Foreign Education Providers (Regulation for Entry and Operation) bill is aimed at: 1. Regulating the entry and operation of foreign education Providers. 2. Awarding them the status of “deemed universities”. 3. Limiting the commercialization of higher studies.

1. Industry of the Month
“Education in India”
eBizWire
Vol . I Issue. VI, July 2012
Insight
Biz India News 2
Biz Policy Updates 3
India: Education Industry 4
Business Idea of the Month 7
StartBizIndia Discussion Platform 8
Upcoming Business Summit 9
Contact us 10
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2. Biz India News Headlines
• Britannia Industries, which has a near dominant control in the Indian biscuits Britannia plans to go West,
market, is embarking on a global expansion to shore up its growth story. The targets Indian diaspora
company, which logged 19 per cent growth in top line at Rs 5,400 crore,
derives around Rs 250 crore from global operations and is looking at all
vectors to expand its presence overseas on 06th June 2012
• The Intellectual Property Office (IPO) and Imperial College today published Copyright industry adds an extra
new estimates of investment in the UK's copyright industries on 8th June, £3billion to national accounts
2012. When adopted in the National Accounts this adds more than £3 billion
to the economy. This is excellent news not just for the UK economy, but also
because it shows that Government is serious about understanding and
promoting the creative industries.
• Sweden-based single brand furniture retailer IKEA’s CEO Mikael Ohlsson IKEA Applies to Invest Euro 1.5
met the Union Minister of Commerce, Industry and Textiles Shri Anand BN in India
Sharma in St. Petersburg today to confirm that they will be investing in India
to the tune of Euro 600 Million (approximately Rs. 4200 crores) in the first
stage and additional estimated FDI of upto Euro 900 Million (approximately
Rs. 6300 crores) totalling to estimated Euro 1.5 billion (approximately Rs. 10,
500 crores) for initial establishment of twenty-five retail stores in a wholly
owned subsidiary on June 23, 2012
• Infosys has opened a second development centre in Japan as it prepared to Infosys opens second
have a more evenly distributed geographic spread across the globe on 26th development centre in Japan
June 2012. In a statement on Monday, the IT major said its Japanese
subsidiary is targeting the local manufacturing clients and accordingly, it has
set up an office in Chibu. “We are aggressively targeting the manufacturing
sector in Japan where at present we have 40 clients,” said Mr S.D. Shibulal,
CEO and Managing Director, Infosys.
• Indian and Australian scientists will jointly undertake 13 new research India, Australia team up for 13
projects. Developing new batteries for electric vehicles, recycling of research projects
hazardous e-waste, method to manage wastewater discharged from
ethanol distilleries, new vaccines against tuberculosis, etc will be the focus
of some of the collaborative work An Australia-India Strategic Research
Fund has been created for which the Australian Government has
th
committed a total Fund of Australian $64 million on 27 June 2012
• On 29th June, 2012, Spices exports from India rose nine per cent in Exports do spice industry proud
volume in 2011-12, at 575,720 tonnes, against 525,750 tonnes in the
previous financial year. Total export earnings were up 43 per cent at Rs
9,783 crore compared to Rs 6,841 crore earlier; in dollar terms, up six per
cent, according to the Spices Board.
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3. Biz Policy Updates Legal Headlines
• Liberalization of ECB norms for infrastructure sector and power sector
Liberalization of ECB norms for
th
On 25 June 2012, Reserve Bank of India (RBI), in consultation with the infrastructure sector and power
sector
Government of India has decided to introduce the following measures with
immediate effect:
It has been decided to allow Indian companies in manufacturing and
infrastructure sector and having foreign exchange earnings to avail of
external commercial borrowing (ECB) for repayment of outstanding Rupee
loans towards capital expenditure and/or fresh Rupee capital expenditure
under the approval route. The overall ceiling for such ECBs would be USD
10 billion.
The existing limit for investment by Securities and Exchange Board of India
(SEBI) registered foreign institutional investors (FIIs) in Government
securities (G-Secs) has been enhanced by a further amount of USD 5
billion. This would take the overall limit for FII investment in G-Secs from
USD 15 billion to USD 20 billion. In order to broad base the non-resident
investor base for G-Secs, it has also been decided to allow long term
investors like Sovereign Wealth Funds (SWFs), multilateral agencies,
endowment funds, insurance funds, pension funds and foreign central
banks to be registered with SEBI, to also invest in G-Secs for the entire
limit of USD 20 billion. The sub-limit of USD 10 billion (existing USD 5
billion with residual maturity of 5 years and additional limit of USD 5 billion)
would have the residual maturity of three years.
