Issues and Analysis

The National Education Policy, 2020 recommends school education to be provided in four stages : (i) foundational (3 to 8 years), (ii) preparatory (8 to 11 years), (iii) middle (11 to 14 years), and (iv) secondary (14 to 18 years).³  The Right of Children to Free and Compulsory Education (RTE) Act, 2009 mandates free and compulsory education to all children between age six and 14 years.^[8] 

As of 2024-25, there were around 14.7 lakh schools, with nearly 24.7 crore children enrolled in them.^[9]  49% of children were enrolled in government schools and another 10% in government-aided schools.⁹  As of 2024-25, there were nearly one crore teachers in the country.⁹  Around 51% of them teach in government schools and another 7% in government-aided schools.⁹

Higher education in India is provided through institutions of national importance, central universities, state universities, private universities, and deemed-to-be universities.  As of January 2026, there were 1,395 universities.^[10]  Around four crore students are enrolled in HEIs.¹⁰  As of 2021-22, there were 16 lakh teachers in the HEIs.^[11]

Low public spending on education

The National Education Policy, 2020 recommends the combined spending of the centre and states on education to be 6% of GDP.³  However, as of 2022-23, this combined spending is estimated to be 4.1% of GDP.^[12]  The spending on education as a proportion of the overall budget is estimated to range around 2.4% to 2.6% between 2024-25 and 2026-27 (see Figure 2).

Figure 2:  Expenditure of the central government on education (in Rs crore)

Note:  Figures for 2025-26 are Revised Estimates, and for 2026-27 are Budget Estimates.
Sources:  Union Budget documents of various years; PRS.

Other countries such as Germany, USA, and United Kingdom spend a higher share of their GDP on education (see Table 3).

Table 3:  Spending on education as share of GDP in selected countries

Countries	% of GDP	As of year
India	4.1	2022
China	4.0	2023
Germany	5.2	2022
Japan	3.3	2021
South Africa	6	2024
United States	5.4	2021
United Kingdom	5.9	2021

Sources:  World Bank; PRS.

School Education

Samagra Shiksha Abhiyan

This scheme, launched in 2018, subsumed schemes such as Sarva Shiksha Abhiyan, Rashtriya Madhyamika Shiksha Abhiyan, and several teacher education initiatives.  Key objectives of the scheme include: (i) supporting states to implement the National Education Policy, 2020 and RTE Act, 2009, (ii) ensuring equity and inclusion at all levels of school education, (iii) strengthening teacher training, (iv) ensuring minimum standards in schooling, and (v) promoting vocational education. 

This is a centrally sponsored scheme, implying that both the centre and states are responsible for funding the scheme.  The centre and states share funds in the ratio of 60:40 in most states, and 90:10 in Himalayan and north-eastern states.  In 2026-27, Rs 42,100 crore has been allocated to the scheme (30% of the Ministry’s budget).⁵  This is 11% higher than the revised estimates of 2025-26.  On average, 86% of allocation is utilised annually (see Figure 3).  The utilisation of funds has been improving over the years.  However, it has marginally decreased in 2025-26 (revised figures). 

Figure 3:  Utilisation of funds under Samagra Shiksha scheme (in Rs crore)

Note:  Revised estimates of 2025-26 are taken as actuals.
Sources:  Union Budget documents of various years; PRS.

PM POSHAN

This scheme, launched in 2021-22, subsumed the Mid-day Meal scheme.  Under the scheme, one nutritious meal in a day is provided to children in schools from pre-primary to grade 8.  This is equivalent to the age group of three to 14 years.  The scheme aims at reducing stunting, underweight, anaemia in children.  The Standing Committee on Education (2025) noted that adolescent malnutrition continues to be a concern (see Table 4).²²  It also noted that there is a lack of monitoring mechanism to ensure meal quality.²²  The Committee recommended the following: (i) expand scheme to secondary grades, (ii) include breakfast in the scheme, and (iii) conduct quality audits through independent agencies.²²  The Committee also recommended providing milk, iron, and protein components in the meals.²²

Table 4:  Malnutrition in children

Age group	Stunted	Wasted	Overweight	Anaemic
under five years*	36%	19%	3%	67%
5 to 9 years	22%	5%	4%	24%
10 to 14 years	26%	8%	5%	28%
15 to 19 years		5%	4%

Sources:  *NFHS-5, 2019-21; Comprehensive National Nutrition Survey, 2016-18; PRS.

