Announcements in Budget Speech 2024-25 Assistance for education loans:  Interest subvention of 3% annually will be given for education loans up to Rs 10 lakh.  One lakh students will be supported every year.  Digital public infrastructure:  Digital public infrastructure will be created for the education sector to improve productivity and encourage innovation.

Source: Union budget documents of various years; PRS.

Table  2 : Main heads of expenditure under Ministry of Education (in Rs crore)

Head	2022-23 Actuals	2023-24 RE	2024-25 BE	% Change from 23-24 RE to 24-25 BE	Share of Ministry’s Expenditure	Share of Department’s Expenditure
School Education (A)	58,640	72,474	73,008	0.7%	61%	-
of which
Samagra Shiksha	32,515	33,000	37,010	14%	31%	51%
Autonomous Bodies	12,800	14,470	15,639	8%	13%	21%
PM POSHAN	12,681	10,000	12,467	25%	10%	17%
PM SHRI	-	2,800	6,050	116%	5%	8%
Higher Education (B)	38,577	57,244	47,620	-17%	39%	-
of which
Central Universities	10,867	12,394	15,928	29%	13%	33%
IITs	8,990	10,384	10,325	-0.6%	9%	22%
NITs and IIEST*	4,176	4,821	5,040	5%	4%	11%
UGC & AICTE	5,512	6,809	2,900	-57%	2%	6%
Student Aid	1,603	1,384	1,908	38%	2%	4%
STARS	473	700	1,250	79%	1%	2%
Others	7,580	32,957	12,111	-63%	16%	-
Total (A+B)	97,196	1,29,718	1,20,628	-7%	100%	-

Note: BE: Budget Estimates; RE: Revised Estimates.  *IIEST: Indian Institute of Engineering Science and Technology, Shibpur.
Source: Demands No. 25 and 26, Expenditure Budget 2024-25, Union Budget; PRS. 

School Education:  In 2024-25, the Department of School Education and Literacy has been allocated Rs 73,008 crore. ⁶  Majority of the Department’s allocation (51%) is towards the Samagra Shiksha Abhiyaan at Rs 37,010 crore.  This is followed by expenditure on PM-POSHAN (17% of the department’s expenditure) at Rs 12,467 crore.

The allocation towards school education for 2024-25 is a marginal increase over the revised estimate for 2023-24 (0.7%). 6   In 2020-21 and 2021-22, expenditure on school education was 1% and 10% lower than the previous year, respectively.  In 2022-23, expenditure on school education increased by 25% on the low base of 2021-22.  

Higher Education:  In 2024-25, Rs 47,620 crore have been allocated to the Department of Higher Education. ⁶   Transfers to Central Universities constitute the largest portion of the Department’s budget (33%).  This is followed by allocation for Indian Institutes of Technology (22%), and National Institutes of Technology (NITs) and Indian Institute of Engineering Science and Technology (11%).

The allocation towards Higher Education in 2024-25 is estimated to be decrease by 17% from than the revised estimate for 2023-24. 6   Allocation towards the University Grants Commission (UGC) is estimated to reduce by 61%.  The allocation towards Central Universities and NITs & IIEST have been increased by 29% and 5% respectively.

Key schemes in education

Samagra Shiksha Abhiyaan 

The Samagra Shiksha Abhiyaan is a flagship scheme of the Department of School Education and Literacy.  Its objectives include: (i) supporting states to implement the NEP and the Right to Education Act, 2009, (ii) bridging social and gender gaps in education and (iii) strengthening teacher training.  [8]    Launched in 2018, the scheme subsumes: (i) the Sarva Shiksha Abhiyaan, (ii) Rashtriya Madhyamika Shiksha Abhiyaan, and (iii) several teacher education initiatives. ⁸    Upgrading school infrastructure is a major component of the scheme.  This involves providing drinking water, toilets, science labs and computer classrooms. ⁸   The scheme also sets standards of learning, measures learning outcomes and focuses on teacher training to improve the quality of education. ⁸   Under the scheme the, NIPUN Bharat Mission was launched to set targets and provide support for achieving universal foundational literacy and numeracy by 2026-27.  [9]   This includes basic skills in reading, writing and performing arithmetic.  

