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Crisis in the
Higher Education Sector
Current Scenario of Higher Education
Sector in India:
⬥ Aim of the Government to raise its current gross enrolment ratio to 30
per cent by 2020 will also boost the growth of distance education in
India.
⬥ The education sector in India was 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 39,931 and 993,
respectively, in FY19. India had 37.4 million students enrolled in higher
education in FY19. Gross Enrolment Ratio in higher education reached
26.3 per cent in FY19.
⬥ 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. 2
37,400,000
Number of students in India
3
$ 101.1 billion
Education Industry in India
26.3%
Gross Enrolment Ratio (GER) in higher education in India
39,931
Number of Colleges in India
4
Challenges faced by Higher Education
Sector in India:
⬥ Gap between the Supply and demand: In higher education, India has a low rate
of enrolment i.e. gross enrolment ratio (GER), at only 19%. If we compared to
China and Brazil GER is 26% and 36% respectively.
⬥ Shortage of Faculty and High Student-Faculty Ratio: In most of the state and
central universities more than 30% of faculty positions are lying vacant. While
the student enrolment in higher education is growing with faster rate in the
last few years.
⬥ Inadequate Infrastructure and Facilities: Apart from the highly recognized
higher educational institutes in India most of the colleges and universities lack
in the basic and high-end research facilities. Many institutes are running
without proper infrastructure and basic facilities like library, hostels, transport,
sports facility etc. which is desirable to rank the quality institution. 5
Challenges faced by Higher Education
Sector in India:
⬥ Lack of Quality Research work: There is no shortage of funding for the top
Indian Institutions such as IITs, IIMs and other institutes of national
importance. However, budget for the Research is not under spent due to the
insufficient good quality research work. Due to the limited focus on Research
and Internationalization, very few Indian higher educational institutes are
globally recognized.
⬥ Presently there is a very less collaboration of higher educational institutes
with industries.
⬥ Low employability of graduates is one of the major problem in India. Only a
small proportion of Indian graduates are considered employable. Placement
outcome also drop significantly as we move away from the top institutes.
6
Major Crisis in the sector:
o Infrastructure
o Relevance & Quality
o Digital Education
o Funding
7
Infrastructure
Some damn stats
1
9
India has a multilayered
formal education system
with - 260 million students
enrolled in more than 1.5
million schools and – 39,00
colleges catering 27.5
million under graduate
students and 4 million post
graduate students.
Apart from the highly recognized
higher educational institutes in
India most of the colleges and
universities lack in the basic and
high-end research facilities. Many
institutes are running without
proper infrastructure and basic
facilities like library, hostels,
transport, sports facility etc.
which is desirable to rank the
quality institution.
10
11
MT Educare reported a loss of ‘107.7 crore
in 9MFY18 (Q3) against a profit of Rs 23.11
crore for the same period in the previous
year. Navneet Education’s profit declined
to ‘138.15 crore for 9MFY18 (Q3) from
‘144.78 crore for 9MFY17 (Q3).
Virtual Global Solutions has been the
worst performing among small-cap
educational stocks, with a 84.8% decline in
value during FY18.
https://www.financialexpress.com/market/education-companies-stocks-take-a-beating-on-bourses/1120496/
Relevance & Quality
One liner stats
2
⬥ We have a large and diverse nature of
institutions which compete with the
institutions which are best in the world.
⬥ And some institutions follow a
curriculum without appropriate changes.
⬥ These colleges and universities graduate
a large number of people who are not
skilled and thus face a large number of
unemployment.
⬥ The enrollment of first degree level
education is 88%.
⬥ Out of 88%, 80% are of general education
who lack in skills and 20% people are
relatively better.
⬥ Many of these institutions and their
programs are derecognized by UGC, AICTE
and DEC, but many still exploit the rules. 13
14
⬥Infosys Technologies, India’s second-biggest software
services exporter, turns trainer for the nearly 30,000
students it recruits from top engineering colleges every
year. Its training campus in Mysore can house about
15,000 people. New recruits spend up to six months
honing their skills as Infosys attempts to fill the gaps left
by inadequate college education.
⬥Goldman Sachs counts the lack of quality education as
one of the 10 factors holding India back from rapid
economic growth. Analysts say it raises costs, including
salaries as firms vie for the best IT recruits, and reduces
firms’ competitive edge.
