ndian higher education sector

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International Conference on Technology and Business Management March 28-30, 2011

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Indian Higher Education Sector: Heading towards Transformation

Vikram Parekh

[email protected] College of Management Studies, Navi Mumbai

Pradip [email protected]

D Y Patil University (Business Management)

1. IntroductionThe Indian Education Industry has been growing strongly (USD 50bn) and break-up is 40% contributed equallyby K-12 & Higher Education and remaining 20% by Informal Education. The Indian Education System

comprises of formal and informal network of education institutes as mentioned in exhibit 1. The Indianeducation system comprises of formal and informal network of educational institutions. With economic growthand enhanced technology it has become necessary to develop the structure of the Indian education sector. Funds

are a major concern in the market though the government has taken many initiatives for the development ofeducation infrastructure which can be fulfilled by private players. The government has opened the doors forforeign universities by passing Foreign Educational Institution (Regulation of Entry and Operation) Bill, 2010,

which will help in shaping the education industry structure specially pertaining of higher education in India. Thepresent GER (Gross Enrollment Ratio) in higher education in India is around 12 per cent (world average 23.2per cent, developed nations 54.6 per cent, Asian countries 22 per cent) and the government of India wants to

increase this to 21 per cent by 2017. There is an interim GER target of 15 per cent by 2011-12, for which theenrolments in universities/ colleges need to be substantially raised to 21 million students. The government

estimates that the share of enrolments of private, unaided higher education institutions will be around 51 percent. It is obvious that the government of India alone will not be able to achieve GER target and will requirepublic partnership, private investment, and participation of foreign institutions to achieve this ambitiousgoal. The higher education in India has experienced significant growth over the last two decades. Universities

and Colleges in India have grown at a CAGR of over 5% and 6% respectively, since independence (Refer toexhibit 2).

Exhibit 1Indian Education System


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Exhibit 2 Growth of Higher Education Institutions and enrolment in India

2. Trends in Higher Education & Growth DriversIn India higher education covers all the post-secondary education in different subjects such as humanities,commerce, medical, engineering and technology. Most of the universities offer multi-disciplinary courses.However, there are some which are confined to a particular discipline for e.g., technology and medical.


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Universities differ in terms of their academic, administrative and financial arrangements. The country isdominated by state universities, which are 251 in number while a majority share of colleges in India are privateunaided institutions. The number of universities has increased by around 13% in 2007-08, as compared to the

last year. Colleges in India witnessed a growth of over 14% in 2007-08 on a year on year basis. Private unaidedcolleges form a significant part of the total number of colleges in India and are growing rapidly in number. Outof 20,667 colleges, 2,166 colleges are explicitly for women. Besides these colleges, the country also has around

7,000 technical education institutions. By 2015, India is expected to witness a sizeable reduction in the lowestincome earning section of the society, which will be replaced by a much larger urban middle class, creating afavourable market for the education sector (refer to exhibit 3). Education is the second largest expenditure for

the middle class (refer to exhibit 4). Economic growth is expected to drive household income among the middleclass. These factors willingness to spend on education and the rise in purchasing power will allow the growingmiddle class to bid for an education from public institutes.

Exhibit 3 Favourable Demographics is the Key Factor for Higher Education Institutions Growth

Exhibit 4Distribution of Income in the Middle Class

3. PPP Public Private PartnershipPPP can provide much needed finance to the higher education sector while serving as an efficient operating

model. Possible PPP structure as suggested in the 2009 E & Y EDGE 2009 report on Private Enterprise inIndian Higher Education. The private sector is a key constituent of the higher education segment in India,accounting for more than a third of all higher education institutions and more than two thirds of all professional

higher education institutions. Strong macro-economic and demographic drivers coupled with the gap in publicspending will only further increase the relevance of the private sector in higher education in the country. Thus

there is a clear imperative for established players to participate in this growth story by building highereducational institutions of scale.


