Policy on FDI in primary education likely

AHMEDABAD: The Union government is contemplating a new policy on foreign direct investment in the elementary and primary education in the country.
According to sources, a proposal has been submitted to the ministry of Human Resource Development to review the FDI policy in the education sector, especially in view of foreign companies evincing interest in setting up pre-school playgroups on a franchisee basis.
Although, a 100% FDI is allowed in the educational services through the automatic route, the department of elementary education and literacy is learnt to have raised objections on the unrestricted entry of foreign players in primary education.
The department of elementary education has noted that FDI in early childhood education could result in bringing in curriculums and approaches, which are not necessarily conducive to the requirements of the country.
Sources also said that government has now recommended that the FDI proposals in the concerned sector must be considered on a case-to-case basis only while the formulation of the new policy is pending.
The Foreign Investment Promotion Board (FIPB) has, meanwhile, noted that any change in the policy would be applied with prospective effect and proposals during the intervening period will have to be considered in accordance with the existing policy.
While FDI up to 100% in the education sector is permitted through the automatic route and accordingly a large number of foreign institutions had already set up business in India, as per the existing policy. It may be pointed out that Euro Kids, an elementary play group education centre is already operating in various Indian cities.
It is learnt that senior government officials at a recent FIPB meeting were at variance with the recommendations made by the department of elementary education on the existing policy with regard to 100 per cent FDI.
Accordingly, it was felt that the department of elementary education is required to resolve the policy issue at the earliest by way of an appropriate and transparent sectoral policy, as it would otherwise lead to a situation where companies approaching FIPB would be denied approval whereas those accessing the automatic route would freely operate.
A proposal of Egmont Imagination India, a subsidiary of the leading Denmark-based global children’s entertainment and education company, to develop curriculum and model for play schools for young children is hanging fire with the FIPB.