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Brookings Institution India Center

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Recommended citation:

Ravi, Shamika; Gupta, Neelanjana & Nagaraj, Puneeth: “Reviving Higher Education in India,” Brookings India
Research Paper No. 112019-01

ISBN 978-81-941963-4-1

The Brookings Institution India Center serves as a platform for cutting-edge, independent, policy-relevant
research and analysis on the opportunities and challenges facing India and the world. The Center is
based in New Delhi, and registered as a company limited by shares and not for profit, under Section 25 of
the Companies Act, 1956. Established in 2013, the Center is the third and newest overseas center of the
Washington, D.C.-based Brookings Institution. Our work is centered on the Brookings motto of “Quality.
Independence. Impact.”

All content reflects the individual views of the author(s). Brookings India does not hold an institutional view
on any subject.
Designed by Mukesh Rawat
Acronyms

AICTE All India Council for Technical Education

AIIMS All India Institute of Medical Sciences
AISHE All India Survey on Higher Education
CSIR Council of Scientific and Industrial Research
CSR Corporate Social Responsibility
DEC District Education Council
DNEP16 Draft National Education Policy 2016
DNEP19 Draft National Education Policy 2019
GDP Gross Domestic Product
GER Gross Enrolment Ratio
GERD Gross Expenditure on Research and Development
GNP Gross National Product
HECI Higher Education Commission of India
HEFA Higher Education Funding Agency
HEGC Higher Education Grants Council
HEI Higher Education Institution
ICMR Indian Council of Medical Research
IIM Indian Institute of Management
IISc Indian Institute of Science
IIT Indian Institute of Technology
IoE Institution of Eminence
ISB Indian School of Business
ICSSR Indian Council of Social Science Research
MCI Medical Council of India
MHRD Ministry of Human Resource Development
MIT Massachusetts Institute of Technology
NAAC National Assessment and Accreditation Council
NBA National Board of Accreditation
NCHER National Commission for Higher Education and Research
NEP National Education Policy
NHERA National Higher Education Regulatory Authority of India
OECD Organisation for Economic Co-operation and Development
R&D Research and Development
RUSA Rashtriya Uchchatar Shiksha Abhiyan
SHEC State Higher Education Councils
STEM Science, Technology, Engineering, and Mathematics
UGC University Grants Commission
UIS UNESCO Institute for Statistics
UNESCO United Nations Educational, Scientific and Cultural Organization
Acknowledgments

The authors would like to thank many people for their contributions to this study. We
thank Dr. Garima Malik for her extensive comments and suggestions on the original
draft. In addition, we would like to thank Prof. Ashok Misra, Dr. Braj Bihari Kumar, Prof.
M. R. Rao, Mr. R. Subrahmanyam and Mr. Sudhir Mankad for their valuable insights.

We would also like to thank Zehra Kazmi and Rohan Laik for editing this report, and
Aditi Sundan and Mukesh Rawat for their work on designing the report. We gratefully
acknowledge Bharti Infratel Limited for their support.

The conclusions and recommendations of any Brookings India publication are solely
those of its authors, and do not reflect the views of the Institution, its management, or
its other scholars. Brookings India does not hold an institutional view on any subject.
 Table of
Contents
List of Tables & List of Figures .........................................................................................................07
Executive Summary .............................................................................................................................08

CHAPTER 01:

Capacity: Enrolment, Employment and Quality ............................. 10

1.1 Growth of the higher education sector in India ................................................................................................... 11
1.2 GER: International comparison .................................................................................................................................12
1.3 Enrolment.........................................................................................................................................................................14
1.4 Graduation and Employment .....................................................................................................................................17
1.5 Quality of institutions ..................................................................................................................................................19
1.6 Faculty ...............................................................................................................................................................................21
1.7 Summary of recommendations ............................................................................................................................... 26

CHAPTER 02:

Governance and Accountability .........................................................27

2.1 The affiliating model and the demand for autonomy ....................................................................................... 28
2.2 The meaning and effect of autonomy .................................................................................................................... 30
2.3 Cluster universities ...................................................................................................................................................... 32
2.4 Accountability in HEIs ................................................................................................................................................ 34
2.5 Summary of recommendations ............................................................................................................................... 37

CHAPTER 03:

Funding: Efficiency, Transparency and Affordability ...................38

3.1 Expenditure on higher education............................................................................................................................ 39
3.2 Government spending on higher education ........................................................................................................40
3.3 Institution-level funding ............................................................................................................................................44
3.4 Funding private institutions .....................................................................................................................................46
3.5 Summary of recommendations ............................................................................................................................... 50

CHAPTER 04:

Research and Innovation ..................................................................... 51

4.1 The research landscape .............................................................................................................................................. 52
4.2 Research capacity ........................................................................................................................................................ 53
4.3 Funding ............................................................................................................................................................................ 62
4.4 Summary of recommendations ............................................................................................................................... 66

CHAPTER 05:

Regulatory System ................................................................................67

5.1 Blueprint of the regulatory structure of Indian higher education ................................................................ 68
5.2 Key regulatory issues .................................................................................................................................................. 69
5.3 Review of recent committee recommendations and draft policies ..............................................................71
5.4 Summary of recommendations ............................................................................................................................... 76

References ............................................................................................................................................... 77
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

List of Tables
Table 1 Higher Education Expansion in India
Table 2 Top 10 Most Popular Programmes
Table 3 Growth in PhD Enrolments
Table 4 Pass Percentages of Top 10 Most Popular Programmes
Table 5 Affiliated Colleges per Affiliating University
Table 6 Cluster Universities
Table 7 Government Spending on Higher Education
Table 8 Government Expenditure on Higher Education, Share of GNP (1990-2004)
Table 9 Government Expenditure on Higher Education, Share of GDP (2008-2015)
Table 10 Government Expenditure on Technical and University Education
Table 11 Budget Allocation towards Rashtriya Uchchatar Shiksha Abhiyan
Table 12 Government Expenditure on Scholarships
Table 13 Cost of Pursuing Engineering and Technical Education
Table 14 Top 10 Most Popular PhD Disciplines
Table 15 Journals Indexed in Web of Science and Scopus
Table 16 Journals and Articles Published, by Subject Category
Table 17 Number of Research Publications for Select Institutions (2004-2019)
Table 18 SCImago Journal & Country Rank
Table 19 Expenditure on R&D by Cooperative Research Associations

List of Figures
Figure 1 Gross Enrolment Ratio, by Income Group
Figure 2 Gross Enrolment Ratio, India versus China
Figure 3 Level-Wise Enrolment as Percentage of Total Enrolment
Figure 4 Instituions by NAAC Grade
Figure 5 Growth in the Number of Teachers
Figure 6 Student Teacher Ratio (2011-18)
Figure 7 Growth of Private Institutions
Figure 8 Growth of Autonomous HEIs
Figure 9 Types of Autonomous HEIs
Figure 10 Criteria for Granting Autonomy
Figure 11 Powers Granted to Autonomous Institutions
Figure 12 Select High-Ranking Private HEIs setup in Recent Times
Figure 13 Annual Growth Rates of Enrolment versus Expenditure
Figure 14 Share of State and Central Government Funding
Figure 15 Education Services Agreement Structure
Figure 16 Gross Expenditure on R&D as a Proportion of GDP
Figure 17 Number of Researchers
Figure 18 SJR Score for Top Ranking Journals by Country
Figure 19 Number of Publications
Figure 20 Number of Patent Applications Filed
Figure 21 Expenditure on R&D by Type of Sector
Figure 22 Professional Councils

7
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Executive Summary

• India has seen a rapid expansion in the higher • The exponential growth of the sector has been due
education sector since 2001. There has been a to the increased demand for higher education. The
dramatic rise in the number of higher education higher education sector has grown across all levels
institutions (HEIs) and enrolment has increased four- and disciplines. However, broad trends and patterns
fold. The Indian higher education system is now one in enrolment, graduation and placement suggest
of the largest in the world, with 51,649 institutions. that access to higher education continues to remain
a challenge, especially at the postgraduate level.
• Despite the increased access to higher education
in India, challenges remain. Low employability of • Given the low proportion of students that go on to
graduates, poor quality of teaching, weak governance, pursue postgraduate and doctoral education, a
insufficient funding, and complex regulatory shortage of qualified teachers is a further problem
norms continue to plague the sector. India’s gross that is plaguing even the best universities in India.
enrolment ratio (GER) in 2018-19 was 26.3% but still High entry barriers, poor incentive structures,
far from meeting the Ministry of Human Resource stringent tenure rules and rigid promotion practices
Development’s target of achieving 32% GER by 2022. lead to a limited supply of faculty.

• As the government evaluates proposals to reform • Faculty shortage, low inputs available for research
the University Grants Commission and implement and inadequate industry linkages amplify the
the recently proposed Draft New Education Policy existing limited uptake of good quality independent
2019, this Brookings India report takes a wider research in HEIs across all disciplines. We find that
view of reforms necessary to respond to challenges while countries like the United States, China and
facing higher education in India today. It examines South Korea have invested in research to build a
the capacity of HEIs with respect to students as well skilled, productive and flexible labour force, HEIs in
as teachers; governance and accountability; funding India, in contrast, lack the culture of independent
and affordability; research and innovation; and, academic research.
regulatory regime, to create a globally relevant and
competitive ecosystem that can produce employable
graduates and sophisticated knowledge workers.

8
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

• The higher education sector in India is crippled due • Limited assessment and accreditation capacity of
to the lack of financial, academic and administrative the NAAC and NBA has been a significant barrier
autonomy granted to institutions. Overall, this has in linking the performance of an institution to
resulted in the poor quality of institutions as well autonomy and funding decisions. Thus far, NAAC
as education. Under the affiliating university model, has retained the exclusive power to accredit HEIs,
the supervisory authority for most colleges is the allowing corruption and profiteering to creep into
university or a government authority; both lack the the sector.
capacity to effectively regulate their constituent
colleges and hold them accountable. In contrast, • Several proposals, committees and draft policies in
autonomous HEIs are at an advantage since they the last decade have suggested the need to revamp
have the power to constitute their own academic the University Grants Commission in order to resolve
councils and make decisions on academic matters. the numerous roadblocks in an over-regulated
regime in the Indian higher education sector. The
• In the last three decades, the government has taken distribution of functions, roles and responsibilities
a step back from its role as the primary funder of among several agencies and providers has inhibited
higher education. Union funding for government innovation and creativity, and led to issues with
and government-aided HEIs is skewed in favour of accreditation of HEIs, their autonomy and inadequate
central universities, and state governments spend funding. Some recent measures—for instance,
a lot more than the central government on higher granting Institution of Eminence status to select
education. While, there is little to no data on how the HEIs, enactment of IIM Bill 2017, many proposals
higher education sector is funded, we do know that made under the DNEP19—demonstrate that these
household expenditure on higher education is now issues have been acknowledged and reforming the
the biggest source of funding. Private HEIs are funded regulatory regime is non-negotiable.
almost entirely by student fees. Research suggests
that the average tuition fee for an engineering degree
from a private institution is almost twice as that of
a public institution, while private HEIs account for
three-fourths of all enrolments.

9
 01
CHAPTER

Capacity:
Enrolment,
Employment
and Quality

India has seen a dramatic increase in the capacity of its higher education
sector in the last two decades. Enrolment in higher education has increased
four-fold since 2001. With a Gross Enrolment Ratio (GER)1 of 26.3% (AISHE
2018-19), we are close to achieving the target of 32% GER by 2020.
However, many important questions such as the quality of Higher Education
Institutions (HEIs) and employment of graduates merit further examination.

