Is GIFT City a gateway to greater TNE collaboration?
The 2022 budget had a lot to say about education, but a key point of interest for international HE collaborators with India should be changes paving the way for the establishment of foreign campuses.
Some international education providers are now invited to establish branches in Gujarat International Finance Tec City (GIFT) to provide courses on finance related subjects. This could signal the beginning of an easing of restrictions on TNE provision in India and an improving regulatory environment.
How easy will this be, and what risks are involved?
Background
Finance Minister Nirmala Sitharaman announced at the beginning of February that foreign universities would be able to set up in Gujarat International Finance Tec City (GIFT) without the requirement to follow domestic rules. Such universities will not be regulated by UGC and AICTE, and are likely to be able to repatriate profit and benefit from tax incentives.
Foreign universities operating within GIFT City will be able to offer courses deemed market-linked such as financial management, fintech, as well as STEM subjects.
Why should we be excited?
The NEP promised a legislative framework to support world top-100 HE universities to enter and operate in the India market. Although the framework is yet to materialise, the developments at GIFT City are potentially a move in that direction. It evidences that the government is serious about attracting in international universities to India.
The challenging regulatory environment is often flagged as one of the key factors detracting from India’s attractiveness as a location for setting up campuses. The Indian government appears to be signalling that they have heard international concerns over the regulatory environment and are willing to trial an eased approach.
Analysing opportunities
Considering that international universities are being welcomed specifically to a new financial centre, it is no surprise that the government expects programmes to be finance related. That is however a further restriction of an already small pool of universities officially targeted as potential foreign HE providers.
In a recent survey covering 43 of the world top 200 universities, only eight showed definite interest in establishing a campus in India. Add that the government officially will only welcome top 100 institutions, and the limitation on finance related studies, and GIFT City is left with few options.
That is of course only a concern if the top 100 ranking limiter holds. If not, GIFT City could be the perfect opportunity for middle-ranked universities to grow into the India market and prove that it is not only world top 100 institutions with something to offer.
A sticking point that may surprise interested international partners is that GIFT City only partially exists. Committing to a campus in an ultra-modern, but ultimately half built and behind schedule city is a risky investment.
GIFT City is no where near finished, despite nearing its intended completion date. The project was conceptualised in 2009, and building commenced in 2012. 10 years on, and the target completion date of 2023 is next year. Considering current progress, the project will overrun significantly.
One argument for the apparent slow progress is an early focus on getting the infrastructure right. There may be few buildings and people, but GIFT City is ahead of most India’s metropolitan areas in terms of utilities provision. World class infrastructure is certainly good news for any modern international university.
A university must however attract students and staff, and it is questionable how attractive an incomplete city is to live in. In the worst possible scenario, what happens to the university and its people if the city never fully develops as planned?
There are of course very real pay offs to embracing these risks. Foreign Universities have been offered a rare opportunity to build campuses that may pave the way for more in the future. Being an early player in the market is also likely to bring long-term benefits. Assuming that GIFT City does grow as hoped – and the city is a major focus of the government, attracting significant investment – the universities will hold a coveted spot in a new major world financial hub.