1

ASSIGNMENT
Topic-Growth and trends in higher education sector in India

Submitted to Submitted by

Sachin sir Maneesha c

Department of Business 3rd Sem MBE

Economics
 2

Introduction

Higher Education sector has witnessed a tremendous increase in the number of

Universities/University level Institutions & Colleges since Independence. The number of
Universities has increased 34 times from 20 in 1950 to 677 in 2014. The sector boasts of 45
Central Universities of which 40 are under the purview of Ministry of Human Resource
Development, 318 State Universities, 185 State Private universities, 129 Deemed to be
Universities, 51 Institutions of National Importance (established under Acts of Parliament)
under MHRD (IITs - 16, NITs – 30 and IISERs – 5) and four Institutions (established under
various State legislations). The number of colleges has also registered manifold increase of
74 times with just 500 in 1950 growing to 37,204, as on 31st March, 2013.

The quantum growth in the Higher Education sector is spear-headed by Universities, which
are the highest seats of learning.

In India, "University" means a University established or incorporated by or under a Central

Act, a Provincial Act or a State Act and includes any such institution as may, in consultation
with the University concerned, be recognised by the University Grants Commission (UGC) in
accordance with the regulations made in this regard under the UGC Act, 1956. Every year,
millions of students from within the country and abroad, enter these portals mainly for their
graduate, post graduate studies while millions leave these portals for the world outside.

Higher Education is the shared responsibility of both the Centre and the States. The
coordination and determination of standards in Universities & Colleges is entrusted to the
UGC and other statutory regulatory bodies.

The Central Government provides grants to the UGC and establishes Central
Universities/Institutions of National Importance in the country. The Central Government is
also responsible for declaring an educational institution as "Deemed-to-be University" on the
recommendations of the UGC.

At present, the main categories of University/University-level Institutions are: - Central

Universities, State Universities, Deemed-to-be Universities and University-level institutions.
These are described as follows:
 3

Central University:

A university established or incorporated by a Central Act.

State University:

A university established or incorporated by a Provincial Act or by a State Act.

Private University:

A university established through a State/Central Act by a sponsoring body viz. A Society

registered under the Societies Registration Act 1860, or any other corresponding law for the
time being in force in a State or a Public Trust or a Company registered under Section 25 of
the Companies Act, 1956.

Deemed-to-be University:

An Institution Deemed to be University, commonly known as Deemed University, refers to a

high-performing institution, which has been so declared by Central Government under
Section 3 of the University Grants Commission (UGC) Act, 1956.

Institution of National Importance:

An Institution established by Act of Parliament and declared as Institution of National

Importance.

Institution under State Legislature Act:

An Institution established or incorporated by a State Legislature Act.

Evolution of the Indian education sector

1960-1990
 In 1964, the Kothari Commission was appointed to make a detailed survey of all the
education branches in India and advice government on policies for the development of
education at all stages and in all its aspects.
1990-2000
 In 1992, the National Policy on Education-1986 was revised.
 4

 In 1995 the National Programme of Nutritional Support to Primary Education (NP-

NPSE) was launched as a sponsored scheme by the Centre.
 In 1995, National Council of Rural Institutes (NCRI), an autonomous body was
established for the promotion of rural higher education.
2000-2010
 RMSA (Rashtriya Madhyamik Shiksha Abhiyan) was launched in March 2009 with
the objective to enhance access to secondary education.
 In 2009 Saakshar Bharat, a centrally sponsored scheme was launched with focus on
women and other disadvantaged groups in rural areas of low literacy.
 The RTE (Right of children to free and compulsory education), became operative in
2010 according to which every child has a right to elementary education.
2010-2014
 In 2012 the amendment of the Indian Institute of Technology Act, 1961 took place
which envisages inclusion of 8 new IITs.
 In 2014, Indian Institutes of Information Technology Bill, 2014 was passed by both
the houses of the parliament. The bill aims to bring 4 information technology
institutes1 under the control of a single authority.
2016 Onwards
 A new education policy is being drafted to ensure quality education in India from
2020-40. The draft policy is expected after October 2018.
 The National Testing Agency was approved by the Cabinet in November 2017 to
conduct all high stake college entrance exams in India.
 In June 2017, Government of India announced that it would replace the University
Grants Commission with Higher Education Commission of India.

