ey ficci report09 making indian higher education future ready

Making the Indian higher education system future ready FICCI Higher Education Summit 2009

Foreword 1

Executive summary 3

Introduction 5

Financial innovation 21

Innovative use of ICT 37

Reinvigorating research 51

Thrust to vocational education and training 65

Regulatory reforms 83

Glossary 97

Acknowledgements 98

About FICCI 101

Contents

Foreword

Dear Readers,

At any given time, higher education has been a key factor for its ability to change and to induce change and progress in the society. Not surprising that in today’s globalised economy, it is the globalisation of knowledge that will enable us to deal with the present and future challenges that is confronting us in every sphere of life, whether it is in environment, health or food security.

Today India and China, are in advantageous position with the young demographic profile in the graying global world as they would be providing the bulk of skilled and semi-skilled workforce to the world in near future. It’s an opportunity that China has been preparing to leverage since the early 90’s. However, in India, higher education is confronted with formidable challenges and must proceed to the most radical change and renewal it has ever been required to undertake, so that we can transcend not just the mere economic considerations but also incorporate deeper socio—cultural dimensions that will enable us to create an environmentally sustainable world.

It is heartening to see that higher education reforms are high on the agenda of the new government with emphasis on expansion, inclusion, and excellence as the pillars of higher education. Taking its cue from the government agenda, FICCI-E&Y Study has aimed at identifying the current scenario and practices in the universities and higher education institutions through a primary survey, infer key issues and challenges, reflect on the best practices, and suggest an action plan for “Make Indian Higher Education Future Ready”. The Study identifies and reinforces that innovative financing, liberalisation of regulation and quality assurance mechanisms, use of ICT, integrating research and teaching, and streamlining vocational education and training as the key change agents.

We are grateful to Ministry of Human Resource Development, Government of India for its support, USA as the partner country, and Sponsors/Partners in organising the FICCI Higher Education Summit 2009 titled “Imperatives for Higher Education: Inclusion, Expansion & Excellence” on 6th & 7th November 2009 in FICCI, New Delhi.

I wish the participants good luck in their future endeavors.

Warm Regards,

Amit Mitra

Secretary General

FICCI

1Making the Indian higher education system future ready

Foreword

Dear Readers,

Since independence, higher education has always been identified as a critical component of India’s growth story. When Pandit Jawaharlal Nehru established the Indian Institutes of Technology, he understood the need for educated and skilled human resources only too well. This ongoing emphasis has resulted in India having one of the largest higher education systems in the world, consisting of over 20,000 institutes enrolling more than 12 million students.

Growth in numbers, however, has not been accompanied by an improvement in the delivery of higher education and consequent outcomes. The Indian Higher Education system continues to be bogged down by the challenges of inadequate access, poor quality and inequity. The Gross Enrollment Ratio (GER) in India has grown slowly and is estimated to be at 12%, with wide disparity across regions of the country, leaving a lot of ground to be covered to achieve our dream of universal higher education. The Indian Higher Education system is characterised by a large rural- urban and gender divide. GER in rural India is estimated to be about 7%, while urban areas have a GER of about 23%. Severe shortage of faculty and poor infrastructure have severely impacted results, with less than a handful of Indian HEIs achieving global recognition.

The need of the hour is to upgrade the Indian Higher Education system to train the increasing proportion of young population so India can truly realise the prophesised ‘Demographic Dividend’. We have identified five imperatives for making the Indian Higher Education system future ready - Financial Innovation, Innovative Use of Information and Communication Technologies (ICT), Reinvigorating Research, Thrust on Vocational Education & Training (VET), and Regulatory Reforms.

We envision the Indian Higher Education system of the future to be one where a large number of public and private high quality institutions co-exist and flourish in a supportive and transparent regulatory environment. Going forward, we envision Indian higher education institutes use financial innovation and ICT to rapidly enhance scale, improve infrastructure and have a strong focus on research. Simultaneously, a healthy vocational education system should be created, which works in alignment with the higher education system, enhancing the overall skill levels of the population and increasing productivity.

The current Government has set the ball rolling and we believe that by focusing on the imperatives mentioned above, this vision can become a reality, harvesting the real potential of India’s demographic strengths driving the economy to unprecedented heights.

Warm Regards,

Amitabh Jhingan Partner Education sector leader Ernst & Young

2 Making the Indian higher education system future ready

Executive summary

The Indian higher education system has witnessed significant expansion in recent years, both in terms of the number of institutions as well as the student enrollment. India has more than 400 universities and over 20,000 colleges, of which almost half were set up in the last decade. Student enrollment has crossed 12.9 million in 2007-08, clocking a compounded annual growth rate of 6.2% since 1985-86. The private sector has enthusiastically participated in the growth of the higher education system with about 63% of the total higher education institutions being private unaided institutions.

Though these are clearly positive trends, the Indian higher education system continues to demonstrate many structural shortcomings which in turn create challenges in meeting future expectations. Despite having more higher education institutions than any other country in the world, hardly any feature in the leading institutions in the world. At about 12%, our GER is almost half of that of China, and lower than many developing countries. Inequity is also pervasive in the system, with the GERs of women and backward castes being much lower than the national average.

From where things stand today, we have identified five areas critical to making the Indian Higher Education system future ready. We believe that financial innovation, innovative use of information and communication technologies (ICT), reinvigorating research, thrust on vocational education & training (VET), and regulatory reforms are potential ‘Game changers’ for the Indian higher education system. Given this backdrop, we have identified certain challenges across these five areas and outlined specific recommendations to improve upon the gaps and strengthen the foundation of the Indian higher education system.

Game changers Key challenges Key recommendations

Financial Innovation ►

Very low per-capita spends on higher education, leading to significant paucity of funds for expansion and quality enhancement

►

Inadequate exploration of alternate revenue streams by HEIs

►

Poor coverage of scholarships and student loan schemes to support needy students and enable tuition fee rationalisation

►

Encourage private sector investment in education through the development of innovative PPP models

►

Introduce performance based funding by the Government

►

Rationalise tuition fees structures and support the same with the creation of a strong education financing mechanism

►

Build an enabling environment to generate alternate sources of revenue by HEIs

Innovative use of Information and Communication Technology

►

Lack of ICT infrastructure in HEIs and low technology/people readiness

►

Poor quality of digital content, especially in regional languages

►

Improve ICT infrastructure in HEIs through PPP models and incentivise adoption of ICT in pedagogy

►

Develop mechanisms for development and free distribution of high quality content across languages

►

Improve connectivity across HEIs and create a national repository of digital content

Reinvigorating Research

►

Poor standard of research across Indian higher education institutes

►

Lack of qualified faculty, limited funding for research as well as poor linkages between academic institutions and industry/Government R&D labs

►

Incentivise research in universities, while creating an enabling environment in terms of lesser teaching hours for researchers, greater budgets and access to better infrastructure

►

Increase the number and quality of doctoral students through the launch of innovative programs, provision of attractive fellowships and enhanced industry collaboration

Thrust on Vocational Education and Training

►

Low penetration of VET due to limited relevance and poor outcomes

►

Multiple regulatory bodies and lack of linkage of VET with the mainstream education system

►

Improve oversight structure for VET, facilitating greater industry involvement and providing greater alignment with market needs

►

Facilitate mobility between VET and mainstream education through a system of credit transfer

►

Support private sector vocational education through accreditation and recognition mechanisms

Regulatory Framework ►

Multiplicity of regulators with overlapping roles►

Uneven entry barriers leading to a skewed development of the system

►

Limited transparency, low autonomy and poor quality control systems

►

Create a single independent agency for regulating higher education and simplify the regulatory framework

►

Reduce entry barriers for reputed players, by facilitating entry of high-quality foreign universities and private universities through the PPP mode

►

Improve transparency and disclosure in the system


1. Introduction

Current state

Key challenges

Potential

Proposed thrust areas

Tertiary education in India is characterised by a well established higher education system and an evolving vocational education & training segment

Sources: EY-EDGE 2008: Globalising Higher Education in India

Science Commerce Arts

Engineering Medicine Architecture

ITI/ITC/Polytechnic courses

IT/Computer training

►

Higher education institutions include universities and colleges that provide undergraduate (UG), postgraduate (PG), and doctoral degree programs. Some institutes provide diplomas as well

►

Most UG courses take three years except for certain professional courses such as Engineering, Medicine, etc.

►

PG courses are generally of two years duration

►

Vocational education institutes include institutes/ polytechnics that primarily provides certificate and diploma courses, the duration of which vary between three months to three years

►

While Industrial Training Institutes (ITIs)/ Industrial Training Centres (ITCs) providing courses with relevance to specific trades (such as turning, fitting, wiring, etc) have been in existence for a long time, many private institutes have emerged to meet the demand from upcoming industries such as aviation, retail, hospitality, etc.

Travel and Tourism Aviation Hospitality Retail

Elementary education Secondary education Tertiary education

Higher education Vocational education & training

General Professional

►

Primary – Class I – V►

Upper Primary – Class VI – VIII►

Secondary – Class IX – X►

Senior Secondary – Class XI – XII

Introduction: Current state

Traditional New and emerging

Major Fields of Study


There has been a significant growth in the number of universities in the last decade

State universities dominate the landscape, accounting for more than half of the total universities

India has more than 20,000 colleges, with almost 10,000 colleges being set up in the current decade

General course (Arts, Science and Commerce) colleges form a majority of the colleges in India*

India has the largest number of higher education institutions in the world

65.08%8.72%

11.64%

14.57%

Arts, Science & Commerce

Engineering, Technical & Architechture

Medical colleges

Others

India is third largest in the world in terms of student enrollment


25.3517.76

12.85 9.374.57

China USA India Russia Brazil

Student enrollment in higher education (2007) (million)

4,0006,700

21,000

India United States China

Number of higher education institutions

~~

~

The Indian higher education system has emerged as one of the largest in the world, in terms of number of institutions as well as student enrolment

Year-wise number of universities in India

CAGR 5%

CAGR 7%

Year-wise number of colleges in India

CAGR 5.9%

CAGR 9.2%

Sources: EY- EDGE 2009: Private enterprise in Indian higher education; UGC: Annual Report 2005-06; MHRD: Annual Report 2007-08; UNESCO: Global Education Digest 2009; U.S. Department of Education: Postsecondary Institutions in the United States Fall 2007; American Council on Education: Higher Education in China 2008; * 2005-06

8.55%

28.07%

1.10%

55.04%

7.24%

Central Universities State Universities Deemed to be universities Institutions of national importance (State Legislation)Institutions of national importance (Central legislation)


46%18%

7%3%3%

20%

1%2%

ArtsScienceCommerce/ManagementEngineering/ TechnologyMedicineLawAgricultureOthers

There has been a steady increase in enrolment in the higher education system over the past two decades

While general courses (Arts, science, and commerce) account for majority (~80%) of student enrolment…


CAGR 6.2%

Enrolment in higher education per year (in million)

Number of students by field of study* Percentage of students in professional courses

…Engineering has increasingly strengthened its position as the most highly preferred professional course

Degree granting courses have seen greater enrolment vis-à-vis diploma & certificate courses

Student enrolment in higher education has grown significantly over the last few years, with a preference for degree granting courses

The relative enrolment of students in post graduate programs has declined as compared to enrolment in UG courses

Sources: EY- EDGE 2009: Private enterprise in Indian higher education; UGC: Annual Report 2005-06; EY-EDGE 2008: Globalising Higher Education in India *2005-06


There has been a rapid growth in the number of professional private higher education institutions

Number of professional unaided private higher education institutions

The share of unaided private higher education institutions in the country has grown significantly in the last few years

The percentage of students in unaided private higher education institutions has also increased considerably


This growth is reflected in the dominant share of unaided private higher education institutions in professional courses

Percentage share of public and private institutions in professional courses (2006-07)

32.89%

51.53%

2001 2006Unaided private higher education institutions

as a percentage of total institutionsEnrollment in unaided private higher education institutions as a percentage of total enrolment

The private sector has played a key role in the growth of the higher education system, especially in professional higher education

Sources: XIth Five Year Plan; AICTE and other Professional Councils of Education

9

95 9164 62 50

936 38 50

5

Pharmacy Engineering Management ComputerApplications

Medicine(MBBS)

Private Public

Making the Indian higher education system future ready

Distance education

Vocational education and training institutes (ITI/ITC) in India have substantially increased over the past two decades

The capacity in ITI/ITC account for 43% of the total capacity in vocational education and training institutes in India

In the last six years the number of institutions offering distance education has almost doubled

A large percentage of students are enrolled in distance education courses

Vocational education

CAGR 7.4%


CAGR 6.9%

Student enrollment in distance education as a percentage of total students in higher educationNumber of institutions offering distance education

CAGR 9.0%

Growth in Vocational Education and Training Institutes (ITI/ITC)

Capacity in Vocational Education and Training Institutes

Distance education and vocational training have grown to acquire an important role in India’s tertiary education system

725,000

408,150

545,734

295,000230,000

Voc

atio

nal

Edu

catio

n in

Sec

odar

yS

choo

ls

ITI

ITC

Pol

ytec

hnic

s

App

pren

tices

hips

Sources: Turkish Online Journal of Distance Education Volume 3: A comparative study on current trends in Distance Education in Canada and India 2002; XIth Five Year Plan; ILO: Industrial Training Institutes of India 2003; MoLE: Annual Report 2008-09

2.35.7

10.1

1720 22

1975-76 1981-82 1990-91 1999-00 2001-01 2002-03

1,080

2,447

4,274 4,465 4,6475,253

6,906

1982 1992 2000 2001 2002 2005 2009


AccessAvailability of suitable number of institutions across regions

to fulfill demand

EquityEqual opportunity for all sections of society

to participate in higher education

“For every one of our people to benefit from new employment opportunities being created across the economy, we must ensure that every Indian is educated and skilled ”-Prime Minister Dr. Manmohan Singh’s address to the nation on Independence Day 2007

“Equity is at the heart of a good educational system. We don’t have equity.”

- Keynote address by Kapil Sibal at World Conference on Higher Education

“Expansion of the higher education system must be accompanied by steps to ensure quality and high standards”

- Speech by President of India, Smt. Pratibha Patil at conference “Facing global and local challenges: the new dynamics of higher education”

QualityProvision of suitable

infrastructure, trained faculty and effective pedagogy in

higher education institutions aimed at delivering expected outcomes

Introduction: Key challenges

However, India’s education system is bogged down by the fundamental challenges of access, equity and quality

Sources: EY Analysis


While enrollments in India have grown at a good pace it is still considerably less than what has been achieved by China

As compared to a GER world average of 26% in 2007, GER in India at 12% is extremely low

Access to the higher education system is currently restricted to a small portion of the society

►

GER in India increased from 5% in 1980 to 12% in 2007 while in the same period China’s GER increased from 1% to 23%

►

India’s GER grew at a CAGR of 3.4% as compared to China’s CAGR of 12.8% from 1980 to 2007

Gross Enrollment Ratio (GER) (percentage)

53.00

71.0077.00

84.00 82.00

11.00 11.0016.00

25.00

46.00

53.00

71.0075.00

5.00 6.0010.00 11.00 12.00

1.00 3.00

20.0023.00

NANA8.00

1980 1990 2000 2005 2007

USA Brazil Russia India China

►

Enrollments in India grew at a CAGR of 5.39% as compared to a CAGR of 13.07% in China from 1980 to 2007

11.5713.54

14.76

17.71 17.76

1.412.78

4.575.70

9.00 9.37

3.28

9.40

11.7812.85

1.04

7.36

20.60

25.35

1.60NA

5.20

NA

4.78

3.93

1980 1990 2000 2005 2007

USA Brazil Russia India China

Sources: UNESCO: Global Education Digest 2009

Enrollment (million)

12



India’s GER shows significant variability across regions:►

In the states it ranges from a low of 5.7 in Bihar to a high of 15.1 in Uttaranchal

►

In the union territories it ranges from a low of 1.9 in Daman Diu to a high of 33.2 in Delhi

There is wide geographic variation in GER in India (2005)

SGDP* per capita, 2005

GER,2005

0 15 50Elite higher education system Mass higher

education systemUniversal higher

education system

Delhi

MeghalayaNagalandRajasthanChhattisgarhManipur

60,000

20,000

40,000

Goa

HaryanaMaharashtraHimachal PradeshGujaratWest Bengal

Tamil NaduKarnatakaUttaranchalAndhra PradeshArunanchal PradeshTripura

OrissaJharkhandMadhya PradeshUttar PradeshBihar

Uttaranchal

MizoramSikkimKarnatakaKeralaPunjab

‘Universal’ higher education is still a distant dream as most states have an ‘elite’ higher education system

AssamJ&K

There is wide disparity across states in access to higher education

►

According to a report by Martin Trow, higher education systems can be classified as elite, mass, and universal higher education systems

►

An ‘elite’ higher education system ranges from a GER of 0-15, mass from 15-50 and an universal system of higher education from a GER of 50 and above

►

Most Indian states, including those with high GDP per capita have an ‘elite’ higher education system

Sources: CMIE: State Analysis Service; UGC: Higher Education in India 2008* State Gross Domestic Product

13

12.9

6.6

6.75.7

8.5

11.6

11.2

10.5

13.9

7.2

8.1

12.4

9.9

10.9

12

12.413.7

11

9.4

8.9

11

7.111.4

14

6.3

9.1

15.1

7.8



The GERs for females is very low especially in rural India The GERs for males also varies significantly between rural and urban areas

There exists a significant difference in the GER of urban and rural India

►

GERs in rural India have increased from 3.95% in 1983-84 to 7.51% in 2004-05 while in urban India GERs have increased from 17.68% to 23.79%

►

Though GER in rural India has increased, the gap between GERs in rural and urban areas has only widened

►

While GERs for females has increased significantly there has been an increase in the disparity in GER for females in rural and urban areas by 6.38% from 1983-84 to 2004-05

►

While GERs for males has increased at a slower rate, there has been a decline in the disparity between GER in rural and urban areas from 1983-84 to 2004-05 by 0.68%

The Indian higher education system suffers from a large rural-urban divide in access, gender inequity, and large differences in GERs in various communities

The gap in urban rural GER is further accentuated if studied from a gender perspective

There is a significant difference in GERs of various communities*

GERs for rural and urban India in the Indian higher education segment

►

The GERs for SCs, STs and OBCs is very low as compared to the other communities in the Indian higher education segment

7.67 8.57 8.85 10.0812.59

3.95 4.77 4.66 5.587.51

17.6819.96 20.17 20.44

23.79

1983-84 1987-88 1993-94 1999-00 2004-05

Total Rural Urban

GER for females in the Indian higher education segment GER for males in the Indian higher education segment

