DFG 2024-25 Analysis Education

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Demand for Grants 2024-25 Analysis

Education
Introduction
Announcements in Budget Speech 2024-25
In India, both the central and state governments
have responsibility for education.1 Both central  Assistance for education loans: Interest subvention of
3% annually will be given for education loans up to Rs 10
and state governments operate schools and higher
lakh. One lakh students will be supported every year.
education institutions (HEIs). In 2021-22, 53% of
school students were enrolled in state government  Digital public infrastructure: Digital public infrastructure
schools, and 0.7% in central government schools. 2 will be created for the education sector to improve
Of the total university enrolment, 50% was in state productivity and encourage innovation.
government institutions and 24% in central
government institutions.3 (ii) Rs 12,500 crore under the demand for Higher
Education. This amount has not been apportioned
Between 2013-14 and 2020-21 (latest year for to any scheme for education in 2023-24. MUSK is
which data is available), combined spending on a non-lapsable fund in which proceeds of
education by states and centre has ranged between secondary and higher education cess are
3.9%-4.6% of GDP.4 The National Education credited.7 MUSK is to be utilised for schemes in
Policy (2020), and its previous iterations, have secondary and higher education.7
recommended government spending on education
to be at least 6% of GDP.5 Table 1: Expenditure of the Ministry of
Education
The Union Ministry of Education has two (in Rs crore)
departments: (i) the Department of School % Change
Education and Literacy, and (ii) the Department of 2022-23 2023-24 2023-24 2024-25 from 23-24
Higher Education. The Department of School Head
Actual BE RE BE RE to
Education funds certain schemes implemented by 24-25 BE
states such as Samagra Shiksha Abhiyan and PM- School
POSHAN. It is also responsible for schools such as Education 58,640 68,805 72,474 73,008 0.7%
Kendriya Vidyalayas, and Navodaya Vidyalayas. Higher
The Department of Higher Education funds central Education 38,557 44,095 57,244 47,620 -17%
universities, IITs, NITs, IISERs, IIMs, and Schools Total 97,196 1,12,899 1,29,718 1,20,628 -7%
of Planning and Architecture, among others. It also Note: BE – Budget Estimate; RE – Revised Estimates.
funds the higher education regulators, UGC, and Sources: Demand No. 25 and 26, Expenditure Budget 2024-25;
AICTE. It also supports research and provides PRS.
scholarships for higher education. Between 2013-14 and 2022-23, expenditure by the
This note examines the allocation to the Ministry in Ministry has increased at an annualised rate of 4%.
2024-25, and overall financing issues in education. Expenditure towards the Ministry as a share of
overall Union Budget has also come down during
Overview of Finances this period.
In 2024-25, the Ministry has been allocated Rs Figure 1: Expenditure of Ministry of Education (Rs
1,20,628 crore.6 This is a decrease of 7% from the crore)
revised estimate for 2023-24. The Department of 1,40,000 5%
School Education and Literacy has been allocated 1,20,000
As % of Union Budget

4%
Amount in Rs crore

Rs 73,008 crore (61% of the Ministry’s 1,00,000


expenditure). This is a marginal increase over the 80,000 3%
revised estimate for 2023-24 (0.7%). The
60,000 2%
Department of Higher Education has been allocated
Rs 47,620 crore (39% of the Ministry’s budget). 40,000
1%
This is a decrease of 17% from the revised estimate 20,000
for 2023-24. 0 0%
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22

2023-24 (RE)
2024-25(BE)
2022-23

In 2023-24, as per revised estimates, total


expenditure by the Ministry is estimated to be 15%
higher than the budget estimate. A key reason is
additional transfer to the Madhyamik and Expenditure of the Ministry
% of Total Union Budget
Uchchatar Shiksha Kosh (MUSK) worth Rs 23,500
Note: BE – Budgeted Estimate and RE – Revised Estimate
crore. This comprises: (i) Rs 11,000 crore under Source: Union budget documents of various years; PRS.
the demand for School Education, and

Rutvik Upadhyaya
July 31, 2024
[email protected]
PRS Legislative Research  Institute for Policy Research Studies 
3rd Floor, Gandharva Mahavidyalaya  212, Deen Dayal Upadhyaya Marg  New Delhi – 110002
Tel: (011) 43434035, 23234801  www.prsindia.org
Demand for Grants Analysis 2024-25: Education PRS Legislative Research

