India boasts a storied legacy of educational excellence, harking back to the ancient institutions of Nalanda and Taxila. Even today, it has one of the largest education ecosystems in the world, encompassing nearly 1.5 million schools, more than 40,000 colleges and over 1,000 universities, which together serve nearly 300 million students.
However, this quantitative advantage has not translated into qualitative success. For instance, while India boasts a Gross Enrolment Ratio (GER) of 108 per cent for primary education (check the accompanying graphic for why it exceeds 100 per cent), it plummets to around 79 per cent for secondary education. In contrast, China maintains a 100 per cent GER for primary education and 89 per cent for secondary education, reflecting better student retention. India’s GER for higher education is even more dismal, languishing at a dismal 27.1 per cent, a figure that is half of China’s and pales in comparison to the US’s impressive 88 per cent. Exemplary education systems like those in Finland and South Korea achieve nearly 100 per cent GER across all school levels.
If these statistics highlight a substantial gap in educational access, the quality of learning outcomes is even more alarming. The National Achievement Survey (NAS) by the ministry of education revealed that only 45 per cent of fifth-grade students could read at a second-grade level. Similarly, the 2023 Annual Status of Education Report (ASER) found that one-fourth of rural students aged 14-18 could not fluently read a second-grade level text in their regional language.
In higher education, despite the expanding ecosystem, few institutions achieve respectable positions in global rankings. While universities in the US and UK dominate, Chinese institutions are rapidly climbing the ranks. This disparity is unsurprising, given India’s lag in research output, exacerbated by the country’s meagre investment of less than 1 per cent of GDP in research and development (R&D) within higher education. In contrast, the US allocates nearly 3 per cent of its GDP to R&D, and China invests over 2 per cent, significantly boosting its global research output and innovation. Although there has been an uptick in research publications from India, their impact and citation indices remain low.
The scenario is equally troubling in skill training, where a mere 4 per cent of India’s workforce receives vocational education. This is in stark contrast to China’s 24 per cent, and the over 75 per cent seen in Germany and Switzerland. Moreover, the employability rate of Indian graduates is approximately 48.7 per cent, suggesting that over half of the graduates lack the skills necessary for the job market.
Enter the NEP
We have the world’s largest population aged between 10 and 24 years. Reviving education and skill development is absolutely critical to reap this demographic dividend and capitalise on opportunities in a knowledge economy. It was to accomplish exactly this goal that the National Education Policy (NEP) 2020 was drafted.
The NEP proposes a comprehensive overhaul of the Indian educational framework, replacing the 10+2 structure with a 5+3+3+4 model that aligns educational stages with developmental stages—Foundational (ages 3-8), Preparatory (ages 8-11), Middle (11-14), and Secondary (14-18). It emphasises experiential learning and critical thinking, reducing curriculum content to core essentials to foster in-depth understanding. The policy aims for a 100 per cent GER from preschool to secondary level by 2030, with special initiatives to reintegrate dropouts.
In higher education, the NEP advocates transitioning to large, multidisciplinary and research-focused institutions to foster cross-disciplinary learning, aiming to establish at least one such institution in every district. Additionally, the policy calls for greater autonomy for institutes and encourages enhanced collaboration with industry for practical exposure. The policy also aims to integrate vocational education into mainstream education, with a goal of at least 50 per cent of learners being exposed to vocational training by 2025.
The devil in the implementation
However, as the past four years have shown, nationwide implementation of this extensive policy is a monumental task fraught with challenges. While the NEP was formulated by the Union government, its successful execution relies heavily on active state cooperation. Several Opposition-ruled states have voiced strong objections to key provisions of the NEP and their implementation. The Centre must navigate the principles of cooperative federalism and decentralisation to roll out these initiatives.
Budget allocation is another challenge. NEP 2020 recommends yanking up spending on education to 6 per cent of the GDP to achieve its goals. However, India’s public expenditure on education—by the Centre and the states—has never exceeded 3 per cent of the GDP. Bridging this funding gap is crucial for implementing this expansive programme.
Many schools and colleges face infrastructure issues and a lack of basic amenities. Instead of just brick-and-mortar additions, leveraging technology and expanding digital infrastructure are essential to democratise access to quality education. India needs a world-class online education model tailored to its specific needs, with platforms such as SWAYAM and DIKSHA playing significant roles. But the challenge ahead is substantial even there; for instance, 53 per cent of schools in India lack computers, and 66 per cent lack internet connectivity.
While the NEP emphasises improving research output, neither the Centre nor the states have significantly increased funding for research. Collaborations with industry should also be encouraged to incentivise high-quality research. The NEP envisions a more learner-centric culture, requiring a significant shift in mindset among students, teachers and administrators. This transformation involves adopting inclusive teaching and learning methods. Consequently, teachers must be trained in new skills to meet these demands.
Globally, there is a growing consensus on the vital role of STEM (Science, Technology, Engineering and Mathematics) education in preparing students for future demands. A UNESCO report highlights that India has the highest number of STEM graduates worldwide, with 34 per cent of all graduates coming from STEM fields. Impressively, over 40 per cent of them are female. However, many of these graduates lack the necessary skills for future jobs.
The NEP emphasises integrating STEM education into the curriculum to enhance students’ critical thinking, problem-solving skills and innovation. The key to addressing this skills gap lies in providing hands-on learning experiences and exposure to modern technology. The National Skill Development Corporation (NSDC) estimates that improving skill training in India could add $1 trillion to the GDP by 2025.
The skilling mission
The Union budget last month saw the Modi government take the problem of skill development head-on. Union finance minister Nirmala Sitharaman announced the ‘Prime Minister’s Package’ of five major employment-related schemes that had an ambitious Rs 2 lakh crore outlay spread over five years to facilitate jobs and skilling to 41 million youth. Of these, two big schemes focus on skilling, with the most ambitious one setting up internship opportunities in 500 top companies to 10 million youth over five years. Youth aged 21 to 24, who are neither employed nor in full-time education, can apply. The scheme includes a monthly internship allowance of Rs 5,000; the overall cost is Rs 63,000 crore over five years.
The other major initiative on skilling is the scheme to upgrade 1,000 Industrial Training Institutes (ITI) using a hub and spoke model and aligning their course content with industry needs to address the skill gap. The plan involves developing 200 hubs and 800 spoke ITIs, with a total investment of Rs 60,000 crore over five years. The central government will contribute Rs 30,000 crore, state governments Rs 20,000 crore, and the industry (including CSR funds) Rs 10,000 crore.
These and other initiatives promise to position India as a global leader in education, nurturing a generation equipped with the skills and knowledge to drive the nation’s growth and innovation.
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