Emerging trends in education sector

1. Government take one more step closure to achieve digitization in the education
sector-
The education sector has been a top priority for the Indian government. Keeping this
in mind, the government over the years has been introducing various innovations to
build a world-class higher education system. The government’s goal is to assist and
provide an opportunity to every Indian to realize his or her potential to the core.
 5

2. Government focus on getting a new financing model for higher education sector-
Through a new initiative RISE (Revitalising Infrastructure and Systems in Education),
the government has planned to a total investment of Rs 1,00,000 crore in the next four
years to step up investments in research related infrastructure in premier educational
institutions. In order to boost the higher education system for meeting the
requirements of ‘New India – 2022’, a comprehensive plan has been made for up
gradation of the research.
3. College business school fostering entrepreneurial spirit-
In recent years fostering entrepreneurship has become a topic of highest priority in
public policy. This trend is due to the widespread recognition that business start-ups
are a driving force of economic growth and significant job creation. Alumni of
universities are seen as an important source for future entrepreneurs in dynamic and
innovative areas. Considerable attention has therefore been paid to formal
entrepreneurship education at the university level. Public authorities and economic
experts stress the importance of promoting aspirations for entrepreneurship among
young and highly-educated people.
4. Trends in technology in Education sector-
Blackboard, chalk, textbooks and ink pens are slowing becoming a thing of a past. It
is time to embrace technology where digital facilities coupled with tech-savvy
teachers are enriching students’ learning experience. A little glimpse into the dynamic
digital world is indicative of how technology has given a whole new meaning to
education.
The rapid change and evolution of technology over the past few years has caught
many educators by surprise, with many educational centres struggling to keep up with
the new skills that will be required from the next generation Technology has emerged
as the driving force in all the industries. Teaching and learning have gone beyond the
norms of reading from a book and understanding. With the rapid development of
technology, students are able to better visualise and understand concepts at a much
profound level.
5. Industry experience is becoming the platform for academic careers-
The big question which is going to become the trending one in the coming year is
whether to pursue a vocation in academia or industry has changed as career paths.
There is thin line between the both. Many professional who have spent time in either
 6

private and public companies are finding professional opportunities open to them in
academia.
6. Campus experience to be replicated using virtual technology-
For corporate high flyers, being sent on an executive education programme once
meant deserting the office for a couple of weeks and decamping to a plush business
school campus. For those involved, such courses were part self-improvement, part
jolly. Firms not only hoped to equip their best and brightest with new skills, but also
to reward them by giving them the chance to rub shoulders with universities star
professors and other high performing executives.

Education Landscape in India

Advantage India

Robust demand-

Largest population in the world of about ~500 million in the age bracket of 5-24 years
presents large number of opportunities in education space. India has over 250 million school
going students, more than any other country. Huge demand supply gap with an additional
requirement of 200,000 schools, 35,000 colleges, 700 universities and 40 million seats in the
vocational training centres.
 7

Competitive advantages-

Large English speaking population allows easy delivery of educational products. India was
ranked 28 out of 88 countries in English Proficiency Index 2018. As of June 2018, internet
penetration in India had reached 39.32 per cent. Increasing internet penetration will help in
education delivery.

Increasing investment-

Between April 2000 and June 2018, inflow of US$ 1.75 billion has been witnessed as
Foreign Direct Investment (FDI) in the education sector. An estimated investment of US$
200 billion is needed by the government to achieve its target of 30 per cent GER (gross
enrolment ratio) for the higher education segment by 2020.

Policy support-

100 per cent FDI (automatic route) is allowed in the Indian education sector. To liberalise the
sector, the government has taken initiatives such as the National Accreditation Regulatory
Authority Bill for Higher Educational and the Foreign Educational Institutions Bill.
 8

Higher education

 Number of colleges in India reached 39,050 in 2017-18, up from 32,974 in 2010-11.