In 2026-27, Rs 12,750 crore has been allocated to the scheme (9% of the Ministry’s budget).⁵  This is 20% higher than revised estimates of 2025-26.  This allocation covers nearly 11.2 crore children studying in government and government-aided schools.^[13]  The utilisation of funds decreased in 2023-24.  However, it has been increasing since then (see Figure 4).

Figure 4:  Utilisation of funds under PM-POSHAN scheme (in Rs crore)

Note:  Revised estimates of 2025-26 are taken as actuals.
Sources:  Union Budget documents of various years; PRS.

PM SHRI

The scheme aims at upgrading around 14,500 government schools as per the goals of the National Education Policy, 2020.^[14]  The scheme will be implemented between 2022-23 and 2027-28 with a central share of Rs 18,128 crore.¹⁵  The state share for this period is Rs 9,232 crore.^[15]  Between 2023-24 and 2024-25, Rs 4,788 crore has been released.^[16] 

In 2026-27, Rs 7,500 crore has been allocated to the scheme.⁵  This is 67% higher than the revised estimates of 2025-26.  The utilisation of funds has increased between 2024-25 and 2025-26 (see Figure 5).  As of January 2026, 13,070 PM SHRI schools have been upgraded.¹⁴ 

Figure 5:  Utilisation of funds under PM-SHRI scheme (in Rs crore)

Note:  Revised estimates of 2025-26 are taken as actuals.
Sources:  Union Budget documents of various years; PRS.

Enrolment

Low enrolment in secondary grades

The National Education Policy, 2020 aims at achieving 100% Gross Enrolment Ratio (GER) at all school levels.³  GER refers to the total number of students enrolled in a specific education level, regardless of their age, divided by official school-age population for that level.⁹  With the RTE Act, 2009 mandating enrolment at the primary education level, enrolment at primary stage is around 91% (see Table 5).  However, GER in secondary grades continues to be low.  As of 2024-25, GER in secondary and higher secondary grades was 79% and 58%, respectively.^[17]  See Figure 6 for a comparison of GER in secondary education with other countries. 

Figure 6:  GER (in %) in secondary grade in India and other countries (as of 2024)

Note:  **numbers are indicative as of 2023; ^numbers are indicative as of 2022.
Sources:  *UDISE 2024-25, Existing structure; World Bank; PRS.

GER in primary and upper primary grades are higher.  The transition rate from lower grades to higher grades also varies (see Table 5).  Transition rate is the percentage of students who pass from one grade to the next higher grade.

Table 5:  Enrolment and transition rates across different grades (in %)

Grade	GER	Transition rate
1 to 5 (primary)	91	Not applicable
6 to 8 (upper primary)	90	92
9 to 10 (secondary)	79	87
11 to 12 (higher secondary)	58	75

Sources:  UDISE report, Existing structure, 2024-25; PRS.

The Economic Survey (2025-26) noted that GER in secondary grades is low because of fewer secondary schools.^[18]  The Survey also noted that around 17% of schools in rural areas are secondary schools.  In urban areas, this share is 38%.¹⁸  The Survey highlighted key reasons for children (14 to 18 years) not attending school (see Table 6).

Table 6:  Reasons for not attending school for out-of-school adolescents (14 to 18 years)

Reason	% children
Supplement household income	44%
Attend domestic chores	28%
Education not necessary	8%
School too far	1%
Other	19%

Sources:  Unit level data of PLFS 2023-24, Economic Survey (2025-26); PRS.

States such as West Bengal (20%), Gujarat (14%), Jammu and Kashmir (13%), and Karnataka (12%) have the highest dropout rates at secondary levels.⁹  The Economic Survey (2025-26) recommended that skilling must be integrated with secondary schools in order to make schools more relevant to students.¹⁸  It will also provide them early exposure to employable skills.¹⁸  School education must be aligned with national skilling priorities.¹⁸  This will reduce the share of dropout students and build a productive workforce.¹⁸   

Teacher vacancies

Pupil Teacher Ratio (PTR) is defined as average number of students per teacher at a specific level of education.⁹  The National Education Policy, 2020 recommends PTR to be 30:1 at each level of school education.³  As of 2024-25, the average PTR in schools is 24:1.⁹  This is better than the recommended level.  However, NITI Aayog (2021) has noted that 36% of government schools in India had less than 50 students and just one or two teachers.^[19]  This leads to teachers teaching multiple grades.³  This may result in lowering PTR. 

