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Foreign Direct Investment in India's Service Sector: A Case of Education Sector

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India, whose growth is explained with the major contribution of service sector in the past few years, had stressed upon quality education, and thus, started realizing the need of FDI in the sector. This is because of the reason that FDI, on the one hand, has equipped India with bunch of benefits, on the other, it has raised the need of skilled human resource to bring innovative, efficient and uninterrupted operations in distinct fields. However, the bitter part of the issue is that, even after being world-renowned in producing quality human resources, India had not been able to meet the demand-supply gap because of the obvious reason of shortage of higher education institutions. This has invoked the issue of opening the barriers of education sector for foreign players, not just to develop education facilities, but also, facilitation of quality education. The inception of idea had resulted in emergence of number of arguments in favour, as also, against this. Keeping this backdrop in mind, the paper attempts to highlight the issues associated to FDI scenario (in distinct ways) in service sector, focusing particularly on education sector; model reflecting association of quality education with distinct forms of environment, and resultant impact over economic growth. It further outlines various suggestive measures for allowing FDI in education sector and conclusions derived from the study.

Affiliations: 1: Department of Commerce, Aligarh Muslim University, India; 2: University Grants Commission (UGC), Bahadur Shah Zafar Marg, New Delhi, India


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