Transforming Higher Education: A Comparative Study (Higher Education Dynamics)
m Higher Education Excellence in Modern India · large gap in higher education enrolment potential...
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www.avanse.com Higher Education Excellence in Modern India
Transcript of m Higher Education Excellence in Modern India · large gap in higher education enrolment potential...
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Higher Education Excellence in Modern India
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Despite remarkable progress over the last decades towards inclusive development, India’s achievements are threatened by various social
challenges, major being Poverty
Natural Resources
20%
Infrastructure 16%
Human Resources & Social Factors 64%
UNDP DEVELOPMENT INDICATORS
India ranks 134th in the Human Development Index (HDI) - 2011 Rankings while China is at 101 and US at 4 Source: www.undp.org
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Education a Fundamental Right and the definite Route in
enabling socio economic growth
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The end-product of education should be a free
creative man, who can battle against historical
circumstances and adversities of nature.
- Dr. Sarvepalli Radhakrishnan
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Indian Higher Education: A Growing Landscape
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Total enrolment
19.8 mn
HE – Domestic
16.5 mn
HE- International
0.2 mn
Vocational courses 3.1 mn
Total enrolment* in the Indian education system is estimated at ~19.8 mn (2012) with spend of around INR 0.8 Tn annually
*Enrolment figures imply cumulative enrolments across every year of the education course and not first year enrolments alone
Source: MHRD; Parthenon Analysis Source: (1) Planning commission 2012, MHRD, and Internal Analysis
Current projected economic growth implies the need to expand higher education enrolment by 8.9Mn seats by 2016
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However our GER’s stand low globally, thus indicating a large gap in higher education enrolment potential
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Developed nations have GER of 58% in higher education, whereas developing nations have GER of 24%,India today have GER of around 17% as of 2011. With a median age of 25 years, India has over 550 million people below the age of 25 years. Presently about 11 million students are in the Higher Education system. This represents just 11% of the of the 17-23 year old population. The government hopes to increase this to at least 21% by 2017- a target which still falls short of the world average.
17.27% 23% 26%
34%
57%
77% 83%
0.00%
25.00%
50.00%
75.00%
100.00%
India China Global average
Brazil UK Autralia US
Gross Enrolment Ratio
Source: UGC, EY & FICCI Report
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The time is very opportune for India to make its transition to the knowledge economy – an economy that creates, disseminates, and uses
knowledge to enhance its growth and development - World Bank, India and the Knowledge Economy: Leveraging
Strengths and Opportunities
As I see it from my perch in India's science and technology leadership, if India plays its cards right, it can become by 2020 the world's number-one knowledge production centre, creating not only valuable private goods but
also much needed public goods that will help the growing global population suffer less and live better
- Dr. Ragunath A. Mashelkar,
Former - President of the Indian National Science Academy (INSA) & Director General of the Council of Scientific and Industrial Research (CSIR)
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Key Factors
The challenges though are multidimensional and intertwined in reality and Calls for a focused and meticulous approach in bringing about the change
in the system
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Access Quality Equity
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0%
20%
40%
60%
80%
100%
Income Quanitle 5 (Highest)
Income Quanitle 4
Income Quanitle 3
Income Quanitle 2
Income Quanitle 1 (Lowest)
Avg College Tution as % of Household Income by income quantile USA vs India 2009
US India
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•Higher education is less affordable in India than in the US for every income bracket •Broader and flexible financing options will help facilitate higher education access for low income students
College Tuition represents over 11% of the top quintile household income when compared with the US
Source: PWC, Parthenon Analysis
Rising cost of Higher education in India, implies the need for funding & thus easy financial access
Users
Users
Non Users
Non Users
0%
20%
40%
60%
80%
100%
US India
Edu Loan Users in USA vs India
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Financial Innovations are required to bring in inclusion and access to quality education
• Performance based funding: Government financing of Competitive funds that encourage innovation, great academic quality and strengthening institutional managed capacity; and financing model that directly pay for results.
• The need to have more robust student scholarship schemes that are more inclusive and accessible to a larger share
• Models like Federal Loans available in countries like the US, can be considered as viable student aids to enable access and inclusion
• Encourage Pvt sector funding in the education sector by making it lucrative through tax incentives and simple norms
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Deepening Student Finance Penetration
The current penetration levels in terms of education financing requirements in the education segment is 15%
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• Encouraging more entry of Private players in the Student finance sector by; • Providing easier and low cost
access to funds for onward lending
• Creating a Favourable regulatory environment and low entry barriers
• Implementation of ‘Credit Trust Fund’ for education loan sector, which will encourage lending
• Aggressive revival in marketing and processing of student loans by Public Sector Banks
Enabling Student Financing
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“Enabling education, Empowering youth”
“Promote the constitution of a better society by providing the youth of the country an opportunity to educate and contribute,
thereby improving our social and economic conditions”
A DHFL Group Company
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