The terms and conditions for the scheme for FII investment in infrastructure
debt and the scheme for non-resident investment in Infrastructure
Development Funds (IDFs) have been further rationalised in terms of lock-
in period and residual maturity.
Further, Qualified Foreign Investors (QFIs) can now invest in those mutual
fund (MF) schemes that hold at least 25 per cent of their assets (either in
debt or in equity or both) in infrastructure sector under the current USD 3
billion sub-limit for investment in mutual funds related to infrastructure.
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4. The education sector
India: Education Industry of India is mainly
divided into two main
“India, first of all, came to the game with some just natural advantages:
one, English-speaking population; two, real emphasis on education. You segments:
also had a country that is very instinctively able to globalize, take the best
of the global world and meld it with their own culture.” Core Segment-
Tom Friedman, Columnist, the New York Times Schools &
Higher Education
When you hear of India being called a great country; the first thought that University
usually comes to the mind is of India being one of the most populated
countries, or India having one of the largest geographical areas in the
World. But there are other things too which contribute to making India one Non Core Segment-
of the most talked about countries. One such fact is the Indian education Coaching classes,
system which is one of the largest in the World. Pre schools, and
Vocational Trainings
According to a report “Emerging Opportunities for Private and Foreign
Participants in higher Education” by PWC; the Indian education Industry
is one of the major areas for investment because it is going through a Controlling Body of Education
metamorphosis, a renovation process. The Annual Report 2010-11 of Sector:
MHRD states that India has 544 university level institutions, which
includes 261 state universities, 73 state private universities, 42 central The Ministry of Human
universities, 130 deemed universities, 33 institutions of national importance Resources Development
and 5 institutions established under various state legislations. India also (MHRD)
has 79 centrally funded institutions, which includes 15 Indian Institutes
of Technology, 11 Indian Institutes of Management and 30 National Various Boards/ Authorities
Institutes of Technology. which acts in affiliation;
THE MARKET: At a glance
Education is one among the largest services market in India. Let’s have a • All India Council for
look at some of the facts of online education and similar trend in India Technical Education
particularly non-core segment of Education Sector. (AICTE)
 Coaching Institutes: This segment will witness a 17% increase by the
th
end of 11 5-year plan as compared to the figure of 2008.
 Vocational Training: Owing to the significant improvement this sector • Central Board of
is witnessing in respect of methodology and technology; it is gathering Secondary Education
huge investments from the corporate and private equity firms. All this (CBSE)
has been possible due to the enhanced demand and supply of online
and correspondence courses, facilitation by government and quality
improvement.
 Education through Television: Media, Telecommunication and
Education players are now providing education through TV by taking • State Boards
digital education Business-to-Customer (B2C) and helping children
study while watching TV.
 Competitive Exam Service “iExam” is one such step by Bharti Airtel’s
DTH service.
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5. Interesting Statistics
India: Education Industry
The Fact - The Figure
 Game based Learning: Games on the lines of NCERT and
International Baccalaureate curricula covering subjects such as  Number of students :
Mathematics, English, Science, General Knowledge and; 450 million
Environmental studies are soon picking up. NCR based company approximately
“Digiwise Knowledge” pioneered the concept.
 Annual revenue:
 Interactive Learning platform for K12 students: A Hyderabad based US$ 50 billion
Education Service Company “Edutor technologies” is developing a
proprietary touch-screen device which comes pre-loaded with  Investment requirement:
educational content which can be updated with the student’s promotion US$ 100 billion
to a higher class. The product which is being marketed only in by 2014
Hyderabad will soon spread over other parts.
 Expected growth in the
 Online Education: E-learning market in India was valued at Rs. 1841 decade 2011-2021:
crores in 2010-11 and is expected to increase at a rate of 20%. Around 10-15%
Increasing Internet availability and rising demand are going to take this
segment to its heights. Large investments have already poured in  Pre-School Segment:
which makes it clear that there are going to be huge business Will reach US$ 1
opportunities in e-learning segment in the near future. th
billion by the end of 11 5-
year plan
REGULATIONS IN THE INDIAN EDUCATION SECTOR:
Education Sector of India operates in a highly regulated framework. The  World Bank for Secondary
regulation starts at the Central level gets decentralized at State level. Education:
Hence, the regulations differ from one state to another. Credit of US$
500 million to ensure
 K 12 Sector: This fragment is governed by the “School Education Act” quality education
of the respective states and CBSE Rules and regulations concerning
affiliation and rules of any affiliating body.  K-12 sector (Kindergarten
to Class 12th):
Who qualifies to be affiliated with CBSE? Expected to
o Non Profit Trusts & Societies registered under Societies Registration increase by 14% in worth
Act 1860 against the corresponding
o Companies registered under Section 25 of the Companies Act, 1956 market size of 2008
Income Tax Exemptions are available to Schools and Institutions for
higher education set up trust provided they comply with Section 11 of
 Indian Higher Education
system World rank:
Income Tax Act, 1961. Trust has to ensure that its main activity is the 3rd largest in the
noble purpose of promoting education and not earning profts. world after China and USA
 Professional Institutions: Professional councils like the All India
Council for Technical Education (AICTE) regulate the professional and  Growth of Higher education
technical educations in India. Setting up of educational institutions against last year : 20 %
requires huge funds after all and your investment might not be
sufficient. University Grants Commission (UGC) or other schemes of
Government may seem like the light at the end of a tunnel.
