Trade In Services

With Reference To Education

Presented By:
Ankit Soni(09)
Gaurav Verma(23)
Saurav Mittal(54)
AGENDA
Overview of Services Trade in India
GATS
GATS And Education
How Do Education Services Moves Across Border?
How Do Education Service Providers Moves Across
Borders?
Trade Barriers In Education Services
GATS And International Conventions
India And Higher Education Under GATS
Survey Results on Foreign Students
Tuition Fees For Foreign Students
Average Tuition fees
Cost of living
Rising Importance Of Service Sector
• Services sector accounts over half of domestic production (about54% in 2007-
08)
• Services sector provides about 2/3rd of employment in the organised sector.
• Services trade shares about 9% of GDP.
• Services export growing much faster than world services exports. In 2000-2006-
India: 38.22%, World: 12.84%.
• Services trade contributes about 2.64% of world services trade (gone up from
US$ 21 billion in 2000-01 to US$ 110 billion in 2007-08).
• A low tradability of a host of services in India, and a large potential of India’s
services trade.
• An efficient services sector is crucial for the growth of the Indian economy and
reducing poverty.
• We know little about empirical relationship between services trade, poverty
and inequality in India.
 GENERAL AGREEMENT ON TRADE IN
SERVICES (GATS)
 The GATS is a multilateral agreement under the WTO that was
negotiated in the Uruguay Round and came into effect in 1995. It was
essentially inspired by the same objectives as the General Agreement
on Tariffs and Trade (GATT), which is its counterpart in merchandise
trade.
 Creating a credible and reliable system of international trade rules.
 Ensuring fair and equitable treatment of all participants (principle of
non-discrimination)
 Stimulating economic activity through guaranteed policy bindings.
 Promoting trade and development through progressive trade
liberalization.
Modes of Supply
Criteria
Mode 1: Cross-border Service delivered within the
supply territory of the Member,
from the territory of
another Member
Mode 2: Consumption Service delivered outside
abroad the territory of the
Member, in the territory of
another Member, to a
service consumer of the
Member
Mode 3: Commercial Service delivered within the
presence territory of the Member,
through the commercial
presence of the supplier
Mode 4: Presence of a Service delivered within the
natural person territory of the Member,
with supplier present as
a natural person
Supplier Presence
Service supplier not
present within the
territory of the member
Service supplier not
present within the
territory of the member
Service supplier present
within the territory of the
member
Service supplier present
within the territory of the
member
 GATS And Education
• Primary education, covering preschool and other primary
education services, but excluding child care services.
• Secondary education, including general higher secondary,
technical and vocational secondary and technical and vocational
services for disabled.
• Higher Education, covering post secondary technical and
vocational education services as well as other higher education
services leading to university degree or equivalent.
• Adult Education covers education for adults outside the regular
education system.
• Other Education, which covers all other education services not
elsewhere classified; nonetheless education services related to
recreation matters are not included.
The Global Education Market
The total number of students undertaking courses
outside their home countries has almost doubled
since 1980.
Global demand for international higher education will
grow from 2.173 million in 2005 to 3.720 million in 2025.
This is growth of 71% over 20 years, or compound growth
of 2.7% per year.
The United States is the largest supplier of
international education; however, in Asia, Australia
and the United Kingdom are providing growing
competition to American institutions.
 How Do Education Services Moves
Across Border?
Franchise
Twinning
Double/Joint Degree
Articulation
Validation
Virtual/Distance
 How Do Education Service Providers
Moves Across Boundaries?
Branch Campus
Independent Institution
Acquisition/Merger
Study Centre/Teaching Site
Affiliation/Network
Virtual University
 Trade Barriers In Education Services
MODE BARRIERS BARRIERS TYPE
1. Cross Border •Restriction on import of electronically Invisible
Supply produced educational material.
•Non-recognition of degrees obtained
through distance mode.

2. Consumption •Restriction on travel abroad based on Invisible

Abroad discipline or area of study.
• Foreign exchange control (limitations)

3. Commercial •Insistence on a local partner. Invisible

Presence • Insistence that the provider be
accredited in the home country.
•Disapproval of franchise operations.

4. Presence of •Visa and entry restrictions. Invisible

Natural Person • Restriction on basis of quota for
countries and disciplines.
•Nationality or residence requirements,
language .
 GATS And International Conventions
 Regional convention on the Recognition of Studies, Diplomas and
Degrees in Higher Education in Latin America and the Caribbean,
Mexico city.
 International Convention on the Recognition of Studies, Diplomas
and Degrees in Higher Education in the Arab and European States
Bordering on the Mediterranean.
 Convention on the Recognition of Studies, Diplomas and Degrees in
Higher Education in Arab States, Paris
 Regional Convention on the Recognition of Studies, certificates,
Diplomas, Degrees and other Academic Qualification in Higher
Education in the African States, Arusha ( Tanzania).
 Regional Convention on the Recognition of Studies, Diplomas and
Degrees in Higher Education in Asia and the Pacific , Bangkok.
 Convention on the Recognition of Qualification concerning Higher
Education in the European Region.
India And Higher Education Under GATS
100% FDI in higher education services on
automatic route is allowed in India.
Foreign participation through twinning,
collaboration, franchising, and subsidiaries is
permitted.
Received plurilateral requests from several
countries like Australia, Brazil, Japan, New
Zealand, Norway, Singapore, regarding
institutional development.
India’s commitment of liberalizing higher
education services.
 Trade in Education : An Indian
Perspective
•In academic year 2008/09, 103,260 students from India were
studying in the United States (up 9.2% from the previous year).

•This was the highest by any country

•India surpassed China in this list in 2000/01


Total number of American Students studying in India in
2007/08 was 3150 ,up by 19.9 % vis-à-vis the previous year

• Source: Open Doors: Report on International Educational Exchange

Tuition Fee Structure For Foreign
Students
• Students (nationals) of SAARC countries pay much less than
others, usually less than 50 percent.
• Indian Council of Cultural Relations (ICCR) provides liberal
scholarships to students from developing countries.
• Government provide direct admission of students abroad
(DASA) to enlisted institutions.
• The survey found that the fees structure in Indian institutes
is lower than those offered by the institutes of developed
countries .
Average Tuition Fees Structure
Postgraduate Institutes Tuition Fees per
Course annum (US$)

Physical Science Jawaharlal Nehru University, Delhi 1500

Jadavpur University, Kolkata 5000

Humanities and Jawaharlal Nehru University, Delhi 1000

Social Science Delhi University, Delhi 4150

Engineering Indian Institute of Technology, Delhi 4000

Jadavpur University, Kolkata 5000

Management Indian Institute of Management, Kolkata 8000

Indian Institute of Foreign Trade, Delhi 10000

Distance Indira Gandhi National Open University, 750-1000

Education Delhi
Cost of Living
The survey reveals that the cost of living in
Delhi and Kolkata, with shared apartments, is
around US$ 900 and US$ 1200 per annum,
respectively. However, the same in developed
countries would be about US$ 12000 per
annum (in US).
THANK YOU