulations will govern the entry and operations of FHEIs in India for conducting undergraduate, postgraduate, doctoral, post-doctoral, and other programs which will award degrees, diplomas, and certificates in all disciplines.  It’s important to note that online and open and distance learning (ODL) programs will not be permitted.  The degrees granted by FHEIs are expected to be recognized and as valid as any similar degrees awarded by Indian institutions.  Degree granting foreign entities must be legally established and recognized in their home jurisdiction and recognized as a degree awarding institution by the appropriate authorities.  In the current version, FHEIs must be universities in the top 500 overall global rankings or educational institutions that are well regarded and certified in their home jurisdiction.

Approval by the UGC will be a pre-requisite for FHEI’s to operate in India, as per the procedure stipulated under the draft regulations.  The initial permission granted will be for 10 years, which may be renewed before the 10th year of operations.  The FHEI is required to undergo a quality assurance audit at the time of renewal.  Upon receiving an in-principle approval, the FHEI would need to set up a campus in India within 2 years from such approval.

Hiring faculty and enrolling students from India and outside India is permitted and foreign faculty for the Indian campus will be required to stay at the campus for a reasonable period.  FHEIs are allowed to determine their own fee structure, provided the fee structure is transparent and reasonable.

FHEIs will be required to submit an annual report, to the UGC, on the programs offered and make it public on their website or campus.  Closure of programs or the campus would require prior approval of the UGC, and the FHEI would be responsible for providing an alternative to the affected students.

Finally, cross-border movement of funds and maintenance of Foreign Currency Accounts, remittance, repatriation, and sale of proceeds, if any, would be as per existing foreign exchange regulations in India.  The FHEI would be required to provide annual report certifying that its operations are in accordance with Indian (central and state) laws.

The final regulations are expected to be issued in May 2023.

U.S. higher education institutes interested in India market may reach out to a nearest U.S. office or the education team at the U.S. Commercial Service in India.