In this chapter, we address these questions by examining the enrolment

trend and patterns; graduation and employment patterns; and the quality
assurance framework for HEIs in India. Before addressing these questions,
we first map the expansion of the higher education sector since independence
in Section 2. We also track the policy shifts that enabled this expansion.We
offer context to India’s expansion by comparing it to other countries. We
also compare the growth of India’s higher education sector to that of China
over the last 25 years.

Despite the increasing number of professional colleges, three-year degrees

in arts, commerce and sciences remain the most popular programmes as
evidenced by high enrolment rates.

1
GER for higher education is the proportion of college-age (18-23) individuals enrolled in a
higher education institution
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

We examine the implications of such enrolment patterns limit the number of students in universities to 3000 and
in Section 3. Graduates of three-year programmes colleges to 1500.4 Similarly, the Education Commission
find it difficult to enter the organised sector as these (1964-65) recommended a planned expansion of higher
programmes do not readily impart skills relevant to the education while imposing stricter norms for entry.5
job market. Section 4 takes a closer look at graduating
patterns across disciplines and the impact it has on the The policy of establishing small, high-quality institutions
labour market. The exponential growth in the number of was in stark contrast to what China, the United States
HEIs has diminished the capacity of regulators to enforce and European countries followed. In China, for instance,
quality standards. We analyse India’s quality assurance 41.8 million students were enrolled in just 2,596 HEIs in
framework against this backdrop in Section 5. In Section 2016.6 Having students concentrated in a relatively small
6, we address the shortage of teachers, a problem that number of institutions allowed these countries to scale
plagues even the best universities in India. The section up faster and manage the higher education system more
specifically discusses problems in data related to easily.7 In India, the GER was 4.2% in 1970-71 despite
teachers in higher education, given the recent disparities the establishment of 2,699 new colleges and 75 new
observed in the AISHE, and identifies the problems that universities from 1950-1970 (Table 1).
lead to teacher shortages. Sections 3 to 6 also identify
specific recommendations to upgrade the capacity of In the 1970s, expansion in higher education occurred
higher education in India while maintaining quality and through ‘private aided’ colleges.8 These colleges were
imparting skills that are relevant to the job market. privately owned but were subsidised by the government.
Aided private colleges operated very similarly to
government colleges. They offered the same courses,
1.1 Growth of the higher followed the same study programmes and students
education sector in India appeared in the same exams as those in government
colleges.9 However, the policy of consolidating and
With 51,649 HEIs, the Indian higher education system is improving existing universities continued.10 The 1970s
one of the largest in the world.2 In terms of enrolment, saw a much smaller growth in enrolment as compared to
India is second only to China (41.8 million) 3 with 35.7 the previous decade.
million students currently enrolled in universities and
colleges. India has seen a massive expansion in the In the 1980s, the government faced a growing demand
higher education sector as enrolment and the number of for higher education but was unable to meet the
HEIs have increased almost four-fold since 2001 (Table demand through public institutions.11 This period also
1). This increase was primarily driven by privately-owned saw the growth of ‘private unaided’ colleges. Set up by
institutions. individuals or family groups, they were not dependent
on the government for funding (see Figure 12).12 The
The entry of the private sector in the 1980s signalled a entry of private players in the sector, coupled with a
policy shift. Post-independence, the expansion in higher newly liberalised economy, enabled the expansion of
education was mainly through public institutions. The higher education at a much faster pace from the 1990s
focus of the government was on establishing high- onwards. From 1990 to 2001-02, enrolment doubled
quality institutions, rather than increasing access to from 4.4 million to 8.8 million, equivalent to the increase
higher education. For instance, the Radhakrishnan- in the previous 40 years.
led University Education Commission (1949) sought to

2
All India Survey on Higher Education, 2016-17. This excludes vocational 11,169 training institutions
3
Ministry of Education of the People’s Republic of China (2016), ‘Number of Students in Higher Education Institutions’, available at
<http://en.moe.gov.cn/Resources/Statistics/edu_stat_2016/2016_en01/201708/t20170822_311603.html>
4
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
5
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
6
Ministry of Education of the People’s Republic of China (2016), ‘Number of Higher Education Institutions’
7
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
8
Varghese, N V (2015), Challenges of Massification of Higher Education in India, CPRHE Research Paper Series No. 1
9
Varghese, N V (2015), Challenges of Massification of Higher Education in India, CPRHE Research Paper Series No. 1
10
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
11
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
12
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper

11
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Table 1: Higher education expansion in India

Under the Rashtriya Uchchatar Shiksha Abhiyan 2.0
Number of Number of Enrolment GER (RUSA) the Ministry of Human Resource Development
Year has set a target of achieving 32% GER by 2022. Going by
Universities Colleges (millions) (%)
the current growth rates, this target is likely to be met in
1950-51 27 578 0.2 -
the next few years. However, India is not the only country
1960-61 49 1,819 0.6 1.5 to experience such dramatic growth; we examine this in
1970-71 102 3,277 2.0 4.2 greater detail in Section 2.
1980-81 132 4,577 2.8 4.7
1990-91 185 6,627 4.4 5.9
1.2 GER: International
2001-02 260 11,146 8.8 8.1
2011-12 621 34,908 28.5 19.4
comparison
2016-17 864 40,026 35.7 25.2 There are three stages in the development of a higher
2017-18 903 39,050 36.6 25.8 education system based on their level of enrolment. When
2018-19 993 39,931 37.4 26.3 the GER is less than 15%, the higher education system
Data Source: Varghese (2015) and AISHE, various years is an elite system where access to higher education
is limited and is seen as a privilege.16 When the GER is
The 1990s also marked a policy shift with the between 15% and 50%, the higher education system is a
government inviting greater private sector participation mass system where higher education is seen as a right
in higher education.13 As government investment for those who have certain formal qualifications.17 Higher
in primary education increased, its role as the main education systems are universal when the GER is above
provider of higher education diminished.14 Focus also 50% and higher education is an obligation.18 India with a
shifted towards cost recovery in HEIs and making public GER of 26.3% (AISHE 2018-19) is in its initial stages of
sector HEIs self-sufficient.15 The last two decades saw ‘massification’.19 20
an increase in the number of affiliated private colleges
as well as deemed universities. The former became an India’s GER is lower than the global average of 36.7%. But
important source of revenue for universities that charge it compares favourably with other Lower Middle-Income
an affiliation fee. The latter allowed private colleges to Countries, which have an average GER of 23.5%.21 The
operate as universities and award degrees. Therefore, GER in higher education is said to be dependent on the
there was a drastic increase in the number of institutions level of income and the occupational structure of the
and enrolment in higher education from 2001-2002 to economy.22 Service economies in developed countries
2011-2012. Enrolment tripled from 8.8 million to 28.5 tend to have a greater demand for higher education.23
million while the GER doubled from 8.1% to 19.4%. It is interesting to note that the average GER in Lower
Middle-Income Countries has doubled from 11.5% in
The frenetic growth of higher education institutions and 2001 to 23% in 2016. In the same period, the GER in
enrolment has continued in the last five years with over Upper Middle-Income Countries increased from 19%
6,000 institutions and six million students being added to 50%. The expansion in higher education around the
to the higher education system from 2011-2012 to 2016- world has been driven by the private sector.24
2017.

13
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
14
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5
15
Varghese, N V (2015), Challenges of Massification of Higher Education in India, CPRHE Research Paper Series No. 1
16
Trow, Martin (1973): Problems in Transition from Elite to Mass Higher Education. Carnegie Commission on Higher Education
17
Trow, Martin (1973): Problems in Transition from Elite to Mass Higher Education. Carnegie Commission on Higher Education
18
Trow, Martin (1973): Problems in Transition from Elite to Mass Higher Education. Carnegie Commission on Higher Education
19
Varghese, N V (2015), Challenges of Massification of Higher Education in India, CPRHE Research Paper Series No. 1
20
A country is at an elite stage of higher education when the GER is less than 15%, at a stage of massification when the GER is between 15%
and 50%, and at a stage of universalisation when the GER reaches 50% mark. (Martin Trow, 2006)
21
UNESCO Institute for Statistics (UIS), 2016
22
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
23
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
24
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5

12
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 1: Gross enrolment ratio by income group

100
90
80 75.15

70
58.17
60 50.7
50
40
30 23.54
19.44
20 11.58
7.46
10 3.54
0
Low Income Lower Middle Income Upper Middle Income High Income
Countries Countries Countries Countries

2001 2016

Data Source: UIS (2016); based on a similar chart in Agarwal (2006)

The growth of India’s higher education sector since 2001 India in this respect is China (Figure 2). Between 1996
is comparable to most other developing countries. But few and 2001, both countries had similar GERs. However, in
countries have expanded on the same scale. From 2001 the next five years, China almost doubled its enrolment
to 2016, India added 26.9 million students to its higher rate from 9.76% to 20% while India’s enrolment increased
education system. One country that has far outpaced by less than merely 2%.

Figure 2: Gross enrolment ratio: India versus China 1971-2016

60

48.4
50

40

30

20 26.92
20

10 6.28
11.5

5
0
1971 1976 1981 1986 1991 1996 2001 2006 2011 2016

India China

Data Source: UNESCO, UIS Statistics Data

Note: For China, data is available for 1970 (0.13), not 1971.

13
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

More importantly, China is close to achieving 1.3 Enrolment

universalised higher education within 15 years of entering
the mass stage of development. The drastic increase The exponential growth of the higher education sector
in China’s GER is due to increased higher education has been due to the increased demand for higher
funding in the last two decades.25 Besides, it is easier to education. Though the sector has grown across all levels
achieve scale in China as the students are concentrated and disciplines, some degrees and programmes have
in a smaller number of universities. For instance, Indian grown faster than the others. We examine this growth
HEIs, on average, have about 690 students. Chinese and its implications in greater detail below.
HEIs, on the other hand, have 16,000 students per HEI.
As we discovered in Section 1, the low student count per
HEI in India is a result of a conscious move to develop
1.3.1 Enrolment by discipline
small, high-quality institutions. This has resulted in a According to the AISHE 2018-19, 264 different
fragmented system that is hard to manage. programmes are offered by HEIs in India across all
levels. However, 10 programmes account for more than
In the recent past, the Yash Pal Committee (2009) and 76% of all enrolments (Table 2). Of these, just three
the Draft National Education Policy 2016 (DNEP16) programmes- Bachelor of Arts (B.A.), Bachelor of Science
have called for clustering colleges in a geographic area (B.Sc.) and Bachelor of Commerce (B.Com.) make up
to create small universities that are easier to manage. 50% of all enrolments. These ‘traditional’ programmes
The effect of clustering on the governance and quality are three-year-long courses, usually run by affiliated
of such institutions is examined in greater detail in colleges. There is limited scope for innovation in terms
Chapter 2. However, clustering could help in scaling up of curriculum in traditional degrees as the syllabus is
the higher education system. Experiences from China prescribed by the affiliating university. The university also
and developed countries suggest that bigger HEIs with a conducts a common exam for all its affiliated colleges.
high student count are easier to manage.26

Table 2: 10 Most popular programmes (2018-19)

Number of Students Percentage of

Programme
Enrolled Total Enrolment (%)

B.A.-Bachelor of Arts 93,49,287 25.90%

B.Sc.-Bachelor of Science 46,80,159 12.96%
B.Com.-Bachelor of Commerce 40,30,325 11.16%
B.Tech.-Bachelor of Technology 21,25,043 5.89%
B.E.-Bachelor of Engineering 16,45,906 4.56%
B.A.(Hons)-Bachelor of Arts (Honours) 16,39,796 4.54%
M.A.-Master of Arts 15,12,814 4.19%
B.Ed.-Bachelor of Education 12,23,858 3.39%
M.Sc.-Master of Science 6,97,217 1.93%
M.B.A.- Master of Business Administration 5,88,833 1.63%

Data Source: AISHE (2018-19)

Note: Programme titles include sub-disciplines in each category. For instance, B.E. includes all disciplines of engineering.

