Knowledge has come to occupy centre-stage in the development process with the realization that a significant new relationship has emerged between knowledge and the economy. It is increasingly being recognized that countries with the capacity to generate new knowledge and skilled human power are likely to have a comparative edge in attaining high economic growth and sustaining their growth momentum over those that do not. India is no exception to this widespread and growing global belief.

The Indian system of higher education is in a state of decline, primarily due to the adverse effects of its regulatory structure. The participation of foreign universities, while not a panacea for all of the system’s ailments, offers an avenue for easing some of the pressures building up within it. Historically, foreign participation in the sector has had an unimpressive record and has faced numerous functional and ideological barriers. However, of late there is a discernible dissonance in the public discourse on this subject, particularly from within the government and its agencies.