Pradhan Mantri Poshan Shakti Nirman (PM-POSHAN)

PM POSHAN (subsuming the Mid-day Meal Scheme) constitutes 10% of the Ministry’s expenditure.   The Mid-day Meal scheme guaranteed nutritious meals to students in elementary classes (I-VIII) in government and government aided schools.  [10]   Launched in 2021-22, the PM POSHAN scheme extends this to pre-school children as well.   Programme guidelines stipulate calorie and nutritional norms for mid-day meals.  The scheme covers 11.8 crore students studying in 11.2 lakh schools.   In 2024-25, Rs. 12,467 crore has been allocated to the scheme. ⁶

PM Schools for Rising India (PM-SHRI)

Under this scheme, 14,500 schools will be identified and upgraded along several parameters.  They will: (i) implement principles of the NEP, (ii) be linked to the local entrepreneurial system, and (iii) provide students access to counselling and cutting edge technology.  [11]   This scheme will be implemented between 2022-23 and 2027-28 with a central share of Rs 18,128 crore.  As of December 2023, Rs 630 crore have been released under the scheme to all States/UTs.  [12]   In 2024-25, Rs 6,050 crore have been allocated to this scheme.  This is an increase of 116% over the revised estimate for 2023-24.

Key Issues in School Education

Significant drop in enrolment after primary level

The NEP aims to achieve 100% enrolment in all levels of school education. ⁵   It also envisions 14 years of school education for all students. ⁵   As shown in  Figure 2 , enrolment in primary education has reached 100%. ²   However, enrolment drops at higher levels of education.  For instance, the enrolment rate in higher secondary education is close to 58%, almost half the enrolment at primary education. ²   Scheduled Tribes (STs) have a lower enrolment rate than the overall average at secondary and higher secondary education. 2  

Figure  2 : Gross Enrolment rate at different levels of schooling (in 2021-22)

Note:  GER above 100% reflects enrolment of individuals beyond relevant age group for each level of education. 
Sources: Unified District Information System for Education Plus 2021-22; PRS.

The trend in enrolment also reflects in dropout rates.  Dropout rates increase with higher levels of school education ( Figure 3 ).   Dropout rates measure the proportion of students at each level choosing to discontinue education.  Drop-out rates of student belonging to Scheduled Tribes (ST) are considerably higher than national average at each level of education. 2

Figure  3 : Dropout rates across social groups in 2021-22 (in %)

Source:  Unified District Information System for Education Plus 2021-22; PRS.

According to the UN Human Development Index report 2023-24, mean years of schooling in India was 6.6 years.  [13]    This was lower than that countries such as: (i) United States (13.6), (ii) United Kingdom (13.4), (iii) South Africa (11.6), (iv) Brazil (8.3), (v) China (8.1) and (v) Bangladesh (7.4). 13

Rising enrolment in private schools, which tend to be more expensive

As of 2021-22, government schools constituted 69% of all schools and 54% of all school enrolment in the country (see  Figure 4 ).  However, their share in both areas has declined since 2012-13.  Share of private unaided schools in both the total number of schools and overall school enrolment has increased.  

Figure  4 : Distribution of schools and student enrolment across school management

Sources: Unified District Information System for Education Plus 2012-13 and 2021-22; PRS. 

Cost of attending a private unaided school is relatively higher.  As of 2021-22, one-third of school-going students are enrolled in private unaided schools. ²  

Figure  5 : Cost of School Education across management (in Rs)

Sources:  Household Social Consumption on Education in India, NSSO 2017-18; PRS.  

According to NSSO (2017-18), reasons for students preferring private aided or unaided educational institutions include: (i) usage of English as a medium of instruction (17%), (ii) poor quality of education in government institutions (34%), (ii) proximate location of private institution (27%), and (iv) better facilities such as teaching aid, transport, hostel facilities, and extra-curricular activities.  [14]  

The Samagra Shiksha Abhiyan (SSA) seeks to address several issues highlighted above.  It focuses on improving access to education, learning quality and outcomes and teacher training.  Interventions under the programme include: (i) providing transport facility, free textbooks and uniforms to students, (ii) strengthening teacher training initiatives, institutions and (iii) upgrading and creating equitable infrastructure (drinking facility and toilets.).  [15]    

Under the scheme, the Centre shares funds with most states in a 60:40 ratio, and with north-eastern and Himalayan states in a 90:10 ratio.  Actual funds released by the centre have been shrinking in relation to proposed expenditure (see  Figure 6 ).  Note that allocations in 2020-21 and 2021-22 may have been affected by the COVID-19 pandemic.  