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Establishing strong partnerships between private sector enterprises and the public sector, including thegovernment and regulators, is the clear need of the hour for this growth to be achieved. At the same time, privatehigher education institutions need to embrace best in breed governance, operating and financing models to build

institutions of the highest quality and standards.Though, not active players in the higher education space at present due to structural and regulatory challenges,

private equity investors could play a key role in the expansion of Indias higher education infrastructure. The

report has attempted to provide an overview of specific considerations that would drive investor interest in theeducation space based on our interaction with teams at some of the leading private equity funds active in India.

Possible PPP Structure The educational institute (special purpose vehicle SPV) is set up as a Society or

Trust, as per applicable guidelines. The UGC and AICTE or some other government body approves norms andstandards of the institute. The state provides applicable administrative and financial support to the institute.Capital outlays are met by an educational services entity which provides infrastructure. The educational services

entity charges a fee for use of facilities by the Society or Trust. The infrastructure facilities are transferred to theinstitute after several years (Refer to exhibit 5).

Private enterprises have used innovative models and novel strategies to attain scale in the India higher

education segment. As per current enrollment trends, India will see a shortage of 5 mn graduate seats by 2015and 7 mn by 2020. The constraints are capacity constraints (Refer to exhibit 6), limited seats in IITs and IIMs a larger number to abroad, high entrance cut-offs for top universities / colleges, 1,00,000 students graduate fromentirely unaccredited private institutions, quota reservations on the increase and large number of fly-by-night;

operators.The market for higher education is projected to grow almost three times in the next 10 years; market size for

Skill Development is projected to grow almost ten times, albeit over a smaller base. For this a network of publicand private polytechnics and vocational institutions exists, controlled and supervised by the councilsspecializing in each discipline. There are nearly 10 mn students in 6500 institutions. Nearly 1500 colleges have

been given facilities for vocational education.

Exhibit 5A Public Private Partnership Model & Higher Education Institutes (Capacity)

4. Import of EducationEvery year a large fraction of Indian students spend large sums of on a foreign education due to the letter system

of education. Some trends relating to import of education are as follows (refer to exhibit 6):

Indian spend USD 4bn annually on higher education abroad The U.S. continues to remain the most popular destination 71% are pursuing postgraduate courses in engineering and management Australia is a popular destination for vocational training and course in hospitality U.K.s popularity is due to the variety of one-year degrees on offer China and Russia are emerging as favored destination for medical education.

Traditionally dominated by the public sector, the higher education market in India is being driven by privatesector participation, with several high quality private institutes setting standards and pioneering growth.Globally some HEIs have rapidly attained scale over the last few years making them models for India HEIs to

analyze and possibly emulate. The expenditure on higher education in India is estimated to be USD 6.5bn in

2008. It is expected to grow at 12% CAGR to reach USD 10.3bn by 2012 according to the 2009 Netscribesreport on Higher Education. Private institutions have been focusing on the area of professional courses like


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engineering and medicine as well as post graduate courses like MBA. Private set-ups account for 50% of thetotal medical seats and 80% of the engineering seats available in students in India. (Refer to Exhibit 7)

Exhibit 6Import of Education (from India)

Exhibit 7Indian Higher Education Segment & the Leaders in this Segment


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5. Higher Education and GATSTrade in education is organized in five categories of service, based on the United Nations Provisional Central

Product Classification (CPC):

Primary education, covering preschool and other primary education services, but excluding child careservices;

Secondary education, including general higher secondary, technical and vocational secondary andtechnical and vocational services for disabled;

Higher Education, covering post secondary technical and vocational education services as well as otherhigher education services leading to university degree or equivalent;

Adult Education covers education for adults outside the regular education system; Other Education; which covers all other education services not elsewhere classified; nonetheless

education services related to recreation matters are not included.