25
British Council (2014): A Brief Overview of Chinese Higher Education System, available at <https://www.britishcouncil.in/sites/default/files/
higher_education_system_of_china.pdf>
26
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper

14
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

‘Professional programmes’ like Bachelor of Engineering month to three-year programmes and are diluted versions
(B.E.), Bachelor of Technology (B.Tech.) account for of degrees.29 Enrolments in diploma programmes have
close to 10.5% of all enrolments. Most professional grown exponentially in the last decade. From 1% of total
programmes are run by private institutions and are enrolments in 2005, they now account for 7.22% of all
significantly more expensive than the three-year enrolments (2018-19). The growth in enrolment for
programmes.27 Data from the regulator, the All India diplomas appears to be at the cost of undergraduate
Council for Technical Education (AICTE) shows that degree programmes30 whose share has fallen from 89%
the enrolment (1.84 million) for its courses is at 50% of in 2005 to 79.76% in 2018-19 (AISHE).
the sanctioned intake (3.61 million).28 Such a big gap
between intake and enrolment points to saturation of
interest in professional programmes.
1.3.2 Enrolment by level
Postgraduate enrolments have more than doubled since
However, the growth of diploma programmes suggests 2009-10. However, undergraduate programmes make up
that affordability may be an issue in the reduced demand a clear majority of enrolments in India. According to the
for professional courses. Diplomas are vocational AISHE (2018-19), undergraduate enrolments account for
courses offered by polytechnics in different branches close to 80% of all enrolments in India. With around four
of engineering, pharmacy, hotel management, computer million students enrolled, postgraduate programmes are
science, to name a few. Unlike college degrees which a distant second at 11%.31 As shown below, the proportion
require students to pass 12th grade, diplomas admit of postgraduate enrolments has seen a slight increase in
students who have passed the 10th grade. They are six- the last decade.32

Figure 3: Level-wise enrolment as percentage of total enrolment

100
9.4
90
11.9 11.3 11.2 11.23 10.81
80 6.7
8.5 7
70 7.2
9.8
60

50
88.9
40 79.9 79.3 79.4 79.19 79.8
75.4
69.7 70.7
63.3 67.2
30

20

10

0
1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2010-11 2015-16 2016-17 2017-18 2018-19

Undergraduate Postgraduate

Data Source: UGC (2008) and AISHE (various years)

27
British Council (2014): A Brief Overview of Chinese Higher Education System
28
AICTE, available at < https://www.facilities.aicte-india.org/dashboard/pages/angulardashboard.php#!/graphs>
29
Mehrotra, Sunil, The Employability of Tertiary Level Graduates in India in N V Varghese and Garima Malik (eds), India Higher Education
Report 2015
30
Varghese N V (2015), Challenges of Massification of Higher Education in India, CPRHE Research Paper Series No. 1
31
AISHE 2018-19
32
UGC Annual Report, 2009-10

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R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

As the trend in undergraduate programmes, the Master The disparity in undergraduate and postgraduate
of Arts (4.1%), Master of Sciences (1.9%) and Master enrolment is due to a lack of capacity in Indian HEIs.
of Business Administration (MBA) (1.6%) are among According to the AISHE (2018-19), only 34.9% of all
the most popular programmes at the postgraduate HEIs run postgraduate programmes and just 2.5% of
level. Interestingly, the MBA is the third most popular HEIs run PhD programmes. Further, 34.8% of all colleges
postgraduate programme, even above Commerce (1.1%). in India run a single programme, and close to 83% of
The popularity of MBA programmes can be attributed these are privately managed. In addition to this, the poor
to the higher rate of employment of MBA graduates. quality of postgraduate education in India is illustrated
According to placement data from the AICTE, placement by the increasing number of Indian students pursuing
rates for MBAs (~40%)33 are among the highest. It is postgraduate programmes abroad.
comparable to or higher than many popular engineering
disciplines.34 According to 2016 estimates, 2,78,383 Indian students
were pursuing tertiary education in other countries,
At the postgraduate level, general programmes and almost double the number from 2005-06.35 This meant
those with high chances of employment are the most that Indian students studying abroad accounted for 1%
popular. Research degrees account for a very small of India’s total enrolment.36 However, a clear majority of
proportion of enrolments. This is borne out by the fact Indian students abroad are studying at the postgraduate
that the proportion of PhD enrolments to total enrolment level.37 Overseas Indian students accounted for almost
has fallen in the last decade. Though the number of PhD 7% of postgraduate enrolment in India.38 This is despite
enrolments has doubled in the last five years, its share in the fact that higher education in many of the top
total enrolment has actually fallen. destination countries is far more expensive than in India.

Table 3: Growth in PhD enrolments (1980- 2019) The low rate of postgraduate enrolment points to a
serious need to improve both the quality and capacity of
Total Number of Percentage of postgraduate programmes in India.
Year
PhDs Enrolled Total Enrolment

1980-81 26,820 0.9 1.3.3 Recommendations

1985-86 27,020 0.7 a. Expand capacity in postgraduate
1990-91 34,230 0.7 education
1995-96 38,520 0.6
There is an urgent need for greater investment in
2000-01 48,050 0.5 postgraduate education in India. The effort must be led
2005-06 70,579* 0.64* by the government as the private sector has not expanded
its capacity sufficiently at the postgraduate level. Private
2010-11 77,798 0.28
institutions find it commercially unfeasible to run
2015-16 1,26,451 0.37 postgraduate programmes39 except for a few professional
2016-17 1,41,037 0.4 programmes like management and engineering.
2017-18 1,58,363 0.4 The Medical Council of India recently mandated that
all medical colleges must also have postgraduate
2018-19 1,69,170 0.45
departments.40 Expanding such requirements to other
fields where there is a paucity of postgraduates may help
Data Source: UGC (2008) and AISHE, various years
*Refers to enrolment in ‘research programmes’ bridge the gap.
rather than just PhD

33
Includes PG diplomas
34
The MBA placement rate (40%) is higher than computer (35%) and mechanical (34%) engineering programmes, but lower than the electronics
(42%) engineering programme. Available at <https://www.facilities.aicte-india.org/dashboard/pages/angulardashboard.php#!/graphs>.
35
UNESCO Institute for Statistics (UIS), 2016
36
Also known as Outbound Mobility Ratio
37
M.M Advisory Services, “Indian Students Mobility Report 2016”
38
Authors’ estimates
39
Varghese N V (2015), Challenges of Massification of Higher Education in India, CPRHE Research Paper Series No. 1
40
Pushpa, N. (2018, April 11). All medical colleges will have to start PG courses by 2020. The Times of India.

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 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

b. Incentivise postgraduate education in India, which in turn implies that an increasing number
and research of graduates are entering the workforce. However, given
that most students pursue three-year programmes, it is
It is important to incentivise postgraduate education not easy for them to enter the job market. We discuss
to make teaching and research a more attractive some of the challenges associated with the current
proposition. The recent move to award fellowships to pattern of graduation and employment below.
PhD students in Indian Institutes for Technology (IITs)
and the Indian Institute of Science (IISc) is welcome.41
These fellowships are currently limited to the sciences
1.4.1 Graduation
and engineering. The government must look to expand Across all programmes, the average pass percentage for
this programme to other institutions as well. a student appearing in exams in India is 74.3%.42 Pass
percentages for the top 10 programmes by the number
c. Diversify course offerings in HEIs of graduating students are listed below. As in the case
of enrolments, the top 10 graduating programmes
The high rate of enrolment in three-year programmes account for 78% of all graduates. In general, science and
suggests a need to diversify the programmes in most technology programmes have a higher pass percentage
HEIs. Universities should look to limit the number of as compared to other disciplines.
three-year programmes and expand capacity in emerging
areas and new programmes for their affiliate colleges. In accordance with their enrolment rates, almost 50%
Courses in existing three-year programmes should be of the graduates are from three-year programmes. The
tweaked to incorporate more vocational skills to prepare total pool of graduating students across all disciplines
students for the job market. and levels in 2018-19 was 9.09 million. However, the
organised sector of the economy is estimated to be
around 50 million. As we see in the next section, many
1.4 Graduation and employment of the graduates for three-year programmes end up
working in the unorganised sector of the economy.
The increasing enrolment in higher education means that
a greater number of students are graduating from HEIs

Table 4: Pass percentages of top 10 programmes (2017-18)

Programme Number Appeared Number Passed Pass Percentage

B.A.-Bachelor of Arts 26,48,205 18,63,049 70.35

B.Sc.-Bachelor of Science 12,85,737 9,53,586 74.16
B.Com.-Bachelor of Commerce 12,53,419 8,91,942 71.16
M.A.-Master of Arts 7,69,849 5,80,637 75.42
Diploma 7,51,729 5,07,626 67.52
B.E.-Bachelor of Engineering 5,04,931 4,25,156 84.2
B.Ed.-Bachelor of Education 5,16,576 4,17,965 80.91
B.Tech.-Bachelor of Technology 5,06,012 3,93,046 77.67
B.A.(Hons)-Bachelor of Arts (Honors) 3,88,660 3,10,277 79.83
M.Sc.-Master of Science 3,29,139 2,49,853 75.91

Data Source: AISHE (2017-18)

41
Kunju S., S. (2017, August 21). IIT, IISc PhD Researchers To Get Rs. 70,000 Monthly Central Fellowship. NDTV.
42
AISHE 2018-19

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R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

1.4.2 Employment But the fact that only 3,49,000 job seekers were placed
in 2014 suggests that the unemployment rate among
Though India has one of the largest education systems three-year graduates is quite high. As a result, many
in the world, its contribution to the workforce is only of the graduates from three-year programmes end up
marginal. According to one estimate, only 10% of India’s working in the unorganised sector for lesser pay in non-
workforce is educated up to the tertiary level.43 The permanent jobs.48
organised sector, which most graduates expect to enter,
makes up only 15% of the market.44 In this section, we Technical programmes, on the other hand, are popular
explore two issues in relation to the employment of based on the perception that graduates of these
graduates. First is the employment of these graduates programmes find employment more easily. Colleges often
in the organised sector. Second is the question of advertise their placement rates to attract prospective
employability of the graduates produces by Indian HEIs. students. Students also pay a premium to attend such
colleges.49 However, data from the AICTE suggests that
a. Employment rate of graduates the placement rates in these institutions are not very
high. Of the 1.84 million enrolled students, only 33%
Three-year programmes account for half of all Indian (6,15,539) students were placed in 2016-17.50
graduates. However, the training in these courses is very
general. Traditionally, graduates from these programmes It must be noted that placement data only captures
applied for government jobs.45 However, since the growth those students who find employment through the college
in enrolment has far outpaced the increase in government placement cell. It does not account for students who find
jobs46, they turn to the private sector for employment. jobs through other means and those who pursue further
Unlike technical colleges, only a few elite three-year education. The latter is an increasingly popular choice but
colleges have placement cells that foster closer linkages is only a small fraction of the total number of graduates.
between the institution and industry, leaving graduates The placement-to-enrolment percentage is also not an
with no obvious pathways to enter the job market. accurate measure as it does not account for dropouts.
Another estimate places the total unemployment rate of
It is difficult to assess the level of unemployment for educated engineers at 48%.51
graduates of three-year degree programmes as these
colleges do not record placement data. However, In both general and technical courses, the unemployment
statistics from employment exchanges are a useful rate is quite high. The Employment-Unemployment survey
indicator.47 In 2013, there were 9 million graduates who notes that the unemployment rate increases with the
had signed up on employment exchanges around the level of education in India. The survey also finds that this
country. Of these, close to 8 million were graduates of is because graduates cannot find work commensurate
four programmes viz., Arts (3.7 million), Science (1.7 to their education and salary expectations.52 Graduates
million), Commerce (1.3 million) and Education (1.38 may also have the economic wherewithal to remain
million). In total, graduates from the four programmes unemployed in search of a suitable job as opposed to
accounted for 89% of all registrations in employment those with lesser education.53
exchanges in India. Certainly, job exchanges are one of
the many platforms available to job seekers.

