Elevating India's Education Ecosystem for Tomorrow

By Sahil Gupta and Guncha Prakash

India’s education sector stands at a pivotal juncture, presenting a mix of significant opportunities and persistent challenges. With the National Education Policy (NEP) nearing its fourth anniversary, it continues to serve as a strategic guide for all stakeholders involved in shaping the future of education in India.

In line with the outlined vision, the government has introduced policy initiatives to foster internationalisation through academic collaborations, such as dual/joint degrees, twinning programmes, and enabling foreign institutions to set up campuses in India.

Current Landscape and Government Initiatives

Over the past three years, the government has increased budget allocations to enhance infrastructure, quality, and access to education, rising from Rs 99,300 crore in FY 2021 to Rs 1.12 lakh crore in FY 2024. Despite these improvements, investment in Research and Development (R&D) remains low at 0.7% of GDP, far below the global average of 1.8%. Strengthening industry-academia collaborations and the skilling and research ecosystem is essential for further progress.

Since the NEP’s implementation in 2020, regulatory reforms have aimed to internationalize Indian education through initiatives like dual degrees, twinning programs, and allowing foreign institutions to establish campuses in India. Additionally, measures such as the Institutional Development Plan (IDP), mandatory public self-disclosure by higher education institutions (HEIs), and the student grievance redressal mechanism have been introduced. The enactment of the Anusandhan National Research Foundation (ANRF) Act, 2023, seeks to enhance India’s research landscape.

Challenges and Budget Expectations

One significant barrier to establishing educational institutions in India is the lack of private capital investment, compounded by regulatory restrictions on foreign investments in trusts or societies. The Honourable Finance Minister’s 2020 announcement to enable foreign investment and External Commercial Borrowings (ECBs) for the education sector remains unfulfilled. Streamlining the process for attracting foreign donations is also crucial.

To facilitate new institutions, the government could create dedicated education zones with built-up infrastructure through public-private partnerships (PPP). These zones would reduce capital expenditures and offer shared facilities like housing, sports amenities, and research centers, fostering multicultural exchanges and cross-learning. Incentives such as subsidized land, tax rebates, or GST exemptions could encourage private sector participation.

The NEP mentions Special Education Zones for disadvantaged areas, but establishing zones near metropolitan cities could better leverage industry-academia collaboration and improve student accessibility.

Strengthening the Research Ecosystem and Addressing GSTWhile the ANRF Act outlines a broad fund for research, clear definitions of fund allocation mechanisms, monitoring outcomes, and eligibility criteria are necessary. Additionally, the current GST framework increases the cost of education for students due to taxable inward supplies and exempt outward educational services. Either exempting inward supplies or zero-rating educational services would alleviate this financial burden.

Enhancing International Collaboration

Geo-political challenges have led many countries to impose caps on international student mobility and visa grants. For true internationalization, mutual recognition of qualifications between countries is essential. While India has made progress with Australia and the UK, expanding Government-to-Government (G2G) dialogues with other nations will promote student mobility, skilling opportunities, and research collaborations.

A Path Forward

The Indian education sector still has a long journey ahead to reach its full potential. However, with strategic efforts and collaborative initiatives, the future looks promising as we prepare our youth for the challenges and opportunities of tomorrow.