Figure  6 : Funds proposed and released by the Centre under SSA (in Rs crore)

Note: *Figures for 2023-24 are up to December 31, 2023.
Source:  Unstarred Question 268, Ministry of Education, Lok Sabha, February 2, 2024; PRS.   

The Standing Committee on Education, Women, Children, Youth and Sports (2023) has linked the delay in releasing funds to delay in states utilising previously released funds. ²⁶   The Committee recommended reviewing mechanisms for faster utilisation of funds under the scheme.  

Availability and quality of teachers varies vastly across states

The NEP 2020 recommended a pupil teacher ratio (PTR) of 30:1 (one teacher for 30 students). ⁵   According to UDISE+ (2021-22), at an aggregate level, this has been achieved at all levels of school education.  Average PTR at various levels of education is: (i) 26:1 (primary), (ii) 19:1 (upper primary), (iii) 18:1 (secondary) and (iv) 27:1 (higher secondary).  However, some states have fallen short on this target (see Table 6 in the Annexure). ²  

India is faced with a high share of smaller schools and schools with a single teacher.  As per NITI Aayog (2021), 36% of government schools in India had fewer than 50 students and just one or two teachers.  [16]   According to the NEP (2020), this leads to teachers teaching multiple grades and subjects, including those subjects they may not be adequately qualified in. ⁵   The NEP adds that smaller and isolated schools are difficult to manage and govern.  They also lack infrastructure such as labs, equipment, libraries.

In 2022-23, vacancy for teachers for grades 1-8 was at 16%.  [17]    This is lower than vacancies recorded in 2021-22 (21%) and 2020-21 (17%). ¹⁷   However, some states have higher vacancies as of 2022-23.  These include: (i) Jharkhand (40%), (ii) Bihar (32%), (iii) Mizoram (30%), and (iv) Tripura (26%). ¹⁷   The Standing Committee on Education, Women, Children, Youth and Sports (2023) highlighted the need to expedite teacher recruitment by states.  [18]    It also recommended forming an Autonomous-Teacher Recruitment Board at the state-level to ensure transparency in recruitment.  

The National Council for Teacher Education (NCTE) delineates minimum qualifications required for teaching at various levels of education.  These range from passing senior secondary (for teaching at pre-primary level) to attaining post-graduation along with a B.A.Ed. or B.Sc. Ed. (for senior secondary level).  [19]   According to UDISE+ (2021-22), 10% of all teachers in government schools do not possess professional qualifications.  [20]   This figure is higher states such as: (i) Tripura (49%), (ii) Nagaland (45%), (iii) Jharkhand (44%), and (iv) Assam (38%). ²⁰   As of 2021-22, only 68% at the pre-primary level were trained teachers. ²  

Teacher training is one of the vital components under Samagra Shiksha Abhiyaan.   Expenditure under the SSA on teacher training has seen a downward trend since 2018-19 (see  Figure 7 ). 

Figure  7 : Expenditure on Teacher Training under Samagra Shiksha Abhiyaan (in Rs crore)

Sources: Unstarred Question No. 1995, Ministry of Education, Rajya Sabha, December 20, 2023; PRS. 

The National Initiative for School Heads and Teachers’ Holistic Advancement (NISHTHA) was launched under the SSA in 2019.  [21]   It guides teacher training and seeks to enhance capacity of teachers, school heads and other resource persons in education. It trains these entities through digital learning modules.  As of June 2024, 49% of the targeted school heads and 43% of the targeted teachers have been trained under the programme.  [22]

Learning outcomes continue to be poor

The National Achievement Survey (NAS) measures proficiency of students in grades 3, 5, 8 and 10.  [23] ^{,  [24]}    Their proficiency is measured in languages, maths and sciences.  Students are scored out of 500 in each subject.  According to NAS, learning proficiency across most subjects and classes has reduced between 2017 and 2021 (see  Figure 8 ).  

Figure  8 : Change in All India-scores in NAS between 2017 and 2021 (in %)

Sources: National Achievement Survey 2017 and 2021; PRS.  

