According to the Government, from April to September 2011, a total of Rs 192.50 Crore of Foreign Direct Investment was made in the education sector. The figure is a big jump from last fiscal year when the total inflow of foreign funds in education was Rs 173.24 Crore for the entire year.
This information was provided in a written reply to a question on FDI in education. The Human Resource Development Minister Kapil Sibal also informed that the Government has allowed FDI up to 100 per cent under automatic route in the education sector.
The FDI figures are from a report by Department of Industrial Policy and Promotion (DIPP) on FDI inflow in education sector in the country from April 2000 to September 2011. According to the report since 2000-01, FDI inflow worth Rs 2088.28 crore was recorded in the education sector.
Currently the national policy on education does not support commercialisation or profiteering in higher education, though the policy encourages private ”not-for-profit” participation with surplus revenues to be ploughed back for the growth and development of the institution, Sibal said.
“Universities are either set up by central or state governments through legislation or conferred the status of deemed-to-be universities under section-3 of the UGC Act 1956,” he said, adding that only not-for-profit entities can establish and run universities.