During the Uruguay Round only 29 member countries of the WTO (considering EC as a single membercountry) made commitments in education and only 21 of these included commitments in higher education. It isinteresting to note that Congo, Lesotho, Sierra Leone and Jamaica have made full unconditional commitments in

higher education, perhaps with the intent of encouraging foreign providers to help develop their educationsystems. Australias commitment for higher education covers provision of private tertiary education services,including university level. The European Union has included higher education in their schedule with clear

limitations on all modes of trade except consumption abroad, which generally means foreign tuition payingstudents. Only four (Australia, New Zealand, USA and Japan) of the 21 countries with higher educationcommitments have submitted a negotiating proposal outlining their interests and issues. WTO members havechosen to impose considerably more limitations on trade in educational services in modes 3 and 4 than in modes

1 and 2. This is also the common picture for trade in other services. Furthermore, member countries have ingeneral put slightly more limitations on trade in primary and secondary education than on higher and adult

education.

6. Trade Barriers in EducationThere are some barriers that are applicable to all sectors, while other impediments are specific to the educationservices sector. The trade barriers have been extensively covered in a consultation paper on Higher educationin India and GATS: An Opportunity (some of the key information has been presented below) prepared by trade

policy division, Department of commerce, Government of India.The barriers with general application are:

The majority of generic barriers are from an exporter countrys point of view and focus on the supplymodes cross border supply and commercial presence.

There is a certain lack of transparency of government regulatory, policy and funding frameworks. Domestic laws and regulations are administered in an unfair manner. Subsidies are not made known in a clear and transparent manner. Tax treatment which discriminates against foreign suppliers. Foreign partners are treated less favourably than other providers.

GATS defines services trade as occurring via four modes of supply all of which are relevant to education:

Mode 1:Cross Border Delivery: Delivery of education services via internet (distance education, tele-education, education testing services).

Mode 2: Consumption Abroad: Movement of students from one country to another for highereducation (foreign students in US universities).

Mode 3:Commercial Presence: Establishment of local branch campuses or subsidiaries by foreignuniversities in other countries, course offerings by domestic private colleges leading to degrees at

foreign universities, twinning arrangements, franchising.

Mode 4:Movement of Natural Persons: Temporary movement of teachers, lecturers, and educationpersonnel to provide education services overseas.

The principal barriers to trade in higher education services as regards cross-border supply (mode 1: e.g.distance delivery or e-education; virtual universities) are the following:

Inappropriate restrictions on electronic transmission of course materials. Economic needs test on suppliers of the services in question.

Lack of opportunity to qualify as degree granting institution.


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Requirement to use local partners, with at the same time a barrier against entering into and exiting fromjoint ventures with local or non-local partners on a voluntary basis.

Excessive fees/taxes imposed on licensing or royalty payments. Restrictions on use/ import of educational materials.

The principal barriers to consumption abroad (mode 2, e.g.: students studying in another country) are:

Measures that restrict the entry and temporary stay of students, such as visa requirements and costs,foreign currency and exchange controls.

Recognition of prior qualifications from other countries. Quotas on numbers of international students in total and at a particular institution. Restrictions on employment while studying. Recognition of new qualification by other countries.

For trade via commercial presence (mode 3: branch or satellite campus; franchises; twinning arrangements),common barriers include:

The inability to gain the required licences to grant a qualification. Subsidies provided solely to local institutions. Nationality requirements.

Restrictions on recruitment of foreign teachers. Government monopolies. Difficulty in obtaining authorization to establish facilities. Prohibition of higher education, adult education and training services offered by foreign entities.

Barriers to mode 4, i.e. presence of natural persons (e.g. teachers travelling to foreign country to teach) are:

Measures that restrict the entry and temporary stay and work for the service suppliers, such asimmigration barriers, nationality or residence requirements, quotas on number of temporary staff,

employment rules.

Economic needs test. Recognition of credentials. Minimum requirements for local hiring being disproportionately high. Repatriation of earnings is subject to excessively costly fees or taxes for currency conversion.

7. Import and Export of Education Services in IndiaThe scenario in Indian Higher Education with respect to the four modes under GATS has been extensivelycovered by Prof. Rupa Chanda of IIM Bangalore in her study on the implications of GATS for higher educationin India, which was presented on a Higher Education Summit, organized by FICCI in New Delhi on December2, 2004. The highlights are as follows:

India's Import Interests in Education Services

Mode 1: Prospects for distance education and degrees from foreign academic institutions. Mode 2: Indian students studying in foreign universities (US, UK, Australia).