4.49 5.37 5.887.94

10.57

1.84 2.34 2.013.61

5.67

12.3515.23

16.8918.71

22.56

1983-84 1987-88 1993-94 1999-00 2004-05Total Rural Urban

10.87 11.82 11.66 12.1314.42

6.19 7.35 7.22 7.539.28

22.3624.22 23.05 21.98

24.77

1983-84 1987-88 1993-94 1999-00 2004-05Total Rural Urban

GER for different communities in the higher education segment

6.57 6.528.77

17.22

SCs STs OBCs Others

Sources: UGC: Higher Education in India 2008; 11th Five Year Plan Volume II * 2004-05

14



Shortage of quality faculty

►

Rising enrolment and shortage of faculty have lead to India’s higher education system having the one of the highest student teacher ratio

India has one of the highest student-teacher ratio’s in the world

Lack of infrastructure

►

Higher education institutions face an acute problem in terms lack of academic and physical infrastructure

►

There are 153 universities and 9,875 colleges with infrastructure deficiencies recognised by the UGC

Percentage of institutes under the UGC with infrastructure deficiencies

Student- Teacher Ratio (2000)

Growth in faculty ( in million )

Moreover, faculty appointment for higher education has grown at a slower pace than student enrollments

Growth rate of enrolment during this period 6.3%

Currently, many faculty positions in higher education institutes are not filled

Quality of higher education in India is impacted by shortage of faculty and poor infrastructure

►

According to an AICTE report in 2003 there was a shortage of 33,574 PhDs and 42,831 M.Techs in engineering institutions

The academic infrastructure in colleges across the country when compared with that of premier institutes and the AICTE norms highlights their poor status

13.611.0

26.0

13.5

18.214.0

Brazil Russia India China UK USA

0.472

0.4880.503 0.505

2005 2006 2007 2008

CAGR 2.28%

Vacant Faculty Positions 2007-08

45% 51% 53%

18%

41%

Prof Reader Lecturer

University College

48.26%68.58%

Universities Colleges

Books per student Journals per student Students per computer

22988

53

9

ISB IIT Bombay Average Indian College

4.35

0.400.01

ISB IIT Bombay Average Indian College

2 4

AICTE norm (MBA/MCA)

AICTE norm (UG)

Average Indian College

Sources: UGC: Higher Education in India 2008; ICRIER: Higher Education in India, The Need for Change, Working Paper 180; AICTE: Hand Book for approval process; ISB: Website; IIT Bombay: website; EY Analysis

15



SJTW Top-500 universities Rankings, 2009

FT Top-100 Global MBA Rankings, 2009

THE Stream Wise Top 50 University Rankings, 2008Eng &Tech Arts & Hum Life Sc. & Biomed

►

Indian Institute of Science and IIT Kharagpur ranked in the 303-401 range, however in 2008 IIT Kanpur featured in the ranking in place of IIT Kharagpur the same range

Ranking Parameters

► Quality of Education

► Quality of faculty

► Research Output

► Size of the institution

► Weighted Salary

► % Salary increase

► Placement/employment

► Research

► Research Quality

► Graduate employability

► International Outlook

► Teaching Quality

►

Indian School of Business, ranked 15th up from 20th in 2008 and is the only Indian management institute to appear in the list

►

IIT Bombay and Delhi ranked 36th and 42nd respectively however they ranked 33rd and 34th in 2007

This dearth of quality institutes has led to an abnormal rush of students to get a seat in the few good ones

Seats as a % of total test takers

Despite having one of the largest higher education system in the world few Indian institutions have earned global distinction

30

2

2

6

15

21

42

160

China

India

Russia

Brazil

Australia

Canada

UK

USA

2

1

0

1

2

5

17

55

4

2

0

0

5

5

4

15

1

0

0

0

4

3

6

19

2

0

0

0

6

4

7

22

5%

IIMs

2%

IITs

Sources: Shanghai Jiao Tong University: 2009 Rankings; Financial Times: 2009 MBA Ranking; Times Higher Education: 2008 Stream Wise Ranking

16



Growth in Indian students studying overseas Percentage of Indian students studying in foreign countries 2005-06

►

The value of imports (Indian students overseas) is extremely high at 0.46% of GDP which comprises of around 80% of the public spending on higher education

►

The figure is also comparable to the total spent on higher education which is 1% of the GDP in India

Value of imports of higher education in 2004 (USD million)

Higher education imports as a percentage of GDP

Imports as a percentage of public spending on higher education

Revenue loss

In pursuit of better quality education, an increasing number of Indian students are studying abroad

53,41766,475

94,446109,577

150,194159,779

1999-00 2000-01 2001-02 2002-03 2004-05 2005-06

48%

17%

15%

4%

3%

13%

U.S.A Australia U.K.

Canada Singapore Other Countries

3,151

5,080

India China

0.46

0.26

India China

80

60

India China

Sources: Pawan Agarwal: Indian Higher Education, Envisioning the Future 2009; The World Bank: Trends in International Trade in Higher Education 2007

CAGR, 24.5%

17



Introduction: Potential

Higher education and vocational training are critical to India reaping the ‘demographic dividend’ from possessing a young employable population…

As compared to other countries, India’s has a relatively younger population with a median age of 25 years…

…and is expected to benefit from the younger population which will enter the workforce over the next decade

The proportion of dependent population in India is expected to reduce, while it is rising in other countries

A majority of India’s population lies between the ages of 15-64 years, resulting in a low dependency ratio and a substantial working population relative to other countries.

However, in the absence of appropriate education and training, India may lose out on the’ demographic dividend’ due to a lack of skill set to meet the needs of the industry

Higher education and vocational training will therefore play a critical role in preparing the work force to be constructively utilised to drive growth of the economy

Median Age (2009)

36.7 40.2

28.6

38.4

25.3

34.1

UnitedStates

UnitedKingdom

Brazil Russia India China

India’s population by age group

39 36 34 3125

58 59 62 6468

3 5 4 5.3 7

1980 1990 2000 2009 2020E

0-14 years 15-64 years 65 years and above

2020E2016E

Dependency Ratio

0.57 0.470.39 0.49

2.03

2009

India China USA

Sources: XIth Five Year Plan; CIA Factbook; United States Department of Labor: Employment Projections 2007; EY-EDGE 2008: Globalising Higher Education in India


By 2020, aging of world economies would create a skilled manpower shortage of 56.5 million, while India alone will have a labor surplus of 47million

…and can potentially resolve the labour supply-demand gap in various countries

…which can not only drive domestic growth but also address the global manpower demand-supply gap

India is emerging as one of the fastest growing economies as per the ‘BRIC’ report

According to the ‘BRIC’ report, released by Goldman Sachs, India is projected to become one of the leading economies in the world. However, education was identified as a key enabler for India to achieve these projections. Lack of a strong higher education system may have a debilitating impact on India’s efforts to achieve the forecasted growth-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2000 2010 2020 2030 2040 2050

US

$ B

n

China India Japan US Germany

-17-10 -9 -2

-12.5

3 519

47

19

-6

US China Japan Russia UK Others Brazil Mexico Pakistan India Others

Shortfall Surplus

Sources: XIth Five Year Plan; Goldman Sachs: Global Economics Paper No: 169 2008; Goldman Sachs: Global Economics Paper No: 99 2003

India is already a well established source of highly talented manpower

Indians as a % of total manpower/ workforce

5% 12% 36% 34%20%

Medical doctors in USA Scientists in USA Scientists at NASA

Employees at Microsoft

Scientists at Intel

19

Introduction: Potential


Potential impact Problem solved

Access Equity Quality

Game changers

5. Regulatory reforms

1. Financial innovation

2. Reinvigorating research

3. Innovative use of ICT

4. Thrust to vocational education and training

►

Providing a conducive environment for the entry & growth of a large number of high quality higher education institutes

►

Increasing the number of institutions to plug the demand supply gap and provide access in low GER areas

►

Upgrading facilities to create world class infrastructure at higher education institutions

►

Enhance student financial support for maintaining equity in the system

►

Improve the quality of Indian HEIs►

Significantly enhance the impact of the education system on the overall economy assisting India in emerging as a knowledge superpower

►

Improving access to the system through online education

►

Improving quality of teaching, especially across remote locations

►

Increasing transparency and bolstering systems and processes across HEIs

►

Creating courses which are relevant to certain sections of society, thus attracting them to the higher education system

►

Creating a pool of skilled resources to harness India’s demographic dividend

✔ ✔

✔ ✔ ✔

✔

✔ ✔

✔ ✔

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Introduction: Proposed thrust areas

We believe that five ‘game changers’ can significantly strengthen India’s higher education system and propel the country into becoming a knowledge superpower



2. Financial innovation

Current state

Key challenges

Best practices

Recommendations

Sources @ national level Sources @ state levelInstitutions

Financing: Current state

Ministries at national and state levels provide support to specialised institutions under their jurisdiction. For example, the Ministry of Textiles directly funds the National Institute of Fashion Technology (NIFT) while the Ministry of Commerce and Industry funds the National Institute of Design (NID).

Public financing of higher education in India operates through a complex system, with grants allocated by various agencies at the central and state levels

Sources: Pawan Agarwal: Indian Higher Education, Envisioning the Future 2009

►

University Grants Commission (Government of India)

Central Universities and colleges affiliated to Delhi University, Allahabad University and Banaras Hindu University.

Deemed universities (excluding private deemed Universities)

State universities (excluding private universities), state government colleges, private aided colleges

►

UGC (for 12 universities) and Central plan assistance (for 12 other universities)

►

UGC (but at state level only a few are directly funded)

►

State Department of Higher Education.

►

UGC (provides limited grants)

General higher education

Central technical institutions (IITs, IIMs, NITs etc).

State technical universities and colleges

►

Department of Higher Education (Government of India)

►

State Department of Technical Education

►

All India Council for Technical Education (provides limited grants)

Technical education

Central medical institutions such as AIIMS

State health universities and colleges

►

Ministry of Health (Government of India)

►

State Department of Health

Medical education

Agriculture education

Central agriculture universities

State agriculture universities and colleges

►

Indian Council for Agricultural Research (Government of India)

►

State Department of Agriculture


Public expenditure on higher education as a percentage of GDP*

Public expenditure on higher education per student PPP USD*

While India’s public expenditure on higher education as a percentage of GDP is comparable to other countries, it is extremely low when assessed on a per student basis

1.60%

1.40%

1.00%

0.60%

0.90%0.80% 0.80%

0.60%

Finland Sweden USA India UK Brazil Russia China

10,836

13,759

10,616

1,162

10,060

2,9771,863

2,728

Finland Sweden USA India UK Brazil Russia China

Sources: UNESCO: Global Education Digest 2009; EAI Background Brief No. 394, “China’s Great Leap” in Higher Education, 2008; * 2007 or the latest year for which data is available,

23



Share of spending of central government on higher education (2009)

Share of spending of state governments on higher education**

Central government expenditure on higher education has increased rapidly especially in 2009-10

As compared to the central government, expenditure on higher education by state governments has increased at a slower pace

State governments have historically been a larger source of public funding for higher education, vis-à-vis the central government. However, the balance has been shifting towards the central government in recent years

Sources: Union Budget: 2005-06, 2006-07, 2007-08, 2008-09, 2009-10; MHRD: Analysis of Budgeted Expenditure on Education, 2003-2004 to 2005-2006, 2005-06 to 2007-08*General +Technical** 2005-06

Share of spending on higher education (2007-08)

33%

67%

Central Government State Government

38%

28%

17%

17%

General Higher EducationTechnical Higher EducationAgricultureMedical

52%

13%

35%

General Higher EducationTechnical Higher EducationAgriculture, medical and others

Total central government expenditure on higher education (INR billion)

69.680.4

117.4135.4

196.2

76.1 89.0113.2

83.0

2005-06 2006-07 2007-08 2008-09 2009-10

Plan Non Plan

CAGR 29.6%

34.2 38.2

41.346.4

Total state government expenditure on higher education (INR billion)

107.1116.2

137.1

13.4 16.7 21.8

93.7 99.6115.2

2005-06 2006-07 2007-08

Plan Non Plan

CAGR 13.2%

42.235.4

24



State GovernmentsPlan expenditure on general education has grown at a CAGR of 39.4% as compared to a CAGR of 10.3% for non plan expenditure

Expenditure on technical education is increasing at a faster rate than general education

85.892.6

108.7

21.223.6

28.4

Central GovernmentExpenditure on general higher education has increased rapidly with a substantial increase 2009-10

Expenditure on technical education has seen substantial increases in 2007-08 and 2009-10

State government expenditure on general higher education (INR billion)

State government expenditure on technical education (INR billion)

The central government retains a higher share of spending on technical education while state governments account for a majority of the spending on general education

Share of spending on technical education (2007-08)Share of spending on general education (2007-08)

Sources: Union Budget: 2005-06, 2006-07, 2007-08, 2008-09, 2009-10; MHRD: Analysis of Budgeted Expenditure on Education, 2003-2004 to 2005-2006, 2005-06 to 2007-08

5.6 7.7 11.0

80.2 84.997.7

2005-06 2006-07 2007-08

Plan Non Plan

7.8 9.0 10.8

13.414.6

17.6

2005-06 2006-07 2007-08

Plan Non Plan

CAGR 12.5%

CAGR 15.8%

21.127.3

38.9

52.4

77.1

Central government expenditure on general higher education (INR billion)

7.9 12.222.1

31.839.6

13.215.1

16.8

20.5

37.5

2005-06 2006-07 2007-08 2008-09 2009-10

Plan Non Plan

CAGR 38.3%

16.017.2

38.7 39.6

54.2

Central government expenditure on technical education (INR billion)

7.3 8.4

29.3 28.935.3

8.7 8.8

9.4 10.8

18.9

2005-06 2006-07 2007-08 2008-09 2009-10Plan Non Plan

CAGR 35.6%

25



Key challenges affecting financing of higher education

Financing: Key challenges

Challenges

Poor utili

satio

n of alte

rnat

e

source

s of r

even

ue

Large share of the public spend is

incurred on recurring expenditure

Skewed

alloc

ation

of UGC an

d Centra

l

Gover

nmen

t res

ource

s thr

ough

sub-o

ptimal

budg

eting

proc

ess

Low tuition fee realisations

coupled with weak system for

extending financial support


As compared to the central government, the extremely high non plan expenditure by state governments highlights the absence of new investments which hampers quality of

state higher education institutions

Plan expenditure Non plan expenditure

►

Expenditure on existing programmes/projects and schemes which leads to additions or extensions in capacity of existing institutions/establishments

►

Expenditure on all new plan proposals►

Investment outlays for improving productivity/performance levels of existing capital stock

►

Investment to replace worn-out capital

►

Generic term used to cover all expenditure of government not included in the plan expenditure

►

All expenditure connected with the maintenance of existing institutions and establishments

►

All expenditure on continuing services and activities

Percentage of state government expenditure on general and technical higher education

Percentage of central government expenditure on higher education

There has been a slight decline in the percentage spent by the state governments on non plan expenditure though it still accounts for the majority of the expenditure

Percentage spent by the central government on non plan expenditure decreased substantially by 2008-09 however 2009-10 has again seen an increase


Majority of the funding by the government is directed towards maintenance of institutes and to support operations, rather than on capacity expansion

12% 14% 16%

88% 86% 84%

2005-06 2006-07 2007-08

Plan Non Plan

51% 53%65% 66% 58%

49% 47%35% 34% 42%

2005-06 2006-07 2007-08 2008-09 2009-10

Plan Non Plan

Sources: Union Budget: 2005-06, 2006-07, 2007-08, 2008-09, 2009-10; Planning Commission: Guidelines for classification of expenditure



UGC receives around 96% of central budgetary outlay for University & Higher education system But a majority of Indian universities and colleges do not qualify for either central or UGC funding

Eligibility of universities/HEIs for Central Government funding (Number of institutions)

Percentage allocation in Union Budget for Technical Education* (2009-10)

The flow of central funding is skewed towards certain groups of HEIs, with inherent issues in the budgetary process and financing mechanism

Funding of higher education institutions in India follows a traditional budgetary process.

Submission of budget proposals to funding authorities

Negotiations on separate budget items

Line item based fund allocation*

Key challenges in UGC’s funding mechanism

Absence of incentives to raise fees/improve financial

performance

Archaic negotiation based system with little focus on performance

Lack of transparency in allocating funds to HEIs

5,527 5,327

200

4,726

787,720 7,650

70

4,648

Total Colleges Universities

Eligible for central funding Not eligible for central funding

Not eligible for any funding

38.67%

31.32%

3.08%

18.62%

2.91%5.40%

IITs

IIMs

IISc

NITs

ISM Dhanbad

Others

Percentage allocation of Department of Health for Medical Education* (2009-10)

37%

9%21%

15%

5%

13%All India Institute of Medical Sciences (AIIMS)

Lady Hardinge Medical College & Smt. SuchetaKripalani Hospital

Post Graduate Institute of Medical Education & Research, Chandigarh

Jawaharlal Institute of Post Graduate Medical Education & Research

Cancer Research

Other Educational Institutions

Sources: Union Budget 2009-10; UGC Annual Report 2005-06; Pawan Agarwal: Indian Higher Education, Envisioning the Future 2009 *There has been an effort to move towards block grants over recent years


Tuition fees at higher education institutions continues to remain low, especially at public institutes

►

Limitations on level of public financing are leading to an increase in cost sharing by parents and students globally. This has in turn led to an increase in the fee levels across the world.

►

However, Indian higher education still witnesses comparatively lower household expenditure on higher education due to low fee levels.

Tuition fees as a percentage of total expenditure is low in India as compared internationally

►

According to National Knowledge Commission, fees constitute less than 15% of the total expenditure of Indian universities. The Eleventh Plan has also highlighted the low fee levels, urging universities to recover at least 20% of operating costs from fees.

►

Fee levels are still considerably low in major central universities (Delhi University, JNU) in India. However they are comparatively higher in some state universities (Madras University, Bangalore University). Fees are also high in most professional courses.