⬥India’s Tata Group and Aditya Birla Group set up colleges
years ago as acts of social responsibility. Now,
multinationals such as SAP, IBM and Cisco are designing
curriculum and training faculty to meet their needs.
⬥It is not the only one: rival Tata Consultancy Services has a
faculty development programme in 150 engineering
colleges, while Wipro founder Azim Premji has set aside
some of his personal wealth for primary education and
Anil Agarwal, chief of Vedanta Resources, has committed $1
billion to a university.
Digital Education
Something related to COVID
3
⬥ The digital divide is evident across
class, gender, region or place of
residence. Among the poorest 20%
households, only 2.7% have access
to a computer and 8.9% to internet
facilities. In case of the top 20%
households, the proportions are
27.6% and 50.5%.
⬥ The difference is apparent
across states too. For example, the
proportion of households with
access to a computer varies from
4.6% in Bihar to 23.5% in Kerala and
35% in Delhi.
16
17
The structure of schooling and learning,
including teaching and assessment
methodologies, was the first to be
affected by these closures. Only a
handful of private schools could adopt
online teaching methods. Their low-
income private and government school
counterparts, on the other hand, have
completely shut down for not having
access to e-learning solutions.
The Centre for Monitoring Indian
Economy’s estimates on unemployment
shot up from 8.4% in mid-March to 23%
in early April and the urban
unemployment rate to 30.9%.
https://government.economictimes.indiatimes.com/news/education/covid-19-pandemic-impact-and-strategies-for-education-sector-in-india/75173099
18
On one hand where all the
doors of the colleges and
schools are locked the online
platform has seriously
plunged its way in. BYJU’s, has
consistently stood tall giving
other Ed-Tech companies a
fierce competition.
Funding
Company Example:
4
“Neither Modi nor HRD minister Prakash
Javadekar showed their commitment to the
RTE (Right to Education) Act. Just before the
NDA came to power, 9 per cent of the 13 lakh
government schools were RTE Act-compliant
in 2013-14. The percentage increased to 13 in
2017-18. It has increased by 1 per cent every
year. Going by this pace, it will take 87 years
to achieve 100 per cent RTE-compliant
schools”
- Ambarish Rai, convener of the RTE Forum
20
https://www.telegraphindia.com/india/funds-flow-for-education-sector-
down-to-a-trickle/cid/1690946
21
⬥ Reliance Industries Ltd
Project Details: DA Scholarships, Community
Development, Reliance University, Initiatives
Digitization of education initiative, Education –
Partnerships, Education- at manufacturing locations.
Implementation By: Reliance Foundation
Amount spent: INR 215 Cr
⬥ Bajaj Auto Ltd.
Project Details: Financial support to educational institute
infrastructure.
Implementation By: Directly (in collaboration with college/
school)
Amount spent: INR 75.84 Cr
Location: Maharashtra
⬥ Samsung India Electronics Pvt Ltd
Project Details: Smart Class, Samsung Technical School,
Digital Academy
Implementation By: Direct (On site implementation
undertaken by agency)
Amount spent: INR 50.51 Cr
Location:
1. Smart Class: Across India
2. Samsung Technical School: Industrial Training Institute at
Patna, Jaipur, Cochin.
3. Digital Academy: IITs at Delhi, Kanpur and Hyderabad.
https://csrbox.org/India_CSR_news_Top-10-companies-funding-education-CSR-projects-in-India_38
Suggestions for Improving the System
of Higher Education in India:
22
3
There is a need to focus on the
graduate students by providing
them such courses in which they
can achieve excellence, gain
deeper knowledge of subject so
that they will get jobs after
recruitment in the companies
which would reduce unnecessary
rush to the higher education.
1
There is a need to
implement innovative and
transformational approach
form primary to higher
education level to make
Indian educational system
globally more relevant and
competitive.
2
In higher educational
institutes Industrial co-
operation must be their for
the development of
curriculum, organizing expert
lectures, internships, live
projects, career counseling
and placements.
Higher educational institutes need to improve quality,
reputation and establish credibility through student exchange,
faculty exchange programs, and other collaborations with
high- quality national and international higher educational
institutes.