Over 40,000 studying in US courses (This is more like 75,000 added per year). Several thousand in Europe.

Mode 3: foreign institutions entering India through twinning and franchise arrangements. Indian students getting foreign degrees, doing professional courses at local branch campuses

of foreign institutions in India.

UK-based Wigan and Leigh College. Indian School of Business tie-up with Kellogg, Wharton, and London Business

School.

Western International University, Arizona. NIIT tie-up with ITT Educational Services, USA. Tata InfoTech tie-up with Hertfordshire University, UK.

Mode 4: Foreign faculty and scholars teaching in India.India's Export Interests in Education Services

Mode 1: Prospects for tele-education in management and executive training. Experience with distance learning, use of new technologies (IGNOU).


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Education process outsourcing with remote tutoring from India (along the lines of efforts byCareer Launcher, Educomp Datamatics etc.)

Mode 2: Students from developing countries studying in Indian engineering and medical colleges. Around 5,500 students from neighbouring developing countries (2001). Exchange programmes and twinning arrangements.

Mode 3: Setting up of overseas campuses, franchising by Indian institutions. MAHE, BITS, Central Institute of English and Foreign Languages. Over 100 CBSE schools abroad, catering to diaspora.

Mode 4: Indian teachers, lecturers teaching abroad in Middle East, Africa, researchers/scholars onvisiting arrangements abroad.

Some 10,000 secondary school teachers overseas. Recruitment of Indian teachers in Maths, Science, English. Potential as a regional hub for exporting higher education services.

8. Low Gross Enrolment Ratio (India)India has the third largest volume of enrollments in higher education, after China and the US. However, IndiasGER compares poorly to its global counterparts. Furthermore, high dropout rates in primary education have

affected the enrollments in higher education. Drop out rates in Grades 1-5 is 29%; in Grade 6-8 is 50% and in

Grades 9-12 is 62%. The planning commission is targeting a GER of 15.5% by 2012 which is an increase from11% in 2008 (Refer to exhibit 8).

Exhibit 8Higher Education Market and Market Growth Rate

Exhibit 9 Skill Development and Vocational Training

The National Knowledge Commission (NKC) has recommended that the government will need to establish

1500 universities to meet their GER target. Thus, Indias low GER provides opportunity for new and existingplayers in the market including skill development and vocational training institutions (Refer to exhibit 9). Theexpenditure required in higher education will have to increase to 1.5% of the GDP from the existing level of

0.7%. This translates into a huge potential for about 22mn students enrolling in higher education institutions by2012. The public spending is focused more on primary education leading to underdeveloped higher education

sector in India. Public spend on education in India amounts to 5.2% of the worlds cumulative public spend, butIndia is home to 20% of the population in the target group. The investment in the higher education sector


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increased from 0.67% of the total GDP in FY07 to 0.7% of the total GDP in FY08 whereas the share of highereducation expenditure as a percentage of total education expenditure has declined from 17.4 in FY06 to 19.1%in FY08. Lack of higher education infrastructure has made it extremely difficult for India to act as a hub for

professional education. The current higher education infrastructure can admit only 7-8% of the college students.India attracts 20,000 foreign students yearly, whereas China attracts more than 0.15mn students annually. Eventhough public expenditure on education has been rising, the investment per student is one of the lowest among

other major countries (Refer to exhibit 10).

Exhibit 10Low public spending on HE and Annual public spending on HE per Student

9. India: A Promising Global Destination for Higher EducationA large section of the Indian population is at the age at which an individual would enroll into a higher educationcourse. This number is expected to increase further in the future driving demand for more institutes (Refer to

exhibit 11). In comparison with other major destinations for higher education, India has the strongestopportunity for growth due to its population distribution. The following shortcomings need to be addresses inIndian higher education space:

Over regulation and under-governance. Curriculum development in comparison to global standards. Examination system to be focused on application of the discipline learnt by the students. Learning to be made more industrial application oriented. Development of good faculty. Improvement of the overall quality of education. The unemployment in higher education.