Between 2017 and 2021, average proficiency across classes and subjects dropped from 58% to 54%. ^{23 , 24}   Proficiency in Math across grades reduced from 46% to 43%.   Proficiency in languages dropped from 64% to 62%.  Learning outcomes reduce at higher levels of education. ^{23 , 24}   In 2021, proficiency across subjects dropped from 62% in Class 3 to 48% in Class 10.

The Performance Grade Index – State (PGI - State) ranks the performance of all States and UTs on NAS results.  [25]    States/UTs were graded out of 240 and were ranked into different grading bands.  As per this Index, 29 States/UTs scored lower than 30% on learning outcomes and fell within second and the third lowest grading bands within the index (see  Table 9 in Annexure). ²⁵   States/UTs that scored the lowest (out of 240) on learning outcomes include: (i) Telangana (37), (ii) Chhattisgarh (39), (iii) Meghalaya (32) and (iv) Tamil Nadu (41). ²⁵    

In 2021, the NIPUN Bharat Mission was launched to achieve foundational literacy and numeracy by Grade 3.  The programme will be implemented between 2021-22 to 2026-27.   The scheme sets learning targets, designs curricula and provides funding and guidance to states.  Under the Mission, learning material for grade 1 and 2 was developed by the NCERT. ¹⁸    Guidelines delineating learning outcomes for pre-school students were also issued.  

The Strengthening Teaching and Learning Results for States (STARS) programme was launched in 2020.  [26]    It aims to improve learning outcomes in Himachal Pradesh, Maharashtra, Odisha, Rajasthan, Madhya Pradesh and Kerala.  The programme is partly funded by World Bank which releases funds based on improvement in: (i) proficiency in language, (ii) assessment systems, and (iii) secondary school competition rate. ²⁶   In 2024-25,

Rs 1,250 crore have been allocated to STARS. 6   This is 79% higher than the expenditure in 2023-24.  

Schools lack digital infrastructure 

As of 2021-22, 97% of the total schools in the country have separate toilet facilities, 96% have access to drinking water and 87% to functional electricity. ⁶   However, access to digital infrastructure is relatively limited.  The NEP emphasises on leveraging technology for learning. ⁵   It also highlights the need to bridge digital divide.   It recommended setting up a dedicated unit to build digital infrastructure in educational institutions. 

As of 2021-22, only 26% of all schools have desktop facilities and 34% have access to the internet ( Figure 9 ). ⁶   Availability of digital infrastructure also varies with school management.  Private unaided schools have a greater coverage of all forms of digital infrastructure compared to government schools.   This divide affects equitable access to technology for learning. 

Figure  9 : Availability of digital infrastructure in schools across management (in %)

Source: Unified District Information System for Education Plus 2021-22; PRS.

The PGI – District measures digital learning based on access to adequate computers, adoption of digital learning methods and devices and teacher proficiency in using computers.  [27] In 2021-22, 66% of the surveyed districts scored 30% or lower on these parameters. This was lower than 2018-19, when 70% districts scored 30% or lower. ²⁷  

Key issues in Higher Education 

Socio-economic disparity in enrolment in higher education

Gross Enrolment Ratio (GER) in higher education has increased over time ( Figure 10 ).  The NEP (2020) envisions increasing GER in higher education to 50% by 2035. ⁵   Even as the enrolment of students from SC and ST communities has increased over time, it remains relatively lower.    India’s Gross Enrolment Ratio (GER) was recorded at 28.5% in 2021-22 (see  Table 8 in Annexure for state-wise details).  States with relatively lower GER in higher education include: (i) Bihar (17%), (ii) Assam (17%), (iii) Jharkhand (19%), (iv) Chhattisgarh (20%), and (v) Tripura (21%). ³ 

Figure  10 : GER in higher education across social groups (in %)

Source: All India Survey of Higher Education 2021-22; PRS.