Source of income for higher education as a percentage of income


The proportion of fees in income for higher education institutes declined from 37% in 1950-51 to 12% in 1986- 87 while the share of the Government rose to 76%

Tuition fees as a percentage of total expenditure (Public and Private) on higher education (2007)

53.40% 52.10%

36.30% 36.10%30.60%

19.10%

Japan Republic of Korea

Australia United States Mexico India

49.4 53.5 61.0 72.8 75.9

1950-51 1960-61 1970-71 1980-81 1986-87

Year

Government Fees Others

36.8 34.8 25.517.4 12.6

13.8 11.7 13.5 10.8 11.5

Sources: UNESCO: Global Education Digest 2009; NKC: Report to the nation 2006-09; CABE Committee 2005: Report on Financing of Higher and Technical Education;


India does not have robust scholarship and student loan schemes which can make higher education accessible at a more aligned tuition fee structure

►

Scholarships schemes provided by the government cover a very insignificant portion of the total student population. In fact, expenditure in terms of scholarships for higher and technical education as a percentage of total expenditure has declined by 0.17% and 0.22% respectively in 2003-04 from 1990-91 having reached a low in 1999-2000

►

For the years 2008-09, Government earmarked an expenditure of merely INR 450 million on scholarships in higher education with an objective of covering just 2% of the student population in colleges and universities

►

While the government scholarship reaches a very small proportion of the students, Universities themselves do not have any scholarship scheme. Almost 56% universities have schemes which cater to less than 10% of the students while 23% do not have any university level scholarship schemes for students

Lower coverage of government scholarship schemes (2009) Even lower presence of university level scholarship schemes (2009)

Public expenditure on scholarships has been declining over the years

Public expenditure on scholarships in Higher and Technical Education

0.53%

0.38%

0.15%

0.32%

0.48%

0.23%0.12%

0.23%

1991-92 1995-96 1999-00 2003-04

% of total expenditure on Higher Education

% of total expenditure on Technical Education

Scholarship coverage (Government schemes) Scholarship coverage (University level schemes)

30%

19%

21%

30%

Nil Less than 10%

From 10-20% >20%

23%19%2%

56%

Nil Less than 10%

From 10-20% >20%

Sources: CABE Committee 2005: Report on Financing of Higher and Technical Education; Pawan Agarwal: Indian Higher Education, Envisioning the Future 2009; EY FICCI Higher Education Survey 2009

30



According to a recent market study, 81% of the students showed interest in availing education loans but identified key concerns such as:►

Higher Interest rate►

Cumbersome procedures and documentations►

High administrative cost►

Absence of special provision for weaker sections of the society

Education loans in India have a very high rate of interest as compared internationally (2005)

However an extremely low percentage of graduates in India avail student loans (2005)

Interest rate prevalent in India for education loans is very high (11..75%*) as compared to USA and UK (3.37%)

Despite recent growth, student loans availed by graduates in India are abysmally low. This despite the fact that India has witnessed a very low default rate (1.1%) and delinquent level (0.7%) in education loans.

Though student loans have gained in popularity as a form of financing higher education, the proportion of students availing them continues to remain low

Student loan accounts have gained in popularity especially after 2000

Growth in student loan accounts and portfolio in India

0

20000

40000

60000

80000

100000

120000

1990-91 1995-96 2000-01 2001-02 2002-03 2003-04 2004-05 2005-060100200300400500600700

Amount outstanding ( INR million) Number of Loan Accounts (In thousands)

Percentage of graduates availing student loans Comparison of interest rates for education loans

77%

50%

1%

85%

50%

85%

Australia USA India UK Canada Sweden

2.40%

11.75%

3.37% 3.37%

7.50%

Australia India* Unites Sates UnitedKingdom

Canada

Sources: CABE Committee 2005: Report on Financing of Higher and Technical Education;; Alex Usher: Global Debt Patterns – An International Comparison of Student Loan Burdens and Repayment Conditions 2005* Based on the recent benchmark prime lending rate

31



Differential fees for international students is a very popular cost-recovery measure abroad. This is because of the higher fee paid by foreign students as compared to domestic students. In Canada, an international student pays approximately USD 12,500 (in 2005) which is double the fees charged from the local citizens. In UK, universities generated an income of almost GBP 1.88 billion from non-EU students in 2007-08

Universities abroad raise additional funds from entrepreneurial activities and by maximising utilisation of assets. The following examples show the extent to which these universities have succeeded in self financing operations:►

In Beijing University 39.7 per cent of the income in 1998 was from the state and the rest from its own sources. The government share of funds in public universities declined from 82 per cent in 1992 to 63.4 per cent in 1997

►

Through its Educational Research and Innovation Complex , the Orel State Technical University of Central Russia has been able to create three times more training programmes, increase laboratory and class room space by 8.5 times, registered patents by 5 times, volume of research and development by more than 8 times in a period of 7 years

Higher education institutions in India also underutilise other revenue streams such as intake of foreign students at differential fees and providing research and consultancy services

Revenue from research consultancy constitutes a very small proportion of total fund inflow (2009)

Majority of the HEIs surveyed indicated that research & consultancy account for less than 20% of the total fund flow, with many deriving nil revenue. HEIs were also lax in their utilisation of owned assets and encouraging endowments for financing operations

India fares poorly in attracting foreign students

Number of international students (2008)

623,805

389,330

265,710 233,606 202,448 195,503

18,594

United States

United Kingdom

France Germany Australia China India

Percentage of total fund inflow

Revenue from research and consultancy*

16.28%

74.42%

6.98% 0.00% 2.33% 0.00%

Nil <20% 20-40% 40-60% 60-80% >80%

Sources: Guardian UK: Twice as many foreign students at UK universities 2009; Atlas of Student Mobility: Website; EY FICCI Higher Education Survey 2009

32



Our survey indicates that private institutions depend largely on student fees while public institutions depend on government grants, even as both generate little revenue from alternate sources

Financing: Survey results

Almost 60% of the institutions surveyed did not generate any endowments

2/3rds of the higher education institutions surveyed did not have student loan facilities

Out of the institutions surveyed, public institutes depend on government grants*

While private institutions depend largely on student fees…

…which is reflected by the higher fees charged by them

According to the institutions surveyed, the key financial challenges include regulation of fees, attracting private investments and limited government grants

(INR Thousand)

Proportion of institutes government grants

98%

29%

2%

21%

50%

Private Public

<20% 20-80% >80%

Student fees as a percent of total revenue

78%

41%

11%59%

11%

Private Public

<20% 20-80% >80%

Level of student fees

35%

75%

33%

15%32%10%

Private Public

<50 50-100 >100

Percentage of institutions with student loan facilities Percentage of institutes to have received endowments

66%

34%

Not facilitating loans Facilitating loans

58%

42%

Received Not received

Sources: EY-FICCI Higher Education Survey 2009* Grants from Central Government, State Government or UGC

33

Our survey has indicated that regulation of fees is the major financial challenge before Indian higher educational institutions

Key financing challenges faced by Indian higher education institutions

44%

30%

22%

4%

Regulation of fees Attracting privateinvestment

Limited government grants Others


We believe that analysis of successful models of financing could provide critical inputs in structuring innovative solutions…

►

Manipal Academy of Higher Education (MAHE) India entered into an agreement with Joint Venture Medical College Corporation (JVMC) Malaysia to start a private medical college in Malaysia. The key objective was to provide additional doctors for Malaysia and offer opportunities for students in the region to study medicine at a cheaper cost than in the West.

►

The agreement led to partnership between the State Government of Melaka, the Manipal Group and members of Indian Diaspora in Malaysia.

►

The local government provided teaching staff, supervisory services along with financial assistance to students. It also allowed use of local government hospitals for training and teaching purposes

►

On the other hand, the private partners contributed to the infrastructure for the Melaka campus with a provision of patient care service and training of staff in the health centers. The private partners also contributed by partially conducting the program in their India campus, as there was a shortage of faculty for basic sciences in Malaysia

Benefits►

Creation of the new college was a step in the direction of increasing the doctor : population ratio. It also led to decreased financial burden for the government as infrastructure costs were borne by the college.

►

The private partners on the other hand, gained an opportunity to establish a college leading to increased overseas exposure, establishment of global reputation and brand name.

The Melaka-Manipal Medical College – PPP for establishment of a private medical college

►

A large number of countries across the world have reformed systems of public funding by linking it with performance variables. This ensures a greater focus on outcomes while also allowing autonomy.

Finland►

Since 1998, Finland has introduced a system of partially allocating resources on performance, rewarding universities for quality and effectiveness of operations.

►

A criteria is set for a fixed period and funding extended in line with performance against the criteria, based on evaluations.►

The criteria include setting up centers of excellence, international student exchange programs and attracting international students as well as graduate placement record.

Germany►

Core funds specifically for teaching and research are negotiated between HEIs and the government. ►

A unique model is used by The Rhineland-Palatinate which has two funding models, ►

Basic budget system – includes funding for research, teaching, and academic staff.►

Separate distribution system – aimed at course completion targets, research activities and innovative programs

Benefits►

These mechanisms have led to a greater link between outputs and inputs in the higher education system.

Performance based funding – an international trend

Financing: Best practices

Sources: Kathmandu University Medical Journal (2005), Vol. 3, No. 4, Issue 12;


…beneficial both to the HEI and students while addressing the challenges of access and equity

►

The Higher Education Contribution Scheme (HECS) was launched in Australia in 1989 to contribute to student’s cost of higher education. It was designed to ensure access to all students regardless of their socio-economic background,.

►

The program is administered by Department of Education, Science and Technology (DEST), the Australian Tax Office and the higher education institutions.

►

Under the scheme, students can pay tuition fees upfront to universities and receive a 20% discount. They can also choose to defer the payment and take a loan at zero real interest rate from the Government. In both cases, the government pays the amount to the institutions directly. From 1998, students can also choose to pay both a discounted upfront fees along with deferring rest of the payment.

►

Student repayment of the HECS debt is through an income contingent liability scheme under which they pay through the taxation system after their salary reaches a threshold. The repayment rate ranges from 4%-8%.

Benefits►

The Australian Government introduced tuition fees simultaneously with the loan scheme which eventually led to a significant decrease in government financing of higher education. The government support on higher education decreased from 77.2% of the costs in 1989 to 53.8% in 2002.

Innovative student loan scheme in Australia

►

In November 2008, Indian School of Business (ISB) signed an agreement with the Government of Punjab (GOP) to set up its second campus in India at the Knowledge City, Mohali.

►

The cost of the project is INR 3000 million. To fund the project, ISB succeeded in getting four endowments of INR 500 million each from its founder supporters – the Bharti Group, the Max Group, the Hero Group and the Punj Lloyd Group.

►

In return for the endowments, ISB would set up four specialist centers for excellence named after its founder supporters, ►

Max India Institute of Healthcare Management►

Bharti Institute of Public Policy ►

BML Munjal Institute of Manufacturing and Operation Excellence ►

Punj Lloyd Institute of Physical Infrastructure Management►

These centers of excellence would promote research in their specific fields as well as provide specialisation options for management students

Benefits►

For ISB, success in raising a large part of its project costs through endowments enabled achievement of its growth plans. ISB also recieved commitments from its supporters to provide internships and recruit students from this campus

►

On the other hand, the founder supporters were able to further research in areas of interest to them, as well as attract more management students to focus and specialise in these areas. They also furthered the cause of improving the quality of education in their home state by attracting a leading management institution

Funding through endowments at ISB Mohali

Financing: Best practices

Sources: Graduate School of Education - University of Buffalo, “The International Comparative Higher Education and Finance Project” 2006; ISB: website


Recommendations on financial innovation

Encourage private sector funding of higher education

►

Introduce innovative PPP models which encourage high quality players from the private sector to invest more in the higher education sector

►

Provide tax incentives and simplify norms to attract private investments

1

Rationalise tuition fee and build strong financing structures

►

Encourage higher education institutes to identify and develop innovative sources of income other than fees and grants, such as monetisation of IP (research patents, licenses), organising seminars/ public events, consulting etc. For this purpose, set out model practices, incentivise faculty through revenue sharing, and institutes through higher grants for better performance on these factors

►

Develop supportive guidelines and norms to increase utilisation of existing assets/land banks of higher education institutes Encourage industrial houses/individuals to give endowments to both public and private HEIs, by providing a 125% weighted tax deduction to all endowments to recognised universities, preferential allotment of seats etc.

►

At the same time, simplify the procedure for an HEI to obtain approval to be eligible for donations which earn tax exemption for the donor

3

Support raising of revenue through alternate sources

4

Attract foreign students

►

Establish an agency under the Association of Indian Universities (AIU) to promote Indian higher education to international students

►

Appoint partners to facilitate admission procedures for foreign applicants to Indian HEIs►

Create a supportive environment for attracting international students through easing of visa processes and academic reform to facilitate credit transfers between domestic and international universities

5

Improve management of finances at HEIs

►

Support HEIs to obtain access to best in breed finance professionals►

Conduct seminars and short term courses to share best practices in management of operations at HEIs in order to improve utilisation of available finances

6

Financing: Recommendations

Enhance impact of Government funding

►

Rationalise tuition fee structures to internationally accepted levels (~25% of income) which would enable self sustenance of HEIs and reduce strain on public funding

►

Differential pricing may be accorded for students belonging to economically weaker sections

►

Create robust financing system to support rationalised fee structure through encouragement of scholarships (public and industry sponsored) and increasing student loans coverage through special schemes

2

36

►

Introduce a mechanism of performance based funding by the Government►

Encourage HEIs to move towards higher self generation of funds to meet operational expenses, so that Government funds are spent increasing on capacity expansion and quality improvement


3. Innovative use of ICT

Current state

Key challenges

Best practices

Recommendations

►

Technological platform linking universities and other agencies for collaborative research and content development

►

IT systems for educational institutes including complete student management and recordkeeping

Information and Communication Technology (ICT) can perform multiple roles in higher education to benefit all stakeholders...

ICT can perform various roles in higher education…

…and benefits all the stakeholders involved

Students ►

Anytime, anywhere learning►

Better quality of education►

Lower overall cost of education

Employers ►

Cheaper costs of continuing education

►

Increased convenience in providing education to staff

Higher Education Institutes

►

Less capital costs►

Easier to provide new courses►

Efficient processes►

Better management control

Government ►

Increases number of students under the gamut of education

►

Increased capacity and cost effectiveness of education systems

Tool

for

Adm

inis

trat

ive

Supp

ort

Mode of Course Delivery

Platfor

m for

Collab

orat

ion

Roles of ICT

►

Distance learning with delivery through internet, satellite and other mediums

►

Teaching aids in classrooms►

Free educational content for all students on online repositories

ICT: Current state


Greater equity

►

Better access to students from various socio-economic groups, leading to greater inclusion

►

Good quality institutions are not restricted to a few pockets but are made accessible to students located all over the country

►

Content from all over the world can be made available to students with access to internet

Better Access

►

Cheaper costs of education►

Increased flexibility, providing anytime anywhere access to students

►

Reduction in capacity constraints making large enrolments possible in courses run by reputed institutes

►

Technology can be leveraged to provide access to courses in new and emerging fields to greater number of students

ICT can help increase India’s GER aiding it in its transformation towards becoming a knowledge society

Usage of ICT can help improve India’s higher education system in three ways

… while addressing India’s higher education related problems of inequity, low access and poor quality

Improved Quality

►

Usage of supplementary teaching aids

►

Better and more efficient processes and management systems

►

Access to up-to-date content►

Increased knowledge sharing among course creators and scientists

►

Creation of comprehensive centralised digital repositories for reference material

39

ICT: Current state


Past initiatives of the government have used ICT for content delivery and as an enabler of access

Delivery of content

Gyan Darshan►

Launched in 2000, Gyan Darshan is a bouquet of channels that broadcasts educational programs for school kids, university students, and adults

►

Courses are contributed by IGNOU, UGC CEC, IITs etc

Gyan Vani►

It is a bouquet of FM radio channels which broadcast programs contributed by institutions such as IGNOU and IITs

UGC Countrywide Classroom►

Under the country wide classroom initiative, education programs are telecast on Gyan Darshan and Doordarshan’s National Channel (DD1) everyday

►

Till date, more than 10,000 programs have been telecast on subjects such as Arts and Social Sciences

E-Gyankosh ►

It is a knowledge repository launched by IGNOU in 2005 which aims at storing and preserving digital learning resources. Almost 95% of IGNOU’s printed material has been digitised and uploaded on the repository

National Programme for Technology Enhanced Learning ►

Approved in 2001, National Programme for Technology Enhanced Learning (NPTEL) is a joint initiative of IITs and IISc

►

As a part of its first phase, digital course content for 129 engineering/science courses has been developed and uploaded on youtube

Enabling access to resources

E-journal consortia►

AICTE – Indian National Digital Library in Engineering & Technology (AICTE – INDEST) is a consortium set up by the Ministry of Human Resource to enhance greater access and generate annual savings in access of bibliographic databases

►

UGC has also launched its Digital Library Consortium to provide access to peer reviewed journals and bibliographic databases covering subjects such as arts, humanities, and sciences

Networking of higher education institutions ►

Education and Research Network (ERNET) promoted by the Department of Information Technology, Government of India, provides communication infrastructure and services to academic research institutions in India

►

It is undertaking networking projects such as AICTE-Net, ICAR-Net and UGC-Infonet to provide internet and intranet facilities

The government has taken many initiatives to promote education using ICT over past few decades

Sources: NPTEL Project Document July 2003-June 2007; IGNOU Profile 2009; UGC CEC website; ERNET Website

40

ICT: Current state


►

The National Mission on Education through ICT is an INR 50 billion, centrally sponsored scheme submitted by the Ministry of HRD and approved by the Cabinet Committee on Economic Affairs (CCEA)

►

The Mission envisions to cater to the learning needs of 500 million Indians►

Some of the key objectives of the Mission include:►

Availability of e-knowledge content free of cost to Indians►

Development of knowledge modules to take care of personalised needs of learners►

Providing support for the creation of virtual technological universities ►

Building connectivity and knowledge network among and within institutions of higher learning in the country ►

Standardisation and quality assurance of contents to make them world class►

Spreading digital literacy for teacher empowerment

►

Certification of competencies of the human resources acquired either through formal or non-formal means

In 2009, the government approved the landmark “National Mission on Education through ICT” scheme

The Mission has planned a variety of initiatives aimed at developing and standardising digital content for Indian higher education segment

Scaling up Sakshat portal

►

The Mission intends to scale up the existing Sakshat portal to take care of the needs of entire learning community.

►

It will also act as a human resource database aiding education related decision making.

Generation of new digital content

►

It also plans to generate new online course content for UG, PG and Doctoral education.

►

Efforts are already underway to prepare course content for 130 courses (Includes UG and PG courses).

Quality assurance

►

It is also planning to set up national resource centers for standardisation and quality assurance of e-content for College and University segment and Engineering and Technology segment.

Virtual Technical University (VTU)

►

The Mission envisages creation of a VTU to enable training of UG/PG students along with new teachers.

►

It will focus on science, technology, management and other related areas.