43
Mehrotra, Sunil, The Employability of Tertiary Level Graduates in India in N V Varghese and Garima Malik (eds), India Higher Education Report 2015
44
Ministry of Labour, “Quarterly Report on Employment Scenario in Selected Sectors”, March 2018, available at <http://labourbureaunew.gov.
in/QES_7th_round_Report_final_12032018.pdf>
45
Mehrotra, Sunil, The Employability of Tertiary Level Graduates in India in N V Varghese and Garima Malik (eds), India Higher Education Report 2015
46
Mehrotra, Sunil, The Employability of Tertiary Level Graduates in India in N V Varghese and Garima Malik (eds), India Higher Education Report 2015
47
Khare, M. (2014). Employment, employability and higher education in India: The missing links. Higher Education for the Future, 1(1), 39-62
48
Mehrotra, Sunil, The Employability of Tertiary Level Graduates in India in N V Varghese and Garima Malik (eds), India Higher Education Report 2015
49
British Council (2014): A Brief Overview of Chinese Higher Education System
50
AICTE
51
United Nations Development Programme, “India Skills Report 2018”, available at <http://www.in.undp.org/content/dam/india/docs/
poverty/india-skills-report-2018_undp.pdf>
52
Ministry of Labour, “Report on Fifth Annual Employment-Unemployment Survey (2015-16)”
53
Mehrotra, Sunil, The Employability of Tertiary Level Graduates in India in N V Varghese and Garima Malik (eds), India Higher Education Report 2015

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 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

b. Employability 1.4.3 Recommendations

Various industry surveys in the last few years have found a. Promote linkages between HEIs
that between 10% to 40% of engineering graduates are and industry
employable depending on the role.54 India Skills Report
2018 finds that employability across disciplines is at Many technical programmes have strong linkages with
45%. The report found that engineering and pharmacy the industry as they rely on HEIs for their hires. Introducing
graduates are the most employable while those from vocational courses in three-year programmes can help
general three-year programmes are the least employable. bridge the skills gap in comparison to other professional
In the last five years, the India Skills Report has found an courses. These courses can be designed in partnership
increase in employability of more than 10%. with employers in the region to respond to the local
demand for skilled workers.
Employability surveys measure skills required at the
workplace. In addition to a lack of technical skills, in many b. Create more pathways to employment
cases, these tests have found poor communication and in the organised sector
language skills among recent graduates.55 To address
the skills gap in fresh hires, many companies invest in Mandating internships could help in familiarising
lengthy training programmes which often retrace basic students with the skills necessary to gain employment. If
concepts. Training programmes in companies that hire the AICTE programme to make internships compulsory is
freshers en masse can run from a few months to a year. successful, it can be extended to other streams as well.
This retraining has also spun off into businesses, with For graduates of vocational programmes, the National
many companies offering to train and certify recent Apprenticeship Promotion Scheme is a good example
graduates of engineering programmes for the job of gaining valuable work experience. The scheme offers
market.56 subsidies to employers who hire students for short term
apprenticeships. But the India Skills Report points to a
The skill gap and unemployment rate for graduates point lack of awareness about the scheme.59
to two problems in the higher education system. First
is the woeful lack of quality in many colleges in India,
which we explore in Section 5. Second is the disconnect
1.5 Quality of institutions
between education in colleges and the skills required in
a workplace. The best colleges in India can place their A recurring theme through this chapter has been the
graduates due to strong linkages with the industry and quality of HEIs in India. In this section, we first map the
by creating space for internships in their curriculum. quality assurance framework for HEIs and then analyse
AICTE has recently mandated compulsory internships for the latest data from the National Assessment and Ac-
all students in engineering colleges.57 Though there is a creditation Council (NAAC) to provide an understanding
high interest among students to sign up for internships, of the quality of HEIs in India.
job providers are less enthusiastic about the prospect.58
In this respect, the regulators have an important role to 1.5.1 Quality assurance framework
play in encouraging companies to invest in training of
prospective employees from an early stage. As the higher education regulator, one of the University
Grants Commission’s (UGC) functions is to monitor
the quality of HEIs in India.60 However, the UGC has not
been able to perform this role adequately.61 The UGC’s
power to inspect colleges does not include the power

54
See, for instance the Aspiring Minds, National Employability Report Engineers (2016), available at <https://www.aspiringminds.com/sites/
default/files/National%20Employability%20Report%20-%20Engineers%20Annual%20Report%202016.pdf>
55
Aspiring Minds, National Employability Report Engineers (2016)
56
See for instance, the Employability Proficiency Training Programme run by a company called Livewire, available at <https://www.
livewireindia.com/employment_proficiency_program_training.php>
57
Nanda, P. K. (2018, January 25). AICTE reduces theory burden, mandates internship for engineering students. Live Mint.
58
United Nations Development Programme, “India Skills Report 2018”
59
United Nations Development Programme, “India Skills Report 2018”
60
NAAC, “A Decade of Dedication to Quality Assurance” (2005)
61
This aspect has been discussed at length in Chapter 5.

19
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

to act against errant HEIs. This is by design, as the to conduct assessments for teacher training colleges.68
Radhakrishnan Commission sought to keep HEIs free Outsourcing assessment to external agencies would mean
from external influence.62 The power to derecognise that the role of the regulators would change. They would
colleges rests with the affiliating university. The UGC have to set clear guidelines for accreditation agencies and
publishes an annual list of ‘fake universities’ and ‘fake establish a uniform methodology; DNEP19 envisions that
colleges’ that operate without recognition but does not this responsibility would lie with NAAC. The UGC so far
have the power to directly act against such HEIs. has primarily relied on NAAC to conduct its assessments.
It remains to be seen if private players would be allowed
In addition to penalising HEIs that flout norms, quality into the accreditation process. Chapter 5 describes recent
assurance is necessary to reward high performing recommendations made by different committees and
colleges. Many of the UGC’s functions such as funding and draft policies to increase accreditation capacity.
granting autonomy require an objective assessment of
quality.63 Traditionally, decisions on funding and granting
1.5.2 NAAC and HEI performance
autonomy were made based on inspections by the UGC.
However, the UGC has not been able to keep pace with As mentioned above, a small proportion of HEIs have
the exponential growth of the higher education sector. NAAC accreditation. NAAC process is still largely
Reports of corruption, especially in granting deemed-to- voluntary since only HEIs applying for UGC funding or
be university status to HEIs in the last decade underscore obtaining for autonomy need mandatory accreditation.
the need for a more objective assessment.64 Accreditation Outside of these two categories, several private HEIs
agencies have filled this gap and the UGC is increasingly advertise their NAAC grades as a certification of quality
reliant on assessments to make many of its decisions. to attract prospective students. This naturally excludes
low-quality HEIs which would not voluntarily sign up for
There are two major accreditation bodies for higher accreditation at the risk of losing recognition. Hence the
education in India, NAAC and the National Board of data presented below is likely to be skewed in favour of
Accreditation (NBA). NAAC assesses all colleges better performing colleges.
irrespective of their disciplinary focus. NBA, on the
other hand, is limited to technical programmes such as The methodology used by NAAC is undergoing an
engineering and management. The NBA also accredits overhaul in response to criticism. The old methodology
individual courses rather than the institution. Both relied heavily on on-site visits which left room for a lot of
assessments are now mandatory: the UGC has made subjectivity in the assessment.69 The new methodology
NAAC assessments compulsory for all HEIs that apply for is based on self-disclosure and incorporates student
funding and the AICTE recently announced that at least feedback.70 Despite its shortcomings, NAAC assessments
half the programmes run by an HEI must be accredited provide an indication of the quality of a large set of
by the NBA.65 institutions and make decision-making more objective.

The problem with making assessments compulsory is that In NAAC accreditation process, HEIs are graded on a
the accreditation agencies lack the capacity to assess all scale of 1 to 4. Institutions with a score of greater than
the HEIs in India. As of October 2017, only 5,742 or 14% 3 are considered ‘Good’. These institutions are usually
of all HEIs in India have valid NAAC accreditation.66 To eligible for autonomy and funding from the UGC. HEIs
bridge the gap, the DNEP16 and DNEP19 recommended with a score less than 1.5 lose their accreditation while
certifying external agencies to conduct assessments.67 those with a score between 1.5 and 2 receive a warning.
The National Council for Teacher Education recently tied Figure 4 shows the distribution of institutions by NAAC
up with an external agency, the Quality Council of India grade.

62
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5
63
See for instance the Deemed University Regulations (2016), which mandate a NAAC score of more than 3
64
Tandon Committee (2009): Report of the Committee for Review of Existing Institutions Deemed To Be Universities
65
See AICTE Notification Dated 29th January, 2014, available at < https://www.aicte-india.org/downloads/manadatory_accreditation_
regulation_290114.PDF>
66
This does not account for standalone institutions which are not accredited by the NAAC. When added, the number comes down to 10%
67
Ministry of Human Resource Development, “Draft National Education Policy 2016”
68
“Ranking of Teacher Education”, Press Information Bureau, 17 July 2017, <https://pib.gov.in/newsite/PrintRelease.aspx?relid=167479>
69
NAAC’s Assessment and Accreditation process and methodology are detailed in Chapter 5.
70
The Revised Methodology can be found at <http://naac.gov.in/docs/Revised%20Accreditation%20Framework%20for%20Website%20
27%20July%20%202017.pdf>

20
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 4: Number of institutions by National Assessment and Accreditation Council grade

2500

2000 1923
1833

1458
1500

1000

500
274
187

0
1.5 to 2 2 to 2.5 2.5 to 3 3 to 3.5 >3.5
Data Source: NAAC (2017).
Note: Based on a list of institutions with valid accreditations, therefore, those with a score of 1.5 and below are excluded.

About 65% of the accredited HEIs can be found in the 2 upgradation in quality of institutions. This task would be
to 3 range. About 29% of all accredited HEIs have a score much simpler with fewer HEIs to oversee. Clustering HEIs
greater than 3 and can be considered of ‘good’ quality will help make them more manageable.
as per NAAC; however, these institutions represent just
4% of all HEIs in the country. There is a need to improve
the quality of a large number of middling quality HEIs.
1.6 Faculty
One proposal to do so is by clustering smaller colleges
to create more manageable HEIs.71 The teaching and research professions go hand in hand
in India. From the very beginning, universities were
planned to be research hubs and teachers were expected
1.5.3 Recommendations to have a strong research record.72 The Radhakrishnan
a. Upgrade accreditation capacity Commission (1949), for instance, noted that ‘research [..]
is not merely an additional casual activity of a university
The two accreditation agencies together have assessed teacher which he may if he so chooses to omit, it is an
a very small number of HEIs in India. There is a need for essential part of his function’.73 Many commissions since
more players in the sector as NAAC does not have the have reinforced the idea that research is an essential
capacity to assess all the HEIs in India. Accreditation is component of a teacher’s job and a core function of the
not usually carried out by government bodies like NAAC university.74
in other countries. Certifying quality assurance agencies
to carry out the assessments will add significant capacity. A direct consequence of low enrolments in postgraduate
programmes is the shortage of qualified teachers in
b. Clustering colleges the higher education system. Hence, in this section, we
focus on studying the growth of teachers in Indian HEIs,
A large number of colleges rated 2 to 3 on NAAC scale which further gives us a sense of the growth of research
suggests that there is a need to closely scrutinise the in institutions, covered in Chapter 4.