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


% Change Share of Share of
2022-23 2023-24 2024-25
Head from 23-24 RE Ministry’s Department’s
Actuals RE BE
to 24-25 BE Expenditure 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 Madhyamika Shiksha Abhiyaan, and (iii) several
School Education and Literacy has been allocated teacher education initiatives.8 Upgrading school
Rs 73,008 crore.6 Majority of the Department’s infrastructure is a major component of the scheme.
allocation (51%) is towards the Samagra Shiksha This involves providing drinking water, toilets,
Abhiyaan at Rs 37,010 crore. This is followed by science labs and computer classrooms.8 The scheme
expenditure on PM-POSHAN (17% of the also sets standards of learning, measures learning
department’s expenditure) at Rs 12,467 crore. outcomes and focuses on teacher training to improve
the quality of education.8 Under the scheme the,
The allocation towards school education for 2024-
NIPUN Bharat Mission was launched to set targets
25 is a marginal increase over the revised estimate
and provide support for achieving universal
for 2023-24 (0.7%).6 In 2020-21 and 2021-22,
foundational literacy and numeracy by 2026-27.9
expenditure on school education was 1% and 10%
This includes basic skills in reading, writing and
lower than the previous year, respectively. In 2022-
performing arithmetic.
23, expenditure on school education increased by
25% on the low base of 2021-22. Pradhan Mantri Poshan Shakti Nirman (PM-
POSHAN)
Higher Education: In 2024-25, Rs 47,620 crore
have been allocated to the Department of Higher PM POSHAN (subsuming the Mid-day Meal
Education.6 Transfers to Central Universities Scheme) constitutes 10% of the Ministry’s
constitute the largest portion of the Department’s expenditure. The Mid-day Meal scheme guaranteed
budget (33%). This is followed by allocation for nutritious meals to students in elementary classes (I-
Indian Institutes of Technology (22%), and National VIII) in government and government aided
Institutes of Technology (NITs) and Indian Institute schools.10 Launched in 2021-22, the PM POSHAN
of Engineering Science and Technology (11%). scheme extends this to pre-school children as well.
Programme guidelines stipulate calorie and
The allocation towards Higher Education in 2024-25
nutritional norms for mid-day meals. The scheme
is estimated to be decrease by 17% from than the
covers 11.8 crore students studying in 11.2 lakh
revised estimate for 2023-24.6 Allocation towards
schools. In 2024-25, Rs. 12,467 crore has been
the University Grants Commission (UGC) is
allocated to the scheme.6
estimated to reduce by 61%. The allocation towards
Central Universities and NITs & IIEST have been PM Schools for Rising India (PM-SHRI)
increased by 29% and 5% respectively.
Under this scheme, 14,500 schools will be identified
Key schemes in education and upgraded along several parameters. They will:
(i) implement principles of the NEP, (ii) be linked to
Samagra Shiksha Abhiyaan the local entrepreneurial system, and (iii) provide
The Samagra Shiksha Abhiyaan is a flagship students access to counselling and cutting edge
scheme of the Department of School Education and technology.11 This scheme will be implemented
Literacy. Its objectives include: (i) supporting states between 2022-23 and 2027-28 with a central share
to implement the NEP and the Right to Education of Rs 18,128 crore. As of December 2023, Rs 630
Act, 2009, (ii) bridging social and gender gaps in crore have been released under the scheme to all
education and (iii) strengthening teacher training. 8 States/UTs.12 In 2024-25, Rs 6,050 crore have been
Launched in 2018, the scheme subsumes: (i) the allocated to this scheme. This is an increase of
Sarva Shiksha Abhiyaan, (ii) Rashtriya 116% over the revised estimate for 2023-24.
July 31, 2024 -2-
Demand for Grants Analysis 2024-25: Education PRS Legislative Research

Key Issues in School Education was 6.6 years.13 This was lower than that countries
such as: (i) United States (13.6), (ii) United
Significant drop in enrolment after Kingdom (13.4), (iii) South Africa (11.6), (iv) Brazil
primary level (8.3), (v) China (8.1) and (v) Bangladesh (7.4).13
The NEP aims to achieve 100% enrolment in all Rising enrolment in private schools, which
levels of school education.5 It also envisions 14 tend to be more expensive
years of school education for all students.5 As
shown in Figure 2, enrolment in primary education As of 2021-22, government schools constituted 69%
has reached 100%.2 However, enrolment drops at of all schools and 54% of all school enrolment in the
higher levels of education. For instance, the country (see Figure 4). However, their share in both
enrolment rate in higher secondary education is areas has declined since 2012-13. Share of private
close to 58%, almost half the enrolment at primary unaided schools in both the total number of schools
education.2 Scheduled Tribes (STs) have a lower and overall school enrolment has increased.
enrolment rate than the overall average at secondary Figure 4: Distribution of schools and student
and higher secondary education.2 enrolment across school management
Figure 2: Gross Enrolment rate at different levels 74% 69%
80%
of schooling (in 2021-22) 57% 54%
60%
120% 40% 28% 33%
23%
17%
100% 20% 5% 6% 11% 10%

80% 0%
2012-13 2021-22 2012-13 2021-22
60%
Schools Enrolment
40%
Government Private Aided Private Unaided
20%
Sources: Unified District Information System for Education Plus
0% 2012-13 and 2021-22; PRS.
SC ST Girls Overall
Cost of attending a private unaided school is
Primary (Class 1 to 5) Upper Primary (Class 6 to 8) relatively higher. As of 2021-22, one-third of
Secondary (Class 9-10) Higher Secondary (Class 11-12) school-going students are enrolled in private
unaided schools.2
Note: GER above 100% reflects enrolment of individuals beyond Figure 5: Cost of School Education across
relevant age group for each level of education.
Sources: Unified District Information System for Education Plus management (in Rs)
2021-22; PRS. 30,000
The trend in enrolment also reflects in dropout rates.
20,000
Dropout rates increase with higher levels of school
education (Figure 3). Dropout rates measure the
10,000
proportion of students at each level choosing to
discontinue education. Drop-out rates of student
0
belonging to Scheduled Tribes (ST) are Pre Primary Primary Upper-Middle Scondary Higher
considerably higher than national average at each Primary Secondary
level of education.2 Government Private Aided Private Unaided
Figure 3: Dropout rates across social groups in Sources: Household Social Consumption on Education in India,
2021-22 (in %) NSSO 2017-18; PRS.