Participation of women is lower in certain education streams.  According to the AISHE (2021-22), in engineering, women constitute only 29% of UG students, 32% of PG students and 34% of PhD students. ³    However, in overall STEM fields, women constitute: (i) 51% of UG, (ii) 61% of PG and (ii) 50% of Ph.D. enrolment. ⁵   

Student aid:  To promote higher education, the Department provides financial aid to students.  This consists of interest subsidy on student loans, scholarships and research fellowships. Scholarships include financial aid of: (i) Rs 30,000 – two lakh for students of Jammu and Kashmir, and (ii) Rs 12,000 – 20,000 for students from other parts of India.  [28] ^{,  [29]}  

In 2024-25, Rs 1,908 crore has been allocated towards student financial aid.  In 2017-18, Rs 2,218 crore were spent on this.  Between 2017-18 and 2022-23, expenditure on student financial aid has reduced.  This is primarily due to reduced expenditure on interest subsidy (see  Table 10 in Annexure).   Expenditure on interest subsidy has reduced from Rs 1,950 crore in 2017-18 to Rs 873 crore in 2022-23. 

Since 2023-24, expenditure on interest subsidy and scholarships has been merged into the PM- Uchchatar Shiksha Protsahan Yojana (PM-USP).  For 2024-25, PM-USP has been allocated Rs 1,558 crore.  In 2023-24, as per the revised estimates, the expenditure on the scheme is expected to be 32% lower than the budget estimate. 6  

The Standing Committee on Education, Women, Children, Youth and Sports (2022) had observed that existing scholarships are not sufficient in covering the complete cost of higher education.  [30]   It recommended the Ministry to revise the amount and coverage of schemes and increase scholarships.  

Greater enrolment in private institutions, which are more expensive 

As of 2021-22, 70% of all enrolment in higher education is in colleges. 3   In 2021-22, 78% of all colleges are privately run and 66% of college enrolment is in privately-run colleges. 3    According to the NSS (2017-18), cost of studying in a private unaided HEI is the highest amongst all ( Figure 12 ). ¹⁴   The NEP (2020) recommended treating

Figure  11 : Distribution of colleges and student enrolment in colleges by management in 2021-22

Sources: All India Survey of Higher Education 2021-22; PRS.

educational institutions at the standards of a non-profit organisation. ⁵   This involves public disclosure of fees or any charges by HEIs, prohibition of arbitrary increase in the same, transparent means of setting fees and placing an upper limit on the same. ⁵  

Figure  12 : Cost of higher education across level of education and management

Source: Household Social Consumption on Education in India, NSS 75th Round (2017-18); PRS.

Quality of higher education institutions

The National Assessment and Accreditation Council (NAAC) evaluates the quality of Higher Educational Institutions.  Its grading is based on criteria such as curriculum, teaching quality, infrastructure and research and innovation.  [31]   The highest grade accredited institutions can receive is A++ while the lowest is C.  As of November 2023, 430 universities (37% of total) and 9,257 colleges (20%) have been accredited by NAAC.  [32]   Out of the accredited institutions, 239 universities (56%) and 1,916 colleges (21%) have received an A grade.  

Table  3 : Distribution of NAAC grades across accredited colleges and universities as of 2023 (in %)

Category	A	B	C
Universities	56%	40%	4%
Colleges	21%	67%	12%

Sources: NAAC; PRS.

To improve infrastructure facilities at HEIs, the Higher Education Financing Agency (HEFA) was set up in 2017-18.  [33]   It finances setting up of campuses, laboratories and other facilities in HEIs. As of March 2024, loans worth Rs 39,720 crore were sanctioned for 103 institutions.  [34]   Out of this, 64% were sanctioned for 22 IITs and 12 AIIMS and other institutions run by the Health Ministry. ³⁴   This indicates that 34 of institutions were sanctioned 64% of all loans by HEFA. So far, Rs 19,968 crore (49% of the sanctioned loans) have been disbursed.   

In 2013-14, the Rashtriya Uchchatar Shiksha Abhiyaan (RUSA) was launched to fund upgradation of infrastructure, education and overall quality of HEIs.  It was to be implemented under two phases between 2012-2017 (RUSA 1.0) to 2017-2022 (RUSA 2.0).  [35]   Targets are set for each phase of the scheme for areas such as: (i) creation and upgradation of universities and colleges, (ii) improvement in research and innovation and (iii) provision of infrastructure grants.  [36]    In 2024-25, Rs 1,815 crore has been allocated to the scheme.  

