Focus on India: Strategies for success

Dr. Sheila Embleton & Husain F. Neemuchwala

OAIE Conference 2011

Overview...1. Present Status: Abundant Unrealized

Potential

2. Country-Specific Strategy: Critical for ‘Internationalization’ success

3. Bill 57 & winning conditions: Potentials and many expectations

India: Education Market Overview India's education system is among

the largest in the world

   3rd largest higher education institutions (> 18000)    3rd largest in terms of student enrolment -12.8

million (after US & China)    Education market worth US$50 billion- higher

and professional education segment constitutes 40%

of this market    Unprecedented growth in the past decade

India: Education Market Overview Gross enrolment ratio remains very low (12%

or less than ½ of world average)Few globally recognized Institutions (IIT,

IIM…) A sizeable number of Indian students go

overseas for higher education Education spending going up significantly,

especially for infrastructure developmentEducational reforms underway –aimed

at creating a governance structure that can support the transformation process

India: Quick statistics Population 1.3 Billion, 1/3rd below age 30 and

growing middle class of 300 Million Over 100,000 Indians go overseas to study

every year18,064 Colleges |379 Universities Only 1 University (JNU-183rd ) & 2 Institutions

(IIT’s-57th and IIM’s-68th) are in Top 200. Need for quality education !Huge potential exists!Indian Economy galloping at 9 %

International education in India (then)International study inaccessible to the Indian

masses

Canadian classrooms hosted handful of Indian students (either brightest or richest)

Little interest from Canadian institutions in engaging India & faculty exchanges with 1 or 2 institutions or paper agreements

High motivation for Indians to aspire for Canada

Better academic opportunities and quality of life in Canada and very few thought of returning

International education in India (now)

Huge, prosperous middle class

Fills PSE demand and supply gap in India

Better research opportunities in Canada

International links provide valued competitive edge to the Indian institution

Fulfills the need of a skilled workforce for Indian industry

Improved quality of life in India; many Indian students choose to return

Understanding trends

Bill 57 (challenges & merits) MOU in academic relations between

Canada & India...Uptake in Indian students resulting from

increased marketing efforts by Canada & issues faced in other countries...

2011 being celebrated as year of India in Canada with Academic delegations, IIFA [Film Academy] awards, several artists | performers and PBD [Overseas Indians] in June

Top 10 Countries of Origin of Foreign Students in Canada

Flow of All Foreign Students into Canada for 2009 (Total: 85,131)

Rest of the w orld, 26,741,

32%

China, 16,369,

19%

Saudi Arabia,

5,292, 6%

France , 5,316, 6%

India , 5,716, 7%

Korea (South), 11,045,

13%

U.S.A, 4,514, 5%

Japan , 3,316, 4%

Mexico , 2,758, 3%

Germany, 2,330, 3%

Brazil, 1,734, 2%

Foreign Student Presented in Canada on Dec 1st, 2009 (Tota: 196,227*)

China , 49,909,

25%

Korea (South), 25,882,

13%

U.S.A, 11,255, 6%

Rest of the w orld, 63,598,

33%

India , 9,575, 5%

France , 9,287, 5%

Saudi Arabia,

8,750, 4%

Japan , 6,104, 3%

Hong Kong, 4,095, 2%

Mexico , 4,071, 2%

Taiw an, 3,701, 2%

Flow Stock

Source: Citizenship and Immigration Canada

Annual Flow of Indian Students to Canada (1980-2009)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

Source: Entries of students with Indian CitizenshipSecured from CIC communication dated Sept. 17, 2010

Canada-India Student MobilityStock and Flows (1999-2009)

0

2,000

4,000

6,000

8,000

10,000

12,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0

1000

2000

3000

4000

5000

6000

7000

Stock Flow

Source: Citizenship and Immigration CanadaFacts and Figures 2008 and Preliminary 2009 Data

• Operating below optimal potential • India now ranks 3rd (after China and South

Korea) in terms of annual flow and 4th

(after China, Korea and U.S.A) in terms of stock

• Canada less known ‘brand’ in India. Need quantum leap

• Areas of collaboration besides recruiting include academia-industry cooperation, alumni networks…

• Review & re-engage this ‘dynamic’ education corridor

InternationalizationFinancialReputationBrings international dimension to domestic

students on campusAcademic experience of graduate studentsOutbound opportunities for domestic studentsNational interest (immigrants, world

knowledge)Development/foreign aid/altruismTravel

A quantum leap required in promoting ‘brand Canada’

Need to increase our promotional efforts compared to competitors from other countries

Imperative in the light of new developments in India and a better reflection of ALL our Institutions.

No co-relation between economic benefits ($6.5B) and our budget in terms of ‘brand promotion’ (roughly $1M)

Inexpensive ‘marketing’ options Pre-planned school drop in visits (engage | reward

HS Counsellors, student interaction)Pre-planned Alumni networking receptions (makes $

$ sense to maintain up to date database)Combined approach (agents?, ‘rep office’?, fairs?,)Reach out using social networking tools (students

‘meeting ground’...FB, Orkut, Ishtyle & many more)

‘Opening’ of India’s doors

India’s intention to become “the hub of knowledge in the world” by using “education

diplomacy”...Prof. Balbir Sahni

Foreign Education Providers Bill “Under the bill, foreign education-providers will be allowed to operate in India but not allowed to repatriate any profits”

Right to Education Act “Education is the birthright of

every child in India”

Highlighting recent developments

India-US Education CouncilIndia-Australia Education CouncilSingapore-India Education CouncilCreation of the Canada-India Education

CouncilOther countries lining up...

