IMPACT OF LIBERALISATION

IMPACT OF LIBERALISATION

          According to the Article 25 of the Companies Registration Act, educational institutes in India can be set up only by trusts, societies and charitable companies but the profits cannot be taken out of the institution and have to be reinvested. However, the government does not define and clarify rules for foreign universities to set up campuses in India. Interested parties have been hesitant about moving forward until they are clear about the degree of regulation, funding, and other issues. Since its succession to power, the present government has adopted readjustment and liberalisation policies in an attempt to improve the deteriorating economy, but those policies have had negative and positive impacts on the economy and the people. Social services were hardest hit by these liberalisation polices. This would allow foreign universities to set up their campuses in India.

Positive Impact:

· In the Indian economy, major part is contributed by the service industry but now the education sector will become a large economic source.

 · After liberalisation constant fund will also facilitate a research-based career and give an option for the bright future of Indian teachers and students.

· It will expand the supply and the competition among educational institutions will ensure that they do not charge excessive premium for education.

 · Liberalisation offers students an option of studying near home. It also curbs brain drain which is also a nation's loss. The Graduates with specific skills allow corporate to ensure the development of better industry.

· With the liberalization policy, there is a tremendous change in educated population that implies rapid developments in technology and communications. · Education is a continuous because it is not end with graduation so the system also keeps on changing as the nation grows and adding recent advancement.

 · Foreign higher educational institutes would create competition with the local institutes making them internationally competitive. Also FDI in education would create new institutes and infrastructure and generate employment.

·     One country includes expertise in some subject and other country may have in some other subject so if they exchange their knowledge it benefits both the countries.

The impact of globalization and liberalization on higher education is deal with technical/legal issues of the agreement, education policy issues such as access, accreditation, quality, funding, and intellectual issues for society such as the role and purpose of higher education. Both the quality and quantity has to be improved in our education system and certainly with a faster pace. Education is certainly an “Opportunity” for the “YOUNG” India if delivered responsibly and equally to all the stratum of society. A new revived education system should be introduced which focuses on equitable, inclusive and sustainable growth along with provision of professional knowledge and skills.

 · Since a large number of students go abroad for their higher education, it is sensible to allow foreign universities to set up their campuses here, in India. This would help in arresting the outflow of monetary and human capital.

 · It is suggested that educational institutes and organisations as well as regional and national education groups give more priority to the policy issues emanating from trade liberalisation and examining how to get fully benefit from new opportunities that are available.

· Globalisation had effect on educational technology to change the way of education deliver as well as roles played by both teachers and students. The progress of this technology is to shift industrial based society to an information-based one.

· We need to implement the reforms in the education system and also bring forth new factors of production, namely knowledge, skills and technology which have the ability to unleash the productive frontiers of the economy in the most efficient and dynamic way.

 · There is an urgent need to address the deficiencies facing by our higher education sector. one sided response to it won‟t solve the problem. The best option is the middle path. Government should allow foreign universities to invest in education sector but under strict regulation. It should shortlist the preferred universities for investment and then invites them to set campus in India.

· Government needs to act with strictness and carefulness in development of higher education. Low grade universities should not be allowed to open their campus in the country.