Also, PTR in grades 11 to 12 is higher than the recommended level in certain states.  These include Jharkhand (47:1), Maharashtra (37:1), Odisha (37:1), and Uttar Pradesh (35:1).¹⁷  NITI Aayog (2023) noted that shortage of teachers as one of the challenges in achieving recommended PTR levels.^[20]  As of 2024-25, nearly 10 lakh teaching posts were vacant.^[21]  Some of the reasons for shortage of teachers include: (i) lack of regular recruitment, (ii) non-sanctioning of posts, (iii) lack of teachers specialised in a subject, and (iv) small school size affecting distribution of teachers across schools.⁷

The Standing Committee on Education (2025) also noted that the recruitment of contractual teachers in central government schools such as KVs has nearly doubled between 2023-24 and 2024-25.^[22]  It recommended that vacancies of teaching posts must be filled through regular appointment.²²

Challenges with teacher training

Teacher training constitutes one of the vital components of Samagra Shiksha scheme.  Since 2019-20, there has been an overall decrease in the expenditure made on teacher training under the scheme (see Figure 7).

Figure 7:  Decrease in the expenditure of the Ministry on teacher training (in Rs crore)

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

The National Council for Teacher Education (NCTE) delineates minimum qualifications required for teaching at various levels of education.^[23]  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).²³  As of 2024-25, more than 50% of teachers at pre-primary levels are not professionally qualified.⁹  More than 10% of teachers at all other levels of school are not professionally qualified as of 2024-25 (see Table 7).¹⁷  These figures are higher in north-eastern states (see Table 19 in the Annexure).

Table 7:  Professionally unqualified teachers (in %) (as of 2024-25)

Grade	Professionally unqualified teachers
Pre-primary	52%
1 to 5 (primary)	12%
6 to 8 (upper-primary)	12%
9 to 10 (secondary)	10%
10 to 12 (higher secondary)	11%

Sources:  UDISE 2024-25, Existing structure; PRS.

The National Initiative for School Heads and Teachers’ Holistic Advancement (NISHTHA) was launched under the Samagra Shiksha scheme in 2019.²⁴  It guides teacher training and seeks to enhance capacity of teachers, school heads and other resource persons.  It trains these entities through digital learning modules.  As of January 2026, 43% of the targeted teachers and 49% of the targeted school heads have been trained under the programme.^[24]

Learning outcomes

The Performance Assessment, Review, and Analysis of Knowledge for Holistic Development (PARAKH) 2024, conducted by NCERT, assesses the learning outcomes in children at the end of foundational, preparatory, and middle stage.^[25]  As per the assessment, the average score in language and mathematics decreases as children progress to higher grades (see Figure 8).

Figure 8:  Average score (out of 100) in language and mathematics across grade 3, 6, and 9

Sources:  PARAKH 2024; PRS.

According to the National Achievement Survey (NAS), between 2017 and 2021, there was a decline in learning outcomes of children in grade 3, 5, 8, and 10.^[26]  See Table 8 for average score in language and mathematics across different grades in 2017 and 2021.

Table 8:  Decrease in average score (out of 100) in language and mathematics across grades

Grade	Language		Mathematics
	2017	2021	2017	2021
3	67	62	63	57
5	58	55	53	44
8	56	53	42	36
10	36	43	34	32

Sources:  NAS 2017 and 2021; PRS. 

The Economic Survey (2025-26) noted that focus must be shifted from ensuring enrolment to improving learning outcomes.¹⁸  Some of the recommendations to bridge learning gaps across grades include: (i) refining instructional strategies, and (ii) providing additional learning though digital infrastructure.²⁵  The Survey recommended strengthening of district and state teacher training institutions.¹⁸  Parents and communities must also be involved to create a learner-focused environment for students.¹⁸ 

NIPUN Bharat Mission:  The mission was launched in 2021 to ensure foundational literacy and numeracy by 2026-27.^[27]  This includes achieving proficiency in basic arithmetic and reading by grade 3.²⁷  The program also sets targets for learning outcomes, designing teaching-learning material, and teacher training.²⁷  Between 2021-22 and 2023-24, an outlay of Rs 7,178 crore was approved towards the scheme.^[28]  Out of this, Rs 5,007 crore (70%) has been spent.²⁸ 