20% According to NSSO (2017-18), reasons for students


preferring private aided or unaided educational
15% institutions include: (i) usage of English as a
10% medium of instruction (17%), (ii) poor quality of
education in government institutions (34%), (ii)
5%
proximate location of private institution (27%), and
0% (iv) better facilities such as teaching aid, transport,
SC ST Girls Overall hostel facilities, and extra-curricular activities.14
Primary Upper Primary Secondary The Samagra Shiksha Abhiyan (SSA) seeks to
Source: Unified District Information System for Education Plus address several issues highlighted above. It focuses
2021-22; PRS.
on improving access to education, learning quality
According to the UN Human Development Index and outcomes and teacher training. Interventions
report 2023-24, mean years of schooling in India under the programme include: (i) providing
transport facility, free textbooks and uniforms to
July 31, 2024 -3-
Demand for Grants Analysis 2024-25: Education PRS Legislative Research

students, (ii) strengthening teacher training 2021-22 (21%) and 2020-21 (17%).17 However,
initiatives, institutions and (iii) upgrading and some states have higher vacancies as of 2022-23.
creating equitable infrastructure (drinking facility These include: (i) Jharkhand (40%), (ii) Bihar
and toilets.).15 (32%), (iii) Mizoram (30%), and (iv) Tripura
(26%).17 The Standing Committee on Education,
Under the scheme, the Centre shares funds with
Women, Children, Youth and Sports (2023)
most states in a 60:40 ratio, and with north-eastern
highlighted the need to expedite teacher recruitment
and Himalayan states in a 90:10 ratio. Actual funds
by states.18 It also recommended forming an
released by the centre have been shrinking in
Autonomous-Teacher Recruitment Board at the
relation to proposed expenditure (see Figure 6).
state-level to ensure transparency in recruitment.
Note that allocations in 2020-21 and 2021-22 may
have been affected by the COVID-19 pandemic. The National Council for Teacher Education
(NCTE) delineates minimum qualifications required
Figure 6: Funds proposed and released by the
for teaching at various levels of education. These
Centre under SSA (in Rs crore)
range from passing senior secondary (for teaching at
50,000 pre-primary level) to attaining post-graduation along
with a B.A.Ed. or B.Sc. Ed. (for senior secondary
40,000 level).19 According to UDISE+ (2021-22), 10% of
30,000 all teachers in government schools do not possess
20,000
professional qualifications.20 This figure is higher
states such as: (i) Tripura (49%), (ii) Nagaland
10,000 (45%), (iii) Jharkhand (44%), and (iv) Assam
- (38%).20 As of 2021-22, only 68% at the pre-
primary level were trained teachers.2
2018-19

2019-20

2020-21

2021-22

2022-23

2023-24*

Teacher training is one of the vital components


Proposed Released under Samagra Shiksha Abhiyaan. Expenditure
under the SSA on teacher training has seen a
Note: *Figures for 2023-24 are up to December 31, 2023. downward trend since 2018-19 (see Figure 7).
Source: Unstarred Question 268, Ministry of Education, Lok
Sabha, February 2, 2024; PRS. Figure 7: Expenditure on Teacher Training
under Samagra Shiksha Abhiyaan (in Rs crore)
The Standing Committee on Education, Women,
Children, Youth and Sports (2023) has linked the 700 599
delay in releasing funds to delay in states utilising 600
previously released funds.26 The Committee 500
recommended reviewing mechanisms for faster 400 334
utilisation of funds under the scheme. 300
175
Availability and quality of teachers varies 200 116 96
100
vastly across states
0
The NEP 2020 recommended a pupil teacher ratio 2018-19 2019-20 2020-21 2021-22 2022-23
(PTR) of 30:1 (one teacher for 30 students).5 Sources: Unstarred Question No. 1995, Ministry of Education,
According to UDISE+ (2021-22), at an aggregate Rajya Sabha, December 20, 2023; PRS.
level, this has been achieved at all levels of school
education. Average PTR at various levels of The National Initiative for School Heads and
education is: (i) 26:1 (primary), (ii) 19:1 (upper Teachers’ Holistic Advancement (NISHTHA) was
primary), (iii) 18:1 (secondary) and (iv) 27:1 (higher launched under the SSA in 2019.21 It guides teacher
secondary). However, some states have fallen short training and seeks to enhance capacity of teachers,
on this target (see Table 6 in the Annexure).2 school heads and other resource persons in
education. It trains these entities through digital
India is faced with a high share of smaller schools learning modules. As of June 2024, 49% of the
and schools with a single teacher. As per NITI targeted school heads and 43% of the targeted
Aayog (2021), 36% of government schools in India teachers have been trained under the programme. 22
had fewer than 50 students and just one or two
teachers.16 According to the NEP (2020), this leads Learning outcomes continue to be poor
to teachers teaching multiple grades and subjects, The National Achievement Survey (NAS) measures
including those subjects they may not be adequately proficiency of students in grades 3, 5, 8 and 10.23,24
qualified in.5 The NEP adds that smaller and Their proficiency is measured in languages, maths
isolated schools are difficult to manage and govern. and sciences. Students are scored out of 500 in each
They also lack infrastructure such as labs, subject. According to NAS, learning proficiency
equipment, libraries. across most subjects and classes has reduced
In 2022-23, vacancy for teachers for grades 1-8 was between 2017 and 2021 (see Figure 8).
at 16%.17 This is lower than vacancies recorded in
July 31, 2024 -4-
Demand for Grants Analysis 2024-25: Education PRS Legislative Research