Exhibit 11India is One of the Promising Global Destinations for Higher Education


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Source Compiled from Various Sources

Source Compiled from Various Sources

Exhibit 12Extent and Intensity of Restrictions under Existing Regulations

10.The Regulatory RegimeHistorically, AICTE, MCI, DCI, ICAR, VCI were formed to focus attention on specialized areas. Theseinstitutions issue licenses, control curriculum and standards and, regulate operations through inspections andreporting requirements. Each has its own set of regulations. The Yashpal Committee Report has recommended

that the multiple agencies, bodies should all merge into one National Commission for Higher Education andResearch (NCHER), which can be the umbrella organization or a one-stop shop for all regulatory work in highereducation. To better understand the dynamics and the differences of these two sectors, Exhibit 12 compares the

extent and intensity of restrictions that existing regulations place. It explains why there is so much interest in theunregulated sectors.


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Source The Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010 (FEI Bill), HRD Ministry

Exhibit 12 Steps that are followed in the Review of an Application for notification of an FEI as an FEP as per the ForeignEducational Institutions (Regulation of Entry and Operations) Bill, 2010 (FEI Bill)

11.The Way ForwardProposed Legislations and their Potential Impact

Achieving Indias demographic dividend will depend on our ability to provide a simple regulatory framework ineducation that eliminates opportunities for rent seeking and low quality. Hence the recent initiative of theGovernment to reform the regulatory regime is a welcome step. The four Bills presented to Parliament willpotentially overhaul the education set up in the country. Their cumulative impact would be the most significant

reform of the Indian Higher Education framework in the past 60 years.While the Bill for permitting foreign universities to establish campuses in India, has garnered significant

attention and has been the subject of significant debate (politically and otherwise), the other Bills also have the

potential of altering, albeit more significantly the Indian regulatory framework dealing with education becausewe believe they will lay the foundations for a more transparent, governance focused framework. While theseBills are yet to become law, we will briefly review them.

The Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational

Institutions and Universities Bill, 2010

This is a truly welcome initiative that will not only improve governance but also go a long way in protecting theinterests of children and parents. It seeks to prohibit unfair practices in technical educational institutions,medical educational institutions and universities. Its aim is to introduce greater transparency and governance

through mandatory disclosures regarding faculty, fees and infrastructure. It prohibits an institution from a)demanding or accepting capitation fees or other charges in excess of those declared in its prospectus; and b)admitting students without conducting admission tests specified by the appropriate authority. The Bill also

prohibits publishing or issuing advertisement based on false or misleading facts for inducing students to takeadmission. The Bill prescribes penalties for indulging in practices prescribed as unfair in the Act. It is the firsttime that such legislation has been proposed in the Education sector. It will be an essential component in an

education eco-system that is plagued with rent seeking and malpractices. The question for consideration thoughis the ability and the willingness to implement the provisions of this Bill when it becomes a law.

The National Accreditation Regulatory Authority for Higher Educational Bill, 2010

This seeks to make accreditation by independent accreditation agencies mandatory for higher educationalinstitutions (HEIs), educational programs, and educational infrastructure. The Bill also provides for establishing

an independent statutory authority for the purpose, the National Accreditation Regulatory Authority (NARA),which will inter-alia include registration of accreditation agencies and determining the procedure foraccreditation, which is an essential ingredient for ensuring quality in the education sector. The Bill requires that

every HEI seek accreditation for every program conducted by it before it starts the admission process for suchprograms. Existing HEIs will have to apply for accreditation of their institution and programs within three yearsof the commencement of this Act (five years in case of HEIs engaged in medical education).

The Education Tribunals Bill, 2010It seeks to provide for a two-tier system of adjudication of disputes relating to education that involve teachersand employees of higher educational institutions, students, universities, institutions, and statutory regulatoryauthorities. It provides for the establishment of a National Education Tribunal and State Educational Tribunals,

prescribes the composition of the Tribunals, and delineates the powers and functions to be exercised by the


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Tribunals. If implemented as envisaged, this Bill will expedite the process of resolving intra- and inter-institution disputes.