A Foundational Learning Study 2022 was conducted as a baseline study for NIPUN mission.^[29]  According to the study, 52% of students up to grade 3 met minimum standards for proficiency in numeracy and 54% of students met minimum standards for English.²⁹ 

Access to pre-school education

The National Education Policy, 2020 aims to provide universal access to early childhood care and education (ECCE) to children between three to eight years.³  ECCE refers to the learning and development of a child up to the age of eight years.  ECCE in India is provided through pre-schools and anganwadi centres (AWCs).³  According to the National Education Policy, 2020, ECCE allows children to develop physically, cognitively, socio-emotionally, and culturally.³  It is also necessary for development of early language, literacy and numeracy.³  As of January 2026, there are around 14 lakh AWCs.^[30]  As of 2024-25, out of nearly 8.7 lakh government schools with class 1, nearly 3 lakh schools had AWCs located in the school campus.⁹  Nearly 2.5 lakh schools had pre-school and around 81 thousand schools had both AWCs and pre-schools.  In September 2025, the Ministry in collaboration with Ministry of Women and Child development launched guidelines to co-locate the existing AWCs within the school campus.^[31] 

The National Education Policy, 2020 also emphasises on at least one year of preparatory class for all children entering grade 1.⁹  As of 2024-25, 80% of students enrolled in grade 1 had pre-school experience.⁹  24% of these children had a pre-school experience in an AWC or ECCE centre.⁹  The share of children entering grade 1 having preschool experience has increased over the years (see Figure 9). 

Figure 9:  Children enrolled in grade 1 having pre-school experience

Sources:  UDISE reports; PRS.

The National Education Policy, 2020 proposed a three-month of school preparation module named ‘vidyapravesh’.⁹  The module was launched in 2021 to provide ECCE to all children entering grade 1.^[32]  As of December 2025, 8.9 lakh schools are implementing ‘vidyapravesh’ module.^[33]  Nearly 4.2 crore children benefitted from this module in 2024-25.³³ 

Infrastructure

The RTE Act, 2009 mandates the government to provide basic infrastructure in schools.⁸  These include drinking water, libraries, toilets, and electricity.  However, there is a lack of digital infrastructure and infrastructure for children with disabilities (CwD) (see Figure 10).

Figure 10:  Government and government-aided schools (in %) with basic infrastructure facilities

Sources:  UDISE 2024-25; PRS.

Lack of digital infrastructure

The National Education Policy, 2020 aims at emphasising the use of technology for learning.³  It also states that eliminating digital divide is essential for digital education in the country.³  However, there is a lack of digital infrastructure in schools.  Private schools have greater coverage of digital infrastructure as compared to government and government-aided schools (see Figure 11).

Figure 11:  Digital and ICT infrastructure in schools across different management (in %)

Sources:  UDISE, 2024-25; PRS.

In 2020, the Ministry launched PM eVidya to offer education through internet, radio, and TVs.^[34]  Nearly 200 DTH TV and 400 radio channels are enabled under the initiative.³⁴  Digital Infrastructure for Knowledge Sharing (DIKSHA) platform provides curriculum aligned virtual content across all grades along with QR coded textbooks.³⁴

Lack of infrastructure for children with special needs

The National Education Policy, 2020 aims at providing equitable and inclusive education to all children.³  This includes CwD and children coming from underserved backgrounds.³  As of 2024-25, there are nearly 21.5 lakh CwD enrolled in schools.⁹  However, schools do not have the infrastructure to meet the learning needs of CwD.  As of 2024-25, 32% government schools have CwD friendly toilets.⁹  For the same year, 63% government schools have ramps with handrails for CwD.⁹  Under Samagra Shiksha scheme, the following initiatives are taken: (i) block-level identification and assessment of CwD, (ii) making videos accessible in Indian sign language, (iii) providing braille books, and (iv) providing stipend to girls with special needs.^{[35],[36],[37]} 

Increase in enrolment in private schools, despite high cost

According to National Sample Survey Office (NSSO), as of 2025, the cost of school education in a private school is 10 times higher than that in a government school.^[38]  This cost is higher in urban areas than in rural areas.³⁸  Despite the high cost of school education in private schools, the number of students enrolling in private schools are increasing.  Nearly 9.6 crore children are enrolled in private schools as of 2024-25.⁹  This is higher than 2022-23 and 2023-24 (see Figure 12).³⁸ 

Figure 12:  Enrolment in schools (in crore)

Sources:  UDISE reports; PRS.

