Besides, despite the talk of protecting students interest, it is really about protecting those politicians and businessmen who park their idle black money and real estate in education enterprises. This is only to create a protected area where rent seeking can be permitted: Indeed, that's exactly what happens in Indian Higher Ed. While there is a danger of foreign providers cheating on Indian students, the students are cheated nonetheless, with sub par education handed out to them by local henchmen. Opening the gates, at least to the institutions who are approved in their respective home countries (and one could draw up a list of countries and include US, Europe, China, Japan and Australia, but exclude such places like DR Congo and Chattisgarh) can reduce rent seeking and corruption and may lead to better deals for the students.
In summary, the muddle continues, but there is clear need to emerge sensibly out of it. This is the only way Indian can get investment in the sector, and develop the great institutions it needs for building the country. So far, it is doing poorly on both counts.