 Number of universities in the country has also increased at a fast pace from 621 in
2010-11 to 903 universities in 2017-18. Total number of agricultural universities in
the country increased from 35 in 1999 to 75 in 2017.
 Government’s initiative to increase awareness among all sections of the society has
played a major role in promoting higher education among the youth.
 India has 49 of world’s best universities, as per Times Higher Education (THE) World
University Rankings 2019.
 9

Student enrolment

 India has the world’s largest higher education system and it ranks second in terms of
student enrolment in higher education. India had 36.64 million students enrolled in
higher education in 2017-18.
 Gross Enrolment Ratio in higher education reached 25.8 per cent in 2017-18.
 Online higher education may prove to be a good alternative and is expected to grow
at 41 per cent CAGR between 2016- 2021.
 Government is targeting Gross Enrolment Ratio (GER) of 30 per cent for higher
education by 2020.
 10

 There has been a significant increase in the share of the state private universities as
part of total universities. In 2017-18, 29.71 per cent of universities in the state were
state private universities and 9.07 per cent were private deemed universities.
 There were 262 state private universities and 80 private deemed to be universities in
India in 2017-18.

Notable trends in the higher education segment

Specialised degrees gaining popularity-

With more and more students opting for industry focused qualifications, the demand for
specialised degrees is picking up. Most of the universities are offering MBA / Technical
degrees with focus on specific sectors.

Multi campus model gaining popularity-

Many private institutions are adopting multi city campus model to scale up their operations
and expand in the untapped market of tier 2 and tier 3 cities.

International collaborations-

In order to meet the need of today’s demanding students who seek international exposure,
many Indian universities and colleges have entered into joint venture agreements with
international universities to provide world class education. In April 2018, Government of
India and France signed an agreement to facilitate Mutual Recognition of Academic
 11

Qualifications between the two countries. Microsoft India hosted first ‘Education Day 2018’
event in India on December 04-05, 2018. It was a two day event where students and over 220
educators came together to showcase their work and innovations.

Growth drivers

Increasing disposable income and willingness of people to spend on education is a key driver
for the Indian education industry.

Higher education

Increasing awareness in India is driving private college enrolments.

Coaching institutes

Higher competition for professional courses. Engineering coaching industry in India was
estimated at Rs 1.2 trillion (US$ 18.62 billion) in 2017.

Pre-schools

Franchisee models and increasing awareness in tier 2 and 3 cities is set to drive the sector.
The pre-school market in India is expected to grow at 23 per cent CAGR between 2017-22.

Vocational education

 Increasing demand for skilled labour.

 Low employability levels.
 Increasing number of Industrial Training Institutes; As of December 2018, there
were 15,044 ITIs in the country.

Key policies and initiatives

National Education Policy-

The new National Education Policy (NEP) considers education as an utmost important
parameter in the country. The NEP majorly focuses on quality of education as well as
innovation and research in the sector. In November 2018, the National Education Policy
Framework 2018 was launched.
 12

UGC (Online Courses) Regulations, 2018-

In a landmark reform, higher educational institutions in the country have been allowed
Certificate, Diploma and Degree Programmes in online mode under the University Grants
Commission (Online Courses) Regulations, 2018.

Technical Education Quality Improvement Programme-

The programme was started in April 2017 with funding from the World Bank to improve
quality of technical education in 19 states of India and would run for three years.

Atal Innovation Mission (AIM) –

With an aim of promoting innovation and entrepreneurship among secondary school students
in the country NITI Aayog, Government of India has launched the Atal Innovation Mission
(AIM). In June 2018, 3,000 additional Atal Tinkering Labs were approved, taking the total
number of labs to 5,441. In August 2018, Innovation Cell and Atal Ranking of Institutions
on Innovation Achievements (ARIIA) were launched to assess innovation efforts and
encourage a healthy competition among higher educational institutions in the country.

Samagra Siksha-

In May 2018, the Ministry of Human Resource Development, Government of India launched
this scheme which will integrate Sarva Shiksha Abhiyan (SSA), Rashtriya Madhayamik
Shiksha Abhiyan (RMSA) and Teacher Education (TE) schemes with the aim of achieving
holistic development of school education in the country.