Recently, National Mission on Education through ICT was launched by the government to harness ICT’s potential to make a difference

Sources: Mission Document, National Mission on Education through ICT

41

ICT: Current state


Many companies have entered the business of providing ICT infrastructure…

…while private educational institutes are delivering courses over ICT

The institutes are also realising other benefits of using ICT

HughesNet

Exam

ples

of

com

pani

es p

rovi

ding

ICT

infr

astr

uctu

re

Reliance World

Oracle

►

Has a network of 50 classrooms in 34 cities equipped with the technology to receive satellite signals from studios located in educational institutes. Examples of institutes using HughesNet infrastructure include IIMs, IITs and XLRI

►

Part of Reliance ADAG, Reliance World is a chain of cyber cafes that has tied up with testing companies to offer testing centers (e.g. TOEFL)

►

Provides enterprise-strength solutions that help educational institutes in improving performance management, reporting, compliance, efficiency and recruiting

Institute Segment Description

Amity University Higher Education ►

Offers online MBA and BBA programs

Arihant Institute

Test Preparation

►

Has a network of classes equipped with technology to receive satellite signals►

CA coaching lectures recorded at base location in Ahmedabad are relayed to these classes in various cities

Macmillan India Higher Education►

Has collaborated with IIM-C and IIT-D to offers online Management Development Programs

►

A USD 1.5 million initiative at Birla Institute of Technology & Science that provides a gigabit backbone, broadband access, IP telephony and conferencing abilities in the institute and hostels

►

The technological infrastructure is used to connect alumni with the institute on an ongoing basis

BITSConnect

The private sector too has tapped the opportunity to provide knowledge infrastructure and leverage ICT for expanding capacity

Sources: Company websites

42

ICT: Current state


ICT: Key challenges

Lack o

f peo

ple an

d

tech

nolog

y rea

dines

s Linguistic

barriers to

dissemination of

knowledge

Implementation challenges which have

contributed to the ineffectiveness of previous initiatives

Challenges

Key challenges affecting utilisation of ICT in Indian higher education


Penetration of computers and internet, especially in rural areas is extremely poor

►

With majority of Indians living in rural areas, poor computer and internet penetration point towards the need to:►

Expose and train students in basic computing skills►

Train students in navigating websites and learning management systems to understand e-content

Disparities in PC ownership across IndiaNumber of computers per 100 (2008)

72%

Percentage of Indians living in

rural areas

1%

Percentage of rural population using

internet

Number of internet users per hundred inhabitants

Fixed broadband penetration is very low at 0.3%

Low technology and people readiness is a major challenge India faces in realising ICT’s promise in higher education

A

Moreover, our survey has revealed that a majority of Government institutions do not have IT systems

Percentage of government institutes with ERP systems (2009)

A survey of accredited colleges by UGC in 2008 revealed glaring IT infrastructure shortcomings

6

229

22%

Penetration of ICT systems in higher education institutions is extremely poorB

India faces the challenges of low technology and people readiness in order to realise the potential of ICT

80.23 78.76

16.12 13.335.61 3.18

UK US Brazil Russia China India

21% 21%16%

4%

Top 4 metros Next 4 metros 0.5 - 1 Mpopulation

towns

<0.5 Mpopulation

towns

63 65

1913 15

7 3

80 74

34 3224 22

7

UK US Brazil Russia Global China India

2004 2008

Rural Urban Using internetNot using internet

Average Number of computers per college

Computers per student With ERP Without ERP

Sources: International Telecommunication Union; The Internet and Mobile Association of India (IAMAI) report “Vernacular Content Market in India,”; UGC: Higher Education in India 2008

44

ICT: Key challenges


India’s linguistic diversity necessitates the development of content in multiple languages

►

Preference for local languages in small towns and rural areas underscores the need to develop content in multiple languages. However, there are many challenges in development of local language content as listed below:

17%

Out of 368 million literate rural Indians, only 17% can speak English

There is heavy usage of local language internet applications in small towns

Absence of standardisation►

Local language computing continues to reel under absence of script-level and font level standardisation.

►

This limits scalability and flexibility of various initiatives.

Lack of hardware►

Although content and applications in the vernacular languages have increased, their dissemination is low due to absence of supporting hardware.

►

In a multi-lingual country like India, this standardisation becomes even more difficult.

Key challenges

Percentage of small town users using applications in local languages

There are linguistic barriers that need to be overcome to increase the penetration of ICT as well

0%

10%

20%

30%

40%

50%

60%

Email News ChatSpeak English Do not speak English

Sources: The Internet and Mobile Association of India (IAMAI) report “Vernacular Content Market in India,”

45

ICT: Key challenges


Frequency of listening to IGNOU hour on Gyan Vani, 2008

Reasons for not listening to the IGNOU hour on Gyan Vani, 2008 Problems with IGNOU website, 2008

Frequency of watching UGC CWCR programs in Tamil Nadu, 05-06

Although, India is now also embarking upon ambitious internet based initiatives, past experience highlights the need of an effective media strategy to realise

anticipated potential.

Some of the previous ICT initiatives launched by IGNOU and UGC have had limited success…

►

The following are considered to be some of the major problems with UGC CWCR:►

Absence of coordination and improper governance ►

Insufficient increase in staff in comparison to the increase in hours of transmission ►

Lack of staff expertise (for e.g. - Directors of Media Centers are chosen by Universities from among their professors, although most of them do not have exposure to dynamics of media content production)

…which has been due to many reasons including poor quality, administration and co-ordination

The past initiatives have also been affected by various implementation pitfalls that may impede the successful roll-out of the recent ICT initiatives

14%

45%

41% Regularly

Sometimes

Never

Among those who watched, majority did not

watch it for more than once a week

14.61%

85.39%

Watch

Do not watch

46%

14% 15% 15%10%

Do not havetime

Noinformation

of schedule

Do not haveradio

Notinterested

Programsboring

49%

28%

10%

3%10%

Website is slow

Not updated

Links do not open

Pages not available

Server remains down

Sources: IGNOU ODL Assessment learning 2008; International Journal of Education and Development using ICT (IDEJICT) 2006, Vol2, Issue 4 : “Pattern of usage of electronic media by higher education students in Tamil Nadu,”; Center for Global Communications Studies, University of Pennsylvania, “From Countrywide Classroom to Virtual Classroom: the analysis of UGC experience of using television for higher education,”

46

ICT: Key challenges


►

The idea of Finnish Virtual University (FVU) was mooted by Finnish Universities in 1998 after they felt a need for a platform for collaboration in teaching and research. This led to creation of FVU as a partnership between all Finnish universities in 2001. It has expanded the reach of higher education by providing online education and administrative services. It has also enabled facilitation of virtual mobility of students among institutions.

►

FVU is governed by a consortium assembly with a representative each from its member university and the Ministry of Education and is completely funded by the national government. It has enhanced online teaching and learning through innovative practices such as:►

Student mobility: FVU has launched a comprehensive portal providing online information and counseling services and self assessment tools

►

E quality assurance: FVU has prepared an online evaluation tool which measures usability and quality of online courses►

Standardised content development: FVU has launched an interactive guide for developing online courses to enable development of quality content

►

Teacher Training: FVU promotes development of pedagogical training and has launched an online tool for assessing staff ICT skills.

►

Collaborative networks: There are many networks of academic disciplines which provide intra and inter discipline connectivity and collaboration (e.g. Mathematical Modeling Network)

►

FVU has been able to create a platform for collaboration to offer wider regional access to higher education with more efficient use of special facilities around the country. It has also enabled creation of a dynamic network of university students and members.

Multi university partnership for integration of ICT in Finnish Virtual University

EdNA – A collaborative platform for education and teaching community

►

Education Network Australia (EdNA) is the national initiative taken up by Australia to enhance collaboration among the education and training community. EdNA online is the virtual network of different learning environments and provides a gateway to key educational resources and services.

►

It uses three models for service delivery:►

Retail: It acts as a one stop shop for education resources ►

Aggregator: EdNA online acts as a metadata repository providing information about online resources on education. ►

Wholesale: Under this model, EdNA shares its metadata records with other related portals. ►

It has been recognised internationally as an innovative initiative which has shown benefits of community of networks approach and has emerged as a trusted resource base for higher education community in Australia.

ICT: Best practices

ICT has been successfully employed by various countries to achieve increased collaboration while enabling greater access

Sources: Reviewing (Traces of) European Virtual Campuses Re Vica Website, “Finnish Virtual University”; Paper for Polish E-Learning Conference, “E-Learning – Key Australian initiatives," 2003


►

South Korea has been an Asian leader in adoption of information and communication technology in various aspects of business and education. It has used a well rounded policy of development of ICT infrastructure and applications for higher education. As early as 1987, it passed the “Framework Act on Informatization Promotion” which led to the creation of National Information Society Agency (NIA) to oversee construction of high speed networks. NIA later established the Korea Information Infrastructure (KII) initiative in 1994 to construct a nationwide optical fiber network. This was followed by key five year programs to continue modernisation of Korean national network.

►

The government also promoted the use of internet (through South Korean agency for Digital Opportunity – KADO) while ensuring internet security (through Korea Information Security Agency – KISA and Korea Internet Safety Commission – NIDA). By 1996, Korea had its comprehensive educational information service known as “EDUNET”. In 1999, Korea also saw the formation of Korea Education & Research Information Service (KERIS), a body to oversee technology initiatives in Korean education.

►

In 2002, Korea began focusing on promotion of e-learning in higher education institutions. The first step involved setting up of establishing university e-learning support centers along with an administrative support system. In the same year, KERIS launched National Education Resource Sharing System and National Digital Library Support System. By 2003, Korea formalised a plan to digitalise information in educational environments. This phase saw training of teachers, setting up of an administrative education system (ERP) and support centers for distance education. It also witnessed 100% connectivity of Korean Higher Education Institutions with Research Information Service System (RISS).

►

In an evaluation of impact of ICT usage in University operations conducted in 2007, a majority of the respondents were satisfied with its applications in management & administration, pedagogy and educational achievement.

Overarching policy for development of ICT infrastructure and applications in South Korea

Phased implementation of ICT strategy in vocational education in Australia

►

Split into three stages, Australian Flexible Learning Framework was launched in 2000 to utilise benefits of e-learning in Vocational Education. The framework is overseen by the Flexible Learning Advisory Group (FLAG), an advisory group consisting of senior government officials. FLAG also overlooks policy development in Adult and Community Education (ACE).

►

The First stage (2000-04) focused on capacity building (technology infrastructure and online content) by providing an enabling policy environment. The second stage (2005-07) focused on client engagement by strengthening their roles in shaping VET provisions and making them more market relevant. This phase also witnessed creation of VET learning object repositories and best practice knowledge sharing services. Third stage (2008-11) is focusing on integration of initiatives to enable embedding of e-learning among various stakeholders. It will develop processes for development of materials in areas with skill shortage while further strengthening the repository network. It will also develop mechanism for closer engagement of learners and industry.

►

The framework has led to creation of a national network for accessing e-learning resources enabling greater access to professional development opportunities and uptake of flexible learning.

Sources: Website of Korea Education & Research Information Service; The Information Technology & Innovation Foundation; “Korea’s e-learning experience in the Higher Education Sector,” PPT Ministry of Education & Human Resource Development, Korea; Australian Flexible Learning Framework Strategy 2000- 2004, 2005-2007 and 2008-2011, “Home Page,” Australian Flexible Learning Framework website

Successful implementation of ICT initiatives has been supported globally by country specific policy formulation and phased implementation

48

ICT: Best practices


Recommendations for innovative use of ICT

Support development of high quality digital content

►

Promote development of digital content by providing incentives for creation of the same by institutes of repute both in the private and the public sectors.

►

Simultaneously develop a mechanism for quality assurance of digital content through creation of a mechanism of rating of content by peers/students before its release to HEIs and universities

►

Establish dedicated cell to support translation of content into local languages. ►

All content so created should be made freely available to HEIs through the internet

1

Encourage adoption of IT systems

►

There are multiple IT Systems/ERP packages aimed at the higher education segment. A committee should be set up to review these and select certain packages which can be customised to the Indian context. These should be made available to recognised HEIs free of cost, giving HEIs the freedom to choose the most suitable package and relevant modules.

►

Usage of IT systems for key activities should be promoted through it being made a key parameter in accreditation/quality ratings

3

Promote development of collaborative networks

►

The Government is proposing the creation of a high speed knowledge network providing connectivity across education institutes. The same should be created at the earliest and connectivity should be provided to all recognised institutes

►

To supplement the current networking initiatives being undertaken, Intra and Inter- Disciplinary networks to enhance research collaboration between students and teachers should be promoted. This can also be supplemented by creation of online communities of practice

4

Creation of a common centralised repository for e-journals, digitised PhD thesis, research papers, e-books etc,

►

A common repository of digitised content should be created. Existing non-copyrighted content should be digitised and uploaded into the repository. Going, forward, research papers and PhD thesis should be sought in digitised formats only.

►

Access to this repository should be provided to all recognised HEIs at a nominal cost

5

ICT: Recommendations

Promote ICT usage in classroom

►

Develop a scheme for installation of IT infrastructure such as computers, LCD displays in HEIs through a PPP model, similar to schemes in vogue in the K-12 segment

►

A series of courses should be launched on training faculty in usage of ICT in regular teaching

►

Faculty usage of ICT in their pedagogy should be monitored as a key performance indicator

2


4. Reinvigorating research

Current state

Key challenges

Best practices

Recommendations

National R&D Expenditure (2005-06)

►

In 2005-06, research at higher education institutes accounted for a mere 4% of the total national R&D expenditure

National R&D expenditure spent by Higher Education Institutions

►

The R&D Expenditure spent on higher education in India is amongst the lowest vis-à-vis its global peer group

Overall National Research & Development Expenditure

Share of Total Global R&D Spending (2008)R&D Spending as a percentage of GDP (2006 )

►

India spends approximately 1% of its GDP on R&D, compared to 2.47% by the US and 3.4% by Japan

►

India’s share has of the total Global R&D spending is just 3.7%, a percentage which has remained constant from 2005 till 2008

►

In contrast China’s share increased from 13.5% to almost 18%

Contribution to Research & Development Expenditure by Higher Education

The Indian higher education segment contributes marginally to the national R&D expenditure, which itself is low by international standards

Research: Current state

1.03

1.61

2.47

3.4

India China U.S Japan

30.1%

17.9%12.4%

3.7%

23.9%

11.9%

U.S. China Japan India Europe Rest of the World

57%

5%

26%

8% 4%

Central Government Public Sector Industry Private Sector

State Government Higher Education

4.410.1

13.916.8

34.9

India China Japan United States Canada

Sources: Battelle and R&D Magazine: Global R&D Report 2008; Pawan Agarwal: Indian Higher Education, Envisioning the Future 2009; DST: Research & Development Statistics at a Glance 2007-08


Research manpower qualification* (2005)Percentage distribution of research manpower

►

India has approximately 130,000 researchers, a tenth of the number of researchers in the United States of America and a seventh of the number of researchers in China

►

When viewed in comparison to the population of the country, India just has about 100 researchers per million people. This is 2% of the number of researchers per million people that most developed countries have

►

The academic sector in India contributes about 14% of the total research manpower of the country

►

A comparative large part of the research base in India either is housed in scientific agencies (31%) or in the private sector (31%)

►

Only 18% of India’s researchers, only18% are Ph Ds, an indication of their poor quality

►

Almost half of the researchers are either graduates or diploma holders

India has a low base of researchers and the academic sector contributes less than a seventh of the total number of researchers


18%

38%

30%

14%

PhDs Post GraduatesGraduates Diplomas and Others

0.14

0.31

0.060.12

0.31

0.06

Academic sector Major scientific agencies Central Government Ministries/Departments

State Governments

Industrial Private Sector Industrial Public Sector

Sources: UNESCO: Institute of Statistics 2007; DST: Research & Development Statistics at a Glance 2007-08; UGC: Annual Report 2004-05 * The educational qualification of personnel engaged in R&D in 2005 is available for 116,175 personnel out of a total of 154,827.

Number of researchers

0

500000

1000000

1500000

0

2000

4000

6000

USA China Japan Russia Germany France UK Korea India Canada

Per Million PeopleNumber


►

The number of institutions participating in research in India increased from 1,734 in 1985-86 to 3,443 in 2001-02 yet less than 10% contributed almost 80% of the publications and only 24 institutions published more than 300 papers

►

In the last ten years, seven IIT’s and IISc have published twice the number of papers with more than thrice the impact as compared to almost 60 select Universities/Institutions

Research performance of selected Universities/Institutes (1999-08)

Research papers in India are mostly published by a few elite institutions

►

India published about 180,000 research papers from 1994 to 2004, one fifteenth of the number of research papers published by the USA

►

On an overall basis, India’s rank was 13th in the world in terms of the number of research papers published

►

The number of times a research paper is cited is indicative of its quality. India’s research papers were cited at an average of 3.2 times, indicating poor quality.

►

India’s rank was 119th out of 149 countries in terms of number of citations

In terms of research papers, India lags behind in terms of both number and quality


2,698,434

722,512 666,104 604,397 488,585320,607 282,027 271,032 180,783 98,747

US Japan Germany UK France Italy Russia China India Brazil

12.3

7.39.2

10.58.9 8.5

3.1 2.9 3.24.4

Institution Number of Institutions

Publications Citations Citations per paper

IITs 7 38,134 94,428 2.47

IISc 1 12,951 40,438 3.12

Universities 13 15,100 29,402 1.94

Engineering 20 6,413 8,823 1.37

NITs/RECs 20 5,336 5,732 1.07

IIITs 6 791 637 0.8

Sources: UGC: Research Handbook 2005; Current Science Vol. 97: Ranking of Indian engineering and technological institutes for their research performance during 1999–2008 August 2009

Number of research papers (1994-04)

Citations per research paper (1994-04)

US Japan Germany UK France Italy Russia China India Brazil


Number of Patent Applications by the Top 10 Indian Institutes from 1999-02

Growth in Patent Application in the Higher Education Institutions of India

Number of Patents Received by the Top 10 Institutes in the US in 2002

►

Patent filing is still done only by a few education institutes

►

While the number of patents being filed by Indian institutes is increasing, the pace is slower than that of other Asian countries

Growth in Patent Application in Higher Education Institutions (1995-98 to 1999-02)

Number of institutions engaged in patent filing in India

University of California 431

Massachusetts Institute of Technology 135

California Institute of Technology 109

Stanford University 104

University of Texas 93

Johns Hopkins University 81

University of Wisconsin 81

State University of New York 55

Pennsylvania State University 50

Michigan State University 49

►

The top 10 Indian Patent Filing Institutes filed 236 patents in the three years from 1999 to 2002, amounting to an average of 79 patents a year

►

This is substantially lesser than the patent filings by leading international higher education institutes and a fifth of the total patents filed by just the University of California

Patent filing in India is limited to a few institutes, and is significantly lesser than that of leading international players

IITs Kharagpur and Guwahati 75

IISc, Bangalore 40

IITs Delhi, Kanpur and Roorkee 31

University of Delhi 29

IIT Bombay 22

IIT Madras 14

AIIMS 14

Goa University 4

Mahatma Gandhi University 4

Jawaharlal Nehru University 3

9

2925

1995 2000 2002

3036 33 3332

42

63

46

1999 2000 2001 2002

Univeristy and Others IIT & IISC

20% 19%

36%

65%

37%

India Singapore Korea Japan China

Sources: Arijit Chatterjee: Need for more academic R&D in India; P. Ganguli: Industry-Academic Interaction in Technology Transfer and IPR 2005; USPTO: Annual Report 2002

55



Docto

ral s

tudie

s

gene

ratin

g lim

ited

attra

ctive

ness

and

plagu

ed by

poor

quali

ty

Shortage of

qualified faculty

to conduct

research and

mentor

researchers

Lack of f

inancia

l

and in

frastr

uctura

l

support

for

rese

arch

Poor linkages of

education institutes

with industry and

research bodies

Challenges

Key challenges affecting the quality of research in higher education

Research: Key challenges

Sources:


►

The falling interest in Ph Ds has also manifested itself in a reduction in the number of research scholars registered in India, which has fallen by 18% from 2000-01 to 2005-06

►

A comparison between the growth of Ph Ds in India and China, reveals that India has not kept pace with China,

►

China which had approximately half the number of PhDs that India had in Science in 1995, had taken a lead over India by 2004. The number of Engineering Ph D degrees awarded in India was a tenth of the number awarded in China in 2004

Less than 1% of the total students enrolled in higher education are pursuing Ph D’s

The number of students pursuing Ph D in ratio to the total student population in higher education has been declining

Number of Research Scholars

►

A variety of problems are leading to the questionable quality of PhDs:►

Different measures of quality control for award of PhD lead to wide variations in time of award of the degree. At some universities, PhDs are awarded within 18 months while at others it takes almost 3-5 years to complete.