According to the NSSO 75^th round, 34% of the respondents stated that the quality of public institution is not satisfactory (see Table 9).^[39]  Public institutions include government schools, universities, and colleges. 

Table 9:  Reasons for studying in private institutions (as of 2017-18)

Reason	% of respondents
Quality of public institution not satisfactory	34%
Private institution located nearby	27%
Uses English as medium of instruction	17%
Provides facilities such as transport and hostels	14%

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

Cost of education in government schools

The RTE of 2009 aims at providing free education to all children between age six and 14 years.⁸  However, according to the Comprehensive Modular Survey on Education conducted by NSO (April to June 2025), around 27% of students reported that they are paying course fees in government schools at different levels of education (see Table 10).³⁸  The average cost per student in government school is Rs 2,863 per year.³⁸  This cost covers expenditure on course fee and transportation.³⁸  Around 8% of students enrolled in grades 1 to 8 are paying an average course fee of Rs 229 per year in a government school.^[40] 

Table 10:  Average annual cost per student in a government school across different enrolments

Level of Enrolment	Rural	Urban	All
Pre-primary	557	1,094	627
Primary	1,676	2,827	1,818
Middle	2,520	3,646	2,682
Secondary	4,362	5,512	4,581
Higher Secondary	7,206	7,568	7,293

Sources:  Comprehensive Modular Survey: Education, 2025; PRS.

Higher Education

Allocation to the HEIs

A large share of the Department of Higher Education’s budget goes towards funding HEIs.  For 2026-27, an outlay of Rs 41,303 crore has been allocated to the HEIs such as central universities, IITs, NITs, IISERs, IIITs, and IIMs (30% of the Ministry budget).⁶  This is 4% higher than the revised estimates of 2025-26.  Allocations to the HEIs have increased in between 2018-19 and 2026-27.  However, the utilisation drops nearly in alternate years (see Figure 13).  The expenditure made under this head grew at CAGR of 7% between 2017-18 and 2024-25.

Figure 13:  Utilisation of funds in HEIs such as IITs, NITs, IISERs, IIITs, and IIMs (in Rs crore)

Note:  Revised estimates of 2025-26 are taken as actuals.
Sources:  Union Budget documents of various years; PRS.

PM USHA

The Pradhan Mantri Rashtriya Uchhatar Shiksha Abhiyaan (PM-RUSA) was launched in 2013 to fund upgradation of infrastructure, education, and overall quality of HEIs.^[41]  It was implemented in two phases: (i) RUSA 1.0 in 2012-17, and (ii) RUSA 2.0 in 2017-22.  In 2024, the scheme was renamed as Pradhan Mantri Ucchatar Shiksha Abhiyaan (PM USHA).  The scheme has been expanded to fund HEIs to build digital infrastructure and convert single-stream HEIs into multi-disciplinary institutions. 

An outlay of Rs 1,850 crore has been allocated to the scheme for 2026-27.⁶  This is 131% higher than the revised estimates of 2025-26.  Since 2022-23, the scheme has seen under-utilisation.  On average, 16% of the funds allocated were utilised between 2022-23 and 2024-25 (see Figure 14).  The utilisation decreased significantly in 2021-22.  The Standing Committee on Education (2023) noted that this was due to low utilisation of funds by states and less project proposals received from them.^[42]  The Ministry estimates underutilisation of 44% in 2025-26 as well. 

Figure 14:  Low-utilisation of funds under PM USHA scheme (in Rs crore)

Note: Figures in 2021-22 are in negative due to net recoveries. Revised Estimates of 2025-26 are taken as actuals.
Sources: Union Budget documents of various years; PRS.

Enrolment in higher education below NEP target

The National Education Policy, 2020 aims at achieving 50% GER in HEIs by 2030.³  As of 2021-22, the GER was 28%.¹¹  GER in higher education in India remains lower than several other advanced economies (see Figure 15).

Figure 15:  Comparison of GER in tertiary education across selected countries (as of 2022)

Note:  Tertiary education refers to all formal post-secondary education, including public and private universities, technical training institutes, and vocational schools.
Sources:  World Bank; PRS.

