Vol. 7, Issue 5, Part E (2021)

Abstract
Foreign Direct Investment is an investment made by a company or any individual of one country in the business interest of other country. This is usually done to acquire business assets or to establish business operations in the other country. In other words, the investment is made to gain control over the operations of the foreign country or to influence the decision making power of a foreign business. FDI is the crucial factor for any economy growing towards development. In India, education is the key to nation building. Education is the major operating sector in the Indian economy as it is the major contributor of income to the economy. The contribution made by the education sector has rapidly increased during the past years. The major participants of the education system are the top universities, which generate huge incomes and credibility to the nation by its high potential working patterns that deliver top quality education. The high competitive environment provided by these universities becomes a major concern for the candidates appearing for it. This problem of high competency can be over-casted by the foreign universities that deliver high quality education and feasible enrolment process. FDI has always been a matter of great concern for India, when it comes to education sector. At present 100% FDI is allowed by the Government but, besides its advantages, it has some limitations also. The aim of this paper is to analyze the impact of FDI in Indian higher education system.