The utilisation of funds under RUSA has been consistently low since 2017-18 ( Figure 13 ).   The Standing Committee on Education, Women, Children, Youth and Sports (2023) noted that targets under RUSA 2.0 have been lower than those set under RUSA 1.0. ³⁶   For instance, RUSA 1.0 targeted creating 45 universities by upgrading autonomous colleges.    However, RUSA 2.0 targets creating only three universities in this manner.  The Committee recommended increasing targets across all components of the scheme. ³⁶      

Figure  13 : Under-allocation of funds under RUSA (in Rs crore)

Note: Figures in 2021-22 are in negative due to net recoveries. BE - Budgeted Estimates and RE - Revised Estimates.
Sources: Union Budget documents of various years; PRS.

High vacancies in higher education institutions 

According to the Standing Committee on Education, Women Children, Youth and Sports (2023), the ideal PTR in higher education is 15:1 (one teacher for 15 students).  ³⁶   As per AISHE 2021-22, the prevailing PTR in higher education in regular mode is 23:1. ³   In regular mode, teaching and learning is carried out in a classroom, in direct contact with teachers. 3   PTR has improved from 2017-18 when PTR was 25:1. ³   However, there are significant variances across states on this front (see  Table 8  in Annexure).  States such as Tamil Nadu, Kerala, and Karnataka have a PTR of 14:1, 15:1 and 15:1, respectively. ³   They meet or are quite close to meeting the recommended PTR in higher education.  However, states such as Bihar (64:1), Jharkhand (54:1), and Uttar Pradesh (35:1) fall significantly below the target. ³   About one-third posts in the centrally-funded universities are vacant. ³⁶   Faculty from SC and ST communities constitute 9% and 3% of filled posts, respectively. 36

Table  4 : Vacancies in faculty positions across centrally-funded institutions (as of March 2023)

Institution	Sanctioned	Filled	Vacant	Vacancy (in %)
Central Universities	18,956	12,776	6,180	33%
IITs	11,292	6,712	4,415	39%
IIITs	1,315	599	705	54%
NIT	7,483	5,277	2,206	29%
IIMs	1,570	1,086	484	31%
IISER	735	683	52	7%
Total	41,351	27,133	14,042	34%

Source: 348th Report, Standing Committee on Education, Women, Children, Youth and Sports; PRS.

Entrance exams for admissions  

Admissions to many courses in India require clearing common entrance exams.  These include: (i) National-Eligibility-cum-Entrance Test (NEET) for all medical and dental courses, (ii) Joint-Entrance-Examination (JEE) for most UG engineering programmes and (iii) Common University Entrance Test (CUET) for any central university and many private or deemed universities.   [37] ^{,  [38] ,  [39] ,  [40]}   In 2024, the National Entrance Test (NET) was also extended for Ph.D. admissions.  [41]  

The NEP 2020 recommended common entrance exams for admissions across universities, as opposed to them conducting entrance tests individually. ⁵   This aims to reduce burden on students and universities.  In line with recommendations of the NEP, the National Testing Agency (NTA) was established to conduct entrances such as NEET, JEE and CUET.  [42]  

The NEP also recommended that common entrance exams should test conceptual understanding and application of knowledge, and must aim to eliminate the need for coaching. ⁵   It also recommended giving universities the discretion to accept common entrance exams. 5   Currently, NEET is mandatory for all medical and dental admissions.  

In June 2021, the Tamil Nadu government had set up a Committee (Chair: Retd. Justice A.K. Rajan) to examine the impact of NEET on medical admissions in the state.   [43]    The Committee observed that 99% of candidates in Tamil Nadu who cleared NEET in 2019-20 had undergone coaching. 43  

In 2013, the Supreme Court had observed that a uniform entrance examination would not ensure a level playing field between social groups with varying degrees of access to education.  [44]  

Graduates faced with higher unemployment

Working Population Ratio (WPR) indicates the percentage of employed persons in a population.   Amongst graduates and post-graduates aged 25-64 in India, WPR is 64%.  [45]    This is lower than WPR in certain countries such as USA and South Korea. ⁴⁵  

Figure  14 : WPR of graduates and post-graduates in certain countries in 2022 (in %)

Sources: “Education at a Glance- 2023”, OECD, PRS.