►

In absence of any entrance test, there is indiscriminate admission of candidates to PhD without adequate evaluation of their research aptitude.

►

There is a lack of quality guides for research while those guiding doctoral research have little idea about work plans. This further leads to poor quality of PhD theses which include repetitive and imitative research.

►

There is rampant anecdotal evidence of plagiarism. During an inquiry into the status of higher education in Bihar, the Verma Committee found that a single thesis was used by as many as eight students for their PhD.

The number of doctoral students has not kept pace with the overall growth of students in higher education and the overall quality of doctoral studies in many institutes is questionable

Student enrollment at various levels of study

88.91%

9.42%0.64% 1.03%

Graduate Post-Graduate Research Diploma

PhD enrollment as a percentage of total enrollment

0.9

0.7 0.70.6

0.5

1980-81 1985-86 1990-91 1995-96 2000-01

Number of PhDs

0

10000

20000

1995 2004 1995 2004

India China

Science Engineering Others

45,004

36,519

2000-01 2005-06

PHD's/DSC's

Sources: UGC: Annual Report 2005-06; UGC: Higher Education in India 2008; NKC: Report to the nation 2006-09; Pawan Agarwal: Indian Higher Education, Envisioning the Future 2009

CAGR ~ -4%

57



There are large number of vacancies in faculty positions across universities and colleges

The shortage of faculty is giving faculty lesser time to focus on research

“... teacher survey reflects their attitude towards teaching and research. A total of 68 per cent of the teachers complain that it is difficult for them to manage research along with their heavy teaching schedule. About half of the teachers therefore abstain from any form of research along with their teaching. Teachers have very poor exposure to scientific meetings and international conferences. Sharing ideas and information with others who are working in the same or related areas are minimal in the campuses. Teachers expressed their willingness to pursue research if adequate facilities and support for infrastructure are provided in the institution. However, contrary to their complaints on infrastructure facilities only 16 per cent found that it is difficult to get adequate research support from public or private agencies. Teaching and research are not treated separately and no career advancements are provided to the faculty member who has a proven track record in research” (Varghese, 2008: 208)

A large section of the faculty in colleges and universities has not completed their PhD

A survey conducted by UGC shows that a quarter of the faculty in Indian higher education institutions spends less than 5 hours per week on research. In fact, just 5% of the faculty spends more than 20 hours per week on research

Large vacant faculty positions and poorly qualified faculty also dilute the quality of research done at higher education institutes

Percentage of Faculty without PhD/M.Phil (2008)Percentage of faculty positions vacant 2007-08 (as per sample survey conducted by UGC

NA

45%51% 53%

18%

41%

Professor Reader Lecturer

University College

24%

57%


Hours per week spent on research

0%

50%

100%

Professors Readers Lecturers

<5 5-10 10-15 15-20 20-25 25-40

Sources: UGC: Higher Education in India 2008; NKC: Report to the nation 2006-2009

Without PhD/M.Phil

Without PhD

58



►

Indian Council of Medical Research (ICMR) in 2007-08 gave extramural support worth INR 483.41 million

►

However, education institutes were allocated just 11% of this amount

►

DST under the SERC (Science and Engineering Research Council) R&D programme in 2007-08 sanctioned 495 Science and Engineering R&D projects at a total cost of INR 1,318.87 million

►

IITs and IISc got 20% of the funding, while other universities and colleges had a 45% share

►

The total extramural grants for research projects amounted to INR 11.63 billion in 2006-07, with the Department of Science and Technology providing almost 50% of this funding

Harvard University expenditure on research (2008)

Total extramural support for R&D Projects in India

UGC Grants for Research

Amount in INR Billion

As a percentage of Harvard’s expenditure

256.50

11.68 5%

1.27 0.5%

However this funding for R&D is very low compared to international standards

Extramural support given by major bodies in India to the higher education institutes is insignificant compared to funding received by other leading institutes abroad

Extramural Support for R&D Projects

0

300

600

900

DSTMCIT

DBTIC

MRDRDO

CSIRMOEF

DAEUGC

AICTE

Other

s

ICMR Extramural Support for R&D (2007-08)

11%

19%

4%60%

6%

Universities Medical colleges HospitalsResearch Institutes Others

Sources: DST: Research & Development Statistics at a Glance 2007-08; DST Annual Report 2007-08; ICMR: Annual Report 2007-08; UGC: Higher Education in India 2008

SERC programme funding (DST) 2007-08

59



►

There exists a complete disconnect between the higher education system and the Government funded research and development laboratory system, which is referred to as the ‘two-box disease’.

►

Post independence, India invested significantly in upgrading its research infrastructure. However, this was done through creating multiple independent institutes and organisations such as the Tata Institute of Fundamental Research, Defense Research and Development Organisation, the Institute for Plasma Research, the Centre for Advanced Technology, the Institute for Mathematical Sciences etc..

►

These institutes were highly funded and set up as ‘islands of excellence’. The staff of these organisations have no obligation to teach at universities. The facilities and infrastructure of these institutes are not shared with higher education institutes. As such, there is no cross- pollination of ideas and practices between the research laboratories set up by the Indian Government and the Indian Higher Education System

►

In comparison, R&D centres internationally are co-located with major universities. The research staff engaged by these centres is actively involved in teaching post-graduate as well as under-graduate students

Level of R&D activity by various stakeholders in India (2006, estimated)

Stakeholders Basic Research Applied Research Product development Process development

Indian Government (R&D Labs)

Academic Institutions

Indian Companies

Foreign Companies

Low Medium High

►

There is a lack of an enabling environment for the corporate sector to work with the academic sector on joint research/commercialisation, largely due to the following factors:►

Absence of a clear IPR regime governing the ownership of intellectual property created through government funded projects

►

Limited incentives for academic institutions/academicians to partner with corporate bodies and vice-versa

►

Lack of laid down structured processes and systems for academic institutions to partner with corporate bodies, leading to an ad-hoc approach and poor visibility into outcomes

Government – Academic collaboration The two-box disease

The Government R&D laboratories as well as academic institutions in India, focus significantly on basic and applied research, the corporate sector focuses on product and process development related R&D

While there are significant synergies for both the Government and the corporate sector to partner with academic institutions to enhance research, the same has not come about

Industry – Academic collaboration The absence of enablers

Lack of industry linkage and conducting research in isolation with public sector R&D centers has severely hampered the quality of research in Indian Institutions

Sources: Swedish Institute for Growth Policy Studies; Working Paper India’s emergence as a Global R&D hub; The Hindu, “Fusion to improve higher education,” October 19, 2005;

60



Research: Survey results

… of which a larger proportion is spending time on research

Our survey indicates that Public institutions have a better qualified faculty…

While patent filing is low across both public and private institutions, the performance of public institutions is relatively better than that of private institutions

In terms of research papers, public institutes have a better track record, however private institutes are not far behind

Obtaining research grants, developing Industry partnerships and quality of human resources are the key challenges faced by Indian higher education system in improving the quality of research

Our survey indicates better performance of public institutions in research related parameters, however private institutions are not far behind

Ph D qualified faculty as a proportion of total faculty

21%8%

48%

17%

31%

75%

Private Public

<10% 10-40% >40%

Proportion of faculty involved in research

61%33%

24%

11%

15%

56%

Private Public

<40% 40-80% >80%

Number of papers filed in the past three years

46%20%

22%

13%

24%

53%

8% 13%

Private Public

<30 30-100 100-500 >500

Patents filed in the last three years

85%67%

15%

17%

17%

Private Public

<10 10-50 >50

More than half the higher education institutes surveyed, said that obtaining research grants is the biggest challenge they face as they seek to improve the quality of research

Key challenges to improving research quality

60%

20%16%

4%

Obtaining research grants

Industry partnership/support

Quality of human resources

Others

Sources: EY FICCI Higher Education Survey 2009


Internationally, countries encourage research by acknowledging and rewarding the work done by researchers

►

According to the regulations of higher education in Jordan, a faculty member in a university is defined first as an instructor whose main job is to teach and whose work hours are teaching hours. In spite of that, job promotions in universities are entirely dependent upon research activity and record.

►

The academic ladder for the Ph.D. academic staff in Jordan consists of three ranks. Academic promotion leads to a considerable rise of salary. The income of people involved in research work (most of the research in the country is carried out mainly at the universities) is relatively good, compared with those with other careers in both the public and private sectors. All public universities have a (more or less) similar scale for salaries which mainly depends of the professional rank of the research staff (assistant professor/researcher, associate/professor). Research staff who work on large- scale projects and get involved in some administrative work usually get paid for such extra efforts.

HR practices to encourage research in Jordan

►

The National System of Researchers (SNI) was created in July 1984, with the aim of acknowledging and rewarding the work performed by researchers in the country, whether at public universities, public research centers, or some private universities having an agreement with the CONACYT.

►

The quality of work and the prestige of contributions made are recognised on the basis of an evaluation (currently performed every 3 or 4 years). SNI members are given monthly financial incentives ranging from $800 USD (Junior Research) to $1,300 USD (for Seniors).

►

The SNI classifies national researchers in accordance with their accomplishments in science and technology (the first requirement is that they must hold a doctorate) (CONACYT-SNI, 2006). This classification includes five categories: “Candidate” (Junior), Levels 1, 2, 3, and Emeritus. The table shows the evolution of the SNI and highlights the significant growth in the number of members it has over the last few years.

Regulating research in Mexico

Research: Best practices

No. of credit hours that faculty must teach

0

4

8

12

16

Lecturer Full Lecturer

Assistant Professor

Associate Professor

Full Professor

Salary levels (in Jordanian Dinar)

0

800

1600

Lecturer Full Lecturer

Assistant Professor

Associate Professor

Full Professor

Govt. Doctor

School Teacher

Army Officer

Members of the SNI (1984 - 2005)

0

5000

10000

15000

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2001

2002

2003

2004

2005

2000


China►

In the late 90’s, the Chinese Government undertook specific reforms to promote University-Industry collaboration through introduction of laws on technology development, transfer and commercialisation. Universities in China were given freedom to engage in profit seeking businesses. The number of scientific university run enterprises has over time increased to 2,000 which generate sales of almost RMB45.2 trillion. Importantly, around 40% of research conducted in the universities is funded by private companies.

South Korea►

The establishment of Industry University Cooperation Foundation (IUCF) significantly aided the increase in filing of patents and technology transfer by the universities. 19 Korean private universities reported almost 133 cases of technology transfer in 2003, a significant increase from 58 in 2001. This also led to an increase in income from technology transfer at these universities from SKW0.473 billion in 2001 to SKW1.913 billion in 2003.

Support from government : Strong tradition of support and sponsorship from government

Industry linkage : Prevalence of Industry sponsored PhDs

Computing facilities and library resources : World class library resources and computing facilities

Faculty : Presence of world renowned scholars willing to guide PhD students under their wings

Quality control : Plagiarism checks along with system of internal and external examiners

Seminar series : Access to regular high quality seminars.

Access to journal editors : Easy access to journal editors who also give comments on editing and improvement of quality.

Promoting Industry Collaboration in East Asia

Providing a conducive research environment in USA

►

USA is the world leader in research and the enabling environment for academic research is the country is what most countries endeavour to emulate. Research in the USA is strongly supported by the government and industry. Excellent infrastructure, renowned faculty and strong quality control systems further facilitate academic research.

Industry collaborations are promoted and high quality infrastructure and resources are provided to researchers

Sources: World Intellectual Property Organisation Report: Technology Transfer, Intellectual Property and Effective University-Industry Partnerships; Cornell University ILR School Working Paper: Doctoral Education and Academic Research (in India) 2006;

63

Research: Best practices


Recommendations on reinvigorating research

Rewarding Research

►

Include research as a key criteria for faculty promotion and compensation, setting easily measurable targets such as publications in high quality journals. Provide fast track growth to the most promising researchers in government universities

►

Create ‘research awards’, which selects leading researchers amongst the faculty of both public and private sector education institutions through a fair and transparent process. These researchers should be provided with significant financial assistance to take their research forward.

1

Increase collaboration between Universities and Government R&D Labs

►

Examine possibility of relocating R&D institutes to university campuses, while ensuring all further infrastructure expansion in Government R&D institutes is done at university campuses.

►

Create mechanisms to enable scientists in Government R&D labs to take up teaching assignments in partner universities

►

Encourage joint research programmes between Government R&D labs and universities

3

Creating an environment to facilitate academic research

►

Allow reduced teaching hours for faculty keen to pursue research in Government universities.

►

Invest in creating a strong ICT backbone linking all Indian universities and providing a large digital repository of journals and publications to researchers across a range of institutes. Facilitate the creation of virtual research communities

►

Allow researchers greater access to government research infrastructure►

Increase budgetary support for conduct of and participation in seminars

4

Increasing the number and quality of doctoral students

►

Support introduction of integrated programs covering masters and doctoral studies ►

Facilitate the launch of joint Ph D’s in collaboration with industry►

Increase research fellowship amounts and supplement them with teaching assistance allowances to increase the financial feasibility of pursuing Ph D. Provide liberal scholarships for doctoral students

►

Create transparent and objective screening mechanisms to select doctoral students, with an aim to set common national level standards

►

Create an electronic database for submission of theses and dissertations, with in-built plagiarism checks

5

Facilitate industry- academia collaboration

►

Create a conducive environment for industry academia partnerships, by providing fiscal incentives, laying down model processes and encouraging institutes to reach out to industry through a system of incentives and disincentives

►

Enact the pending legislation which allows institutions to monetise IPR created from government funded research

2

Research: Recommendations

Increase research grants►

Make a quantum increase in research grants►

Award research grants through a transparent process, allowing both private and public universities to compete for these grants

6


5. Thrust to vocational education and training

Current state

Key challenges

Best practices

Recommendations

The Ministry of Labour & Employment and the Ministry of Human Resource Development are the key regulatory bodies governing vocational education and training in India

Vocational education and training: Current state

Sources: The World Bank: Skill Development in India 2008; XIth Five Year Plan.

66

NCVT ►

Advises the central government on vocational training and conducts the All India Trades Test (a test for which students are eligible after completing craft courses)

MHRD►

Define policy and regulate vocational education at secondary schools ►

Regulates apprenticeship training through four Boards of Apprenticeship Training (BATs)►

Operates Polytechnics and Community Polytechnics (CPs)

AICVE/SCVE►

AICVE and SCVE are responsible for planning, guiding and coordinating vocational education at secondary schools at the national and state level respectively

State Government ►

Operates and funds Industrial Training Institutes (ITI’s)

SCVT ►

Assists the NCVT to administer the All India Trades Test and advices the state government on training policy and coordinates vocational training at the state level

Regulatory bodies for vocational education and training

Ministry of Labour & Employment (MoLE)

Directorate General of Employment and

Training (DGET)

National Council for Vocational Training

(NCVT)

Ministry of Human Resource Development (MHRD)

State government

State Council for Vocational Training

(SCVT)

All India Council for Vocational

Education (AICVE)

State Councils for Vocational

Education (SCVE)

Central government

DGET

►

Regulates ITIs and ITCs under the Craftsmen Training Scheme (CTS) and also administers six Advance Training Institutes (ATIs)

►

Regulates apprenticeship training through a Central Apprenticeship Council (CAC) and six regional directorates

►

Formulates policies and lays down standards and technical requirements such as developing curricula, instructor training and skills testing

MoLE

►

Establishing and awarding National Trade Certificates (successful students of the All India Trades Test receive a National Trade Certificate)

►

Prescribing training standards, arranging trade tests and developing standards for National Trade Certificates; and

►

Recognizing training institutions for the purpose of issuing National Trade Certificates and laying down conditions for such recognition.


Vocational Education and Training

Public Private

Secondary School

ITI

Apprentices- hips

Others

ITC

Private training institutes

►

Vocational education at the secondary school level is provided under the Vocational Education Program (VEP)

►

The VEP was started in 1976-77 under the program of Vocationalisation of Higher Secondary Education in general education institutions run by the MHRD

►

Industrial Training Institutes (ITI) are financed and managed by state labor ministries and offer basic skill development programmes such as plumbing, welding, masonry etc.

►

Apprenticeship training is regulated under the Statutory Apprenticeship Training Scheme (SATS) and is administered by MHRD and DGET

►

MHRD administers through four Boards of Apprenticeship Training (BATs)

►

DGET administers through a Central Apprenticeship Council (CAC) and six Regional Directorates

►

ITCs (Industrial Training Centres) are privately financed and managed, and administer programmes under the government’s Craftsmen Training Scheme (CTS)

►

The private VET market is in India is estimated at USD 2 billion. It is focused towards services training in growing industry segments such as BFSI, retail, hospitality, aviation

►

Key players in this segment include NIIT, Frankfinn, Aptech, ICoFP, Whistling Woods

►

There are six Advance Training Institutes (ATI) run by the Central Government which provide training in advanced skills

►

Community polytechnics, Jan Shikshan Sansthan (JSS) and National Institute of Open Schooling are the major initiatives for training in the informal sector run by the MHRD

Traditionally, VET in India has been provided under the public sector, but the private sector is increasingly growing in prominence, especially for services related training

►

The PPP model has been adopted to improve the management and infrastructure of ITIs through a coordinated effort between FICCI, IL&FS, Central and State Governments

PPP

Polytechnics►

Polytechnics are run under the MHRD offering diploma courses

Sources: The World Bank: Skill Development in India 2008; NKC: Report to the Nation 2006-2009; ILO: Industrial Training Institutes of India 2003

67



►

In the last decade, vocational education has seen a dramatic growth in supply although the segment suffers from severe under utilisation of capacity

►

The number of ITI’s/ITC’s have seen substantial growth however ITC’s have grown at a faster pace than ITI’s

►

ITC’s have grown at faster rate as compared to ITI’s

►

ITC’s now cater to a larger group of people and a greater number of ITCs have come into existence which can be attributed to their private management and preference as a vocational training platform by students.

