"While India is a net importer of education services, developed countries like the United States, Australia, Canada and New Zealand, which are net exporters, have a distinct comparative advantage in this area and would benefit most from liberalisation," the apex chamber said in a statement, urging the government to tread cautiously vis-a-vis the ongoing negotiations in services under the WTO.

Pointing out that the developed countries have not made commitments for opening the education sector, it said the US has not allowed foreign investment in its primary, secondary and higher education services. On the other hand, Australia has made commitments only for the private sector in education services, it added.

"Making commitments under the WTO may necessitate changes in the basic approach to our education policy, that is, non-commercialisation of the system in India," FICCI said.