Figure 8: Change in All India-scores in NAS Rs 1,250 crore have been allocated to STARS.6
between 2017 and 2021 (in %) This is 79% higher than the expenditure in 2023-24.
10% Schools lack digital infrastructure
5%
As of 2021-22, 97% of the total schools in the
0% country have separate toilet facilities, 96% have
-5% access to drinking water and 87% to functional
-10% electricity.6 However, access to digital
infrastructure is relatively limited. The NEP
-15%
emphasises on leveraging technology for learning.5
-20% It also highlights the need to bridge digital divide. It
Maths

Maths

Maths

Maths

English
Science

Modern Indian Language

Science
Environmental Science

Environmental Science
Language

Language

Language

Social Science

Social Science
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
Class 3 Class 5 Class 8 Class 10 all forms of digital infrastructure compared to
Change from 2017 to 2021 government schools. This divide affects equitable
Sources: National Achievement Survey 2017 and 2021; PRS. access to technology for learning.
Between 2017 and 2021, average proficiency across Figure 9: Availability of digital infrastructure in
classes and subjects dropped from 58% to 54%.23,24 schools across management (in %)
Proficiency in Math across grades reduced from 60%
46% to 43%. Proficiency in languages dropped 60% 53%
50% 49%
from 64% to 62%. Learning outcomes reduce at
higher levels of education.23,24 In 2021, proficiency 40% 34%
26%
24% 20% 22%18%
across subjects dropped from 62% in Class 3 to 48% 17% 17%
20%
in Class 10.
The Performance Grade Index – State (PGI - State) 0%
ranks the performance of all States and UTs on NAS Internet Desktop Mobile Phones for
teaching
results.25 States/UTs were graded out of 240 and Government Private Aided
were ranked into different grading bands. As per Private Unaided All Management
this Index, 29 States/UTs scored lower than 30% on Source: Unified District Information System for Education Plus
learning outcomes and fell within second and the 2021-22; PRS.
third lowest grading bands within the index (see
The PGI – District measures digital learning based
Table 9 in Annexure).25 States/UTs that scored the
on access to adequate computers, adoption of digital
lowest (out of 240) on learning outcomes include:
learning methods and devices and teacher
(i) Telangana (37), (ii) Chhattisgarh (39), (iii)
proficiency in using computers.27 In 2021-22, 66%
Meghalaya (32) and (iv) Tamil Nadu (41).25
of the surveyed districts scored 30% or lower on
In 2021, the NIPUN Bharat Mission was launched these parameters. This was lower than 2018-19,
to achieve foundational literacy and numeracy by when 70% districts scored 30% or lower.27
Grade 3. The programme will be implemented
between 2021-22 to 2026-27. The scheme sets Key issues in Higher Education
learning targets, designs curricula and provides Socio-economic disparity in enrolment in
funding and guidance to states. Under the Mission,
learning material for grade 1 and 2 was developed higher education
by the NCERT.18 Guidelines delineating learning Gross Enrolment Ratio (GER) in higher education
outcomes for pre-school students were also issued. has increased over time (Figure 10). The NEP
The Strengthening Teaching and Learning Results (2020) envisions increasing GER in higher
for States (STARS) programme was launched in education to 50% by 2035.5 Even as the enrolment
2020.26 It aims to improve learning outcomes in of students from SC and ST communities has
Himachal Pradesh, Maharashtra, Odisha, Rajasthan, increased over time, it remains relatively lower.
Madhya Pradesh and Kerala. The programme is India’s Gross Enrolment Ratio (GER) was recorded
partly funded by World Bank which releases funds at 28.5% in 2021-22 (see Table 8 in Annexure for
based on improvement in: (i) proficiency in state-wise details). States with relatively lower
language, (ii) assessment systems, and (iii) GER in higher education include: (i) Bihar (17%),
secondary school competition rate.26 In 2024-25, (ii) Assam (17%), (iii) Jharkhand (19%), (iv)
Chhattisgarh (20%), and (v) Tripura (21%). 3

July 31, 2024 -5-


Demand for Grants Analysis 2024-25: Education PRS Legislative Research

Figure 10: GER in higher education across social Figure 11: Distribution of colleges and student
groups (in %) enrolment in colleges by management in 2021-22
40% 80%
65%
30% 29% 28% 60%
26% 23% 24% 45%
21% 35%
20% 19% 40%
14% 21% 21%
10% 20% 13%
0% 0%
SC ST Women Overall

