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India Education Regulatory Updates

On November 2023, the University Grants Commission (UGC) of India announced comprehensive regulations for establishing Foreign Higher Educational Institutions (FHEIs) in India. These regulations aim to promote international collaboration in education; ensuring quality standards and regulatory compliance are maintained. Key points of the regulations are mentioned below:

Criteria for Eligibility: 

FHEIs seeking to establish campuses in India must be globally ranked in the top 500 universities or possess outstanding expertise in a particular subject matter.

  • Permissible entity structures:

    • The regulations do not prescribe any specific entity structure. They only suggest that FHEIs comply with Indian laws, including the Foreign Contribution Regulation Act (FCRA), 2010 and Foreign Exchange Management Act (FEMA), 1999.
    • FHEIs may establish a stand-alone campus or form a joint venture with a foreign or Indian higher education institution or an Indian company.
    • FHEIs have the option of setting up a for-profit or not-for-profit structure in India. There are some inherent challenges with the not-for-profit entity, especially when receiving overseas contributions.  

  • Other key regulatory considerations:

    • India is a large country with both central and state-specific regulations governing education and land usage. These regulations do not supersede other applicable central and state laws or the regulations of statutory bodies (such as All-India Council for Technical Education (AICTE) and the Bar Council of India for law) creating a multi-layered regulatory environment.
    • FHEIs can recruit faculty from India or from abroad, but qualifications for faculty in India must be of the same caliber the main campus.
    • FHEIs are required to offer courses available at their home campus and curriculum and assessment should be on par with the home campus. Additional programs or courses that deviate from home campus curriculum can be offered only after obtaining approval from the UGC.
    • Prohibition on sharing of infrastructure and resources between universities.
    • Programs offered must align with UGC guidelines and meet local educational needs. FHEIs ultimately have autonomy in deciding their fee structure – to ensure transparency and reasonableness.

Award of Degree:  

The degree awarded by the FHEI should carry the same recognition and status as in the home country. Student mobility and transfer of credits should be permitted.

Setting up a campus in India offers a multitude of benefits, from tapping into a large and young population to leveraging economic growth and technological advancements. India is an attractive destination for FHEIs that are aiming to expand their global footprint and provide quality education to a diverse and growing student population.  

For more information and opportunities in this area, please reach out to your local U.S. office or contact the U.S. Commercial Service in India.

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