Soumitra Dutta's comments come at a time when the Centre faces huge criticism over the draft Indian Institute of Management (IIM) Bill.
Soumitra Dutta, the Dean of the prestigious Cornell University's business school, has said there must be no government interference in the functioning of institutions like IIMs and IITs.
"The government's role should be in setting up these institutions. But after that the government should allow them to flourish on their own," the Indian-born Mr Dutta told NDTV.
Soumitra Dutta is an IIT alumnus and is ranked among top Indian-American educators. He is the first Dean from a foreign country to be hired by a major American business school.
His comments come at a time when the Centre faces huge criticism over the draft Indian Institute of Management (IIM) Bill that educators say will erode the autonomy of the elite learning centres.
Mr Dutta warned that any interference from the government will render these institutions unable to compete in the global market. "If the government puts limits on what you can charge students, what you can pay to faculty members, what you can do in terms of investments, you are limiting ability to compete in the global market," he said.
Regarding the government's plan to set up eight new IITs, Mr Dutta said, "Too many, too fast, will lower their brand value."
He said he would favour setting up more IITs "if the government has a clear plan for putting faculty, research strength and infrastructure for laboratories and all other elements of learning in place. It should be done before or at the same time as the announcement."
"We cannot open a building and wait for faculty to be developed. We have a problem of faculty capability and research strength in many institutions in India which needs to be reinforced," Mr Dutta added.
The IIM bill - which the government could reportedly attempt to present for Parliament's approval in July - has drawn much criticism.
The IIMs maintain that the bill grants the Centre powers to override its Board of Governors, which will need the approval of the ministry for any substantial change, including fee structure, salary, admission and even scholarships. There are apprehensions that it will reduce the board to a mere recommendatory body.