According to a report by the International Labour Organisation (ILO), unemployment amongst youth at all levels of education in India increased between 2005 and 2022 ( Figure 15 ).  [46]    Amongst social groups, SC students with a graduate degree or above had the highest unemployment rate at 35%, followed by those from ST communities at 33%. 46    

Figure  15 : Unemployment rate and various levels of education in India (in%)

Source: International Labour Organisation; PRS.

As per ILO, unemployment rate increases with the level of education completed ( Figure 15 ).  The ILO report highlights a similar trend in various levels of technical education as well. 46    Unemployment rate amongst those with a technical degree increased from 18% to 29% between 2005 to 2022. ⁴⁶   Amongst those without a technical degree, it increased from 5% to 11%.  

The ILO (2024) also highlighted that over half of all employed graduates in India were engaged in low-skilled jobs whereas less than one-third of them were engaged in high-skilled ones. ⁴⁶   Proportion of graduate degree-holders engaged in high-skilled occupations increased from 11% to 28% between 2005 to 2022.   However, share of those in low-skilled jobs increased from 45% to 53%. 46

The Department of Economic Affairs (2024) cited a private study according to which the employability of pre-final and final year students increased from 34% in 2014 to 51% in 2024.  [47]    According to the survey, as of 2023, degrees with most employable talent included: (i) B. Com (61%), (ii) MBA (60%), and (iii) B.E./B.Tech (58%). 47  

The Ministry implements the National Apprenticeship Training Scheme.  It is a one-year programme that aims to equip technically qualified youth with knowledge and skills required at work.   Such training is provided by organisations at the place of work. ²⁶   The scheme has been allocated Rs 600 crore in 2024-25, an increase of 30% over the revised estimate for 2023-24.  In 2023, the UGC released guidelines on internships and university-industry linkage systems in HEIs.  These aim to improve research capacities of students.  [48] ^{,  [49]}  

In the 2024-25 budget speech, a scheme to provide internship opportunities for one crore youth in 500 top companies has been announced.  [50]   Under this, a monthly allowance of Rs 5,000 and a one-time assistance of Rs 6,000 will be provided to the beneficiaries.  This scheme will entail an outlay of Rs 63,000 crore over seven years. ⁵⁰  

Higher educational institutions play a limited role in research

In 2020-21, India spent 0.64% of its GDP on research and development (R&D).  [51]    This was lower than expenditure by: (i) South Korea (4.8% of GDP), (ii) USA (3.5%), (iii) Japan (3.3%), (iv) Germany (3.1%), (v) France (2.3%), (vi) China (2.4%), and (vii) Italy (1.5%).  Expenditure on R&D has consistently reduced since 2009-10 (0.82%).  [52]  

The largest portion of India’s research expenditure is borne by the central government.  In 2020-21, the central government bore about 44% of India’s R&D expenditure, while states and centre cumulatively bore about 50% of it. ⁵¹   Universities shared only 9% of India’s research expenditure. ⁵¹   Universities in certain countries had a higher share in overall research expenditure.  These include: (i) Canada (39%), (ii) Australia (36%), (iii) Italy (23%),   France (20%), and (iv) Germany (19%). 51  

The Economic Survey of India (2017-18) observed that research expenditure in India is concentrated in specialised government departments.  [53]    In many countries, universities are critical in generating high quality research output, while in India they are primarily restricted to teaching. 53   The Survey recommended linking universities with national labs to bridge the gap between teaching and research. ⁵³  

The NEP recommended developing a discovery-based style of learning in school education, with an emphasis on scientific and critical thinking. ⁵   It also recommended multi-disciplinary learning in higher education and building greater linkages with HEIs and industry to promote research. 

In line with recommendations of the NEP, the National Research Foundation was instituted in 2023 to provide strategic direction to scientific research in the country.  [54]   It has been set up with an estimated cost of Rs 50,000 crore.  Out of this, Rs 36,000 crore is expected to be raised from private sources.  [55]   One of its responsibilities is to seed and facilitate research in HEIs where research is at a nascent stage. 

The Department of Higher Education also implements the Multidisciplinary Education and Research Improvement in Technical Education (MERITE). 36   In 2024-25, the programme has been allocated Rs 200 crore.  It aims to improve standards of technical education and research skills, and make technical education more accessible to socio-economically backward students. ³⁶