►

Number of schools offering vocational courses have increased dramatically in the last decade

►

However enrollment in vocational courses has increased at a much slower pace

►

Out of a total capacity of 846, 100 only 47% of the capacity is utilised

►

The number of ITIs/ ITCs grew at a significant rate from 1,080 in 1982 to 6,906 in 2009

►

The total capacity of the 6,906 institutes stood at 953,884 with ITIs having more than double the capacity of ITCs per institute

►

According to a FICCI survey (2006) 51% of ITI/ITC are under utilising their capacity

Despite a focused program and significant increase in schools, ITIs, and ITCs offering vocational courses, enrolment remains low with capacity largely underutilised

(00s)

685

9,583

1999-00 2008-09

126,359

400,000

1999-00 2008-09

846,100

400,000

Total Capacity Capacity Utilisation

1,080

6,906

1982 2009

1883 1997

3185

4,909

3,952 4,0823,359

5,457

2005 2009 2005 2009

ITI ITCNumber Capacity

51%

24% 25%

Underutilisation

Fullutilisation

Overutilisation

Sources: The World Bank: Skill Development in India 2008; www.indiastat.com; NKC: Report to the Nation 2006-2009; ILO: Industrial Training Institutes of India 2003, MoLE: Annual Report 2008-09

Vocational Education in Secondary Schools

Industrial Training Institutes/Industrial Training Centers

68



►

The Statutory Apprenticeship Training Scheme (SATS), administered by MHRD and DGET, has witnessed a steady increase in capacity although the utilisation has decreased from 72% in 2001 to 64% in 2008

(58%)(23%)

(41%)

Total Capacity for Graduate, Technician and Technician (Vocational) Scheme (2008)

(72%)

►

There are four types of apprentices, with the MHRD being responsible for three namely Graduate, Technician and Technician (Vocational) Apprentices; DGET is responsible for the fourth type namely Trade Apprentices

Total capacity under SATS

(64%)

(75%)(72%)

Number of public/private sector establishments covered under SATS

►

Increase in capacity over the years has been met with lower utilisation ►

Number of establishments under SATS have seen a steady increase

►

The Trade apprentices scheme has the largest capacity and utilisation however the other schemes suffer from low capacity and utilisation, especially the Technician scheme

A similar trend of underutilisation coupled with increasing capacity is observed for apprenticeship, except for the trade apprentices scheme

►

The number and capacity of polytechnics have seen a marginal increase from 2001-02 to 2005-06

236,000265,000

Number and capacity of polytechnics

►

The number of polytechnics have seen a CAGR of 2.4% while capacity in polytechnics has increased at a CAGR of 3.9%

220,000 230,000

371,488

158,000 172,000237,087

2001 2006 2008

Total Capacity Capacity Utilised

17,80020,800

23,900

2001 2006 2008

26,334 28,194

42,219

15,2186,392

17,483

Graduate Technician Technician (Vocational)

Total Capacity Capacity Utilised

274,741

197,994

Trade Apprentices

1,203 1,292

2001-02 2005-06Number Capacity

Sources: The World Bank: Skill Development in India 2008, MoLE: Annual Report 2008-09; XIth Five Year Plan; Xth Five Year Plan

Apprenticeship Training

Polytechnics

69



Expenditure on vocationalisation of education is dominated by the state government

Vocational Education in Secondary SchoolsBudgeted expenditure on vocationalisation of secondary education increased significantly in 2008-09

Apprenticeship TrainingExpenditure on apprenticeship training has undergone discrete phases of increase

Industrial Training Institutes/Industrial Training CentersDGET plan expenditure has witnessed steady growth except for a major spike in the year 2007-08

►

Plan expenditure on Apprenticeship training has seen discrete phases of growth whereas non-plan has increased steadily over the last 5 years

►

2008-09 witnessed a significant increase in plan expenditure

►

The DGET plan budget is estimated for various training & employment related schemes which also include operations of ITIs and ITCs

►

A major one time increase in plan expenditure in 2007-08 was on the account of announcement of Scheme for “Upgradation of 1396 Government ITIs through Public Private Partnership”

There has been a steady growth in government expenditure on vocational education and training over the last 5 years

PolytechnicsExpenditure on polytechnics has grown at a rate of CAGR 359%

►

2009-10 saw a major increase in the MHRD budgeted expenditure on polytechnics due to a substantial increase in the assistance given to states for upgrading of existing/ setting up of new polytechnics from INR 90 Cr in 2008-09 to INR 400 Cr in 2009-10

MHRD plan expenditure on vocationalisation of education (INR million)

180 180200

333 333

2005-06 2006-07 2007-08 2008-09 2009-10

Expenditure on vocationalisation of education in 2002-03 (INR million)

148, 8%

1,694, 92%


Year-wise plan budget for DGET (INR million)

289 612 1,193

10,948

3,184

2004-05 2005-06 2006-07 2007-08 2008-09

MHRD expenditure on apprenticeship training (INR million)

203 203 203

360 360

130 134 162 186253

2005-06 2006-07 2007-08 2008-09 2009-10

Plan Non Plan

MHRD plan & non budgeted expenditure on polytechnics (INR million)

0 45 450990

4,450

2005-06 2006-07 2007-08 2008-09 2009-10

Sources: Union Budget: 2005-06, 2007-08, 2009-10; The World Bank: Skill Development in India 2008; MoLE: Annual Reports

70



Percentage distribution of type of jobs

Currently out of the total 455 million jobs in India

90% of jobs are skill based

Sector Additional employment 2008 to 2013 (in million) % requiring vocational training

Retail 2 to 4 90

Healthcare 3.5 to 4 20

Hospitality & Tourism 1.6 to 2 65-70

Food & Agro 2 65-70

Textile & Apparel 5 to 6 80-90

►

High growth in the services sector coupled with the need for high efficiency is expected to boost demand for enhanced technical/ soft skill training programmes

…of which 75% will require vocational training

Over the next 5 years approximately 75 to 80 million jobs will be created…

►

After class VIII approximately 20-21 million students drop-out

►

Out of the 5.5 million students that pass out of class X only 3.3 million go to class XI

►

80% of the graduates in general streams (BSc/ BA) are perceived to be unemployable as they lack specific skills

Drop-out rates across grades

►

In total about 22-23 million students drop out of class VIII and X and urgent attention is needed to provide training to this target group

While public VET centers remain unutilised, there clearly remains a skill gap and growing need for vocational training…

9.3% 1.0%

89.7%

Skill Based (Sales, Service, Production, Farmers and related workers)

Knowledge Based (Professional, Administrative, Clerical)

Knowledge + Skill Based (Architects, Engineers etc)

29

5062

1-5 6-8 9-12

Grade

Sources: Technopak: Case for setting up sector skill councils in India; ASERF: Status of education and vocational education in India

71



IT, BFSI and English training dominate the private sector market

Functional Training►

Finance & Accounts►

Sales training ►

Management training

Soft Skill Training►

Language training►

IT/ BPO finishing school

Operational Training►

IT►

BFSI►

Retail►

Aviation ►

Hospitality►

Media►

Others

►

Private sector vocational education is mainly focused on services training and is closely linked with the growth of the services sector

Market share

►

10th class pass (>14 years of age) is the minimum requirement, although the focus is largely on graduates and 12th class passouts

►

The target segment is mainly from Metros, Tier I and Tier II cities. Greater focus would be on SEC B and SEC C classes, although some lower income SEC A groups also contribute to the demandTa

rget

gro

up

►

NIIT: The company provides IT and BFSI training and has tie ups with more than 100 universities world wide

►

Frankfinn: The Institute has grown to over 100 centers in 95 cities across India and has tied-up with Edexcel, UK to award certifications in aviation, hospitality and travel management

►

IMS Pro School: The Institute offers short term programmes in finance and retail and has trained over 6,000 candidates in the financial planning and wealth management domain

►

British School of Language: BSL has trained 1.6 million students in English language, accent training, IELTS and personality development

Private VET providers have aligned offerings to successfully meet industry requirements

…leading to increasing participation by the private sector, as in the case of the higher education segment

The private vocational education market is expected to grow at a CAGR of 25% from USD 1.5 Billion in 2008 to USD 3.7 Billion in 2012

Private vocational education market (USD Billion)

1.51.9

2.3

2.9

3.7

2008 2009 2010 2011 2012

CAGR 25%

Market Segment Share

33%

20%

22%

15%

7% 3%

IT BFSI English Training Retail Aviation Others

Sources: EY: Vocational education in India

72



Poor p

erce

ption

of

voca

tiona

l edu

catio

n

and t

raini

ng vi

s-à-vi

s

mainstr

eam ed

ucat

ionPoor quality of

inputs leading to

weak structure of

the VET system

Low releva

nce of

training w

ith

resp

ect to

needs of

the in

dustry

Weak oversight

structure and

management of

public VET centres

Challenges

Vocational education and training: Key challenges

Key challenges affecting vocational education and training in India

Sources:


Poor Quality of Teachers

►

A survey of ITI teachers showed that 61% of teachers have less than 12 years of schooling and a third have no industry experience.

►

Of those with industry experience a significant majority have less than 2 years of experience. Also two-thirds of instructors had received no training in the last 5 years.

Lack of Funding

►

Due to limited funding, majority of funds are being spent on staff salaries, leading to low resource allocation for other items

►

Allocation for training material in ITIs is less than USD 1/student/month►

Teacher training and development, maintenance of buildings and equipments are also severely constrained

Percentage expenditure by ITI Percentage expenditure by ITC

Ineffective funding model

►

States do not follow a transparent funding method, once an institution begins to receive funding, subsequent finding is guaranteed irrespective of the institution’s performance

►

Same level of financing is received by poorly performing institutions as to those that maintain high quality

Inadequate Infrastructure

►

The central government has noted that facilities and infrastructure in most ITIs are inadequate with obsolete equipment in labs and workshops and poor maintenance

The VET system is bogged down by poor quality of inputs…

26%

5%0%3%

66%

Teaching/Learning MaterialsTeaching staff salariesNon-teaching staff salariesUtilitiesMaintenance

12%

17%

10%5%

56%

Teaching/Learning MaterialsTeaching staff salariesNon-teaching staff salariesUtilitiesMaintenance

Sources: Cygnus: Vocational Education Industry September 2008; The World Bank: Skill Development in India 2008

74



►

VET in India relies exclusively on a few training courses with long duration (2 to 3 years) covering around 100 skills.

►

In China, there exist about 4000 short duration courses providing more relevant skills for employment requirements.

72% of courses in India range from 6 months to more than one year

►

Curriculum at institutes imparting vocational training have little relevance for trainees. The skills being taught do not reflect the demand of the market

Limited Curriculum Relevance

►

Number of trades offered in ITI/ITC are not in tune with the needs of the market as they lead to oversupply of graduates in the specified trade and thus increase the risk of unemployment for graduates.

►

This is measured by the supply-demand ratio which indicates the number of graduates produced to the number of people employed in the trade in the organised sector. According to a World Bank report a reasonable ratio should be 0.1 and below however large number of trades offered have a ratio greater than 0.1

Some of the trades with high supply-demand ratio

►

A supply-demand ratio of 1 means that the number of graduates produced each year equal the number of people employed in the trade

…coupled with limited relevance of the current curriculum….

Enrollment in ITI/ITC by type of trade

►

Courses are in basic industrial trades and there is reluctance amongst state directorates and institutions to offer courses in more marketable service sector trades

►

ITIs/ITCs are imparting training in 57 engineering and 50 non-engineering trades. However only 20% of the total students are enrolled in non-engineering trades as compared to 87% students in trades other than engineering in private institutions

Enrollment in private institutions by type of trade

80%

20%

Engineering TradesNon-Engineering Trades

13%

36%

49%

2%

Engineering related tradesIT Related CoursesNon- Engineering tradesTourism and Travel

Percentage distribution of vocational courses by duration in India

17%29%

11%

43%

Less than 3 months 3 to 5 months6 months to 1 year More than 1 year

Trade State Supply Demand Ratio

Draughtsman (civil) Andhra Pradesh 1.1

Mechanic (Diesel) Andhra Pradesh 0.86

Fitter Orissa 0.77

Electrician Orissa 0.61

Welder Orissa 0.56

Electronic mechanic Orissa 0.49

Sources: Cygnus: Vocational Education Industry September 2008; The World Bank: Skill Development in India 2008; ILO: Industrial Training Institutes of India 2003 ITI Efficiency Report

75



Due to their poor image and quality the vocational stream at the school level fails to attract good students. A study reported that only 28% of the vocational stream pass-outs were employed while 38.3% opted for higher studies.

Status of students three years after graduation in percentage

Labor market outcomes for public VET are disappointing across the board. Even after three years 61% of ITI graduates remain unemployed but fair better than the other categories

►

A 2003 DGET study of graduates puts into doubt the market relevance for apprenticeship training. Although significant person of those studied were employed, around two-thirds of them were not employed in the trade in which they were trained and a third were trained in obsolete trades

►

There is also a lack of employer interest in apprenticeship training. Only 1,900 private establishment were registered under the apprenticeship scheme in 2001 compared to 16,000 other establishments registered for the same

Apprenticeship Training

Vocational education in Secondary Schools

Industrial Training Institutes

Poor labor market outcomes

Percentage of employers experiencing problems in finding skilled employees

A study found that employers were dissatisfied with graduates from ITIs and felt that ITIs produce graduates not needed by the industry.

Employer perception on VET graduates

…has led to poor labor market outcomes

Status 10th 12th ITI/ITC

Further Studies 51.10 70.03 17.27

Of those in the labor

marketEmployed 32.84 29.17 38.84

Unemployed 67.16 70.83 61.16

State Never Occasionally Frequently

Orissa 11.1 66.7 22.2

Andhra Pradesh 16.7 58.3 18

Maharashtra 43.8 43.8 12.4

Sources: The World Bank: Skill Development in India 2008; ILO: Industrial Training Institutes of India 2003

76



Governance at the system level

Governance at the institute level

►

The system is governed by the DGET, NCVT and SCVT►

At the national level, distinction between the DGET and NCVT is blurred and there is a perceived lack of coordination

►

At the state levels the SCVTs also seem to be unclear about their roles and their relationship with the national agencies

Diverse accountability and complex delivery of training

Duplication of courses in vocational education and training

►

There is an apparent lack of coordination between the responsible ministries namely MoLE responsible for vocational training and MHRD responsible for vocational education. This has resulted in duplication in skills imparted through programs offered under vocational education and training

Low autonomy in ITIs

►

The ITIs need greater operational autonomy to ensure more flexibility and responsiveness to the market demand for skills

►

Currently ITI management do not have the freedom to decide training programmes, hire and fire teaching and non-teaching staff, enrollments etc thus adversely affecting their quality

►

The main problem is the way ITIs are governed, ITIs are part of the government, teachers and trainers are civil servants and resources are part of the government budget thus creating an obstacle to improve performance

Multiplicity of bodies regulating vocational education has led to unclear and similar responsibilities, with public institutes suffering from low autonomy and absence of structured governance for the private sector

Absence of structured governance for the private sector

►

The Government has not adopted a structured approach towards recognising and developing the private VET sector

►

Despite the significant success of the private VET sector in meeting industry demands, piecemeal initiatives have been taken towards forging partnerships and adopting best practices at public VET centers. Interestingly, foreign governments seem to be recognising these competencies as is evidenced by the partnership between NIIT and ITIs in Malaysia to impart IT training

►

The process for obtaining accreditations and approvals has also proved cumbersome for most private VET providers

Governance for the private sector

Sources: Cygnus: Vocational Education Industry September 2008; The World Bank: Skill Development in India 2008; ILO: Industrial Training Institutes of India 2003; Technical and Vocational Education and Training in India – Ministry of Education New Zealand

77



Percentage share of VET in Secondary Education compares poorly to other countries

►

Due to the stark difference in outcomes, students in Grade 11 and Grade 12 typically want to proceed to further education rather than undertake vocational training

►

Diplomas awarded for vocational training courses are unable to match degrees awarded under the higher education system

►

As a result, only 8% of India’s labour force has undergone vocational training compared to 96% in Korea

Share of labor force receiving vocational training is extremely low in India which can be attributed to VET suffering from poor perception

►

The share of VET in secondary education enrolment in India is much lower as compared to other countries

►

Low underutilisation of VET capacity at the secondary school level is indicative of the clear preference for formal education over vocational training

►

Better quality of inputs as well as higher recognition and acceptability of mainstream education are cited as primary reasons for this perception divide

It is also widely regarded that Government resources have not been adequately channelised towards providing information about the availability and effectiveness of training programs

Vocational education and training in India suffers from a poor perception vis-à-vis mainstream higher education programs also the system is marred by low mobility between VET and mainstream education

There is little mobility between vocational and mainstream education

►

In India, the vocational and higher education sectors are almost completely segregated with little mobility from the vocational to the higher education sector. Thus students face barriers while transferring between the two sectors.

►

In many countries easy transfer from vocational to academic stream. In the US, community colleges award associate degrees, after which students can transfer to a university. In the UK, polytechnics were given university status.

Share of labor force receiving vocational training

8

9685 86 88

25

India Korea Japan Germany Canada Mexico

Percentage share of VET in Secondary Education

6055

40

31

3

Russia China Chile Korea India

Sources: The World Bank: Skill Development in India 2008; Netscribes: Vocational Training 2009, livemint.com: Vocation, not just education 2009

78



►

A major reform in Australia was the establishment of the Australian National Training Authority (ANTA) by the federal and state governments. The authority was established as a company, with the federal and state governments being equal shareholders with participation from the industry

►

ANTA made a conscious effort to maintain industry involvement by having a board of five industry representatives and through its mandate: ►

Developing a national TVET system with agreed objectives and priorities, assured funding, consistent national strategies and a network of providers delivering high quality programs at the state and local level;

►

Ensuring close interaction with industry and TVET providers so that the strategic plan reflects industry needs and priorities;

►

Developing effective training market with public and private provision of both high level, advanced technical training and further education opportunities for the workforce and community generally; and

►

Enhancing efficiency and productivity of publicly funded providers that could compete effectively in the training market►

In addition, the federal government combined the Ministries of Employment and Education ministries into the Department of Education, Employment and Training. The federal government took major initiatives in setting policy, keeping in mind its main role of a financier in education. Its actions eventually led to some states also to combine their education and labor ministries.

