IMPACT OF FOREIGN DIRECT INVESTMENT ON HIGHER EDUCATION

The purpose of this paper is to examine how Foreign Direct investment (FDI) can be leveraged to enhance its impact on Higher Education. This paper attempts to discuss the possibilities of bringing quality, excellence and more opportunities in “Higher education” through the FDI route. FOREIGN DIRECT INVESTMENT: Education sector is growing day by day and gaining lots of importance in the world and India as well. Education Industry is likely to grow by the Gross Enrolment Ratio (GER) by 2020. Foreign Direct Investment up to 100% is allowed in most of the sectors more significantly, Thus the role of private sector in higher education has significantly increased in the last decade & the growth of the this sector alone, estimates, to grow to US$ 70 billion by 2013 and US$ 115 billion by 2018. The study focuses on advantages of FDI in Education with reference to India particularly, and evaluates the advantages and disadvantages of going in for FDI. Foreign Direct Investment has always been a matter of concern for India, when it comes to education sector 100% FDI is allowed by the Government but, besides its advantages, it has some limitations or disadvantages also. In this paper an attempt has been made by the authors to highlight the good and bad effects of FDI in Education Sector.