3. Bill 57 & winning conditions: Potentials and expectations

Briefly speaking, Bill 57 is a positive development aimed at fostering cross-border education :

Targeting minimization of gaps in the present

education infrastructure in India;

Realizing effective quality-based educational partnership within an open and liberalized regime;

Weeding out inappropriate and largely commercial endeavors by foreign educational providers.

Key Features of the Bill Government permission and notification

mandatory for foreign educational institutions for offering education services in India awarding degrees/diplomas/certificates…

Education can be offered through conventional method (including classroom teaching method but excluding distance mode) only, independently or in collaboration, partnership or in a twinning arrangement.

FEIs with a standing of at least 20 years only

eligible to apply

Key Features of the Bill UGC (or its successor) will act as the go to agency

for the approval | notification process. The provisions of the UGC Act 1956 will apply to FEIs as they apply to any other university in India.

Programs offered in India ought to be consistent with the programs offered in home country in terms of quality and content.

Undertaking to maintain a corpus fund of INR 500 million (C$11.34 million) aka=collateral.

Time-bound approval process (can take up to 1 yr)

Key Features of the Bill Income generated from corpus can be

ploughed back for development purposes (up to 75%) and remainder to be deposited with the corpus. NO repatriation allowed !

Penal clauses on default (deposit money can be forfeited) & existing FEIs also required to seek approval under the provisions of the new Act.

Advisory Board can exempt a foreign institution on the basis of reputation from the above requirements (with a few exceptions).

Educational Institution in India –Possible Entity Structures

Educational Institution in India –Possible Entity Structures

Alternatives available to set up a Foreign educational institution

Society Trust Not for Profit Company/ Section 25 Company

Regulated by Society Registration Act,1860

Minimum number of members required = 7

Main instrument of any society is the memorandum of association and rules and regulations

Profits cannot be taken out of the institution and have to be reinvested

Regulated by Indian Trust Act,1882/ State Trust Act

Trust may be created by every person competent to contract

Main instrument of any public charitable trust is the trust deed.

Application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered

Reserve Bank of India approval would have to be obtained to allow non residents/ foreign citizens as trustees

Governed by Indian Companies Act,1956

Main instrument is a Memorandum and Articles of Association

The profits, if any, or other income must be applied for promoting the objects of the company

No dividend pay-out to its members

Existing Canada-India ‘partnerships’28 and counting known partnerships as of 2008Many Canadian Colleges & Universities have

long standing relations with Indian InstitutionsJV’s, Joint curriculum delivery, 1+1

arrangements…York leading the way with 1 Indian campus

already & another one on the way…

Preparing to effectively operate in IndiaUndertake market research & understand

your target marketBuild a network of advisors| supporters in

both countries Sensitize yourself and staff to the Indian

‘business culture’Commit firm resources and develop an India

Business PlanPrepare for market visits and select a partner

or associateUnderstand logistics and regulations of

engagingEstablish risk management mechanisms

Courtesy: Marvin Hough, Telfer School of Management, U Ottawa

Cultural Factors - Underestimated

•Time as rigid & exact

•Focused, concentration on Task

•Sequence talking, turn taking

•Achieved Status•Earned Accomplishment•Shared Authority

•Consultation and Teamwork

•Tradition is ‘interesting’

•Time as rigid & exact

•Focused, concentration on Task

•Sequence talking, turn taking

•Achieved Status•Earned Accomplishment•Shared Authority

•Consultation and Teamwork

•Tradition is ‘interesting’

•Time as soft and elastic

•Subject to distractions,

interruptions

•Overlap talk

•Ascribed Status

•Special privilege

•Clear Authority figures

•Direction and Relationships

•Tradition is critical and valued

•Time as soft and elastic

•Subject to distractions,

interruptions

•Overlap talk

•Ascribed Status

•Special privilege

•Clear Authority figures

•Direction and Relationships

•Tradition is critical and valuedCourtesy: Marvin Hough, Telfer School of Management, U Ottawa

What is CIEC ?CIEC is an independent national, not‐for‐profit, membership based, event driven organization established to operate exclusively within the burgeoning Canada‐India education corridor. CIEC’s goal is to enhance ties and create opportunities for academic institutions and learners from both countries.

Presence in both countries. 3 Membership categories.

Member ServicesRep Offices in India (3 cities to begin with)Participation on Ed-Mission, Synergy, unFAIR…Link | exposure on CIEC websiteOne-call access in both countries (dedicated phone

#) ‘On the ground’ expertiseReceptions, Networking events & DelegationsOn site visits (at least once per year)Invite or attend ‘Familiarization Tours’Stay connected electronically (FB, Linked In,

Twitter…)

CIEC: Executive team

• Chairman- Honourable Pierre S Pettigrew, PCPast Federal Trade Minister

• Vice-Chair Kam RatheePast President, C-IBC

• President- Prof. Sheila EmbletonPast President, Shastri; York University; MITACS

• Executive Director & COO- Husain F NeemuchwalaFounder-ICE ; Past chair, C-IBC Ed. Committee

CIEC’s Upcoming Events in 2011NAFSA reception, Vancouver, Consulate-General of India

in Vancouver, June 2, 2011

Synergy Toronto, October 6-7, 2011

BIG (Business Institutions Government) Mission to India, November 7-17, 2011

Recruiting mission to India (Feb 2012)

THANK YOU...