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6. India: Education Industry
PROSPECTS OF FOREIGN INVESTMENT:
The central government is ever enthusiastic to welcome overseas
investment. It is because, not only the government’s expenditure will reduce
but the development of education sector will take a better shape. As the
foreign participation increases, one can hope for the regulations to mellow
down a bit. The entry of foreign participants is proposed to be covered by
the new “Foreign Education Providers (Regulation for Entry and Operation)
bill which is aimed at:
1. Regulating the entry and operation of foreign education Providers.
2. Awarding them the status of “deemed universities”.
3. Limiting the commercialization of higher studies. Companies in online
Many foreign educational institutions are operating in the country offering
education in India
different types of courses and programmes and there is no regulation
presently in place to control and curb the operation of such institutions
with academic credentials which may not even be satisfying in their own
country.
GOVERNMENT: The Facilitator
The role of Central Government is of paramount importance in the
evolution and monitoring of the education policies and programmes. The
following initiatives have been taken by the Government:-
 Right to Education - Sarva Siksha Abhiyan: Rs. 25,555 Crore have
been allotted for the year 2012-13 which is a 21.7 increase from the
previous allotment.
 Model Schools: 6,000 schools have been proposed to be set up at b
lock level in the 12th five year plan.
 Rashtriya Madhyamik Siksha Abhiyan: Rs. 3,124 crore have been
provided which is a 29% increase over the previous budget allotted Features of online
Platform for Education
 IITs and IIMs: budget allocation for the education sector has been
increased by almost 17% i.e. Rs. 150 Crore for establishing new Indian
• 24/7 online Learning
Institutes of Technology and Indian Institutes of Management.
 Excellence in Journalism: Measures have been taken to establish 4 • Live Chat
regional centers of Indian Institute of Mass communication.
• Mobile learning
 Financing of Deemed and Central Universities: Rs. 6,36,215 Crores
Solution
have been allocated to University Grants Commission (UGC).
 Collaboration with European Union: India and EU have joined hands • Online Tutoring
to launch a skill development project in India where EU will invest 6
million euros over a span of four and a half years. • Online Classes
 Strategic Partnership with US: India will set up a higher education
platform to enhance collaboration in research, skill development and
student and faculty exchange.
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7. India: Education Industry
THE BIG PICTURE: What lies ahead?
India is going to focus on vocational education and training to increase its
formally skilled workforce by about 70 million people in the next five years.
Huge changes are expected to occur in the higher education segment in
the coming years. Foreign partnerships will enter the country to bring new
ideas while Indian entities will work on improvising the existing
methodologies of teaching to make India an even better place for
education.
Education is one phenomenon which is ever evolving and Indian
education sector is not behind. It offers huge business opportunities for
those eager to invest. Availability of funds and a noble mindset to promote
quality education can take the investor to places.
Source: ibef
The USP of such a venture is
that
Business IDEA OF THE Month you can adopt different
methodologies
E-Tutoring
+You can connect to the
E-Tutoring is all about learning online through Internet and student virtually on real-time basis
TV. Talk to any student and he will tell you about the neck-in-
neck competition that exists at school level. Coaching and
tuitions seem to be the buzz-words in the education sector
these days because of the way they supplement the regular
school education. Not only the e-tutors help a student to cope
up with the syllabus at the child’s own pace, they even fulfill
the need of individual attention which is sometimes not
possible in school. Who knows better than a worried parents
Another thing which the parents know pretty well is the way
computer education has gone ahead of times. One can only
marvel how tech-savvy kids have become these days.