71
Yash Pal Committee (2009): Report of the Committee to Advise on Renovation and Rejuvenation of Higher Education
72
Matthew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
73
Ministry of Education, “The Report of the University Education Commission (December 1948-August 1949) Volume 1”, (1st Reprint 1962).
Referred to as Radhakrishnan Report.
74
See for instance, National Policy on Education 1986.

21
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

1.6.1 Teacher growth and minimum For instance, the Radhakrishnan Committee noted that
qualifications lecturers (entry-level position) “should ordinarily have
started as a Research Scholar or Fellow who may have
As discussed previously, the growth of the higher his PhD”.75 For higher positions, such as Reader or
education sector post-independence was primarily Professor, a PhD was mandatory. This was despite the
through government institutions. Their growth was fact that there were fewer than 100 PhD holders in India
planned and controlled with a view to maintain the quality at the time.76 Even as the number of HEIs and teachers
of HEIs. This thinking also extended to the teaching increased through the affiliated model77 in the 1950s
profession. After the government-funded expansion and 1960s, the government sought to maintain a high
in the 1950s and 1960s, the number of teachers grew threshold for entrance into the teaching profession. The
at a steady, slow rate until 1990-1991 (Figure 5). This Model Act Committee (1964) for instance stated that
slow expansion was a result of government policy that college and university teachers should have the same
mandated research or doctoral degrees as a minimum qualifications.78 With a view to maintaining quality, the
qualification to enter and advance in the teaching committee recommended revoking the recognition of
profession. colleges if applicants with high qualifications are rejected
at the expense of those with lower qualifications.79

Figure 5: Teaching staff (in lakhs)

20

15

10

0
9
6

8
4

5
1

1
1

1
1

-1

-1
-1

-1
-1

-1
-9

-0

-1
-7

-8
-5

-6

17

18
15

16
13

14
90

00

10
50

60

70

80

20

20
20

20

20
19

19

20

20

20
19

19

19

AISHE Estimate based on historical growth rates UGC Estimate

Authors’ compilation based on data from UGC (2018) and AISHE, various years

75
Ministry of Education, “The Report of the University Education Commission (December 1948-August 1949) Volume 1”, (1st Reprint 1962).
Referred to as Radhakrishnan Committee Report.
76
Tilak, J. B., & Mathew, A. (2016). Promotion in academic profession in India: Upward mobility of teachers in higher education. Asia Pacific
Journal of Educators and. Education, 31
77
See Chapter 2
78
Ministry of Education, “Report of the Committee on a Model Act for Universities”, Minerva 4(1) (September 1965)
79
Ministry of Education, “Report of the Committee on a Model Act for Universities”, Minerva 4(1) (September 1965)

22
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

The Sen Committee on the Governance of Universities 1.6.2 Research in universities

and Colleges (1973) continued the policy of requiring a
research degree to be appointed as a teacher. It stated Research has always been an important part of a uni-
that “a master’s degree alone would not suffice for versity’s function in India. In addition to their role in
the selection of a lecturer”.80 Instead it recommended imparting knowledge, the Radhakrishnan Committee
an M.Phil or a PhD as an essential requirement for envisioned universities as centres for the production of
recruitment to improve the quality of teaching.81 The knowledge.87 With this in mind, the Committee recom-
National Commission on Teachers for Higher Education mended that universities create a space for those who
in 1985 also endorsed a research degree as a minimum are interested in research “without being encumbered
qualification to enter the teaching profession.82 It further with teaching or other kinds of routine duties”.88 How-
recommended an All India Test to select the best ever, the responsibility of carrying out research was not
teachers.83 limited to such Research Fellows.

The Mehrotra Committee built on this proposal and Research and scholarship were conditions for mid and
recommended the National Eligibility Test (NET).84 senior-level teaching positions within the university
Conducted by the UGC, the NET is a minimum requirement as per the Radhakrishnan Committee. Both the Sen
for full time appointment as faculty in HEIs. Many states Committee and the NCT-HE also stressed the need for a
conduct a similar test at the state level. Importantly, body of published research as an essential condition for
the Mehrotra Committee also reduced the minimum promotion.89 The Mehrotra Committee drew an important
qualifications to a master’s degree rather than a research distinction noting that a research degree is not necessary
or doctoral degree.85 It noted that the high standard of a for appointment. But it was a necessary condition for
research or doctoral degree was neither followed, nor did promotion.
it maintain a high-quality of instruction.
Research was also seen as an extension of postgraduate
However, this did not lead to an immediate increase in and doctoral education. Hence, it was seen as a core
the number of teachers. There was a de-facto freeze function of the university.90 However, most research
on teacher hiring in the 1990s, a direct consequence in India actually happens in stand-alone research
of reduced government spending on higher education institutions, outside of the university system (Chapter
post liberalisation.86 There was then a dramatic increase 4). Many government committees have taken a dim view
in the number of teachers post 2000-2001 (Figure 5). of this development, pointing to a lost opportunity in
This growth was driven primarily by private HEIs which developing synergies between teaching and research.
also account for most of the enrolments. Most of these The Yash Pal Committee stated that universities had been
jobs have been as contract hires with limited scope reduced “to centres that teach and examine masses”.91
for advancement or stable employment. The growth This claim is not without merit. As we noted earlier, only
in teachers has not kept pace with the increase in 34.9% of HEIs in India run postgraduate programmes
enrolments. while just 2.5% run PhD programmes.92

80
Excerpt of the Sen Committee Report from UGC, “Report of the Committee to Review the Pay Scales of University and College Teachers”,
(1997), available at <http://krishikosh.egranth.ac.in/bitstream/1/2041455/1/CCS330.pdf>
81
Sen Committee Report (1997): Report of the Committee to Review the Pay Scales of University and College Teachers
82
Tilak, J. B., & Mathew, A. (2016). Promotion in academic profession in India: Upward mobility of teachers in higher education. Asia Pacific
Journal of Educators and Education, 31
83
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
84
UGC note on Review of NET, available at <https://www.ugc.ac.in/netpdf/net_review%20_mungekar.pdf>
85
See the Government Notification establishing master’s degree as a minimum qualification based on the recommendation of the Mehrotra
Committee < https://www.ugc.ac.in/oldpdf/PSOrders/1986.pdf>.
86
Tilak, J. B., & Mathew, A. (2016). Promotion in academic profession in India: Upward mobility of teachers in higher education. Asia Pacific
Journal of Educators and Education, 31
87
Radhakrishnan Committee (1949): The Report of the University Education Commission
88
Radhakrishnan Committee (1949): The Report of the University Education Commission
89
Tilak, J. B., & Mathew, A. (2016). Promotion in academic profession in India: Upward mobility of teachers in higher education. Asia Pacific
Journal of Educators and Education, 31
90
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
91
Yash Pal Committee (2009): Report of the Committee to Advise on Renovation and Rejuvenation of Higher Education
92
AISHE 2018-19

23
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 6: Student Teacher Ratio (2011-18)

30
29
30

25
24 24
25
22
21 21
20

15

10

0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Data Source: UGC (2018) and AISHE, various years

This trend is also a consequence of distinct funding a. Data on teachers

structures of research centres and big universities. The
former are largely independent, small and well-funded The number of teachers in India grew consistently since
institutions. The latter are dependent on the government the 1950s. However, the AISHE has reported a dramatic
for their operational expenses. With the exception of a fall in teacher numbers in the last two years. The survey
few elite institutions, most universities in India do not has cited the use of a new ‘Teacher Information Format’
have research centres or departments. We examine (TIF) of data collection to explain this sudden drop.95 After
the effect of this long-term shift towards standalone the initial spurt in the number of teachers in the 1950s
research centres in greater detail in Chapter 4. and 1960s, the number of teachers grew at a steady
rate until 2000-2001. In the next decade, the number of
teachers more than doubled from 3,50,000 to 8,17,000.
1.6.3 Teacher shortages From 2010 to 2018, more than 4,50,000 teachers have
According to the AISHE 2018-19, the Indian higher been added to the system. However, from a peak of 15.2
education system has a student teacher ratio of 29, a lakh in 2015-16, the higher education system has lost
sharp rise from 21 in 2014-15 (Figure 6). The student around 2,30,000 teachers over the last two years. The
teacher ratio for the United States in 2015 was 12.35, reasons for this fall are not immediately apparent.
whereas Brazil’s was 19.4.93 Amplifying the problem of
teacher shortages in the Indian higher education system, The government has indicated that there may be problem
even elite institutions such as the IITs and IIMs report with the newly instituted TIF process which collects data
teacher shortages as high as 30%.94 However, there is directly from teachers rather than the institution. Two
little meaningful data to analyse the problem in greater changes introduced with the use of the TIF could explain
detail at the institution-level. the sudden fall in the number of teachers. First, AISHE
2017-18 does not use pooled data to estimate the total
In this section, we look into both issues in some detail. number of teachers.96 From 2010-11 to 2016-17, teacher
We first look at the problems in teacher data given the data also included a pooled component, which was an
recent disparities in the AISHE. Second, we attempt to estimation based on previous years’ data. This was used for
identify the problems that lead to teacher shortages. institutions whose data was not available for that particular

93
World Bank Data
94
In 2018, the teacher shortage at IITs was estimated to be 34%
95
AISHE 2018-19
96
AISHE 2017-18

24
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

year. Second, the TIF requires teachers to mandatorily link b. Teaching as a profession
their Aadhar number to the AISHE database.97 This move
has met with resistance from many teachers who were The key human resource involved in ‘delivering’ high-
unwilling to share their Aadhaar details.98 quality education to students is the faculty. In addition
to teaching long-term educational programs of the
However, the introduction of the TIF alone does not institution, faculty members are also expected to be
account for the discrepancy in teacher numbers over the involved in the training of executives and managers as
last two years. We have used two estimates to highlight development professionals. They are also required to
this difference (Figure 5). First is the UGC estimate, which engage in research, publish and disseminate research
unlike the AISHE has shown a comparatively moderate, output. Finally, faculty also participates in various
if not consistent, increase in the number of teachers institution-building activities and contributes to key
over the last five years. Second, our projection, based on academic and administrative activities. A nurturing
historical growth rates shows a much wider gulf in the ecosystem would make it possible for HEIs to retain high
number of teachers. potential faculty.

There is a wide difference between the three estimates. To hire faculty, positions are first sanctioned by the central
This is a function of their methodologies. UGC’s or state government. However, perhaps due to the limited
estimates are based on data submitted by states that funding available, neither state nor central government
may not be as accurate as the AISHE. Our estimate is universities open an adequate number of full-time
based on the average growth rates from 1990-1991 and positions. Therefore, universities continue to operate by
shows a difference of 7,00,000 teachers or more than hiring ad-hoc or part-time faculty. Ad-hoc faculty are
50% of the AISHE estimate.99 not compensated as well as full-time faculty, therefore,
they have far less incentive or motivation to stay in the
A few conclusions can be drawn. First, if the AISHE system. Private HEIs also prefer to hire large number
estimate is the most accurate, the fall in teachers over of part-time or ad-hoc faculty to maximise profits. The
the last two years could be due to over-reporting in the limited availability of qualified professionals to teach
previous years. The AISHE introduced the TIF to identify at HEIs and dwindling number of students pursuing
such over-reporting through ‘ghost teachers.’ However, research degrees leads to a vicious cycle of faculty
so far only 80,000 ghost teachers have been identified. shortage in HEIs. Further, the recent legal prescription
This is not large enough to explain the gap between the of the Supreme Court to resort to department-wise
AISHE and other estimates. reservation, instead of university-wise quotas, to fill
faculty positions in government and government-aided
Second, if either the projection or the UGC estimate is HEIs has resulted in vacancies.100
more accurate, it means that the introduction of the
TIF has introduced a greater error in the estimates than Like India, China struggled with faculty shortages and
initially thought. There has always been a divergence management in the higher education sector. Recruitment
between UGC and AISHE estimates of teachers. This can of faculty in China was traditionally dominated by
be explained by the sources of their data. However, if the personal contacts and political clout. However, in 2012,
error is as large as our estimate suggests, the AISHE China brought about reforms and adopted the American
committee should take a closer look at the TIF. So far, way of offering faculty tenure-track depending on the
no other reason has been offered by the government to faculty member’s position and experience. Such lifetime
explain this gap other than the introduction of Aadhaar. guarantees and assurance secures faculty members
Finally, in the case of all three estimates, the number from being randomly fired or terminated while also
of teachers is dwarfed by the massive increase in defending the principle of academic freedom. The need
enrolments. We discuss the underlying problems that to offer teaching faculty in Indian HEIs similar permanent
have led to teacher shortages in the next section. positions is discussed at greater length in Chapter 4.