Private - Unaided

Private - Unaided
Government

Government
Private - Aided

Private - Aided
2014-15 2021-22
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 Colleges Enrolment
students, 32% of PG students and 34% of PhD Sources: All India Survey of Higher Education 2021-22; PRS.
students.3 However, in overall STEM fields, educational institutions at the standards of a non-
women constitute: (i) 51% of UG, (ii) 61% of PG profit organisation.5 This involves public disclosure
and (ii) 50% of Ph.D. enrolment.5 of fees or any charges by HEIs, prohibition of
Student aid: To promote higher education, the arbitrary increase in the same, transparent means of
Department provides financial aid to students. This setting fees and placing an upper limit on the same.5
consists of interest subsidy on student loans, Figure 12: Cost of higher education across level
scholarships and research fellowships. Scholarships of education and management
include financial aid of: (i) Rs 30,000 – two lakh for
students of Jammu and Kashmir, and (ii) Rs 12,000 30,000
– 20,000 for students from other parts of India. 28,29
20,000
In 2024-25, Rs 1,908 crore has been allocated
towards student financial aid. In 2017-18, Rs 2,218 10,000
crore were spent on this. Between 2017-18 and
0
2022-23, expenditure on student financial aid has 2014-15 2017-18 2014-15 2017-18 2014-15 2017-18
reduced. This is primarily due to reduced
Government Private Aided Private Unaided
expenditure on interest subsidy (see Table 10 in
Annexure). Expenditure on interest subsidy has Graduate Post-Graduate
reduced from Rs 1,950 crore in 2017-18 to Rs 873 Source: Household Social Consumption on Education in India,
NSS 75th Round (2017-18); PRS.
crore in 2022-23.
Since 2023-24, expenditure on interest subsidy and Quality of higher education institutions
scholarships has been merged into the PM- The National Assessment and Accreditation Council
Uchchatar Shiksha Protsahan Yojana (PM-USP). (NAAC) evaluates the quality of Higher Educational
For 2024-25, PM-USP has been allocated Rs 1,558 Institutions. Its grading is based on criteria such as
crore. In 2023-24, as per the revised estimates, the curriculum, teaching quality, infrastructure and
expenditure on the scheme is expected to be 32% research and innovation.31 The highest grade
lower than the budget estimate.6 accredited institutions can receive is A++ while the
The Standing Committee on Education, Women, lowest is C. As of November 2023, 430 universities
Children, Youth and Sports (2022) had observed (37% of total) and 9,257 colleges (20%) have been
that existing scholarships are not sufficient in accredited by NAAC.32 Out of the accredited
covering the complete cost of higher education. 30 It institutions, 239 universities (56%) and 1,916
recommended the Ministry to revise the amount and colleges (21%) have received an A grade.
coverage of schemes and increase scholarships. Table 3: Distribution of NAAC grades across
accredited colleges and universities as of 2023
Greater enrolment in private institutions, (in %)
which are more expensive Category A B C
As of 2021-22, 70% of all enrolment in higher Universities 56% 40% 4%
education is in colleges.3 In 2021-22, 78% of all Colleges 21% 67% 12%
colleges are privately run and 66% of college Sources: NAAC; PRS.
enrolment is in privately-run colleges.3 According
to the NSS (2017-18), cost of studying in a private To improve infrastructure facilities at HEIs, the
unaided HEI is the highest amongst all (Figure Higher Education Financing Agency (HEFA) was
12).14 The NEP (2020) recommended treating set up in 2017-18.33 It finances setting up of
campuses, laboratories and other facilities in HEIs.
July 31, 2024 -6-
Demand for Grants Analysis 2024-25: Education PRS Legislative Research

As of March 2024, loans worth Rs 39,720 crore meeting the recommended PTR in higher education.
were sanctioned for 103 institutions.34 Out of this, However, states such as Bihar (64:1), Jharkhand
64% were sanctioned for 22 IITs and 12 AIIMS and (54:1), and Uttar Pradesh (35:1) fall significantly
other institutions run by the Health Ministry.34 This below the target.3 About one-third posts in the
indicates that 34 of institutions were sanctioned 64% centrally-funded universities are vacant.36 Faculty
of all loans by HEFA. So far, Rs 19,968 crore (49% from SC and ST communities constitute 9% and 3%
of the sanctioned loans) have been disbursed. of filled posts, respectively. 36
In 2013-14, the Rashtriya Uchchatar Shiksha Table 4: Vacancies in faculty positions across
Abhiyaan (RUSA) was launched to fund centrally-funded institutions (as of March 2023)
upgradation of infrastructure, education and overall Vacancy
Institution Sanctioned Filled Vacant
quality of HEIs. It was to be implemented under (in %)
two phases between 2012-2017 (RUSA 1.0) to Central
18,956 12,776 6,180 33%
2017-2022 (RUSA 2.0).35 Targets are set for each Universities
phase of the scheme for areas such as: (i) creation IITs 11,292 6,712 4,415 39%
and upgradation of universities and colleges, (ii) IIITs 1,315 599 705 54%
NIT 7,483 5,277 2,206 29%
improvement in research and innovation and (iii)
IIMs 1,570 1,086 484 31%
provision of infrastructure grants. 36 In 2024-25, Rs
IISER 735 683 52 7%
1,815 crore has been allocated to the scheme. Total 41,351 27,133 14,042 34%
The utilisation of funds under RUSA has been Source: 348th Report, Standing Committee on Education,
Women, Children, Youth and Sports; PRS.
consistently low since 2017-18 (Figure 13). The
Standing Committee on Education, Women, Entrance exams for admissions
Children, Youth and Sports (2023) noted that targets
under RUSA 2.0 have been lower than those set Admissions to many courses in India require
under RUSA 1.0.36 For instance, RUSA 1.0 clearing common entrance exams. These include:
targeted creating 45 universities by upgrading (i) National-Eligibility-cum-Entrance Test (NEET)
autonomous colleges. However, RUSA 2.0 targets for all medical and dental courses, (ii) Joint-
creating only three universities in this manner. The Entrance-Examination (JEE) for most UG
Committee recommended increasing targets across engineering programmes and (iii) Common
all components of the scheme.36 University Entrance Test (CUET) for any central
university and many private or deemed universities.
Figure 13: Under-allocation of funds under RUSA (in 37,38,39,40
In 2024, the National Entrance Test (NET)
Rs crore) was also extended for Ph.D. admissions.41
3000
The NEP 2020 recommended common entrance
2000 exams for admissions across universities, as
opposed to them conducting entrance tests
1000 individually.5 This aims to reduce burden on
students and universities. In line with
0 recommendations of the NEP, the National Testing
2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

