The Indian government has announced that foreign universities and educational institutions can now set up international branch campuses (IBCs) and offshore education centres (OECs) in GIFT City, a new business district in the state of Gujarat.
Overseas institutions will be able to offer programmes in financial and STEM subjects and will be exempted from regulations of the Indian higher education regulators – the University Grants Commission and All India Council for Technical Education. They will also be able to fully repatriate any profits. However, they are expected to follow the standards applicable in their home jurisdiction and regulations of the International Financial Services Authority (IFSCA).
The IFSC regulations released on 11 October 2022 set out terms and conditions to support setting up of IBCs/OECs, which seek to avoid any interference with academic freedom and other administrative decisions of the foreign HEIs. The IFSCA was established in 2020 as a regulator for development and conduct of international financial services centres in India.
The regulations allow foreign HEIs to set up stand-alone IBCs/OECs, joint ventures between foreign and Indian HEIs, and joint ventures / consortia between multiple foreign HEIs. Transactions can be carried out freely in convertible foreign currency.
Key responsibilities and requirements set out in the regulations include:
- Foreign HEIs must be ranked in the top 500 according to the QS World University ranking, either overall and/or for relevant subjects, as well as being a “reputed institution” in its home jurisdiction
- All courses must be in the area of financial management, fintech, science, technology, engineering or mathematics
- All courses or programmes offered must be identical to those offered at the parent university / education institution in its home jurisdiction.
- Degrees, diplomas and certificates should have the same recognition and status as those conferred in the university’s home jurisdiction and should be awarded to students of IBCs/OECs in the same manner as to students that study at the parent university.
- Student and faculty selection plans and processes should be identical to those followed in the institution’s home country.
- IBCs/OECs must not suspend or close any of their approved courses or programmes without the written approval of the Authority, and are expected to provide alternatives for any affected students in this case.
Applications to establish an IBC/OEC must include details of infrastructure facilities, faculty, fee, academic plan, courses, curricula and financial capability to establish and carry out proposed activities for a minimum of five years. Institutions are expected to set up all required infrastructure and engage necessary staff within 6 months of approval, with a further possible time extension of another 3 months.
GIFT City – or Gujarat International Finance Tec-City – is a new business district in the state of Gujarat in western India, located between the state’s capital Gandhinagar and its largest city Ahmedabad. It was designed as a hub for financial and IT services and is intended to have state-of-the-art infrastructure and excellent external connectivity. The district already hosts several major international financial institutions.
The IFSCA has indicated that it can be contacted to plan a visit to the GIFT city and can also schedule discussions through videoconference to explain the project’s procedures and regulations.
British Council comments
The choice of GIFT City as India’s first location for international branch campuses is linked to the district’s ambition to become a leading global financial centre, which is supported by state and national governments – the project was initiated in 2008 by Prime Minister Modi, who was then the Chief Minister of Gujarat. A March 2022 report from Global Financial Centres Index London puts IFSC in GIFT City among the top 15 financial centres globally.
To realise this ambition, GIFT City will need to develop a highly skilled workforce to cater to the global clients in the financial sector. Inviting foreign education providers to operate in the city is aimed to help meet that objective as well as providing an opportunity for students to gain foreign university experience in India.
South Asia overall has a huge demand for foreign university degrees. A foreign HEI having a base in the region and providing courses in emerging areas will be able to attract students who wish to study an overseas HE course without leaving India, and India also attracts students from neighbouring and African countries for higher education. Further, given the expected scale of financial services business, there will be opportunities to collaborate with financial firms in GIFT city for cutting edge research and innovation benefitting the research portfolio and international experience of the HEIs.
However, UK HEIs should also be aware that overseas work opportunities play an important role in many Indian students’ decision to study abroad, which could be a negative factor in the attractiveness of in-country transnational education programmes. In addition, Gujarat is not one of the top sources of Indian students overseas, although a campus in the state may still attract students from elsewhere in the country.
This new proposition will allow overseas HEIs a great deal of autonomy when setting up and operating branch campuses and education centres. But this autonomy comes with an expectation that they will provide a similar student experience as in the HEI’s home country, and UK universities will need to use innovative ways to replicate the UK’s highly sought after multicultural experience and networks in India. The IFSC authority will also retain rights to inspect at all times, as well as the ability to respond to any violation of regulations with action such as imposition of penalty fees or suspension or cancellation of registration.
For further information please contact Sandeepa Sahay at sandeepa.sahay@britishcouncil.org
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