97
Teacher Information Format, available at <http://aishe.nic.in/aishe/viewDocument.action?documentId=221>.
98
See for instance Mazoomdaar, J. (2017, April 27). Give us your religion, caste, Aadhaar: HRD to all college teachers. The Indian Express
99
We chose 1990-91 as the starting point as the expansion in the higher education system and the dramatic increase in teacher numbers
began in that year.
100
Vishnoi, A. (2019, January 23). Supreme Court upholds department-wise SC/ST quota in universities. The Economic Times

25
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

1.6.4. Recommendation
a. Devise a well-structured promotion policy
and incentive plan for faculty
Attracting and retaining qualified faculty is a key
challenge faced by HEIs. Adequate compensation, in
terms of monetary consideration as well as career
security (tenure-track), should be provided to teaching
staff to incentivise them.

1.7 Summary of recommendations

Recommendations Objective

Expand capacity in postgraduate education Increase postgraduate enrolment and reduce teacher shortages
Incentivise postgraduate education Make research and teaching a more attractive career choice
Diversify course offerings Prepare students for the job market
Promote linkages between HEIs and Industry Improve employability of graduates
Create more pathways to employment in the
Reduce unemployment rate among graduates
organised sector
Upgrade accreditation capacity Monitor the quality of all HEIs in India
Cluster colleges Improve the quality of colleges and make them easier to manage
Offer greater incentives to faculty members Attract and retain well-qualified teaching staff

26
 02

CHAPTER
Governance and
Accountability

There are two aspects to higher education governance: in looking at the

relationship between the government and HEIs, this chapter examines the
problems with the affiliating model of university that is followed in India.
Further, the relationship between HEIs and students is discussed from the lens
of the accountability framework for HEIs.

This chapter has five sections. In Section 2, we discuss the affiliating university
model, which accounts for a majority of HEIs in India. In examining the problems
associated with model, we locate the increasing demand for autonomy among
HEIs. We take a closer look at the policy for granting autonomy to HEIs in India.
This includes an evaluation of the process and the effects of granting autonomy.
A recent alternative to autonomy is the idea of the cluster university. The first
cluster university in India was set up in 2013. In Section 3, we examine the
antecedents of this policy as well as its current effect on the affiliating model.

In Section 4, we look at the existing framework for accountability in HEIs. This

section draws on many of our learnings from the quality assurance framework
discussed in Chapter 1. We discuss the shortcomings of the existing
accountability framework and make the case for a more student-centric notion
of accountability.
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

2.1 The affiliating model and affiliating universities become the primary regulators of
higher education. This creates bureaucratic bottlenecks
the demand for autonomy that spur demand for greater autonomy. As shown in
Figure 7, private institutions far outnumber government-
The higher education sector in India has undergone administered HEIs in India. But a clear majority of these
drastic changes in the last two decades. Until the institutions are ‘affiliated colleges’. This means that
mid-2000s, government-owned institutions made despite being owned privately, most colleges in India are
up a majority of the HEIs in India.101 However, private subject to the norms established by government-owned
institutions currently account for twice the number of affiliating universities. The affiliating university system
government institutions. This is attributed to a conscious is a model inherited from the British, similar to the one
move by the government in the 1980s to invite private followed by the Oxford and Cambridge Universities.105
sector participation to meet the increasing demand.102 The affiliating university allows the establishment of
a network of institutions around a small number of
This transformation has also necessitated a change universities.106
in the way the government regulates higher education.
Change in this respect has been slow. The UGC, modelled As such, affiliating universities enrol a very small
after its erstwhile British counterpart,103 is the central number of students (usually at the postgraduate and
higher education funding and regulating agency in India. doctoral level). Their primary responsibility is that of a
But most of its funding is focussed on a small number regulator. Affiliating universities are responsible for the
of centrally-administered institutions. Though it frames development of the curriculum for affiliated colleges,
many of the regulations that govern HEIs in India, the overseeing teaching quality, and assessing student
UGC has limited capacity and authority to administer performance.107 However, universities have not shown
them.104 This means that state-level authorities and themselves to be effective regulators.

Figure 7: Private institutions in India

25000

20000

15000

10000

5000

0
2001 2006 2011 2017

Private Government-Administered

Data Source: AISHE, various years and Agarwal (2006)

Note: Government-Administered is a sum of government-owned colleges and government-aided colleges. 2005-06 is the year the
number of private colleges overtook the number of government-owned colleges.

101
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
102
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
103
The UGC was wound up in the UK in 1989. After its most recent revamp, the higher education regulator in the UK is now called the Office
for Students
104
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper
Series No. 6
105
Kulandaiswamy, V. C. (2006). Reconstruction of higher education in India. Hyderabad: The ICFAI University Press
106
Kulandaiswamy, V. C. (2006). Reconstruction of higher education in India. Hyderabad: The ICFAI University Press
107
Rizvi, F., & Gorur, R. (2011). Challenges Facing Indian Higher Education. The Fearless Nadia Occasional Papers on India–Australia
Relations, Australia India Institute, Melbourne

28
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Almost half of the affiliating universities in India have of greater autonomy to educational institutions. Most
more than 100 colleges affiliated to them (Table 5). recently, the DNEP16 found that affiliated colleges ‘suffer
Therefore, overwhelmed university administrators can from severe fund constraints and poor governance,
enforce only minimum standards required to establish leading to poor quality of outcomes’.
and operate colleges. Many colleges do not have
adequate educational facilities or trained teachers. Despite these criticisms, the affiliating model remains
College managements, often driven by a profit motive, popular as it requires very little investment from the
have limited accountability as the university is ultimately government.109 The affiliating fee paid by colleges is an
responsible for enforcing quality norms.108 important source of revenue for many state universities
that often face funding shortages.110 Autonomy is often
Table 5: Affiliated colleges per presented as a solution to the problems created by the
affiliating university affiliating system.111 The UGC has progressively accorded
autonomous status to several institutions based on their
Range of affiliated Number of affiliating
past performance. Most recently, the UGC announced
colleges universities
a policy of according ‘graded autonomy’ to 62 high-
0-100 156
performing institutions based on their NAAC grades.
100-200 52
200-300 31 However, autonomous HEIs constitute a very small
300-400 14 number of the total number of HEIs in India, as shown
400-500 9 in Figure 8. In the last decade, India has seen a three-
fold increase in the total number of HEIs (Agarwal, 2006;
500-1000 16
AISHE 2017-18). But the number of autonomous HEIs
Data Source: AISHE (2016-17) has remained 2% or less. In 2009, the Yash Pal Committee
noted that 1,500 colleges (7.5% of the then total number
The government has not been blind to this problem. of HEIs) had the infrastructure necessary to be upgraded
Many government-appointed committees have pointed as universities or be granted greater autonomy. Close
to affiliating universities as a problem in reforming to a decade later, there are only 892 (2.1% of the total
the higher education sector. As far back as 1986, the number of HEIs today) autonomous HEIs
National Education Policy (NEP) had called for the
affiliating system to be replaced by a ‘freer and more On the other hand, there has been a modest increase in the
creative association of universities with colleges’.The number of affiliating universities in the last five years from
UGC Committee on New Educational Management 239 to 278. But affiliating universities currently account
stated that university administrations placed statutory for 74% of all student enrolments at the undergraduate
and financial restrictions that were ‘non-conducive to levels (AISHE 2017-18). There is a considerable demand
achieving excellence’. In 2009, the Yash Pal Committee for autonomy since it allows HEIs the freedom to inter
noted that colleges in the affiliating system are stifled by alia administer their own courses, explore new revenue
the university bureaucracy due to ‘delays, controls and streams and award their own degrees. We take a closer
inadequate support’. The Yash Pal Committee also called look at some of these powers awarded under the various
for the elimination of the affiliating system in favour schemes of autonomy.

108
Rizvi, F., & Gorur, R. (2011). Challenges Facing Indian Higher Education. The Fearless Nadia Occasional Papers on India–Australia
Relations, Australia India Institute, Melbourne
109
Ernst & Young Pvt Ltd. “Higher Education in India: Twelfth Five Year Plan (2012-2017) and Beyond”. FICCI Higher Education Summit 2012
110
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper
Series No. 6
111
See the Kothari Commission 1966; National Policy on Education 1986; Draft National Education Policy 2016 among others

29
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 8: Autonomous higher education instiutitons in India

2017
892

2011
564

2006
327

2001
197

0 5000 10000 15000 20000 25000 30000 35000 40000 45000

Other HEIs Autonomous HEIs*

Data Source: Authors’ calculations based on data from AISHE (various years), Agarwal (2006) and Malik (2017)
*Autonomous HEIs= Deemed Universities + Autonomous Colleges + Institutions of National Importance

2.2 The meaning and effect they are established with a high degree of autonomy to
of autonomy begin with, and do not have to apply for autonomous
status separately. Similarly, deemed universities have
UNESCO defines institutional autonomy as a ‘degree a sub-category called de novo institutions where an
of self-governance necessary for effective decision institution is established as a deemed university.
making by institutions of higher education regarding
their academic work, standards, management and Figure 9: Types of autonomous HEIs
related activities’.112 According to the UGC Committee
on New Educational Management (1990), autonomy is Category Law/Regulation
‘the freedom to function to achieve academic excellence Autonomous UGC Guidelines for Autonomous
and to administer the institution through its own rules Colleges Colleges, 2017
and regulation’.113 In both these definitions, autonomy Deemed UGC Institutions Deemed to be
is not limited to the academic functions of a college Universities Universities Regulations, 2016
or university. Especially in India, debates on autonomy Act regulating the specific
usually centre around funding, recruitment and the Institutions institution(s). For instance, Indian
awarding of degrees. of National Institutes of Management Act
Importance (2017) for IIMs, Indian Institutes of
Technology Act (1961) for IITs etc.
2.2.1 How is autonomy granted? UGC Categorisation of Universities
Graded
There are four schemes for autonomy in India. They for Grant of Graded Autonomy
Autonomy
are listed in Figure 9 along with the statutes/rules that Regulations, 2018.
govern them. Authors’ compilation

Existing HEIs usually apply under the guidelines mentioned The guidelines for autonomy were subjective until recently.
in Figure 10. The UGC in consultation with the concerned Graded autonomy, the most recent of these schemes,
university or technical body evaluates their applications. signalled a policy switch.114 Objective assessments
However, in the case of Institutions of National Importance, made by NAAC every five years are the basis for granting