2023-24 (RE)

2024-25 (BE)

Agency (NTA) was established to conduct entrances


-1000 such as NEET, JEE and CUET.42
Budgeted Actuals The NEP also recommended that common entrance
Note: Figures in 2021-22 are in negative due to net recoveries. exams should test conceptual understanding and
BE - Budgeted Estimates and RE - Revised Estimates. application of knowledge, and must aim to eliminate
Sources: Union Budget documents of various years; PRS.
the need for coaching.5 It also recommended giving
universities the discretion to accept common
High vacancies in higher education entrance exams.5 Currently, NEET is mandatory for
institutions all medical and dental admissions.
According to the Standing Committee on Education, In June 2021, the Tamil Nadu government had set
Women Children, Youth and Sports (2023), the up a Committee (Chair: Retd. Justice A.K. Rajan) to
ideal PTR in higher education is 15:1 (one teacher examine the impact of NEET on medical admissions
for 15 students). 36 As per AISHE 2021-22, the in the state. 43 The Committee observed that 99% of
prevailing PTR in higher education in regular mode candidates in Tamil Nadu who cleared NEET in
is 23:1.3 In regular mode, teaching and learning is 2019-20 had undergone coaching.43
carried out in a classroom, in direct contact with
teachers.3 PTR has improved from 2017-18 when In 2013, the Supreme Court had observed that a
PTR was 25:1.3 However, there are significant uniform entrance examination would not ensure a
variances across states on this front (see Table 8 in level playing field between social groups with
Annexure). States such as Tamil Nadu, Kerala, and varying degrees of access to education.44
Karnataka have a PTR of 14:1, 15:1 and 15:1,
respectively.3 They meet or are quite close to
July 31, 2024 -7-
Demand for Grants Analysis 2024-25: Education PRS Legislative Research

Graduates faced with higher The Department of Economic Affairs (2024) cited a
unemployment private study according to which the employability
of pre-final and final year students increased from
Working Population Ratio (WPR) indicates the 34% in 2014 to 51% in 2024.47 According to the
percentage of employed persons in a population. survey, as of 2023, degrees with most employable
Amongst graduates and post-graduates aged 25-64 talent included: (i) B. Com (61%), (ii) MBA (60%),
in India, WPR is 64%.45 This is lower than WPR in and (iii) B.E./B.Tech (58%).47
certain countries such as USA and South Korea.45
The Ministry implements the National
Figure 14: WPR of graduates and post-graduates Apprenticeship Training Scheme. It is a one-year
in certain countries in 2022 (in %) programme that aims to equip technically qualified
100% youth with knowledge and skills required at work.
81% 79% 83% Such training is provided by organisations at the
75%
80% 64% place of work.26 The scheme has been allocated Rs
60% 600 crore in 2024-25, an increase of 30% over the
revised estimate for 2023-24. In 2023, the UGC
40% released guidelines on internships and university-
20% industry linkage systems in HEIs. These aim to
improve research capacities of students.48,49
0%
India South G20 South USA In the 2024-25 budget speech, a scheme to provide
Africa Korea internship opportunities for one crore youth in 500
Note: G20 is a country grouping. top companies has been announced.50 Under this, a
Sources: “Education at a Glance- 2023”, OECD, PRS. monthly allowance of Rs 5,000 and a one-time
assistance of Rs 6,000 will be provided to the
According to a report by the International Labour
beneficiaries. This scheme will entail an outlay of
Organisation (ILO), unemployment amongst youth
Rs 63,000 crore over seven years.50
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 Higher educational institutions play a
had the highest unemployment rate at 35%, limited role in research
followed by those from ST communities at 33%.46 In 2020-21, India spent 0.64% of its GDP on
Figure 15: Unemployment rate and various levels research and development (R&D). 51 This was lower
of education in India (in%) than expenditure by: (i) South Korea (4.8% of
40% GDP), (ii) USA (3.5%), (iii) Japan (3.3%), (iv)
29% Germany (3.1%), (v) France (2.3%), (vi) China
30% 25% (2.4%), and (vii) Italy (1.5%). Expenditure on R&D
has consistently reduced since 2009-10 (0.82%).52
20%
12% 12% The largest portion of India’s research expenditure
10% 6% is borne by the central government. In 2020-21, the
5%
1% 3%
central government bore about 44% of India’s R&D
0%
expenditure, while states and centre cumulatively
Below Elementary Secondary Graduate
Primary and Above bore about 50% of it.51 Universities shared only 9%
2000 2022 of India’s research expenditure.51 Universities in
Source: International Labour Organisation; PRS. certain countries had a higher share in overall
research expenditure. These include: (i) Canada
As per ILO, unemployment rate increases with the (39%), (ii) Australia (36%), (iii) Italy (23%),
level of education completed (Figure 15). The ILO France (20%), and (iv) Germany (19%). 51
report highlights a similar trend in various levels of
technical education as well.46 Unemployment rate The Economic Survey of India (2017-18) observed
amongst those with a technical degree increased that research expenditure in India is concentrated in
from 18% to 29% between 2005 to 2022.46 specialised government departments. 53 In many
Amongst those without a technical degree, it countries, universities are critical in generating high
increased from 5% to 11%. quality research output, while in India they are
primarily restricted to teaching.53 The Survey
The ILO (2024) also highlighted that over half of all recommended linking universities with national labs
employed graduates in India were engaged in low- to bridge the gap between teaching and research.53
skilled jobs whereas less than one-third of them
were engaged in high-skilled ones.46 Proportion of The NEP recommended developing a discovery-
graduate degree-holders engaged in high-skilled based style of learning in school education, with an
occupations increased from 11% to 28% between emphasis on scientific and critical thinking.5 It also
2005 to 2022. However, share of those in low- recommended multi-disciplinary learning in higher
skilled jobs increased from 45% to 53%.46 education and building greater linkages with HEIs
and industry to promote research.
July 31, 2024 -8-
Demand for Grants Analysis 2024-25: Education PRS Legislative Research

