Govt keen on opening up education to foreign investment

New Delhi, Oct 4 (UNI) With an objective to leverage unfolding global opportunities in the education sector, the Government is keen on liberalising the sector not only for the foreign investors but also for domestic private sector players, Mr G K Pillai, who recently took over as Commerce Secretary said today.

''The Commerce Ministry is keen on liberalising the Indian education sector, both for the foreign investment and the domestic players'', Mr Pillai said at the International Congress and Exposition on Trade in Services, organised by the Federation of Indian Export Organisations (FIEO) here.

Emphasising the role played by professional colleges in building India's brand in the international service trade, the Commerce Secretary said the University Grants Commission should stop opening of colleges which offer only the vanila courses of Bachelor of Arts and Bachelor of Science. ''BAs and BScs are not employable'', he added.

Rebutting criticism about increasing commercialisation of the education sector, he said the government could put a condition that profits out of education should be ploughed back in the same sector.

He cited the example of Kerala, where despite no new investment from the government, eight new medical colleges have come up in the state, as private sector players were allowed into medical education.

Referring to the current state of WTO negotiations on Services under the framework of GATS, the Commerce Secretary said India, with its offensive interests, has been more liberal than many of the developed countries in opening up of the services sector.

''We are one of the most liberal countries in allowing foreign banks to expand their operations in India through their branches and ATMs. In many countries the ATMs are counted as branches and the moment the number of ATMs exceeds a permitted limit, expansion is not allowed. There is no such thing in India''. Here foreign banks could have 5,000 ATMs and they are not counted as branches giving them a big advantage and a huge market'', Mr Pillai said.

He said India is determined to reach the Mutual Recognition Agreements for our degrees and diplomas so that they are recognised in a large number of countries like the US and Europe. ''As of now, even if there is a five per cent deviation in the syllabus between the Indian and the US degrees, the graduates are asked to take the complete exams all over again'', Mr Pillai, who assumed charge as the new Commerce Secretary last week-end, said.

In his presentation, Deputy Director General of the World Trade Organisation Dr Harsha Vardhan Singh said India has started taking more active interest in the services negotiations at the WTO, even playing a leadership role in the negotiations.

''Nonetheless, the focus is still narrow for India as a demander in the negotiations. India is currently participating as a demander for four out of the 22 collective requests,''Dr Singh said.

He added India has not been a major exporter in education services but it has great potential in this sector. '' With English used as a medium of instruction and a large pool of academic, scientific and technical manpower, India could significantly expand its exports of education services'', he said.

In his address, Dr Aditya Mattoo of the World Bank said India faces a danger of having two countries within one country. The divide between the rural and urban India could pose real problems not only with regard to the country reaching global standards in export of services, but also for their delivery within the country.

He suggested two sets of standards, for meeting two different requirements.

Earlier, in his welcome speech FIEO President O P Gargh highlighted the importance of the services sector for the Indian economy. He said with over 55 per cent of their share in the Indian economy, services have come to occupy a pivotal position.

Convenor of the Congress Mr Nalin Kohli said while the world considers India as a leader in information technology, focus must also be shifted to other services like health, education, science and technology, consultancy and tourism.

UNI PC RA DS1606