National Commission for Higher Education and Research 2010This Bill is currently in the process of being finalized and is open to feedback from public stakeholders. It hascreated a significant interest because it envisages the creation of the National Commission for Higher Education

and Research (NCHER) which will replace both the UGC, AICTE. This is based on the recommendations ofboth the Knowledge Commission and the Yash Pal Committee that have reposed their trust in an all powerfulcommission to rejuvenate the education system and remove multiple regulators.

The Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010 (FEI Bill)

Overview of the BillThe Bill seeks to include within its ambit all foreign education institutions (FEIs), whether existing andproposed, set up independently or in collaboration with an Indian partner/ education provider, an institution thatprovides education resulting in degree, diploma or certificate in India. Distance Education has been excluded

from the ambit of the Bill.FEIs proposing to award degrees and diplomas are required to mandatorily seek notification from the Central

Government as a Foreign Education Provider (FEP), subject to meeting specified eligibility criteria. Theserequirements are clearly aimed at ensuring that only established and financially sound FEIs qualify. Those

providing certificate courses have lighter reporting requirements.Any FEI proposing to make an application for registration needs to have the application endorsed by the

Embassy/ High Commission of the home country where the FEI is registered and situated. Every applicationmust inter-alia contains:

documentation to establish that the applicant has a 20 years track record in the home country undertaking to maintain a minimum corpus of ` 500 million status of accreditation in home country and information on the financial soundness of the applicant.

The steps that are followed in the review of an application for notification of an FEI as an FEP are as detailedin Exhibit 13. The Bill prescribes norms for utilizing the income received from the corpus fund. It states that

only 75% of the income received from the corpus shall be used by the FEP for development purposes and theremaining 25% must be deposited. There are not only caps on the amount that can be utilized, but also

restriction on repatriation of surplus outside India, another measure aimed at protecting Indian students from fly-by-night operators. Quality is ensured by mandating that the quality of programs offered in India is comparablewith those offered by the FEP in its home country. It additionally ensures transparency by requiring FEPs topublish a prospectus 60 days prior to the commencement of admission for purpose of providing information,inter-alia, regarding fees, faculty and infrastructure to prospective students and to also provide specified details

on its website. The Bill empowers the Government to exempt an applicant FEI with a reputation or internationalstanding from all provisions of the Bill, except those relating to non-repatriation of surplus generated in Indiaand penalties prescribed for violating provisions of the Act.

Penalties have been prescribed for any FEI and any person/ Indian education provider for contravening theprovisions of the law and can range from ` 1 to 5 million.

This is a long awaited legislation which should open another avenue for capacity creation in the system as wellas expose our domestic institutions to foreign competition. The existing policy regime is ambivalent and thereare no regulations governing or enabling entry of a foreign education institution into India. It is, therefore,

encouraging that the Government has finally acknowledged the need for a legislation that provides this clarity.The provisions of the Bill amply reflect a Government focus on quality, reliability and accountability of FEIsintending to establish in India, thus addressing major concerns which the opening up of an otherwise tightlyregulated sector may bring up.

It has already raised extensive debate. The primary criticism of the Bill is that it would create elitistinstitutions with exorbitant fee structures that will be unaffordable for the Indian masses. There are alsoapprehensions of domestic institutions being unable to compete. While it is true that these institutions are likelyto have higher fees, it is equally true that they shall create new quality benchmarks and introduce a culture ofhigh academic professionalism - thereby raising the bar for delivery of education in India. Access to needy but

the deserving students can be enhanced by making them eligible for scholarships and the Governmentssubsidised student loans.

On the flip side, prima facie, the Bill seems to be biased towards research oriented universities (fast track

mechanism for reputed institutions). It is important to understand that given the huge demand-supply gap, thebulk of the institutions that are likely to have an interest in India are those whose focus is on teaching and


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vocational/skill building. In this scenario it would be unrealistic to expect the top-notch universities like Harvardor Oxford to set up standalone campuses in India and have their autonomy and quality potentially compromisedwith all our regulatory constraints. Media reports have indicated that Oxford has no plans for setting up in India,

Yale has merely accepted to act as mentor to the 14 innovation universities proposed by the Government andHarvard is content with providing executive programs to Indian corporate executives. In this scenario, it is onlythe next level of universities that might be interested in India. Many of these have very high standards and

quality of education and accommodate the majority of the Indian students studying abroad. But they have nofast track mechanism under the Bill and are potentially subject to all the regulatory rigours and restrictions onautonomy.