Government must promote collaboration between Indian
higher education institutes and top International institutes
and also generates linkage between national research
laboratories and research centers of top institutions for better
quality and collaborative research.
23
Points for suggestion (not to be included in final presentation)
Bibliography
⬥ https://www.ibef.org/industry/education-sector-india.aspx
⬥ https://indianexpress.com/article/opinion/columns/digital-education-online-classes-learning-coronavirus-
national-education-policy-6580744/
⬥ https://www.nytimes.com/2018/08/03/opinion/india-higher-education-modi-ambani-rss-trouble.html
⬥ https://corescholar.libraries.wright.edu/cgi/viewcontent.cgi?article=1179&context=ejie
⬥ https://assets.kpmg/content/dam/kpmg/in/pdf/2017/05/Online-Education-in-India-2021.pdf
⬥ https://scroll.in/article/960939/indian-education-cant-go-online-only-8-of-homes-with-school-children-have-
computer-with-net-link
⬥ https://government.economictimes.indiatimes.com/news/education/covid-19-pandemic-impact-and-strategies-
for-education-sector-in-india/75173099
⬥ https://www.thehindu.com/opinion/op-ed/the-many-structural-flaws-in-indias-higher-education-
system/article30169923.ece
⬥ https://www.nature.com/articles/d41586-020-01518-y
⬥ https://www.indiatoday.in/education-today/featurephilia/story/what-is-the-rural-education-scenario-in-india-
and-how-can-we-change-it-1577444-2019-08-05
⬥ https://www.financialexpress.com/market/education-companies-stocks-take-a-beating-on-bourses/1120496/
⬥ https://csrbox.org/India_ CSR_ news_ Top-10-companies-funding-education-CSR-projects-in-India_ 38
⬥ https://www.telegraphindia.com/india/funds-flow-for-education-sector-down-to-a-trickle/cid/1690946
24
THANKS!
ANY QUESTIONS?
Group Members
⬥ Akshit Sharma
⬥ Dhruv Sethi
⬥ Divyansh Srivastava
⬥ Gaurang Narsariya
⬥ Yash Mundhra
25
““When you educate one person you
can change a life, when you
educate many you can change the
world”
- Shai Reshef
26

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Crisis in Higher Educational Sector in India

  • 1. Crisis in the Higher Education Sector
  • 2. Current Scenario of Higher Education Sector in India: ⬥ Aim of the Government to raise its current gross enrolment ratio to 30 per cent by 2020 will also boost the growth of distance education in India. ⬥ The education sector in India was 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 39,931 and 993, respectively, in FY19. India had 37.4 million students enrolled in higher education in FY19. Gross Enrolment Ratio in higher education reached 26.3 per cent in FY19. ⬥ 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. 2
  • 4. $ 101.1 billion Education Industry in India 26.3% Gross Enrolment Ratio (GER) in higher education in India 39,931 Number of Colleges in India 4
  • 5. Challenges faced by Higher Education Sector in India: ⬥ Gap between the Supply and demand: In higher education, India has a low rate of enrolment i.e. gross enrolment ratio (GER), at only 19%. If we compared to China and Brazil GER is 26% and 36% respectively. ⬥ Shortage of Faculty and High Student-Faculty Ratio: In most of the state and central universities more than 30% of faculty positions are lying vacant. While the student enrolment in higher education is growing with faster rate in the last few years. ⬥ Inadequate Infrastructure and Facilities: Apart from the highly recognized higher educational institutes in India most of the colleges and universities lack in the basic and high-end research facilities. Many institutes are running without proper infrastructure and basic facilities like library, hostels, transport, sports facility etc. which is desirable to rank the quality institution. 5
  • 6. Challenges faced by Higher Education Sector in India: ⬥ Lack of Quality Research work: There is no shortage of funding for the top Indian Institutions such as IITs, IIMs and other institutes of national importance. However, budget for the Research is not under spent due to the insufficient good quality research work. Due to the limited focus on Research and Internationalization, very few Indian higher educational institutes are globally recognized. ⬥ Presently there is a very less collaboration of higher educational institutes with industries. ⬥ Low employability of graduates is one of the major problem in India. Only a small proportion of Indian graduates are considered employable. Placement outcome also drop significantly as we move away from the top institutes. 6
  • 7. Major Crisis in the sector: o Infrastructure o Relevance & Quality o Digital Education o Funding 7
  • 9. 9 India has a multilayered formal education system with - 260 million students enrolled in more than 1.5 million schools and – 39,00 colleges catering 27.5 million under graduate students and 4 million post graduate students.