There are wide inter-state disparities in higher education enrolment.  States such as Tamil Nadu (47%) and Kerala (41%) have higher GER than states such as Bihar (17%), Jharkhand (19%), and Uttar Pradesh (24%).¹¹  There is also unequal distribution of universities across the country.  NITI Aayog (2025) noted that states where the university density is lower than average include Bihar, Uttar Pradesh, and West Bengal.^[43]  The university density is defined as total number of universities per one lakh eligible population.⁴³

The Viksit Bharat Shiksha Adhishthan Bill, 2025 The Viksit Bharat Shiksha Adhishthan (VBSA) Bill was introduced in Lok Sabha on December 15, 2025.[44]  It establishes VBSA (the Commission) as a single regulator for all HEIs.  It replaces three existing regulators: (i) the University Grants Commission, (ii) All India Council for Technical Education, and (iii) National Council for Teacher Education.  Three councils will be established under the Commission.  These include: (i) regulatory council, (ii) accreditation council, and (iii) standards council.  The Bill was referred to a Joint Parliamentary Committee on December 16, 2025.

Faculty vacancies in HEIs

In higher education, the number of students per faculty in a classroom teaching is higher than recommended.  The Standing Committee on Education (2023) recommended the pupil teacher ratio (PTR) in HEIs to be 15:1.^[45]  This means that there should be one teacher for every 15 students.  As of 2021-22, PTR in HEIs is 23:1.¹¹  High PTR results in higher number of students being taught by a faculty in a classroom.  PTR has improved since 2017-18 (see Figure 16).  However, states such as Bihar (64:1), Jharkhand (54:1), and Uttar Pradesh (35:1) have higher PTR.¹¹

Figure 16:  PTR in HEIs between 2017-18 and 2021-22

Sources:  AISHE reports; PRS.

The Standing Committee on Education (2025) noted that faculty vacancies in HEIs impacts the PTR.⁴⁶  It dilutes the quality of teaching in such institutions.⁴⁶  As of December 2024, 29% of teaching posts in central universities were lying vacant (see Table 11).^[46]

Table 11:  Vacancy in faculty posts across HEIs (as of January, 2025)

Position	Sanctioned	Filled	Vacant	Vacancy
Professor	2,540	1,113	1,427	56%
Associate Professor	5,102	3,149	1,953	38%
Assistant Professor	11,298	9,268	2,030	18%
Total	18,940	13,530	5,410	29%

Sources:  364^th report on Demands for Grants 2025-26 of the Department of Higher Education; PRS.

Vacancies are higher in institutions of national importance such as Indian Institutes of Information Technology (IIITs) and Indian Institutes of Technology (IITs) (see Table 12). 

Table 12: Vacancies in centrally funded HEIs (as of March, 2023)

Institutions	Sanctioned	Filled	Vacant	Vacancy
Central Universities*	18,940	13,530	5,410	29%
IITs	11,292	6,712	4,415	39%
IIITs	1,315	599	705	54%
NITs	7,483	5,277	2,206	29%
IIMs	1,570	1,086	484	31%
IISERs	735	683	52	7%
Total	41,351	27,133	14,042	34%

Note: *figures are as of 31^st December, 2024.
Sources: *364^th Report, Standing Committee on Education, Women, Children, Youth and Sports, March 2025;

348^th Report, Standing Committee on Education, Women, Children, Youth and Sports, March 2023; PRS.

According to the Ministry reasons for vacancies include retirement, resignation, or transfer of faculties to newly opened institutions.^[47]  The vacancies in centrally funded HEIs are filled through a recruitment drive stated in September, 2022.⁴⁷  As of July 2025, around 28,450 posts have been filled.⁴⁷  This includes 16,507 faculty positions.⁴⁷

Accreditation of HEIs

The National Assessment and Accreditation Council (NAAC) evaluates the quality of HEIs.  Its grading is based on criteria such as curriculum, teaching quality, infrastructure and research.  As of August 2025, NAAC had accredited around 19,837 colleges and 1,078 universities.^[48] 

NITI Aayog (2025) noted that several colleges choose to not get accredited due to high costs of the process.⁴³  The National Knowledge Commission (2009) had recommended allowing multiple agencies to be included in the accreditation process through licencing.^[49]  It recommended that these entities should follow uniform parameters set by the regulator of higher education.⁴⁹  According to the VBSA Bill, 2025, HEIs will be accredited according to the Institutional Accreditation Framework, developed by the accreditation council.  The framework will provide accreditation on the basis of educational outcomes and transparency in public disclosure of academic, financial, and operational matters.

