The US-India Business Council expressed backing for the Foreign Education Bill pending before the Indian parliament, but stated that certain financial needs could dissuade foreign educational institutions from investing in India.

In a letter to Indian HRD Minister Kapil Sibal, the trade association representing more than 300 top US firms investing in India stated that the legislation is a vital step in opening India's higher education system and meeting up the objective of 30% Gross Enrolment Ratio by the next 10 years.

USIBC President Ron Somers wrote, "Importantly, the Bill will help to foster greater knowledge exchange between our two countries, further strengthening the growing Strategic Partnership."

"We believe, however, that there are a number of provisions in the Bill that could deter foreign educational institutions from investing in India," he said citing the proposed financial requirements that "could dissuade some institutions from establishing partnerships in India."

"Many colleges and universities are ready and willing to invest in India's educational system and are eager to partner with Indian schools," Somers said.

As the world's biggest free-market democracies, the US and India must be heads in motivating worldwide growth, novelty, and entrepreneurship. (With Inputs from Agencies)