112
World Declaration on Higher Education, 1998
113
University Grants Commission, Report of The UGC Committee Towards National Education Management, 1990
114
“In a historic decision, 60 Higher Educational Institutions granted autonomy by UGC : Shri Prakash Javadekar”, Press Information Bureau,
20 March 2018, <http://pib.nic.in/newsite/PrintRelease.aspx?relid=177751>

30
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

graded autonomy. Other schemes have also incorporated that any institution scoring a grade A or higher on
NAAC grading in their assessment of the quality of HEIs. NAAC scale will be automatically granted autonomy.120
Figure 10 summarises the requirements for autonomy This does away with a lot of red tapes present in the
under all the schemes for autonomy. other two schemes. For instance, the UGC Guidelines
for Autonomous Colleges mandates a site visit before
Of the three schemes, the requirements for deemed granting autonomy.121 This is despite when site visits are
university status are the most stringent. In addition to part of NAAC assessments. Such guidelines only serve
those listed in Figure 10, deemed universities must also to delay the application process. The increasing use of
have a campus of at least 5,000 square metres, appoint NAAC grades in awarding autonomy also removes the
a vice chancellor and create a governance structure subjectivity involved in assessing applications.
similar to that of a university.115 The norms for deemed
universities have been tightened in the last decade
following allegations of corruption.116. Autonomous
2.2.2 Powers that come with autonomy
colleges must also create a governance structure There is some debate on whether deemed universities
according to the rules. Once a college is designated as and institutions of national importance are autonomous
autonomous, it does not have to pay any affiliating fee institutions. Autonomous institutions refer to colleges
to the respective university.117 This could explain why that have been granted autonomy. Deemed universities
the number of autonomous colleges have stagnated in are a distinct category as they are colleges that gain
the recent past. There has also been resistance from the powers of a university. IITs and IIMs are subject
State Universities to grant autonomy to their affiliated to governing councils (IIT Council and IIM Council).122
colleges.118 Autonomous colleges, by contrast, only report to their
governing and academic councils.123 Here, we look at an
In both the autonomous colleges and deemed universities’ institution’s ability to govern itself with minimal external
regulations, the HEI must have been in existence for at influence. From this perspective, all the categories listed
least 10 and 15 years respectively. However, the actual in Figure 9 operate with a high degree of independence.
time may be longer. In the case of deemed universities,
we found that it takes 24.3 years on average before an According to Prakash (2011), there are three aspects of
institution is recognised as a deemed university.119 autonomy viz., financial, administrative and academic.
Based on an analysis of the different schemes for
The graded autonomy scheme does not have a autonomy in India, Figure 11 shows the eight powers that
stipulated time period. Attempts have been made to are accorded to autonomous institutions.
simplify the process: in March 2018, it was announced

Figure 10: Criteria for granting autonomy

Category Quality Size Time Since Establishment

Autonomous
NAAC Grade higher than A — 10 years
Colleges
Highest NAAC grade for 3 cycles or Undergraduate and at 15 years unless in the Top
Deemed
among top 100 colleges in India or least 5 postgraduate 100 overall or Top 20 for a
Universities
among top 20 in a particular stream departments particular stream
Graded
NAAC Grade higher than A — —
Autonomy
Authors’ compilation

115
UGC Institutions Deemed To Be Universities Regulations, 2016
116
The problems with deemed to Be universities were investigated by the Tandon Committee (2009)
117
UGC, Guidelines for Autonomous Colleges, 2017
118
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5
119
This excludes de novo institutions as they are established as deemed to be universities
120
“In a historic decision, 60 Higher Educational Institutions granted autonomy by UGC : Shri Prakash Javadekar”, Press Information Bureau,
20 March 2018, <http://pib.nic.in/newsite/PrintRelease.aspx?relid=177751>
121
UGC, Guidelines for Autonomous Colleges, 2017
122
Pandey, I M, “Governance of Higher Education Institutions”, Vikalpa 29(2) April-June 2004
123
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5

31
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 11: Powers granted to autonomous institutions

Financial Administrative Academic

Set fees Hire teachers/staff Prescribe syllabus
Report directly to academic/governing
Start new courses Conduct own exams
councils rather than government/UGC
Explore new revenue streams with-
- Award degrees in own name
out prior approval
Authors’ compilation

The main benefit of autonomy is that HEIs gain system and to promote more academic freedom, more
administrative and financial powers that allow them HEIs should be granted autonomy. This will allow
to administer their affairs with minimal external regulators and university administrators to focus on low
interference. But these powers do have a bearing on the performing colleges.
level of academic freedom at an HEI. For instance, the
supervisory authority for most colleges is the university b. Simplify autonomy process using
or a government authority that has wide-ranging powers
accreditation scores
even in academic matters.124 Autonomous HEIs, on the
other hand, can constitute their own academic councils The process for granting autonomy includes lengthy
that advise them on academic matters.125 evaluations, similar to those conducted by NAAC. Instead
of two separate assessments, ratings from accreditation
The financial freedom awarded to HEIs is closely linked agencies can be used to make the process simpler. The
to the government’s focus on the solvency of HEIs since recent Graded Autonomy announcement is a step in the
the 1990s.126 Allowing HEIs the freedom to explore new right direction.
revenue streams and raise funds independently reduces
the funding burden on the government. However, this
has faced resistance from some academics as funds
2.3 Cluster universities
are usually raised through fee hikes.127 The argument
is that granting autonomy makes higher education less Cluster universities are a recent policy experiment of the
affordable and leads to the privatisation of HEIs. In MHRD. Pilot clusters have been started in four states
response, successive governments have sought to set with many other clusters in various stages of planning.
aside a certain percentage of seats in private HEIs at Clustering colleges has long been thought of as a
a lower fee. The most notable of these moves was the way to reduce the burden on affiliating universities by
Private Universities Bill in 1995. However, this has been a pooling together the resources of individual colleges to
non-starter for various reasons. The issue of affordability create smaller, manageable universities. Originally, the
of higher education is discussed in Chapter 3. 12th Five Year Plan of the Planning Commission had
recommended creating 400 clusters of 50 colleges each
to cover all HEIs in India.128 In its present form, clusters of
2.2.3 Recommendations three to five colleges have been established.129
a. More HEIs should be granted
autonomous status In the 1960s, cluster colleges were a popular reform move to
decentralise large universities in the United States.130 The
Autonomous HEIs currently account for only two percent idea was to create smaller, more manageable communities
of all HEIs in India. To reduce the burden on the affiliating to develop specialisations and promote diversity.131 There

124
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5
125
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5
126
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper
Series No. 6
127
Pathak, V. (2018, March 23). UGC autonomy notice sparks fear of fee hikes. The Hindu
128
University Grants Commission, “Inclusive and Qualitative Expansion of Higher Education: 12th Five Year Plan”, November 2011
129
See for instance, the Cluster University of Jammu
130
Martin, Warren, “Alternative Forms of Higher Education for California”, Joint Committee on the Master Plan for Higher Education, California
Legislature (1973)
131
Gaff, J. G. (1970). The cluster college. San Francisco: Jossey-Bass

32
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

are two kinds of college clusters viz., sub-colleges and university-college relationships that could replace
federated colleges.132 Sub-colleges are satellite campuses the affiliating model.139 Ever since, many government
near the university or semi-autonomous colleges that commissions have called for a move away from the
operate on the same campus.133 Federated colleges are a affiliating model of universities. The Yash Pal Committee
federation of many small colleges pooling their resources in 2009 recommended that good colleges can be clubbed
together but are functionally independent.134 The move to together to create universities.140 The report, however, did
create cluster universities in India is inspired by the latter not comment on the size of these cluster universities.
form of the arrangement. The 12th Plan called for the establishment of cluster
universities with a minimum of 50 colleges within a city
Small colleges, which are not very common in the United or district.141 In their present form, cluster universities
States have ‘limited intellectual, cultural and economic consist of three to five colleges.
resources’.135 Creating a federation of such colleges
helped build larger, more diverse institutions with more The rationale for the creation of cluster universities
resources than any of the constituent colleges.136 is to reduce the burden on affiliating universities and
However, federated colleges were not popular in to improve the quality and infrastructure of colleges
the United States as it was difficult for competing, by pooling their resources.142 Individual colleges are
independent colleges to cooperate with each other.137 It designated as different campuses of the university. For
is expected that Indian colleges might have a stronger instance, the Cluster University of Jammu, India’s first
incentive to cooperate since cluster universities are cluster university is made up of colleges that specialise in
offered additional funding.138 science and commerce, and an education and women’s
college as well.143 Geographic proximity is also a
consideration in creating clusters, with colleges required
2.3.1 Indian cluster universities to be within a 15-20 km radius.144 Table 6 summarises
The proposal to create cluster universities in India can be the make-up of existing cluster universities. Many more
traced back to the 1986 NEP, which called for alternate are in the pipeline.

Table 6: Cluster universities in India

No. of No. of students % of Postgraduate Nature of

Name No. of Programmes
Colleges enrolled (2016-17) Enrolments Ownership
Cluster University of
5 16,616 1.8 20 (8 postgraduate) Government
Jammu
Cluster University of 20 (10 integrated
5 15,241 3.6 Government
Srinagar Master’s)
Khallikote University 5 Not available Not available Not available Government
Authors’ Compilation

132
Gaff, J. G. (1970). The cluster college. San Francisco: Jossey-Bass
133
Gaff, J. G. (1970). The cluster college. San Francisco: Jossey-Bass
134
Gaff, J. G. (1970). The cluster college. San Francisco: Jossey-Bass
135
Gaff, Jerry “Cluster Colleges as Response”, The Research Reporter 5(4), 1970
136
Martin, Warren, “Alternative Forms of Higher Education for California”, Joint Committee on the Master Plan for Higher Education, California
Legislature (1973)
137
Gaff, J. G. (1970). The cluster college. San Francisco: Jossey-Bass
138
Under the RUSA, cluster universities are offered an initial funding of Rs. 55 crores followed by additional funding of Rs. 33 crores after a
five-year period
139
National Policy on Education 1986
140
Yash Pal Committee (2009): Report of the Committee to Advise on Renovation and Rejuvenation of Higher Education
141
University Grants Commission, “Inclusive and Qualitative Expansion of Higher Education: 12th Five Year Plan”, November 2011
142
University Grants Commission, “Inclusive and Qualitative Expansion of Higher Education: 12th Five Year Plan”, November 2011. Also see
Ministry of Human Resource Development, “Rashtriya Uchchatar Shiksha Abhiyaan: National Higher Education Mission”, September 2013
143
See <http://clujammu.in/index.php>.
144
Ministry of Human Resource Development, “RUSA Existing Components at a Glance”, May 2014