Colleges in India are usually affiliated with a university.  The National Knowledge Commission (2009) noted that each university was affiliating a large number of colleges, making it difficult to enforce minimum standards of curriculum, teaching and infrastructure.  NITI Aayog (2025) noted that affiliated colleges face major delays in obtaining approval for new courses from the university.⁴³

To end the system of affiliating colleges, the National Education Policy, 2020 provides for establishment of autonomous degree granting colleges or constituent colleges.  However, the number of affiliated colleges has increased from 2019-20 to 2021-22 (see Figure 17). 

Figure 17:  Number of affiliated colleges and constituent colleges

Sources:  AISHE reports; PRS.

As of January 2026, there are 1,658 autonomous colleges recognised by UGC.^[50]  These colleges are provided autonomous status for a specific period.^[51]  Such colleges have autonomy over their administrative and academic matters.⁵¹  These colleges however do not grant their own degrees.⁵¹  The degree is granted by the parent university to which they are affiliated.⁵¹  Constituent colleges are entirely a part of the university, and are administered by the university.³  As of 2021-22, there are 2,023 constituent colleges and 44,185 affiliated colleges.¹¹  

Establishment of new HEIs

As of 2021-22, there are 1,168 universities in India.¹¹  This includes 53 central universities, 423 state public universities, and 33 government deemed-to-be universities.¹¹  Between 2014-15 and 2020-21, 10 central universities and 107 state public universities have been established.^[52],11  The number of IITs and IIMs have also increased.  Between 2014-15 and 2024-25, seven IITs and eight IIMs were created.^[53] 

CAG (2021) noted several issues in the construction of around eight IITs established during 2008-14.^[54]  There were instances of delay in land transfers for the project.⁵⁴  This led to extension of the project from six years to 13 years.⁵⁴  The revised estimates of the project also increased from          Rs 6,080 crore to Rs 14,332 crore.⁵⁴

Limited role of higher education in research and development

In 2020-21, India spent 0.64% of its GDP on research and development.^[55]  The share of universities in the India’s research expenditure was 9%.⁵⁵  This is lower than several other countries (see Figure 18).

Figure 18:  Share of universities in research spending across selected countries (in %)

Sources:  Research and Development Statistics at a glance 2022-23, Ministry of Science and Technology; PRS.

An outlay of Rs 418 crore has been allocated for research and innovation in the higher education.  This is 207% higher than the revised estimates of 2025-26.  However, in 2025-26, revised estimate is 58% lower than its budgeted estimate (Rs 327 crore).  Since 2017-18, the scheme has been witnessing under-utilisation consistently (see Figure 19).  On average, 47% of the funds allocated were utilised between 2017-18 and 2024-25.

Figure 19:  Utilisation of funds for research and innovation (in Rs crore)

Note:  Revised estimates of 2025-26 are taken as actuals.
Sources:  Union Budget documents of various years; PRS.

In 2026-27, around 72% of the funds for research and innovation will be spent on the Multidisciplinary Education and Research Improvement in Technical Education (MERITE) scheme.  MERITE is a central sector scheme with a total outlay of Rs 4,200 crore for 2025-26 to 2029-30.^[56]  Around Rs 2,100 crore of this allocation has been provided as a loan from the World Bank.⁵⁶  The scheme aims at improving research and innovation across 175 engineering institutions and 100 polytechnics.  An outlay of Rs 300 crore has been allocated to the scheme for 2026-27.⁶ 

To conduct interdisciplinary research, three centres of excellence in artificial intelligence (AI-COEs) have been established in field of health, agriculture, and sustainable cities.^[57]  These include AI-COEs in IISC Bangalore, IIT Kanpur, and IIT Ropar.⁵⁷  In 2025, AI-COE in the field of education was announced to be established in IIT Madras.⁵⁷  These four AI-COEs receive allocation from the Ministry.⁶  For 2026-27, an outlay of Rs 350 crore has been allocated for the same.⁶  As of December, 2025, six research parks have also been established in five IITs and one IISc.^[58] 

The Economic Survey (2017-18) stated that in India, universities are largely restricted to teaching rather than promoting quality research.^[59]  NITI Aayog (2025) noted that the country’s contribution to global research publications has increased between 2017 and 2024.⁴³  However, the share of higher education in total research publication of India is 10%.⁴³  The Institutions of National Importance and private deemed universities contribute more to the research publications.⁴³  The contribution of state universities in the total publication is 15%.⁴³  The faculty in state universities are recruited for teaching roles rather than research responsibilities.⁴³  This results in deficiency in research capacity within the university.⁴³  Some of the recommendations to improve research in education includes: (i) introduction of national research policy, (ii) establishment of research hubs, (iii) research training for faculty, and (iv) tax exemptions for research equipment.⁴³

