The policy question is fairly simple. Do we want to restrict foreign (and private) educational institutions from functioning in India? In that case the government has to ensure massive investments in higher education. Otherwise, policies should be geared to encourage private and foreign institutions to invest and operate, and there should be safeguards to ensure quality through transparency and competition.

While taking this call, policymakers should be aware that private and foreign institutions would view education as another business, and will be willing to function in India only if they get adequate returns on their investments. Any other assumption is just plain naiveté.

The writer is director, PRS Legislative Research, New Delhi