In line with recommendations of the NEP, the The Department of Higher Education also
National Research Foundation was instituted in implements the Multidisciplinary Education and
2023 to provide strategic direction to scientific Research Improvement in Technical Education
research in the country.54 It has been set up with an (MERITE).36 In 2024-25, the programme has been
estimated cost of Rs 50,000 crore. Out of this, Rs allocated Rs 200 crore. It aims to improve standards
36,000 crore is expected to be raised from private of technical education and research skills, and make
sources.55 One of its responsibilities is to seed and technical education more accessible to socio-
facilitate research in HEIs where research is at a economically backward students.36
nascent stage.

Annexure
Table 5: Gross Enrolment Ratio in school education across states (2021-22) (in %)
Primary Upper Primary Secondary Higher Secondary
State/UT
(1 to 5) (6 to 8) (9 to 10) (11 to 12)
Andaman and Nicobar Islands 68 72 69 66
Andhra Pradesh 102 98 85 57
Arunachal Pradesh 129 85 67 54
Assam 120 95 75 40
Bihar 103 86 65 36
Chandigarh 85 94 90 82
Chhattisgarh 97 95 78 68
Dadra and Nagar Haveli Daman and Diu 89 91 75 55
Delhi 116 130 111 95
Goa 93 88 83 74
Gujarat 93 91 75 48
Haryana 104 102 95 76
Himachal Pradesh 108 103 94 94
Jammu and Kashmir 112 66 61 53
Jharkhand 102 89 68 46
Karnataka 108 106 95 57
Kerala 102 99 98 85
Ladakh 80 66 59 49
Lakshadweep 80 64 63 62
Madhya Pradesh 87 92 70 51
Maharashtra 107 100 94 72
Manipur 143 86 76 70
Meghalaya 188 114 85 46
Mizoram 159 110 93 61
Nagaland 102 69 62 36
Odisha 98 91 80 44
Puducherry 77 78 76 69
Punjab 111 107 95 82
Rajasthan 105 96 79 70
Sikkim 106 78 89 64
Tamil Nadu 99 98 96 82
Telangana 113 107 94 65
Tripura 126 88 81 56
Uttar Pradesh 102 91 69 51
Uttarakhand 121 102 90 79
West Bengal 115 98 88 62
India 103 95 80 58
Sources: Unified District Information System for Education Plus, 2021-22; PRS.

July 31, 2024 -9-


Demand for Grants Analysis 2024-25: Education PRS Legislative Research

Table 6: Pupil Teacher Ratio in school education across states (2021-22)


Primary Upper Primary Secondary Higher Secondary
State/UT
(1 to 5) (6 to 8) (9 to 10) (11 to 12)
Andaman and Nicobar Islands 12 10 7 13
Andhra Pradesh 25 16 11 32
Arunachal Pradesh 12 9 11 20
Assam 21 14 11 21
Bihar 54 23 55 63
Chandigarh 28 16 12 27
Chhattisgarh 21 18 15 17
Dadra and Nagar Haveli and Daman and Diu 30 28 20 26
Delhi 34 33 28 22
Goa 26 16 9 19
Gujarat 30 25 29 28
Haryana 26 19 12 15
Himachal Pradesh 16 9 6 10
Jammu and Kashmir 15 10 13 28
Jharkhand 29 26 35 57
Karnataka 23 18 18 28
Kerala 27 21 15 22
Ladakh 8 4 6 13
Lakshadweep 16 14 7 12
Madhya Pradesh 25 18 23 30
Maharashtra 25 27 21 38
Manipur 13 11 9 16
Meghalaya 20 14 12 20
Mizoram 16 8 9 15
Nagaland 11 8 10 17
Odisha 17 15 18 36
Puducherry 18 14 10 16
Punjab 26 19 11 18
Rajasthan 26 13 11 18
Sikkim 7 8 9 11
Tamil Nadu 20 15 13 21
Telangana 21 13 10 29
Tripura 18 20 14 15
Uttar Pradesh 28 25 27 39
Uttarakhand 19 16 11 17
West Bengal 27 28 17 28
India 26 19 18 27
Sources: Unified District Information System for Education Plus; PRS.

