FDI in the Indian education system will revitalize it

FDI in the Indian education system will revitalize it

India has the third highest gross enrolment ratio after China and the United States. The Indian education system has to cater to the needs of the second largest population in the world. India has to work hard towards improving its literacy rate. According to the 2011 census, India has a literacy rate of around 74%.

The role of the private sector in expanding the reach of Indian education has gained momentum in the past few years. Foreign direct investment will definitely revitalize the Indian education system.


• The Indian government has been targeting a gross enrolment ratio of 30% in higher education by the year 2020. This is a massive jump from the current growth rate. The National University of Educational Planning an Administration has indicated that an additional investment of $190 billion is needed to attain this target. This includes capital as well as operating expenditure and FDI will go a long way towards achieving this aim.

• Foreign direct investment in the field of education will also improve the state of primary, secondary and higher secondary schools in India. Due to massive infrastructural requirements that India’s schools and colleges need, only FDI can solve the problem. India is a nation that has to meet challenges in key sectors such as manufacturing and services. Investment by the government has to be divided among a huge set of sectors.

The Indian education system gets a percentage of the total national resources. FDI will solve problems such as scarcity of funds.

• Millions of Indian youths enrolled in schools and universities do not have access to basic facilities such as sports grounds and world class libraries. Lack of space and resources have contributed to the dismal state of Indian educational institutions. Broken benches and lack of blackboards are the problems which are being faced in many Indian educational institutions across the world. FDI can make a huge difference to the future of the Indian educational system.

• European nations as well as countries such as Singapore and China have been permitting foreign investment in the educational sector for a long time now. The result has been that educational institutions in these nations have flourished and are now considered to be the best destinations for students from all over the world. China is known for its excellent technical education.

Singapore houses top business schools such as INSEAD. Europe has many wonderful programs offered by American universities. If India wants to become a top academic destination, FDI is the only way to accomplish this.

• Private and public funders have their own limitations. Private funding tends to be concentrated in urban areas and lucrative fields such as management. Public funds are limited and there is a resource crunch which makes it difficult for state and central governments to maintain the vast number of Indian educational institutions.


FDI has always been a matter of debate in India. Our nation was always socialist in its orientation. However, capitalism does not mean exploitation. With adequate regulation, FDI can prove to be the perfect way to ensure that India’s educational institutions, colleges, schools and universities attain world class status.

The Indian educational system has tremendous potential for growth. India was considered one of the most learned nations in ancient times. Indians have always respected knowledge as essential for the growth and development of society. FDI will revitalize the Indian educational system through collaborations with existing institutions and generation of funds for innovative programs.

Education is the means to progress. Our leaders should not ignore the role that finances and infrastructure play in improving the quality of education in our nation.
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  • FDI in the Indian education system will revitalize it -Lubna Lakdawala (04/02/14)
  • FDI in Indian education system will revitalize it

    It is well known - the majority of the Indian population is youth. Thus with the youth being the future of India education is the key to nation-building. Since the majority of the Indian population is youth the education sector in India has huge potential. FDI in education is fast gaining popularity in India.

    Currently the education sector in India is evolving and it is being said that it has a strong market for investments in training and education sector. Also the service sector is the major contributor in India towards its national income. Further, recent developments in the software sector and healthcare would require trained personnel - education would play an important role here. The education sector in India is going through major change thus making it favorable for foreign investments.

    Foreign Direct Investment in education sector will lead to increased number of institutions and greater availability of opportunities to the students. It will enhance the access to international qualifications and technology. It will provide greater opportunities for utilization of improved infrastructure. This will further lead to competition which will help in improving the quality, innovative curriculum development and subject expertise. The access to technology and infrastructure will help in growth in the research and development.

    With the FDI in Indian education sector it will initiate the opportunity to have many educational institutes of international standards in India. This will be greatly beneficial to Indian youth as every year a lot of student migrate internationally to pursue higher education. With the educational institutes having international standards starting in India it will reduce the number of students migrating. Getting educated closer to home will be better for the students emotionally as well financially as a lot of students take loans to pursue higher education aboard. Getting the same kind of education in India may show a tremendous increase in performance.

    The Indian education system is in need of revitalization. With the entry of foreign education providers existing educational system will get the push it needs to rethink its ways of working. Competition is the best way to accomplish this much needed transformation. The downside of the new policy is that access to the foreign providers' programs will be dominated by the elite segment of the population, as fees and other conditions of entry will tend to favor them.