1 May 2012

Time is right for UK’s education sector to locate in India

The time is right for UK-based educational establishments in the higher and further education (FE) sectors to consider locating in India, according to legal experts within Shakespeares’ India team.

India’s education sector is growing rapidly and it is estimated that by 2020 the country will need a further 800 Universities and 35,000 colleges to cater for demand for courses from the local population, of which more than 60% are under 25 years of age. With 100% Foreign Direct Investment now permissible in the sector and the new Foreign Educational Institutions Bill soon to become law in India, education providers in the UK are stepping up or revisiting their overseas programmes and some are considering setting up a campus in India for the first time.

AULP conference, 3 May 2012

Speaking at a conference on 3 May 2012 taking place at the University of Leicester, organised by the Association of University Legal Practitioners (AULP), Viplavi Mahendra, head of Shakespeares’ India team, who has hands on experience on the Bill having made key recommendations to the Indian Government on the Bill, said:

“The planned legal changes in India, which are due to be implemented this year, will open up a tremendous opportunity for UK-based education providers to set up joint ventures or create their own independently-run campuses within India’s thriving educational establishment.

“This opportunity is particularly compelling when you consider the impact of austerity measures on UK-based education providers and they have been quick to react. A growing number are in the process of setting up offices to lead their student recruitment programmes and are collaborating with Indian colleges to offer dual degree programmes. Others are considering basing themselves in India and in some instances they are taking advantage of ready-made locations for such establishments, housed within new, recently-constructed townships.”

The majority of global education providers are choosing to set up joint ventures with established local partners or with major infrastructure companies, as a means of entry to India’s education sector. According to Shakespeares, there are a number of potential pitfalls that education providers need to avoid if taking this route. Viplavi Mahendra said:

“The potential gains are phenomenal, but the regulatory landscape in India’s education sector is complex and strict rules apply about how many local tutors must be used, for example.

“Regardless which route a provider prefers to take, it is important to use legal experts with specialist knowledge of how to conduct negotiations in India; fulfill the necessary property- and finance-related compliance criteria and meet the requirements set out in the incoming legislation.”

A number of UK-based Universities have already established overseas campuses, for example, the University of Nottingham has a campus in China.

To discuss opportunities in India please call Viplavi on 0121 631 5417 or email viplavi.mahendra@shakespeares.co.uk