Allowing foreign universities to set up their full-fledged campuses in India is a right move championed by Human Resource Development Minister Kapil Sibal and the American Treasury Secretary Timothy Geithner is also visiting Delhi in the near future to discuss economic and financial cooperation with India. It could prove as an important turning point for the country's educational as well as economic system by demonstrating the positive effect of greater competition between the Indian and the foreign universities.

As India's middle-class population—now around 50 million—continues to swell, demand for postsecondary education will only grow. At present, only 12% of young people enter university. The quality of the education they find there remains low. A McKinsey study famously reported that only 25% of engineering graduates and 10% of generalist graduates were considered employable by multinational companies. That may explain why about 160,000 Indians head abroad every year for higher education.

After creating a small number of elite institutions, such as the Indian Institutes of Technology, Faculty of Management Studies etc… the state has rested on its laurels. The possible reasons could be the lack of investment in higher education by the government or we could say the government has half-heartedly tried to promote public-private partnerships thus India has failed to capitalize on collaboration opportunities and engage with corporations and wealthy private investors, who have previously helped set up quality institutions like the Birla Institute of Technology & Science in Rajasthan.

The government should have taken it with much more sincerely while entering into a partnership with the business tycoons like Ambani brothers & Azim Premji for setting up the premier institutes in the state.