Getting a child to spend 4 hours with his laptop seems
easier than getting him to study for that duration! Isn’t it
A huge business opportunity lies in front of you if you are
game enough to combine the 2 things we have discussed
above! Any guess what we are talking about? Yes. An online
coaching venture! There’s absolutely no better way to attract
a computer loving student towards studies.
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8. StartBizIndia Discussion Platform
NRI wants to open a Garment Manufacturing Unit in Free Zone in India.
He wants to manufacture or import the raw materials from outside
India and export the finished goods back. Please advice for suitable
location. What is the minimum investment required to set up the
project? Can he apply for PAN Card in the capacity of NRI?
Free Zone covers SEZ (Special Economic Zone) and EOU (Export
Oriented Unit). Since, you want to manufacture garments in India and
export it to outside India, so, it is recommended to choose setting up of
EOU (Export Oriented Unit). The biggest advantage of setting up EOU is
that the unit can import capital goods, raw materials, consumables,
packing material, spares etc. without payment of customs duty. Similarly,
these can be procured indigenously without payment of excise duty.
Second hand capital goods can also be imported.
The incentives are as follows:-
a. Exemption from customs/excise duties.
b. Income Tax exemption on income derived from the business of
development of the EOU in a block of 10 years in 15 years under Section
80-IAB of the Income Tax Act.
c. Exemption from minimum alternate tax under Section 115 JB of the
Income Tax Act.
d. Exemption from dividend distribution tax under Section 115O of the
Income Tax Act.
e. Exemption from Central Sales Tax (CST)
f. Exemption from Service Tax
100% FDI investment is permitted through Automatic Route. The suitable
location is Noida, Uttar Pradesh in North India.
Minimum investment in plant and machinery and building is Rs 100 lakhs
(INR) for EOU. This should be before commencement of commercial
production. In case of SEZ, there is no minimum requirement in terms of
investment. The minimum capital requirements of forming a Private Limited
Company are Rs. 1 Lakh (INR). In addition to this, the other costs will
depend upon number of factors such as size of the business, location, land
cost, etc.
As far as applying for PAN card is concerned, NRI can apply for PAN in
India by submitting certain documents to Income Tax Department
.
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9. Upcoming Business Summit National
 Food & Agri Processors & Exporters Conclave
• Food & Agri Processors &
Exporters Conclave
The programme aims to discuss key challenges faced by food agri
processors and Exporters. Also, the event aims to identify the business
opportunities for food and agri business in India. There has been a
session on suggestions in policy changes for facilitation of promotion of
agro based industry. The focus areas are statutory requirements of
importing countries, WTO Agreement, Food parks, SEZ and Agri
processing zones and also inbound and outbound investment
• Entrepreneur 2012 - Investor
opportunities and special international corridors of focus Meet - for Indias hottest
th startups, VCs angel
Date: 25 July, 2012 investors.
Venue: Hotel Fortune Landmark, Ahmadabad
 Entrepreneur 2012 - Investor Meet - for Indias hottest startups, VCs
angel investors.
This programme is especially for startups which have the potential to
transform India’s landscape, and solve problems with inspired solutions.
th
Date: 26 July, 2012
Venue: Hotel Sofitel Bandra Kurla Complex,
Mumbai
 Scaling Businesses from One Orbit to the Next
The workshop answers dilemmas surrounding scaling businesses,
frequently faced by entrepreneurs once they are in revenue stage such
• Scaling Businesses from
as:
One Orbit to the Next
• How do I scale? Will it affect my current pace of my business?
• Is it the right time for me to consider funding?
• How do I grow my venture from strength to strength?
Date: 27th July 2012 to 28th July 2012
Venue: Electronics City 1st Phase Bangalore
 8th Indo-US Economic Summit • 8th Indo-US Economic
Summit
Emerging Frontiers in the Indo-US Economic Cooperation is all about
Exchange of views on various sectors of business between India and US,
including investment opportunities in both the countries. The event shall
be held
Date: 12th September to 13th September 2012
Venue: Hotel Le Meridian, New Delhi
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10. Contact Us
Neha Seth Visit us at
E: neha@indiacp.com
D: +91.11.40622239
A Venture of
Shipra Paul D- 38, Ist Floor, South Extn. Part I New Delhi –
E: shipra@indiacp.com 110049
T: 40622200 F: 91.40622201
D: +91.11.40622246
E: info@startbizindia.com
Disclaimer:
This paper is a copyright of Corporate Professionals (India) Private Limited. The entire content of this paper have
been developed for the new startups. The author and the Company expressly disclaim all and any liability to any
person who has read this paper, or otherwise, in respect of anything, and of consequences of anything done, or
omitted to be done by any such person in reliance upon the contents of this paper.
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