12.ConclusionThere is much work to be done on all aspects of higher education. We believe that these Bills will lay the

foundation for creating a modern framework to improve quality and check malpractices in the Higher Educationspace in India. They will create an enabling environment wherein multiple providers of education domestic

and foreign, public and private, not-for-profit and, if the government deems fit, for-profit, can operate andcompete to provide access to quality education. Higher education is the basis for the knowledge economy. Indiahas a lower GER of only 11% of the 19-24 years age-group compared to 21% in China, 30% in Malaysia and

83% in the USA. Gender differences in attendance in higher education have declined for recent age-cohorts; butsocial group, income and rural location still influence access. Of the 12mn students enrolled, one third study in

private sector institutions, the rest of the sector is of variable and on the average poor quality largely focused onundergraduate education in the arts, social science and humanities on the other hand post-graduate, professionaldegree and science and technology enrolments accounts for a smaller share. The scenario is even truer in privatesector. The unemployment rate among tertiary graduates is 12% compared to 5% overall, reflecting perhaps a

combination of initiatives to be taken. The present framework of GATS needs to be exploited by India to enableit to remain competitive in the global scenario. These are exciting times for higher education. The Governmenthas made massive increases in budgetary allocations. It has also acknowledged the importance of private

participation. There is a wide and growing spectrum of services being offered in this sector. These are almostentirely on a legitimate for-profit basis. We have the potential of becoming a global hub for education. TheGovernment should work with all stake holders and seek to harness the creativity, energy and capability of the

private sector and create synergies by working with, rather than in competition with it. The opportunity is real all stakeholders need to work together to capture it.

13.References1. Financial Express (06/02/2010), Govt. to ensure high standards for foreign varsity campuses in India,

article by S. Saroj Kumar.2. GED-2009, Global Education Digest 2009 Comparing Education Statistics Across the World,

UNESCO - UIS.

3. Government of India - Annual Report 2009-2010, Ministry of Human Resource & Development, NewDelhi.

4. Government of India, Annual Report 2009-2010, Ministry of Labour and Employment, New Delhihttp://siteresources.worldbank.org/DATASTATISTICS/Resources/POP.pdf.

5. Kuppusamy, S. Higher Education in India: an Overview, International Journal of EducationalAdministration, Volume 1 Number 1 (2009), pp. 51-58.

6. Lucas, Robert E. (1988), On the Mechanics of Economic Development, Journal of MonetaryEconomics, 22.

7. National Assessment and Accreditation Council, Performance Analysis of Universities Accredited byNAAC, January 2008.

8. Negotiating Proposals on Higher Education by US, Japan, Australia and New Zealand submitted at theWTO.

9. Sajitha Bashir (March 2007), Trends in International Trade in Higher Education: Implications andOptions for Developing Countries, Working Paper Series, Number-6, World Bank.

10. Solow, Robert. 1956, A Contribution to the Theory of Economic Growth, Quarterly Journal ofEconomics, 70.

11. Tilak, J. B.G. 2005. Higher Education in Trishanku. Economic and Political Weekly. September 10,p 4029-4037.

12. Times Higher Education (2008): World University Ranking, The Times Higher EducationSupplement, www.thes.co.uk.

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UNESCO (2009), Education For All Global Monitoring Report 2009 - Overcoming Inequality: WhyGovernance Matters, UNESCO, Oxford Press.


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14. University Grants Commission, Higher Education in India: Issues related to Expansion, Inclusiveness,Quality & Finance, 2008.

15. www.aicte-india.org16. www.dget.nic.in17. www.education.nic.in18. www.educationforallinindia.com19. www.indiastat.com20. www.ugc.ac.in21. www.unesco.org

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