Unnat Bharat Abhiyan-

In August 2018, Government of India launched the second phase of ‘Unnat Bharat Abhiyan’
which aims to link higher educational institutions in the country with at least five villages.
The scheme covers 750 such institutions.

Performance Grading Index-

As of August 2018, Ministry of Human Resource Development, Government of India is

developing a Performance Grading Index based on 70 indicators in order to boost education
in all states and union territories of India.
 13

Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) -

The scheme was approved in February 2017, with the aim of providing digital literacy to 60
million rural households in the country by March 2019. As of January 2018, more than 10
million candidates had been trained under the scheme.

Prime Minister’s Research Fellows Scheme-

The scheme was approved in February 2018 under the Union Budget 2017-18, with the aim
of improving the quality of research in the country by attracting the best talent. The scheme
has been approved for a period of seven years beginning from 2018-19 at a cost of Rs 1,650
crore (US$ 254.9 million).

Ek Bharat Shreshtha Bharat-

In March 2018, Ek Bharat Shreshtha Bharat (EBSB) was launched by Ministry of Human
Resource Development, Government of India with the objective of promoting national
integration through engagement between states, union territories, central ministries,
educational institutions and general public.

Rising investments

 Private investments in the Indian education sector have increased manifold over the
past two decades.
 Indian education sector witnessed 18 merger and acquisition deals worth US$ 49
million in 2017. In the first half of 2018, education sector witnessed 20 private equity
deals.
 As of June 2018, the Ministry of Human Resource Development, Government of
India is also planning to raise around Rs 1 trillion (US$ 15.52 billion) from private
companies and high net worth individuals to finance improvement of education
infrastructure in the country. The funds will be mobilised by the Higher Education
Funding Agency (HEFA).
 14

Government Initiatives
Some of the other major initiatives taken by the Government of India are:
 In August 2018, Innovation Cell and Atal Ranking of Institutions on Innovation
Achievements (ARIIA) were launched to assess innovation efforts and encourage a
healthy competition among higher educational institutions in the country.
 In August 2018, Government of India launched the second phase of ‘Unnat Bharat
Abhiyan’ which aims to link higher educational institutions in the country with at least
five villages. The scheme covers 750 such institutions.
 The allocation for school education under the Union Budget 2018-19 is expected to
increase by 14 per cent, to focus on accelerating existing schemes and quality
improvement.
 In order to boost the Skill India Mission, two new schemes, Skills Acquisition and
Knowledge Awareness for Livelihood Promotion (SANKALP) and Skill Strengthening
for Industrial Value Enhancement (STRIVE), have been approved by the Cabinet
Committee on Economic Affairs (CCEA), Government of India, with an outlay of Rs
6,655 crore (US$ 1.02 billion) and will be supported by the World Bank.
 The Ek Bharat Shreshtha Bharat (EBSB) campaign is undertaken by Ministry of Human
Resource Development to increase engagement between states, union territories, central
ministries, educational institutions and general public.
 Prime Minister Mr Narendra Modi launched the Skill India initiative – ‘Kaushal Bharat,
Kushal Bharat’. Under this initiative, the government has set itself a target of training 400
million citizens by 2022 that would enable them to find jobs. The initiatives launched
include various programmes like: Pradhan Mantri Kaushal Vikas Yojana (PMKVY),
National Policy for Skill Development and Entrepreneurship 2015, Skill Loan scheme,
and the National Skill Development Mission.
 In December 2018, the Government of India published that 3.43 million candidates had
enrolled in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2016-20 scheme. Up to
January 24, 2019 as many as 2.53 million candidates were trained under under the
scheme’s Short Term Training (STT).
 15

Problems

Lower enrolment ratio

There is a huge gap between those who move out from school and who enroll in higher
education system, which is really needed to be bridged. India’s Gross Enrolment Ratio (GER)
is around 19 percent which 6 per cent lower than the world average and it is 50 per cent lesser
than countries such as Australia and the US. India has the largest population of young people
(100 million) between 17 to 19. When around 19 % students enroll into higher education
institutes which translates to 20 million, which very low.

