This article focuses on economic analysis of privatisation policies and postprivatisation control devices in India's higher education. As a case study, the experiences of Karnataka State in collegiate education under general higher education are emphasised. A change in public financing, rather than a shift of public ownership and management to private sector, is the most dominant feature of privatisation policies. The impact of privatisation is estimated in terms of fiscal effect, price effect, and effects on quality, equity, and affordability. To overcome the negative effects of privatisation policies, the need for postprivatisation control devices are argued, and a few policy devices are suggested. The Organisation for Economic Cooperation and Development experiences in postprivatisation control devices for manufacturing and infrastructure privatisation are shown to have relevance for both privatisation and globalisation of higher education services, especially in view of bringing education services for negotiations under the World Trade Organisation's General Agreement on Trade in Services. (Contains 5 tables and 23 notes.)