Foreign universities exploring entry into the Indian market often inquire about the differences between UGC and IFSCA regulations for establishing campuses. Similarly, students interested in studying at these institutions may feel uncertain about the distinctions between these frameworks. This article aims to clarify these differences and provide valuable insights.
1) The Regulations:
- IFSCA: The International Financial Services Centres Authority (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022, were published in the official gazette on October 12, 2022.
- UGC: The University Grants Commission (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023, were published in the gazette on November 8, 2023.
2) Regulating Authority:
- IFSCA: The International Financial Services Centres Authority Act, 2019.
- UGC: The University Grants Commission Act, 1956.
3) Campus Definition:
- IFSCA: The campus in GIFT IFSC is a branch campus (International Branch Campus – IBC) set up by a foreign university or an offshore campus (Offshore Education Centre – OEC) of a foreign educational institution (other than a university).
- UGC: The campus defined under UGC regulations is set up in India by a foreign higher education institution (FHEI), which includes both universities and other educational institutions.
4) Qualification Recognition:
- IFSCA: The qualifications awarded at the GIFT IFSC campus are recognized in the home jurisdiction of the parent institution and are equivalent to the corresponding qualification awarded by the parent institution there.
- UGC: The qualifications awarded by an FHEI campus in India are treated as equivalent to those awarded by the FHEI in its home country. Additionally, they hold the same recognition as degrees from Indian higher education institutions, with no need for further equivalence certification.
Analysis: Degrees granted by both IFSCA and UGC campuses are equivalent to those of their parent institutions. However, UGC also provides the added benefit of equivalence with Indian degrees.
5) Applicant Eligibility:
- IFSCA: Foreign universities must rank among the top 500 globally in overall ranking or subject ranking, according to the latest QS World University Rankings. Foreign educational institutions must be reputable within their home jurisdiction.
- UGC: Foreign higher education institutions (FHEIs) must also rank within the top 500 globally (overall or by subject) or possess outstanding expertise in a particular area, as determined by the Commission (UGC).
Analysis: Both IFSCA and UGC require institutions to rank within the top 500 globally, ensuring that only reputable institutions establish campuses in India.
6) Approval Process:
- IFSCA: The application is appraised by IFSCA’s Committee of Experts. If satisfied, the authority grants in-principle approval to set up the IBC or OEC within 180 days. Upon fulfilling all conditions for registration, IFSCA issues a Certificate of Registration (CoR) for a period of five years, renewable for an additional period of five years at a time, with or without additional conditions.
- UGC: The application is assessed by UGC’s Standing Committee. If satisfied, the Commission issues a Letter of Intent (LoI) to set up the campus within two years. Once the applicant indicates readiness, the Standing Committee further examines and recommends, before UGC grants final approval for the campus to commence operations in India, with or without conditions.
Analysis: IFSCA rules require the campus to be established within 180 days, while UGC rules provide a longer timeline of two years. IFSCA’s CoR has a five-year validity, while UGC’s approval does not specify such a time limit.
7) Profit Repatriation:
- IFSCA: The parent entity is permitted to repatriate profit without any restriction.
- UGC: Cross-border movement of funds, including remittance, repatriation, and sale proceeds, is allowed in accordance with the Foreign Exchange Management Act (FEMA), 1999.
Analysis: Both IFSCA and UGC rules allow profit repatriation. Additionally, parent institutions do not need to be non-profit entities under either framework.
Also read: UGC introduces flexible degree options for undergraduate students