  • 10. Apart from the highly recognized higher educational institutes in India most of the colleges and universities lack in the basic and high-end research facilities. Many institutes are running without proper infrastructure and basic facilities like library, hostels, transport, sports facility etc. which is desirable to rank the quality institution. 10
  • 11. 11 MT Educare reported a loss of ‘107.7 crore in 9MFY18 (Q3) against a profit of Rs 23.11 crore for the same period in the previous year. Navneet Education’s profit declined to ‘138.15 crore for 9MFY18 (Q3) from ‘144.78 crore for 9MFY17 (Q3). Virtual Global Solutions has been the worst performing among small-cap educational stocks, with a 84.8% decline in value during FY18. https://www.financialexpress.com/market/education-companies-stocks-take-a-beating-on-bourses/1120496/
  • 12. Relevance & Quality One liner stats 2
  • 13. ⬥ We have a large and diverse nature of institutions which compete with the institutions which are best in the world. ⬥ And some institutions follow a curriculum without appropriate changes. ⬥ These colleges and universities graduate a large number of people who are not skilled and thus face a large number of unemployment. ⬥ The enrollment of first degree level education is 88%. ⬥ Out of 88%, 80% are of general education who lack in skills and 20% people are relatively better. ⬥ Many of these institutions and their programs are derecognized by UGC, AICTE and DEC, but many still exploit the rules. 13
  • 14. 14 ⬥Infosys Technologies, India’s second-biggest software services exporter, turns trainer for the nearly 30,000 students it recruits from top engineering colleges every year. Its training campus in Mysore can house about 15,000 people. New recruits spend up to six months honing their skills as Infosys attempts to fill the gaps left by inadequate college education. ⬥Goldman Sachs counts the lack of quality education as one of the 10 factors holding India back from rapid economic growth. Analysts say it raises costs, including salaries as firms vie for the best IT recruits, and reduces firms’ competitive edge. ⬥India’s Tata Group and Aditya Birla Group set up colleges years ago as acts of social responsibility. Now, multinationals such as SAP, IBM and Cisco are designing curriculum and training faculty to meet their needs. ⬥It is not the only one: rival Tata Consultancy Services has a faculty development programme in 150 engineering colleges, while Wipro founder Azim Premji has set aside some of his personal wealth for primary education and Anil Agarwal, chief of Vedanta Resources, has committed $1 billion to a university.
  • 16. ⬥ The digital divide is evident across class, gender, region or place of residence. Among the poorest 20% households, only 2.7% have access to a computer and 8.9% to internet facilities. In case of the top 20% households, the proportions are 27.6% and 50.5%. ⬥ The difference is apparent across states too. For example, the proportion of households with access to a computer varies from 4.6% in Bihar to 23.5% in Kerala and 35% in Delhi. 16
  • 17. 17 The structure of schooling and learning, including teaching and assessment methodologies, was the first to be affected by these closures. Only a handful of private schools could adopt online teaching methods. Their low- income private and government school counterparts, on the other hand, have completely shut down for not having access to e-learning solutions. The Centre for Monitoring Indian Economy’s estimates on unemployment shot up from 8.4% in mid-March to 23% in early April and the urban unemployment rate to 30.9%. https://government.economictimes.indiatimes.com/news/education/covid-19-pandemic-impact-and-strategies-for-education-sector-in-india/75173099
  • 18. 18 On one hand where all the doors of the colleges and schools are locked the online platform has seriously plunged its way in. BYJU’s, has consistently stood tall giving other Ed-Tech companies a fierce competition.
