The main campus of the Indian Institute of Technology in New Delhi. Manan Vatsyayana / AFP
The main campus of the Indian Institute of Technology in New Delhi. Manan Vatsyayana / AFP

India offers fee cuts to attract foreign students



India plans to attract hundreds of thousands of foreign students to its best universities, hoping to recapture its ancient glory as a hub of scholarship and knowledge.

The government is promising to waive or discount fees and to expedite visas under a programme called Study in India that will be marketed to 30 countries — including the UAE — in the Middle East, Africa, Asia and Eastern Europe.

At the programme’s launch on Thursday, Sushma Swaraj, the foreign minister, referred to the ancient Indian universities of Nalanda and Takshila, which had attracted scholars from around the world before falling into ruin.

“The quest for knowledge has always been fundamental to India’s culture and civilisation,” Ms Swaraj said. “We can rightly say that India is one of the very few places in the world where ancient traditions and modernity coexist in harmony.”

In the first academic year of the programme, beginning this autumn, roughly 15,000 seats across 160 public and private educational institutions will be set aside for foreign students. The government hopes to increase this figure to 200,000 by 2023.

The government did not specify whether these seats would be taken from the existing capacity at these institutions, or whether they would be added.

At present, India hosts about 45,000 international students — just 1 per cent of the world’s population of students who move overseas for higher education. India has around 40,000 colleges and 800 full-fledged universities, according to government statistics.

“We observed that the number of students coming to India for higher studies had become stagnant and more students were going to countries like Singapore and Australia,” said Prakash Javadekar, the minister for human resource development.

Apart from the UAE, Study in India will target “partner countries” — countries with which India has warm diplomatic relations — such as Nepal, Saudi Arabia, Kuwait, Egypt, Iran and Rwanda.

Meeta Sengupta, founder of the Centre for Education Strategy think tank in New Delhi, said Study for India was a “win-win” proposition. For students from many of these countries, which have emerging economies, their higher-education needs “are not met by traditional first-world systems”.

Either the fees in western universities are too high, visas too difficult to procure or the admission process too competitive - issues that Ms Sengupta said they would not face in India.

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Through Study in India, foreign students will have access to a range of educational institutions, from smaller private colleges that offer diplomas to large universities offering undergraduate, postgraduate and doctoral degrees. The list includes the Indian Institutes of Technology (IITs), the 23 universities devoted to scientific research which Jawaharlal Nehru, the country’s first prime minister, once described as “the temples of modern India”.

The budget for the first two years of the programme runs to 1.5 billion rupees (Dh83.2 million), a sum that will be used to promote the programme and to subsidise student fees.

About 55 per cent of the 15,000 seats offered in the first year will be eligible for partial or complete fee waivers.

The waivers suggest that the government regards Study in India not as a money-spinner but as an instrument of soft power which will raise the country’s international profile.

At the moment, having few international students and faculty on Indian campuses shuts down avenues for cultural interaction and exchanges of ideas, said S S Mantha, a former chairman of the All India Council for Technical Education, a government-appointed advisory body.

Study in India is “a good move to start with”, Mr Mantha said, but Indian institutes "will have to do much more with their infrastructure and facilities”.

While India’s best universities, such as the IITs, see a scramble for admission, there are also thousands of lower-quality colleges and universities where the faculty are poorly trained and the facilities are inadequate.

“A lot of work has to be done with these institutions,” Mr Mantha said.

Getting faculty of equal calibre to western universities who are doing research of interest is very important, he said. "This happens now in some small pockets of excellence, but it remains there. It doesn’t move around to other institutions.”

The decision to admit thousands of foreign students “may seem to be taking away seats from local students”, Ms Sengupta said. “But the Indian university sector has shown its ability to grow in the past 4-5 years.”

India has added roughly 130 universities and 3,000 colleges — private as well as state-funded — since 2014, and altogether about 34.6 million Indians are enrolled in higher education institutes,

Mr Mantha said "the expanse of education is so huge in India" that an additional 200,000 foreign  students "will hardly make a difference".

“But the value those numbers will bring, in terms of ideas and cultural exchanges, will be far higher.”

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UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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