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ARTICLE · 28 JUNE 2018

Foreıgn Investment In The Educatıon Sector: Regulatory Roadblocks

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The education sector in India is one of the most dynamic sectors with immense potential for growth and investment.

IndiaConsumer Protection
Seema Jhingan
Seema Jhingan
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The education sector in India is one of the most dynamic sectors with immense potential for growth and investment. The education industry in India is estimated to reach USD 144 billion by 2020 from USD 97.8 billion in 2016 according to IBEF's industry report of April 2018 1. As per the Department of Industrial Policy and Promotion's ("DIPP") recent statistics on foreign direct investment ("FDI") 2, the India education sector has received a cumulative foreign investment of around USD 1.67 billion from 2000 until December 2017.

The FDI Policy allows up to 100% foreign investment in the education sector under the automatic route (i.e. without the requirement of prior Government approval). Further, FDI in companies engaged in construction-development projects (including inter alia educational institutions) is permitted up to 100% under the automatic route, subject to compliance with certain conditionalities. However, despite the liberal FDI norms, investment in the

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