Australia’s reforms in setting up a national training body

Zambia granting autonomy to public training institutions

►

The Government of Zambia transitioned its role in VET from provider to financier, regulator, and coordinator by transferring control of 21 public training institutions to autonomous Management Boards and devolving greater responsibility to local authorities. It was an initiative aimed at increasing autonomy and inducing competitiveness to improve the quality of VET in Zambia

►

The Boards (established in 2000) are responsible for the curricula, for maintaining standards prescribed by the Technical Education and Vocational Education and Training Authority, administering institutions including their finances, and providing such services as needed

►

The Government consciously took the route of easing the transition over a period of time to avoid resistance and to ensure lasting results. The Government continued to pay the salaries of those who opted to work under the new Boards for 2 to 3 years. After that, institutions were to compete for finances on the basis of quality, cost-effectiveness, and responsiveness to demand.

Globally, governments are seeing merit in simplifying the regulatory structure, involving the industry and granting greater autonomy to public VET institutes…

Vocational education and training: Best practices

Sources: The World Bank: Skill Development in India 2008


Mexico’s approach to support training for the unorganised sector

►

The Integral Quality and Modernization Program (CIMO – now renamed PAC), established in 1988, was used to reach out to small and medium-size enterprises and assisting them to upgrade worker skills, improve quality, and raise productivity

►

CIMO was set up as a pilot project to provide subsidised training but gained scale as it became apparent that lack of training was only one factor contributing to low productivity

►

CIMO expanded in two directions—assisting enterprises with specific sectoral needs, and providing an integrated package of services, including information on technology, new production processes, quality control techniques, and marketing as well as subsidised training

►

Most units were housed in business associations that contributed office and supported infrastructure. The promoters organised workshops on training and technical assistance services, identified potential local and regional training suppliers and consulting agents, and actively sought enterprises to deliver assistance on a cost-sharing basis. They worked with enterprises to conduct an initial evaluation of the firm, as the basis for training programs and other consulting assistance

►

By 2000, CIMO was providing a package of training and industrial extension services to over 80,000 enterprises each year and training 200,000 employees. Private sector interest also grew with more than 300 business associations participating in CIMO, up from 72 in 1988

►

Evaluations have found that CIMO has been effective in improving the performance of targeted companies. Compared to a control group, CIMO firms increased investments in worker training, had higher rates of capacity utilisation, and were more likely to adopt quality control practices. These improved outcomes were associated with increased productivity

►

Other performance indicators were: (a) increased profitability, sales and capacity utilisation, (b) wage and employment growth, and (c) reduced labor turnover, absenteeism, and rejection rates for products. The most dramatic impacts were among micro and small firms

Increasing relevance with introduction of short-term courses in Maharashtra

►

The Maharashtra State Training Directorate curtailed long-term training programs in certain trades as the demand contracted rapidly. Also because of the lower admissions, a considerable amount of the training equipment and teachers became under-utilised

►

So as to use the facilities efficiently, the Government empowered ITIs to conduct short (three to six months) courses in basic trades according to student demand. Courses were implemented under a pilot “Production-oriented Training Scheme”, which aims to facilitate new trades and achieve some cost recovery

►

The labor cost for delivering short-term training courses was based on Rs.50 per hour ($1). Overhead charges and the amounts earned from depreciation of training equipment were credited to the state government budget. Half of the revenue earned towards wage-related charges was credited to ITI development accounts while the other half was distributed among the administrative and teaching staff

►

Between January 2002 and April 2003, around 6,560 youth were trained. Fees charged were around Rs.300-400 per course ($7-10)

…as well as increasing relevance of training and providing support to specific sectors

Sources: The World Bank: Skill Development in India 2008

80

Vocational education and training: Best practices


Recommendations to provide a thrust to vocational education and training

Improve the oversight structure for VET management

►

Streamline regulatory structure by centralising policy making for all VET under a single authority. A new agency should be formed under the central government to regulate all aspects of VET while state governments should be responsible for operations

►

An advisory council should be formed consisting of industry representatives to advise on courses / curriculum, ensuring alignment of the VET system with that of global / local needs

►

Quality certification/ accreditation to be undertaken by an independent agency ►

Such a structure would enable linkages between mainstream higher education and VET. Further, VET would move in a single overall direction as defined by the regulatory agency, while retaining flexibility at a state level

1

Introduce a mechanism of increasing relevance of VET programs

►

Institute mechanism for a new agency to periodically review VET programs and expedite approval of updated content and curricula/ introduction of new programs

►

Advisory council should work in close coordination with the proposed agency to ensure relevance of updated content/ new programs

►

Such an initiative would lend flexibility to VET programs and ensure that they are in line with labour demands emerging with the fundamental changes in India’s industry structure

3

Provide encouragement to private vocational training

►

Develop system to evaluate quality of private VET providers and award accreditation, through an independent agency. The accreditation should be recognised by the Government and enable comparison with public VET centers and mainstream education providers

►

Deploy Public Private Partnership model extensively to adopt best practices from successful private players in high growth industry segments such as IT, BFSI, hospitality and aviation. Partner at level of content development, delivery and management of public VET centers

4

Allow greater autonomy to public VET centers

►

Allow management of public VET centers to align programs (beyond prescribed curriculum) with requirements of local markets

►

Encourage public VET centers to generate revenue from alternate channels and utilise inflows for upgradation of infrastructure and teacher training

5

Create greater alignment between vocational and mainstream education

►

Facilitate mobility between vocational and mainstream education ►

Create system of awarding credits for vocational training programs, which can be utilised to transfer to mainstream education

2

Vocational education and training: Recommendations


6. Regulatory reforms

Current state

Key challenges

Best practices

Recommendations


Regulatory bodies/ Professional councils (e.g. UGC, AICTE)

Departments/Councils of Higher/Technical Education

Accreditation bodies – NAAC,

NBA

Higher Education Institutions

MHRD and multiple other ministries

Education as part of the concurrent list, provides equal power to the Central and State Government in regulation

►

Post independence, education (including university education) was the responsibility of the states while the centre was given the function of coordination and determination of standards (Entry 66 of the Union List of the Constitution of India).

►

However in 1976, through Entry 25 in the Concurrent list of the Constitution of India, the centre was also given the responsibility along with the states for all levels of education

Higher education regulatory structure in India

Higher education in India comes under the concurrent list

Central Government

State Government

Regulatory bodies and Professional

councils

Accreditation bodies

Roles and responsibilities

The Ministry of Human Resource Development is the nodal authority through which the central government plays a key role in defining public policy for higher education in the country. 15 other ministries and departments also regulate higher education, related to their fields

Key Stakeholders

The state government discharges its responsibilities through respective government departments for higher education. Many states have also set up state councils and advisory boards for providing guidelines for the proper functioning of higher education institution in the states. Central Advisory Board of Education acts as a common forum for coordination between state and central governments.

Statutory bodies such as University Grants Commission (UGC) and All India Council for Technical Education (AICTE) along with professional councils such as Bar Council of India (BCI) are responsible for the regulation, coordination and development of higher education in India.

The regulatory bodies/professional councils are assisted by accreditation bodies such as National Assessment and Accreditation Council (NAAC) and National Board of Accreditation (NBA) in benchmarking higher education institutions

Regulatory scenario: Current state

The regulatory framework governing higher education in India is complex with both the central and state governments sharing roles and responsibilities



UGC is responsible for developing and disseminating standards of teaching, examination and research in universities across India. It also disburses grants received from the central government.

University Grants Commission (UGC)

AICTE regulates the norms and standards in technical education in India with fields such as engineering, architecture, town planning, management, pharmacy falling under its purview.

All India Council for Technical Education (AICTE)

It is entrusted with overseeing the development of open education system in India. It designs fee structures and co-ordinates the development of instruction material.

Distance Education Council (DEC)

Acts as the apex body for coordinating agricultural research and education in India including horticulture, fisheries and animal sciences.

Indian Council of Agricultural Research (ICAR)

MCI maintains the standards in medical education for UG and PG medical programs run in India. It also grants registration numbers to those with recognised qualifications.

Medical Council of India (MCI)

PCI regulates the graduate level programs in Pharmacy in India. It also acts as the central registrar of Pharmacists. It also prescribes the curriculum and examination pattern.

Pharmacy Council of India (PCI)

INC determines standards for nursing education in India prescribing the uniform syllabus. It also registers Nurses with recognised qualification for practice in India.

Indian Nursing Council (INC)

Established under the Advocates Act, 1961 BCI acts as the apex body in legal education in India. It promotes and maintains standards in consultation with State Bar Councils.

Bar Council of India (BCI)

CoA was established through the Architects Act in 1972 and is responsible for regulation of architecture education in India. It also oversees the registration of architects in India.

Council of Architecture (CoA)

CCH regulates diploma, graduate and post graduate level courses in Homeopathy in India. It was established in 1973 under the Homeopathic Central Council Bill.

Central Council of Homeopathy (CCH)

CCIM determines the minimum standards of dissemination of education in Indian Systems of Medicine (Ayurveda, Siddha and Unani Tibb).

Central Council for Indian Medicine (CCIM)

Established in 1995 under The National Council for Teacher Education Act, 1993, it coordinates the development of teacher education in India (For Elementary/Secondary/Tertiary and Formal/Non Formal Education)

National Council for Teacher Education (NCTE)

DCI maintains the standards of UG and PG dental education in India. It also prescribes the curricula and examinations to be conducted.

Dental Council of India (DCI)

RCI has been given the mandate to regulate and monitor services provided to persons with disability. It maintains a Central Rehabilitation Register of all qualified professionals in the field of rehabilitation and special education.

Rehabilitation Council of India (RCI)


There are multiple statutory and professional bodies overseeing key activities in their domains



►

UGC is the apex body governing university education in India. It was set up in 1956 with the mandate coordination and maintenance of standards for university education in India. It also disburses funds within the university education system. Importantly, it only acts as a recommendatory body since it does not have any power to establish or de-recognise any university.

►

Key areas of UGC functioning include determining: ►

Rules about fitness of universities►

Minimum standards of instruction ►

Minimum qualifications for teachers in universities and colleges►

Pay and other service criteria related to teachers

UGC plays a recommendatory role, determining rules and standards for higher education

Establishment of university

►

Universities (Central/State/Institutions of national importance) in India can be established through an Act passed by Parliament or State Legislature. Post 2005, Private Universities have also started being set up by legislation in many states

►

However, Deemed universities can be approved only by an executive order after UGC recommendation. Indian Institute of Science, Bangalore and Indian Agricultural Research Institute, Delhi were the first two institutes to be granted deemed status. Manipal Academy of Higher Education (MAHE) was the first private institution to be declared a deemed university in 1976

Powers of universities and colleges

►

Universities have degree granting powers and are responsible for conducting examinations. They have autonomy in matters of fees and curriculum design. They also have affiliating powers for colleges within a particular geographic region.

►

While deemed universities enjoy all the powers of universities they do not have the right to affiliate colleges. ►

On the other hand, degree granting colleges have autonomy in admissions. However, they have to follow the fee, examination, curriculum standards of the university they are affiliated to.

►

Diploma granting colleges have independence in matters of fees and examinations if they are not affiliated to a university.

The Universities form the bedrock of Indian higher education system but can be formed only through legislation

Establishment of college

►

Generally, colleges leading to the grant of a degree need to be affiliated to a particular university which, inter alia, exerts its control over curriculum and examinations conducted at the college. However, there are diploma granting institutions such as management colleges which are not affiliated to any University.

►

Almost a decade back, the UGC had started a scheme whereby Colleges could be granted ‘autonomous’ status granting them autonomy in terms of academic matters. However, despite its advantages it has not taken off as envisaged with only 324 colleges having been granted till January 2009.


Since universities are established through legislation or through the deemed route, UGC acts as a recommendatory body determining standards of education

Sources: University Grants Commission 2009; “Regulating the Private Sector,” Presentation made in the symposium (Mortgaging the Future) on reforming the Indian Higher Education System; The Observatory on Borderless Higher Education, “Private Higher Education in India: Status and Prospects,” July 2007,


Structure of higher education institutions in India

►

However, under the current regulations of AICTE and UGC a section 25 establishment is not permissible despite its inherent advantages of providing better and more transparent governance.

Legislation on entry of foreign education institutions


►

Under the current regulations all institutions imparting higher education in India can be organised only as a not-for-profit entities. Thus the permitted forms for setting up a presence in the education sector are restricted to:

►

The Ministry of HRD had unveiled the Foreign Educational Institutions Bill 2007, to facilitate the entry of foreign universities in India. The proposed bill does not restrict the limit upto which foreign direct investment can be infused. The bill proposes to cover foreign education providers under UGC’s purview, providing it the power to regulate their admission process and fee structure.

►

It aims to provide quality higher education besides saving foreign exchange from reduced outward mobility of students.

Current regulations allow only not-for-profit entities in higher education. There is an absence of clear regulations for foreign education providers although a legislation is under discussion

Set up under the Indian Trusts Act, 1882, Trusts do not enjoy the status of a separate and distinct legal entity except for tax purposes. Trusts are governed by the provisions of the trust deed. A trust may either be ‘Public’ or ‘Private’. Educational or research trusts are generally set up as public trusts and enjoy tax benefits.

Trusts

Societies are set up under the Societies Registration Act, 1860. They are formed for purposed associated with literature, science or charity and are established after registration of the Memorandum of Association with the Registrar of Societies.

Societies

These companies are incorporated under the Indian Companies Act, 1956 for the purposes ofpromoting commerce, science, religion, art, charity (including education). They are required to takeapproval of the central government (delegated to Regional Director) for license to operate as a company.

Section 25Companies

Sources: EY-EDGE 2009; Leveraging Public Private Partnerships for India’s Education Sector; Business Standard “Foreign Education Bill may get Cabinet nod this week,” September 15, 2009


►

In the 80’s the emergence of private higher education along with a supply-demand gap, led to the charging of capitation fees for securing admissions

►

This led to increased government and judicial intervention in regulation of fees, which was deemed necessary as it was felt that payment for seats/capitation fees made it difficult for economically backward, yet meritorious, students to access professional higher education. Many states have passed laws to regulate admission and prohibit capitation fees especially in private professional colleges (Andhra Pradesh – 1983, Karnataka – 1984, Maharashtra – 1987 etc). But these acts later led to judicial intervention which has continued to this date.

Judicial intervention in regulation of capitation fees

Mohini Jain Vs State of Karnataka (1992)►

It was noted in the case that charging capitation fees was denial of right to education. The court declared illegal the fees charged in private colleges in excess of tuition fees at government colleges.

Unni Krishnan vs State of Andhra Pradesh (1993)►

The courts reiterated illegality of capitation fees. However they stated that payment seats cannot be more than 50% of total seats in professional institutions. It urged the state to regulate capitation fees.

TMA Pai Vs State of Karnataka (2002)►

Educational institutions run by religious and linguistic minorities were granted freedom to administer institutions. ►

However, it was stated that the state government would advise all college managements to make provision for the needy and backward students.

Islamic Academy Vs Union of India (2003)►

Overruling the earlier Supreme Court judgment in the TMA Pai case, the courts ruled that State governments could constitute admission and fee fixation committees in professional colleges.

PA Inamdar Vs State of Maharashtra (2005)►

The judgment in this case ruled capitation fee could not be allowed although every institution is free to devise its own fee structure subject to limitations.

Regulation of fees and admission policies

►

While banning capitation fees in 1993, Supreme court laid down a framework for a differential fee structure. This was later revoked in 2002, when a bench of Supreme Court deemed differential fees unconstitutional. An year later (2003), another bench of the Supreme Court endorsed a cost plus system for determining fees in private institutions. Private institutions were however allowed to maintain management quota.

There have been repeated judicial interventions to regulate the fee charging mechanism of private higher education institutions

Sources: CLSA Asia-Pacific Markets 2008 “Indian Education Sector Outlook,”; Supreme Court Judgment Information System, Hindu Frontline Volume 19 – Issue 23, November 9-22, “Redefining a right,” 2002

88



National Assessment and Accreditation Council (NAAC)

►

NAAC is an autonomous body established in 1994 by UGC with its headquarters in Bangalore. It regularly publishes manuals and promotions material for assessment and accreditation.

►

It was established after the National Policy for Education, 1986 stressed on establishment of an independent national body to address the deterioration in quality in higher education.

►

NAAC follows a three step accreditation process. The first step is the Institutional Eligibility for Quality Assessment (IEQA). Under this step, the applicant institution is required to identify its eligibility for quality assessment.

►

The second step entails preparation of a Self Study Report by the institute. This report is then submitted to NAAC for analysis. Under the next step, a peer team visits the institute for validation of self study report submitted earlier. It later submits an assessment report to the institution. The grading and accreditation is finally done by NAAC based on analysis of evaluation report submitted by the peer team.

Accreditation through NAAC has received uneven response from higher education institutions..

… With a majority of them still out of its ambit (2009)

Other accreditation boards

National Board of Accreditation (NBA)►

Set up in 1994, NBA is an autonomous body established by AICTE to conduct periodical evaluation of technical courses offered in India. It has the authority to recognise or derecognise institutions/programs. The accreditation process is not linked to funding.

Accreditation Board (AB)►

AB was set up by ICAR in 1996 with a mandate to accredit agriculture institutions. Accreditation done by AB is generally valid for a period between five to ten years and is linked to funding

Year wise number of institutions accredited

►

Although accreditation is voluntary in India, some states such as Karnataka and Tamil Nadu have made it mandatory especially for professional institutions. Despite this, only a very few number of institutions are accredited. In fact, only 36% of Engineering and 10% of Management programs have been accredited by NBA.

