Comparison of India and China's FDI policy in higher education

Abstract

Education has always been vital and its importance is only increasing by the days. Higher education in particular, increases a country’s capability to actively participate and be involved in the highly knowledge-based global economy, enhancing the potential for growth and reduction, eventually eradication of poverty. For developing countries like India, who are primarily seeing service-led growth, higher education is paramount. The foremost matter of concern for India is whether India’s higher education is sustainable enough to cater to the growing demand of the world economy. In India, $4 billion1 are spent annually to study abroad. Owing to the public sector constraints, there is a need for increase in the contribution from the private sector, which has been on a steady rise. The question to raise now is, will opening up the Indian higher education sector be the solution for catering to the increasing demand? China, world’s largest population recognised this need well in advanced and opened up its education sector to foreign universities in 2003. This project compares the policies of India and china and cites the areas where India can learn from China for the successful implementation of policies.