July 31, 2024 - 10 -


Demand for Grants Analysis 2024-25: Education PRS Legislative Research

Table 7: Gross Enrolment Ratio in higher education across States/UTs (2021-22) (in %)
All Categories
State/UT Scheduled Castes Scheduled Tribes
Male Female Total
Andaman and Nicobar Islands 20 26 22 - 13
Andhra Pradesh 38 35 37 35 34
Arunachal Pradesh 38 35 37 - 40
Assam 16 18 17 19 26
Bihar 18 16 17 16 35
Chandigarh 57 75 65 53 -
Chhattisgarh 18 22 20 20 13
Dadra and Nagar Haveli and Daman and Diu 9 17 11 28 8
Delhi 48 50 49 36 -
Goa 36 36 36 40 28
Gujarat 25 23 24 32 20
Haryana 30 37 33 27 -
Himachal Pradesh 37 50 43 34 45
Jammu and Kashmir 23 27 25 20 19
Jharkhand 19 19 19 15 14
Karnataka 36 36 36 28 26
Kerala 34 49 41 28 29
Ladakh 8 16 12 42 14
Lakshadweep 0 2 1 - 1
Madhya Pradesh 30 28 29 27 18
Maharashtra 37 33 35 36 17
Manipur 35 36 35 61 23
Meghalaya 23 28 25 110 23
Mizoram 31 33 32 241 33
Nagaland 17 21 19 - 19
Odisha 24 21 22 23 16
Puducherry 61 62 62 43 -
Punjab 25 30 27 19 -
Rajasthan 29 28 29 27 28
Sikkim 35 43 39 43 36
Tamil Nadu 47 47 47 39 44
Telangana 39 42 40 39 38
Tripura 22 20 21 20 16
Uttar Pradesh 24 24 24 22 39
Uttarakhand 40 44 42 32 42
West Bengal 26 27 26 23 15
India 28 29 28 26 21
Sources: All India Survey of Higher Education 2021-22; PRS.

July 31, 2024 - 11 -


Demand for Grants Analysis 2024-25: Education PRS Legislative Research

Table 8: Pupil Teacher Ratio in higher education across states (2021-22)


All Institutions
State/UT Regular and
Regular Mode
Distance Mode
Andaman and Nicobar Islands 25 16
Andhra Pradesh 18 16
Arunachal Pradesh 28 23
Assam 28 25
Bihar 69 64
Chandigarh 30 20
Chhattisgarh 27 26
Dadra and Nagar Haveli and Daman and Diu 20 20
Delhi 49 21
Goa 17 15
Gujarat 28 27
Haryana 26 22
Himachal Pradesh 29 24
Jammu and Kashmir 35 24
Jharkhand 58 54
Karnataka 16 15
Kerala 19 15
Ladakh 16 16
Lakshadweep 9 9
Madhya Pradesh 31 30
Maharashtra 27 23
Manipur 20 19
Meghalaya 24 22
Mizoram 21 17
Nagaland 20 18
Odisha 25 23
Puducherry 13 11
Punjab 17 15
Rajasthan 29 26
Sikkim 22 17
Tamil Nadu 16 14
Telangana 16 14
Tripura 40 36
Uttar Pradesh 36 35
Uttarakhand 27 22
West Bengal 37 29
India 26 23
Sources: All India Survey of Higher Education 2021-22; PRS.

July 31, 2024 - 12 -


Demand for Grants Analysis 2024-25: Education PRS Legislative Research

Table 9: Score of States/UTs on learning outcomes (out of 240)


State/UT Score
State/UT Score
Andaman and Nicobar Islands 60.8
Lakshadweep 43.6
Andhra Pradesh 47.8
Madhya Pradesh 72.8
Arunachal Pradesh 45
Maharashtra 65.8
Assam 62.6
Meghalaya 31.6
Bihar 64.4
Mizoram 44.8
Chandigarh 103.6
Nagaland 46.4
Dadra and Nagar Haveli and Daman and Diu 43.4
Odisha 65.2
Delhi 63.8 Puducherry 69.2
Goa 61.4 Punjab 113.4
Gujarat 60.2 Rajasthan 98.8
Haryana 78.4 Sikkim 48.2
Himachal Pradesh 54.2 Tamil Nadu 41.2
Jammu and Kashmir 76.8 Telangana 36.6
Jharkhand 57.4 Tripura 53
Karnataka 59.4 Uttar Pradesh 49.4
Kerala 60.2 Uttarakhand 56.4
Ladakh 55.2 West Bengal 72.8
Sources: Performance Grading Index – States 2020-21; PRS.

Table 10: Expenditure on Student Financial Aid (in Rs crore)


Interest PM Research
Scholarships PM-USP Total
Subsidy Fellowship
2017-18 1,950 268 - - 2,218
2018-19 1,575 306 16 - 1,897
2019-20 1,675 369 26 - 2,070
2020-21 1,477 294 63 - 1,834
2021-22 1,385 376 111 - 1,872
2022-23 873 429 300 - 1,603
2023-24 (RE) - - 330 1,054 1,354
2024-25 (BE) - - 350 1,558 1,908
Source: Union Budget documents of various years; PRS.

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July 31, 2024 - 14 -


Demand for Grants Analysis 2024-25: Education PRS Legislative Research

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https://prsindia.org/files/bills_acts/bills_parliament/2023/Anusandhan%20National%20Research%20Foundation%20Act,%202023.pdf.
55
Parliament passes the Anusandhan National Research Foundation (NRF) Bill, 2023 with the Rajya Sabha adopting the Bill by a voice
vote, Department of Science and Technology, Ministry of Science and Technology, as last accessed on July 26, 2024,
https://dst.gov.in/parliament-passes-anusandhan-national-research-foundation-nrf-bill-2023-rajya-sabha-adopting-bill.

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July 31, 2024 - 15 -

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