A majority of higher education institutions in India remain unaccredited despite presence of designated bodies for quality assurance

241

672

1372

383

879

02-03 03-04 04-05 05-06 06-07

30.70% 16.90%

69.30% 83.10%


Accredited Unaccredited

Sources: National Assessment and Accreditation Council Annual Report 2006-07 (NAAC) Website; National Board of Accreditation;

89



Entry

barri

ers

disco

urag

ing

parti

cipat

ion of

quali

ty

playe

rsComplicated

procedures due

to regulatory

overlaps

Poor governance and lack of accreditation

Challenges

Key challenges facing the Indian higher education segment on the regulatory front

Regulatory scenario: Key challenges


Entry barriers have led to a skewed growth of Indian higher education system and discouraged high quality players

Sources: EY Analysis; MHRD: Annual Report 2007-08

91

Universities

• Can be set up only through legislation or the deemed route

• Limited possibilities for private sector players to enter. However, post 2005, state acts allowing private players to enter have became more prevalent

Degree granting colleges

• Relatively easy to set up in line with state / university regulations

• However, these lack sufficient academic / financial autonomy, reducing their attractiveness for the private sector

Diploma granting colleges

• Can be easily set up as these just need to comply with the norms of the regulatory body and need not be affiliated to a university

• Enjoy financial autonomy, but need to comply with the norms of the regulatory body on infrastructure and curriculum

Unapproved institutions

• This category includes institutions which are outside the ambit of regulation

• The qualifications they offer are not recognised by the Government and they depend on industry recognition

• Enjoy complete financial and academic autonomy

HEI structures in the context of the regulatory framework in India

►

Comparatively easier norms for setting up degree / diploma granting college have resulted in exceptional growth of colleges vis-à-vis universities

►

There are also a number of institutions which have decided to stay outside the ambit of regulation, including many vocational education players

Proportion of colleges in Indian higher education system (2008-09)

2.2%

97.8%


Uneven norms have led to imbalanced growth resulting in proliferation of colleges vis-à-vis few universities

Institute Category

Details

Attractiveness for high quality players

Entry Barriers

Low High



Statutory Body Mandate Role overlap with

University Grants Commission (UGC)

Coordination and determination of standards in higher education Other professional councils and DEC

Distance Education Council (DEC) Promotion, coordination and determination of the open university and distance education system

Other professional councils and UGC

All India Council of Technical Education (AICTE)

Planning and coordinated development of technical education UGC, DEC, PCI, COA and State councils for technical development

Indian Council for Agricultural Research (ICAR)

Coordinated agricultural research and education UGC

Council of Architects (COA) Regulate profession and practice of architects and town planner AICTE

Medical Council of India (MCI) Establish standards in medical education and to define medical qualification in India and abroad

State medical councils and the state government, UGC and DEC to some extent

Central Council for Homeopathy (CCH)

Prescribe and recognise qualification in homeopathy State councils

►

While UGC has been entrusted with the overall responsibility of Indian higher education system, its role is not validated in the provisions of various Acts governing professional councils. This has led to an overlap in jurisdiction between key regulatory bodies for higher education in India.

►

In such an environment, policies prescribed by central and state regulatory bodies have led to creation of various ambiguities and inconsistencies in different areas such as approval mechanisms, accreditation processes, often leading to legal battles. ►

Legal battle between AICTE and Council of Architecture (CoA): Bombay High Court in its judgment, dated 8 September 2002, ruled that CoA is the final authority in fixing norms and standards for architectural institutions.

►

Multiple rulings on AICTE jurisdiction: In its ruling dated 24th September 2001, Supreme Court of India stated that the Section 10(k) of AICTE Act covers only a technical institution and not a university. However, in 2006 Madras High Court questioned the exclusion of deemed universities from AICTE’s purview especially when they were previously run as technical institutions.

Regulatory agencies operating at multiple levels lead to complexities

Multiplicity of regulators has resulted in overlap of key functions leading to complex procedures

Sources: Policy Orientation for Private Initiatives in Higher Education, M Anandakrishnan; Report of ‘The Committee to Advise on Renovation and Rejuvenation of Higher Education,’ Yashpal Committee; FICCI Recommendations on the Regulatory Framework for Technical Education, February 29, 2008

92



The Indian higher education system suffers from poor governance and lack of accreditation

Governance of higher education institutions suffers from various challenges

Lack of disclosure norms leading to students and parents making ill-informed choices

►

The current disclosure norms do not make it mandatory for higher education institution to place basic information relating to their financial situation, physical assets, academic curricula, in the public domain.

►

In the USA, students’ ‘Right to Know’ requirement under the provision of the Higher Education Act of 1965 requires the disclosure of information relating to, ►

Institutional information like, cost of attendance, requirements and procedures from withdrawing from the institution, refund policy, current academic programs of the institution, names of associations, agencies accrediting the institution and financial assistance to students like, types of aids, selection criteria, eligibility requirements, etc.

Lack of management talent

►

There are few programs in the country in education management, and most academics are burdened with administrative responsibilities. This staff are most often not trained nor equipped with knowledge of best practices in management of education institutions.

Interference from political and commercial interests in appointments to key posts

►

According to the Yashpal Committee, key HEI appointments in several states are increasingly being driven by political and financial considerations at the cost of qualification and competence

►

Poor design of the accreditation system in India creates little or no incentives for institutions to proactively seek accreditation. Though the accreditation systems in India and the US have the same core elements, there is a stark difference in the administration of the accreditation systems. Some of these differences are indicated below:

Institution

Capacity

Methodology

India US

Accreditation granted by NAAC, NBA and AB at the national leve.

System has insufficient capacity and has rated only 20% of the total institutions

Has 100 public, private accrediting organisations at three levels namely at a regional, national and specialised level

Most institutions have been accredited

Institutions are accredited based on their own stated purpose thus safeguarding the diversity of institutions which is considered a hallmark of the US higher education system

Accreditation is discretionary and is based on standard instruments which are largely based on numerical facts

Sources: AACRAO: website; NKC: Report to the Nation 2006-2009; Yashpal Committee Report: The Committee to Advise on Renovation and Rejuvenation of Higher Education

93

►

The highly regulated nature of the sector often hampers the ability of private institutions to function on an autonomous basis without regulatory interference. For example, aspects such as setting-up of the institution, admission/allocation of students, establishing fees, infrastructure requirements, recruitment and remuneration of staff, changes in curriculum, etc, all require regulatory consent.

►

While the regulations seek to ensure compliance with minimum norms and standards to promote the development of higher education, the regulations impede operational flexibility.

Low operating flexibility

Relative to other countries the accreditation system in India suffers from inherent shortcomings



►

Although the universities had been granted separate legal status in 1960 and had sufficient academic autonomy, there was significant government interference in the Dutch university sector, especially in non academic matters. The sector suffered from lack of clear responsibilities with non transparent decision making bodies leading to slow decision making. However, growing pressure for streamlining public budget during the 80’s led to significant changes in Dutch higher education. In 1985 the Government introduced the concept of ‘Steering from the distance’, confining government’s role to defining overall framework for higher education system to operate in aided by greater accountability.

►

The ‘Act on Modernisation of the University Governing Organisation’ and subsequent reforms introduced major changes in Dutch higher education such as:►

Increasing institutional autonomy: While the government continued to set the overarching framework for internal governance, universities were free to make their choices within this framework and devise their own structures.

►

Increasing the responsiveness of decision making: In the previous governance structures, powers were diffused between executive board and representative councils. The new structure strengthened powers of executives through integration of governance and management authorities. The executive board (including the rector) determines the institutional strategy which is approved by the supervisory board (consisting of five external stakeholders). An advisory body of staff and students was also introduced to promote their participation in university decision making.

►

The changes brought about by reforms allowed universities to make strategic decisions while acting quickly. The universities have been able to innovate their educational services while taking steps to improve quality. There has also been a substantial increase in third party revenues generated by Dutch universities. In fact in 2005, contract activities contributed almost 25% to university budgets. Institutional management has also resulted in reforms of research policies leading to restructuring (Formation of Centers of excellence or Research institutes) to increase the impact on research performance.

Improved performance of Dutch universities aided by greater institutional autonomy

Governance reform to enable better performance of Austrian universities

►

During the 80’s, Austria faced a financial crisis leading to cutbacks in the university sector even as they suffered from capacity overload. The universities also faced high dropout rates and lengthy time for completion of degrees. They were highly regulated, with state laws stipulating many aspects of their functioning leading to inefficient decision making. With an aim of solving these problems, the University Organisation Amendment Act 1993 (UOG) and the University Act 2002 (UG) were passed leading to significant changes in university governance structures.

►

The UOG Act promoted creation of effective organisational structures with target oriented steering mechanisms along with greater self governance. Over time complete autonomy was provided to Austrian universities. In 2001, tuition fees were also introduced supplemented by a system of student financial aid. The UG Act further increased operational and financial autonomy given to universities.

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Governance reforms have proved beneficial as indicated by various studies which have shown improvements in internal management structures. A visible benefit has been in the resultant flexibility in the recruitment leading to increased number of jobs for younger scientists.

Regulatory scenario: Best practices

International experience corroborates the benefits of providing greater financial and operational autonomy to universities

Sources: Final Report to the Directorate General for Education and Culture of the European Commission “The extent and impact of higher education governance reforms across Europe,”; University of Twente, The Netherlands “Higher Education Governance reforms across Europe,”; Center for International Higher Education – Boston College “World Class Reform of Universities in Austria,”


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In the mid-90’s, The Malaysian Government realised the problem of under supply of higher education institutions leading to lower enrolment ratios. The Government also realised higher outbound movement of students leading to a currency outflow of almost USD 800 million, almost 12% of Malaysia’s current account deficit. This led to a reassessment of direction of Malaysian higher education ultimately leading to articulation of a vision to make the country a regional hub for higher education.

►

The Government passed a number of acts in 1996 including The Education Act, Private Higher Educational Act (PHEI), National Council on Higher Education Act and National Accreditation Board Act to significantly pave the way for reforming higher educational institutional framework and promote delivery of transnational higher education.

►

Before 1996, private higher education institutes did not have any degree granting powers. But by 1998, the Government introduced a new framework allowing collaborative arrangements for degree level education by private institutions. The PHEI Act was further amended in 2003 with a framework for setting up and upgrading private universities/colleges and operation of branch campuses of foreign universities in Malaysia. Significantly, all the transnational higher education providers operating were subject to Malaysian laws and local quality assurance framework. In case of courses leading to professional qualifications, it was mandated to meet the norms of licensing bodies.

►

After the passing of the PHEI Act 1996, there was a spate of agreements between Malaysian and overseas higher educational institutions (particularly from UK and Australia). Over time the operations of transnational higher education institutional has contributed to diversification of Malaysian higher education systems. By narrowing down the demand-supply gap, it has also led to greater access to higher education.

Reforms to promote transnational higher education in Malaysia

Restructuring public finance of higher education in United Kingdom (UK)

►

University Grants Committee was established in 1919 to channel public funds to UK universities. In the 1940’s its scope was expanded to include data collection and preparing plans for university education. Decisions taken in the early 80’s to reduce public expenditure on higher education by UGC led to its increasing unpopularity leading to frequent protests. The Education Reform Act 1988, finally led to abolishing of the UGC in UK. It was replaced by Universities Funding Council (UFC) and Polytechnics and Colleges Funding Council (PCFC). With the passing of the Further and Higher Education Act 1992, led to replacement of the UFC by Higher Education Funding Council for England (HEFCE).

►

This led to creation of a three tier system of governance in UK. At the top, the Government management the system through legislations deciding the goals of the system. HEFCE formed the second level, developing detailed higher education policies while at the third level universities determined their operational plans within the parameters set up the bodies at the higher level in the hierarchy. Over time the quality assurance function was separated from HEFCE leading to the creation of Quality Assurance Agency for Higher Education (QAA) in 1997.

►

HEFCE has aided in promotion of high quality teaching and research along with ensuring proper usage of public funds. In fact, a recent survey of higher education stakeholders in England it was revealed that almost 82% view HEFCE favorably.

Countries have also promoted efficiency through restructuring of public finance bodies in a new regulatory framework and creating harmonious environment for entry of foreign higher education institutions

Sources: National Higher Education Research Institute Malaysia “Transnational Higher Education in Malaysia: Balancing benefits and concerns through regulations,”; IHEM Country Report “Higher Education in the United Kingdom,”; Research and Library Services Division Hong Kong “Academic freedom and institutional autonomy of higher education in the United Kingdom, New Zealand and Hong Kong,”2007; HEFCE Website;

95

Regulatory scenario: Best practices


Recommendations on regulatory reforms

Creation of an independent body for regulating higher education and simplification of rules

►

The Government is in the process of creating a single independent body to regulate various aspects of higher education. The same should be done at the earliest. However, due care needs to be ensured that it gets adequate independence and autonomy.

►

Processes should be set out to ensure that the new regulator operates in a transparent manner.

►

The regulator also needs to be adequately empowered to take action against defaulting institutions while simultaneously setting out a robust mechanism for appeals against its orders

►

The regulatory framework must be more transparent and simplified with multiple and overlapping regulations replaced with simple clearer rules

►

Simultaneously, the Government should consider the constitution of a body along the lines of HEFCE (UK) to oversee the funding of higher education institutes in India and enable better coordination between center and states.

1

Allow Section 25 companies to operate in Higher Education

►

While trusts and societies are allowed to operate higher education institutes, there are certain restrictions on Section 25 companies. The same should be lifted to allow Section 25 companies to operate in Higher Education.

3

Bring about greater transparency and disclosure in the system

►

There exists limited transparency in the performance of higher education institutions. A standard return should be prescribed for higher education institutions and it should be mandatory to publish the same on the institutes web-site as well as on the site of the education regulator

►

The information provided should be auditable, with strict penalties for furnishing incorrect/delayed information

►

More accreditation agencies should be set up and mandatory accreditation should be considered

4

Encourage entry of high-quality Foreign Universities

►

The Government is in the process of allowing foreign universities into India. The proposed legislation in this regard should be enacted at the earliest.

►

Due care needs to be taken to ensure that these norms do not facilitate the entry of low quality providers or degree-mills.

5

Promote institutional autonomy at Indian HEIs

►

Current regulatory framework should be changed to provide sufficient internal autonomy to universities and higher education institutions.

►

A governance framework should be prescribed which allows representation of various stakeholders in the decision making process of HEIs. The decision making powers at various levels should be well laid out

►

Procedures should be framed for appointments at key levels, which should happen in a transparent manner

2

Regulatory scenario : Recommendations

96

Correct structural shortcomings

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The ratio of universities to colleges in the country needs to be corrected by facilitating the creation of more universities both by the public as well as the private sector

►

Entry barriers for the creation of universities need to be reduced and mechanisms created to attract high quality players to set up universities by providing quicker clearances, flexible norms, creation of knowledge hubs and introduction of PPP models

6


Glossary

AB Accreditation Board

AICTE All India Council for Technical Education

AICVE All Indian Council for Vocational Education

BCI Bar Council of India

CABE Central Advisory Board of Education

CCEA Cabinet Committee on Economic Affairs

CCH Central Council of Homeopathy

CCIM Central Council for Indian Medicine

CMIE Center for Monitoring Indian Economy

CoA Council of Architecture

CSIR Council of Scientific and Industrial Research

DBT Department of Biotechnology

DCI Dental Council of India

DEC Distance Education Council

DRDO Defence Research and Development Organisation

DST Department of Science and Technology

ERNET Education and Research Network

GER Gross Enrollment Ratio

HEI Higher Education Institution

HEFCE Higher Education Funding Council for England

ICAR Indian Council of Agricultural Research

ICMR Indian Council of Medical Research

ICT Information and Communication Technology

IEQA Institutional Eligibility for Quality Assessment

IGNOU Indira Gandhi National Open University

ILO International Labour Organisation

INC Indian Nursing Council

INDES Indian Digital Library in Engineering Science & Technology

IPR Intellectual Property Rights

ITC Industrial Training Center

ITI Industrial Training Institute

ITU International Telecommunication Union

MCIT Ministry of Communications & Information Technology

MHRD Ministry of Human Resource & Development

MOEF Ministry of Environment & Forests

MoLE Ministry of Labour & Employment

NAAC National Assessment and Accreditation Council

NBA National Board of Accreditation

NCTE National Council for Teacher Education

NCVT National Council for Vocational Training

NKC National Knowledge Commission

NPTEL National Programme for Technology Enhanced Learning

PPP Public Private Partnership

RCI Rehabilitation Council of India

SCVE State Council for Vocational Education

SCVT State Council for Vocational Training

UGC University Grants Commission

CEC Consortium for Educational Communication

CWCR Country Wide Class Room

VET Vocational Education & Training

WIPO World Intellectual Property Organisation


Acknowledgements

Alliance Business Academy

Amrita School of Business

Bethune College

BITS Pilani

BMIT Jaipur

Chitkara University

Christ University, Institute of Management

College of Engineering, Thiruvananthpuram

Defence Institute of Advanced Technology

Delhi Technological University

Dhirubhai Ambani Institute of Information and Communication Technology

Dibrugarh University

DRIEMS Business School

98

Gitam University

HIHT University

Himachal Pradesh University

IIIT Bangalore

Indian Institute of Technology Madras

Institute of Technology and Management, Gwalior

Institute of technology, Banaras Hindu University

International Institute of Information Technology, Pune

Jaipuria Institute of Management, Lucknow

Jaypee Institute of Information Technology

Jaypee University of Information Technology, Solan

JSS Academy of Technical Education

K.L.E. Society's Law College

Kasturba Medical College, Manipal


Acknowledgements

LNM Institute of Information Technology

Lovely Professional University

MS Ramaiah Medical College, Bangalore

National Institute of Engineering

National Institute of Industrial Engineering

National Institute of Technology, Durgapur

NIT Hamirpur

Noorul Islam University

Padmashree Dr. DY Patil Institute of Engineering & Technology

Pondicherry University

PSG College of Technology, Coimbatore

Rashtreeya Vidyalaya College of Engineering

Regional College of Management, Bhubaneshwar

S P Mandal's L N Welingkar Institute Of Management Development & Research

Shiksha 'O' Anusandhan University

Skyline Business School

SP Jain Institute of Management

SSN College of Engineering

St. Joseph's College Bangalore

Symbiosis Centre for Information Technology, Pune

Teerthanker Mahaveer Univesity

Thapar University

Thiagrajar College of Engineering

University Of Petroleum & Energy Studies

Vel Tech Dr. RR & Dr. SR University

Vignana Jyothi Institute of Management

Xavier Institute Of Management


Team

Ernst & Young team

Amitabh Jhingan Bharat Gulia

Noor Chawla Bahubali Shah

Santosh S Siddharth Vaidya

Arjun Laroia Gaurav Sharma

Rachit Gupta Apurva Swarup

Dhruv Gupta

100

FICCI team

Shobha Mishra Gosh

Rajesh Pankaj

Sarita Chauhan


About FICCI

Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its history is closely interwoven with India's struggle for independence and its subsequent emergence as one of the most rapidly growing economies globally. FICCI plays a leading role in policy debates that are at the forefront of social, economic and political change. Through its 400 professionals, FICCI is active in 38 sectors of the economy. FICCI's stand on policy issues is sought out by think tanks, governments and academia. Its publications are widely read for their in-depth research and policy prescriptions. FICCI has joint business councils with 79 countries around the world.

A non-government, not-for-profit organisation, FICCI is the voice of India's business and industry. FICCI has direct membership from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 83,000 companies from regional chambers of commerce.

FICCI works closely with the government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a platform for sector specific consensus building and networking. Partnerships with countries across the world carry forward our initiatives in inclusive development, which encompass health, education, livelihood, governance, skill development, etc. FICCI serves as the first port of call for Indian industry and the international business community.

Federation of Indian Chambers Of Commerce and Industry Federation House, 1 Tansen Marg New Delhi-110001 Phone—+91-11-23738760—70 Fax- +91-11-23721504 Email—[email protected] www.ficci.com


mailto:Email�[email protected]

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