  • 20. “Neither Modi nor HRD minister Prakash Javadekar showed their commitment to the RTE (Right to Education) Act. Just before the NDA came to power, 9 per cent of the 13 lakh government schools were RTE Act-compliant in 2013-14. The percentage increased to 13 in 2017-18. It has increased by 1 per cent every year. Going by this pace, it will take 87 years to achieve 100 per cent RTE-compliant schools” - Ambarish Rai, convener of the RTE Forum 20 https://www.telegraphindia.com/india/funds-flow-for-education-sector- down-to-a-trickle/cid/1690946
  • 21. 21 ⬥ Reliance Industries Ltd Project Details: DA Scholarships, Community Development, Reliance University, Initiatives Digitization of education initiative, Education – Partnerships, Education- at manufacturing locations. Implementation By: Reliance Foundation Amount spent: INR 215 Cr ⬥ Bajaj Auto Ltd. Project Details: Financial support to educational institute infrastructure. Implementation By: Directly (in collaboration with college/ school) Amount spent: INR 75.84 Cr Location: Maharashtra ⬥ Samsung India Electronics Pvt Ltd Project Details: Smart Class, Samsung Technical School, Digital Academy Implementation By: Direct (On site implementation undertaken by agency) Amount spent: INR 50.51 Cr Location: 1. Smart Class: Across India 2. Samsung Technical School: Industrial Training Institute at Patna, Jaipur, Cochin. 3. Digital Academy: IITs at Delhi, Kanpur and Hyderabad. https://csrbox.org/India_CSR_news_Top-10-companies-funding-education-CSR-projects-in-India_38
  • 22. Suggestions for Improving the System of Higher Education in India: 22 3 There is a need to focus on the graduate students by providing them such courses in which they can achieve excellence, gain deeper knowledge of subject so that they will get jobs after recruitment in the companies which would reduce unnecessary rush to the higher education. 1 There is a need to implement innovative and transformational approach form primary to higher education level to make Indian educational system globally more relevant and competitive. 2 In higher educational institutes Industrial co- operation must be their for the development of curriculum, organizing expert lectures, internships, live projects, career counseling and placements.
  • 23. Higher educational institutes need to improve quality, reputation and establish credibility through student exchange, faculty exchange programs, and other collaborations with high- quality national and international higher educational institutes. Government must promote collaboration between Indian higher education institutes and top International institutes and also generates linkage between national research laboratories and research centers of top institutions for better quality and collaborative research. 23 Points for suggestion (not to be included in final presentation)
  • 24. Bibliography ⬥ https://www.ibef.org/industry/education-sector-india.aspx ⬥ https://indianexpress.com/article/opinion/columns/digital-education-online-classes-learning-coronavirus- national-education-policy-6580744/ ⬥ https://www.nytimes.com/2018/08/03/opinion/india-higher-education-modi-ambani-rss-trouble.html ⬥ https://corescholar.libraries.wright.edu/cgi/viewcontent.cgi?article=1179&context=ejie ⬥ https://assets.kpmg/content/dam/kpmg/in/pdf/2017/05/Online-Education-in-India-2021.pdf ⬥ https://scroll.in/article/960939/indian-education-cant-go-online-only-8-of-homes-with-school-children-have- computer-with-net-link ⬥ https://government.economictimes.indiatimes.com/news/education/covid-19-pandemic-impact-and-strategies- for-education-sector-in-india/75173099 ⬥ https://www.thehindu.com/opinion/op-ed/the-many-structural-flaws-in-indias-higher-education- system/article30169923.ece ⬥ https://www.nature.com/articles/d41586-020-01518-y ⬥ https://www.indiatoday.in/education-today/featurephilia/story/what-is-the-rural-education-scenario-in-india- and-how-can-we-change-it-1577444-2019-08-05 ⬥ https://www.financialexpress.com/market/education-companies-stocks-take-a-beating-on-bourses/1120496/ ⬥ https://csrbox.org/India_ CSR_ news_ Top-10-companies-funding-education-CSR-projects-in-India_ 38 ⬥ https://www.telegraphindia.com/india/funds-flow-for-education-sector-down-to-a-trickle/cid/1690946 24
  • 25. THANKS! ANY QUESTIONS? Group Members ⬥ Akshit Sharma ⬥ Dhruv Sethi ⬥ Divyansh Srivastava ⬥ Gaurang Narsariya ⬥ Yash Mundhra 25
  • 26. ““When you educate one person you can change a life, when you educate many you can change the world” - Shai Reshef 26