Lower allocation towards scholarships

To promote higher education, the Ministry provides financial aid to students.  This includes: (i) interest subsidy, (ii) scholarships, and (iii) doctoral research fellowships.^[60]  Scholarships include an aid of: (i) Rs 30,000 to three lakh rupees for students of Jammu and Kashmir, and (ii) Rs 12,000 to 20,000 for students from other parts of India.⁶⁰  However, the Standing Committee on Education (2022) noted that existing scholarships are not sufficient in covering the complete cost of higher education.^[61] 

In 2026-27, Rs 2,160 crore has been allocated for financial aid.⁶  This is 24% higher than the revised estimates of 2025-26.  There has been under-utilisation of funds for financial aid since 2019-20 till 2023-24 (see Figure 20).  However, it is increasing since then.

Figure 20:  Decline in utilisation of funds for financial aid (in Rs crore)

Note:  Revised estimates of 2025-26 are taken as actuals.
Sources:  Union Budget documents of various years; PRS.

Interest subsidies constitute the largest portion of financial aid.  Since 2023-24, spending on scholarships and interest subsidies has been merged into the Pradhan Mantri Ucchatar Shiksha Protsahan Yojana (PM-USP).  An outlay of Rs 1,560 crore has been allocated to PM-USP for 2026-27.⁶  An outlay of Rs 600 crore has been allocated to doctoral fellowships.⁶  Utilisation of funds for doctoral fellowships has also decreased since 2022-23 (see Figure 21).

PM Vidyalaxmi:  In November 2024, the Union Cabinet approved the Pradhan Mantri Vidyalaxmi scheme.^[62]  The scheme aims at providing financial support to students pursuing higher education in top HEIs.⁶²  It will guarantee 75% of the outstanding amount on loans up to Rs 7.5 lakh.⁶²  The scheme will also extend interest subsidy on

Figure 21:  Decrease in utilisation of funds under doctoral fellowship (in Rs crore)

Note:  Revised estimates of 2025-26 are taken as actuals.
Sources:  Union budget documents of 2019-20 to 2025-26; PRS.

loans up to Rs 10 lakh to one lakh students annually.⁶²  An outlay of Rs 3,600 crore has been allocated to the scheme for period of 2024-25 to 2030-31.⁶²  Nearly seven lakh students are expected to benefit from the scheme.⁶²  As of Februrary 2026, around 2.5 lakh students have benefitted from the scheme.⁶³  Loan amount of around Rs 7,000 crore were disbursed as of Februrary, 2026.^[63] 

The Standing Committee on Education (2025) noted that number of beneficiaries under the scheme is low.^[64]  It also noted that around 902 quality HEIs were eligible for the scheme.⁶⁴  It recommended that the scheme should also be extended to cover remaining HEIs.⁶⁴  There were several first time borrowers who did not possess a credit score at the time of applying for the loan.⁶⁴  This led to several banks not sanctioning the loans.⁶⁴  The Committee recommended that guidelines must be issued to exempt families having ration cards from providing credit score.⁶⁴

Vocational education and training

Vocational education refers to training in manual or semiskilled roles.  As of 2023-24, 26% of the population aged 15 to 29 years have received vocational training.^[65]  This is lower than that in developed economies such as Japan (80%), USA (52%), UK (68%).^[66] 

The National Education Policy, 2020 aims at exposing at least 50% of all students to vocational education at the school level by 2035.³  Vocational courses aligned with the National Skills Quality Framework are offered to students from grade 9 to 12.^[67]  As of December 2025, the skill training is provided in around 25 thousand schools enrolling nearly 35 lakh students.⁶⁷  The Economic Survey (2025-26) also recommended that vocational education be integrated from grade 6 to 12.¹⁸

To enhance employability, the National Education Policy, 2020 recommends all HEIs to provide their students internship opportunities.³  In July 2024, the central government announced PM-Internship scheme to provide internship opportunities for one crore youth in top 500 companies.^[68],[69]  In 2024-25, the scheme targeted 1.25 lakh internships.⁶⁹  As of August 2025, around 72,000 internship opportunities have been notified by partner companies.^[70]  Around 32% of these offers were accepted.⁷⁰

Annexure

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