One common platform

In India, apart from UGC (University Grants Commission) there are several regulatory bodies
like AICTE, MCI, BCI, NCTE and those under state governments. These individual bodies
move in different paths, creating various hurdles like exams, teaching methods for students.
So we need to bring all important regulatory bodies on a common platform and develop a
common understanding and strategy for managing the change.

Lack of research centric approach

Most of the Indian higher education system lacks strong teaching-learning process and
research. That is the reason why no higher education institution of India figures in the global
top 200 higher education institutes around the world. Indian Institute of Science (IISc)
Bangalore, which was in the 201-250 band in 2016, has slipped into the 251-300 band.
According to World University Rankings– which ranks the top 1,000 universities from 77
countries – performance of Indian centres of learning has deeply deteriorated. Apart from
IISc, The Indian Institute of Technology Delhi, Indian Institute of Technology Kanpur and
Indian Institute of Technology Madras have also dropped by at least one band.

Lack of good faculty

Shortage of quality faculty is proving to be a great stumbling block in the transformation of

higher education in India. According to a government report, there is a massive need for
expansion in higher education; but there is also a lack of deserving Ph.D. candidates for
faculty positions in the higher education. This has created a shortage of almost 54 percent in
 16

the faculty talent pool in higher education, such a deficiency will greatly prove to be a
stumbling block, which mainly due to the bad decisions taken by policymakers, bureaucrats,
and university administrators.

Lack of new teaching methods

The Indian higher education system has been following lecture drive method for several
years. This has turned ineffective and not sufficient in many areas. Besides, there is a lack of
teacher's learning and development areas need which is should be in the form educating them.
There are no approaches like mentoring, spot visits, practical educational tours and
involvement in research projects with peers. Many institutions never take the initiative to
collaborate or participate with international institutes in order to get the exposure of digital
learning methods or technologies.

Increase in profit making institutions

Though private player in the higher education contributes significantly to the growth of the
sector, the profit intent of these institutions has threatened the very basic foundation of social
development goal. Many private players who are politicians, realtors, businessmen/women
mint huge money by creating educational institutions, which had made us to say that no
secret that the education industry has long lost its noble cause and is more of a business. This
greatly harmed the higher education system.

Government initiatives for the issues

The government has taken a number of initiatives to tackle the reduce the demand supply gap
in school education. It has been proposed to set up another 6,000 schools at the block level as
model schools to benchmark excellence. Of these, 2000 will be set up under Public Private
Partnership. Besides, a new proposal by the Human Resource Development Ministry has
been put forward to replace the University Grants Commission, which is the governing body
for all the colleges and universities. The new Higher Education Commission of India will
also govern the functioning of the universities and colleges but it would give a special power
of acting as 'self-governing' bodies.
 17

Conclusion

India holds an important place in the global education industry. India has one of the largest
networks of higher education institutions in the world. However, there is still a lot of
potential for further development in the education system. Moreover, the aim of the
government to raise its current gross enrolment ratio to 30 per cent by 2020 will also boost
the growth of the distance education in India. India has the world’s largest population of
about 500 million in the age bracket of 5-24 years and this provides a great opportunity for
the education sector.
The education sector in India is estimated at US$ 91.7 billion in FY18 and is expected to
reach US$ 101.1 billion in FY19.Number of colleges and universities in India reached 39,050
and 903, respectively in 2017-18. India had 36.64 million students enrolled in higher
education in 2017-18. Gross Enrolment Ratio in higher education reached 25.8 per cent in
2017-18.The country has become the second largest market for e-learning after the US. The
sector is expected to reach US$ 1.96 billion by 2021 with around 9.5 million users.
The emphasis in the tertiary level of education lies on science and technology. Indian
educational institutions by 2004 consisted of a large number of technology
institutes. Distance learning and open education is also a feature of the Indian higher
education system, and is looked after by the Distance Education Council. Indira Gandhi
National Open University (IGNOU) is the largest university in the world by number of
students, having approximately 3.5 million students across the globe.

References
 Mhrd.gov.in
 www.ibef.org
 www.stoodnt.com
 www.civilserviceindia.com