33
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

So far, clusters have consisted of reputed, high- on existing affiliating universities. More colleges need to
performing colleges (eight out of the 15 colleges in three be added to clusters for them to reduce the burden on
clusters have a NAAC grade above 3). In addition, many affiliating universities.
of the colleges in the clusters already have autonomy
from their parent universities. Though the cluster is b. Cluster universities should be hubs for
of a manageable size, it does not affect the affiliating postgraduate education and research
university in a significant way given their small size. The
idea is for these clusters to expand with the addition of Cluster universities can help upgrade the capacity
more colleges in the future.145 Unless more colleges are for postgraduate education. By pooling resources
added to these clusters or more clusters are created, amongst individual colleges, the cluster university
the bottlenecks associated with affiliating universities has the resources to become a hub for postgraduate
will continue. education and research. The programmes in these
cluster universities can also be modified to cater to
The area where cluster universities could have an impact the local economy. A study of college clusters in Pune
is in the addition of postgraduate courses. In Chapter and Bangalore found that local firms relied on HEIs for
1, we discussed the wide gap between undergraduate their workforce.147 In addition, the growth of firms in
and postgraduate enrolments. We found that one of the these cities also led to collaboration on Research and
reasons for the gap was the lack of capacity in many Development (R&D) in many emerging areas with the
HEIs to run postgraduate courses. Cluster universities industry.148 Cluster universities with pooled resources
help overcome the shortage of resources in this are uniquely placed to take advantage of local linkages.
respect. However, from Table 6, we see that in the two
cluster universities in Jammu & Kashmir, postgraduate
enrolments are less than four percent. In addition, none
2.4 Accountability in HEIs
of the clusters run doctoral programmes. Some cluster
universities have already indicated that they will be The National Knowledge Commission in 2006 described
expanding their postgraduate programmes.146 It is an the higher education sector as “overregulated and under-
important first step to improve the quality of higher governed”.149 With the increasing number of private
education in cluster universities. HEIs in India, regulators have very little authority over
their functioning. The government’s move to recognise
10 private HEIs as Institutions of Eminence (IoEs) will
2.3.2 Recommendations allow these institutions greater freedom to decide fees
a. College clusters must be bigger structures, course structures, and the discretion to
constitute their governing bodies. Though no financial
Clustering colleges has helped create universities of a support will be provided to private IoEs, unlike public
more manageable size. However, it does not solve the IoEs, the special status granted to these institutions
problem of scale identified in Chapter 1. The number can help serve the objective of providing world-class
of students per HEI in a cluster university is still quite teaching and research facilities to students and, overall,
low. The fact that many colleges in these clusters were enhance the general level of education in India. In recent
autonomous means that they were not a burden to their times, the establishment of some private HEIs towards
affiliating university to begin with. Cluster universities this endeavour deserves a mention; their account is
are a useful alternative to the affiliating university. In summarised in Figure 12.
their current form, they do not have a sizeable impact

145
Ministry of Human Resource Development, “RUSA Existing Components at a Glance”, May 2014
146
Mohanty, H. (2017, February 27). Khallikote Cluster University may open 12 new postgraduate departments. The Times of India
147
Basant, R., & Chandra, P. (2007). Role of educational and R&D institutions in city clusters: An exploratory study of Bangalore and Pune
Regions in India. World Development, 35(6)
148
Basant, R., & Chandra, P. (2007). Role of educational and R&D institutions in city clusters: An exploratory study of Bangalore and Pune
Regions in India. World Development, 35(6)
149
National Knowledge Commission, Report to the Nation 2006-2009. See <https://www.aicte-india.org/downloads/nkc.pdf>

34
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 12: Select high-ranking private HEIs setup in recent times

S No Institutions Account
A private institution set up in 2009 by the Ahmedabad Education Society, a
1 Ahmedabad University
non-profit education trust.
A fully philanthropic initiative and established as a state private university
2 FLAME University in Maharashtra, under the FLAME University Act 2014 as a Jain minority
institution.
Setup in 1996 by a group of businessmen and academics. It is funded
3 Indian School of Business entirely by private corporations, foundations and individuals from around
the world and is a not-for-profit organisation.
A private university established in 2009 as a philanthropic initiative by
4 O. P. Jindal Global University
Naveen Jindal.
Founded as part of a series of initiatives launched by a private
philanthropic foundation funded by Shiv Nadar, and established as a
5 Shiv Nadar University state private university under Act no. 12 of 2011 of the state legislature
of Uttar Pradesh. Currently registered as a research institution with the
Government of India.
Authors’ compilation

As the government pursues a policy of granting greater IIMs, accountability is a straightforward process. Their
autonomy to HEIs, holding them accountable and performance can be judged based on their financial
monitoring their standards becomes the primary task of disclosures.152 This is also because a bulk of their funding
the regulator.150 India, like many other countries around comes from the central government. This is not the case
the world, is moving towards a government-supervised with most HEIs. The UGC, the primary funding agency
system from a government-controlled system. In this funds a very small proportion of HEIs in India.153 State-
section, we discuss this existing accountability measures level authorities, which make up a majority of the funding
for HEIs in India and identify ways in which they should for HEIs do not have the capacity to regulate them. In the
evolve in the current higher education landscape. case of private HEIs, state-level authorities most often
intervene to set fee caps.

2.4.1 Failure of existing In the last two decades, accreditation has emerged as a
accountability mechanisms means of holding HEIs accountable, becoming the basis
for many decisions taken by the UGC. But it remains a
The affiliating university is the primary regulator of largely voluntary process with only 14% of all HEIs having
higher education in India and designed to function as valid accreditation. More importantly, regulators have
an automatic quality control mechanism.151 As we found very few secondary mechanisms to ensure compliance.154
in section 2, affiliating universities lack the capacity to Such measures can include the withdrawal of funding
effectively regulate their constituent colleges and hold and recognition. It is difficult to withdraw funding from
them accountable. Around the world, funding agencies public HEIs as they are not self-sustainable and rely
have taken over the role of holding HEIs accountable on government funding.155 Private HEIs do not rely on
through performance-linked funding. government funding and most regulators do not have the
power to withdraw recognition. At a fundamental level,
However, this model is yet to take shape in India in a the problem is that regulators in India do not have the
meaningful way. Among elite institutions like IITs and power to steer institutions towards specific goals.156

150
Raza, R. (2009). Examining autonomy and accountability in public and private tertiary institutions. Human Development Network: World Bank
151
Raza, R. (2009). Examining autonomy and accountability in public and private tertiary institutions. Human Development Network: World Bank
152
Pandey, I M, “Governance of Higher Education Institutions”, Vikalpa 29(2) April-June 2004
153
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper
Series No. 6
154
Raza, R. (2009). Examining autonomy and accountability in public and private tertiary institutions. Human Development Network: World Bank
155
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper
Series No. 6
156
Raza, R. (2009). Examining autonomy and accountability in public and private tertiary institutions. Human Development Network: World Bank

35
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Thus, the existing framework of accountability is not A more market-driven solution to accountability is
linked to performance. Accreditation agencies have not the voucher system. Instead of subsidising HEIs, the
covered a significant number of HEIs. Finally, there are no government gives vouchers to students to cover some
obvious ways to make quality assessments actionable. part or all of the fees.164 The student then has the option
of spending the voucher at an HEI of his or her choice. In
2.4.2 Student-centric accountability such a system, the choice is often driven by the quality
of the HEI.165 A version of this system could be applicable
The role of households in the expansion of higher to India. The government recently launched a platform
education over the last two decades has not received to make student loans more accessible.166 Through the
sufficient attention.157 It has been noted that the platform, students can apply for loans from multiple
expansion has been funded primarily by households.158 banks and the banks clear the loans in a short window.
The increase in the number of HEIs was also driven If the platform is linked to only those HEIs with a valid
by the increasing demand for higher education in a accreditation or with a certain score, it would drive
liberalised economy.159 However, the role of students and student demand in the direction of greater quality. This
households in holding HEIs accountable has not been would create a system of accountability outside the
emphasised enough. more formal regulatory processes.

Unlike many other countries, the introduction of the Such student-centric solutions can only work when they
private sector in India has not created competition can identify and access HEIs of sufficient quality.167 In
between privately-owned HEIs to upgrade their quality.160 such a system, the government must actively disseminate
However, there has been competition to attract a greater information on HEI quality, and both students and
number of students, since they are the primary source parents must be equipped to make decisions based on
of revenue. Private HEIs in India often volunteer for this information.168
accreditation as a certifier of quality to attract more
students.161 Thus, student demand becomes a de facto 2.4.3 Recommendations
accountability mechanism amongst HEIs.
a. Strengthen accreditation framework
Some countries have student-centric accountability
mechanisms. The most radical of these is the California A strong accreditation framework is essential to improve
university system that is regulated by the Bureau of the accountability of HEIs. We must work towards
Private and Post-Secondary Education (BPPE).162 upgrading the capacity of accreditation agencies, as
BPPE is a consumer protection agency that treats well as making assessments actionable. Decisions
for-profit universities as businesses and students as on recognition, affiliation and funding can be linked
their consumers. Students can directly approach the to assessments made by accreditation agencies, as
BPPE for any violations. The BPPE is responsible for outlined in Chapter 5. Separating assessments from the
the establishment of minimum standards for business regulatory agencies will also help reduce corruption and
practices, quality of instruction and institutional stability.163 profiteering associated with many of these decisions.

157
Daugherty, L., Miller, T., Dossani, R., & Clifford, M. (2013). Building the Links between Funding and Quality in Higher Education. Rand
Corporation
158
Varghese, N V, (2015): Challenges of Massification of Higher Education in India. CPRHE Research Paper Series No. 1
159
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
160
Raza, R. (2009). Examining autonomy and accountability in public and private tertiary institutions. Human Development Network: World Bank
161
Martin, M., & Stella, A. (2007). External Quality Assurance in Higher Education: Making Choices. Fundamentals of Educational Planning 85.
International Institute for Educational Planning (IIEP) UNESCO
162
Bureau for Private Postsecondary Education, see <https://www.bppe.ca.gov/about_us/>
163
Bureau for Private Postsecondary Education, see <https://www.bppe.ca.gov/about_us/>
164
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper
Series No. 6
165
Martin, M., & Stella, A. (2007). External Quality Assurance in Higher Education: Making Choices. Fundamentals of Educational Planning 85.
International Institute for Educational Planning (IIEP) UNESCO
166
Called Vidyalakshmi, the platform is currently operated by the National Securities Depository Limited. The platform currently has 34 banks
and 93 different loan schemes. For more information, see <https://www.vidyalakshmi.co.in/Students/about-us>.
167
Daugherty, L., Miller, T., Dossani, R., & Clifford, M. (2013). Building the Links between Funding and Quality in Higher Education. Rand
Corporation
168
Daugherty, L., Miller, T., Dossani, R., & Clifford, M. (2013). Building the Links between Funding and Quality in Higher Education. Rand
Corporation

36
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

b. Empower students, household funding and advertisement. Disseminating informa-

and other stakeholders tion on accreditation widely will empower students and
households as consumers of higher education. This
Formal regulation must be accompanied by empower- can be taken a step further by linking it to student-level
ing other stakeholders. Currently, accreditation is only funding, especially with student loan platforms.
understood by policymakers or HEIs that rely on it for

2.5 Summary of recommendations

Recommendations Objective

More HEIs should be granted autonomy Reduce the burden on affiliating universities
The process for granting autonomy should be Link autonomy to assessments and avoid duplication
simplified of effort
Increase size of university clusters Move away from the affiliating model
Clusters should be hubs for postgraduate education
Improve quality of education
and research
Strengthen accreditation framework Reduce corruption and profiteering
Student-centric accountability To better regulate private HEIs

37
 03
CHAPTER

Funding:
Efficiency,
Transparency
and Affordability

The last two decades have seen a shift in the funding of higher education.
The government has taken a step back from its role as the primary funder.
Household expenditure in higher education is now the biggest source of
funding. In this chapter, we examine some of the effects of reduced public
funding on higher education in India.

In section 2, we chart the growth of the higher education sector and the
policy changes with respect to funding since independence. We also look at
the dynamics between state governments and the centre in higher education
funding. We examine the changing government priorities in favour of funding
technical education over university education.

We shift our focus to institution-level issues in Section 3. We evaluate the

incremental model of funding followed in India and highlight the inefficiencies
it brings to the system. A consequence of the shift away from government
funding of higher education is the increased pressure on public HEIs to
implement cost recovery measures and we analyse the impact of these.

Section 4 investigates the sources of funding in privately-owned HEIs. We

found the lack of data to be a major obstacle. In this context, we analyse the
implications of a lack of transparency on the rising costs of higher education
in India. Sections 2 to 4 make specific recommendations on improving
efficiency and quality and increasing affordability.
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

3.1 Expenditure on higher education

The question of whether higher education is a public government expenditure.172 Like many other developed
or private good underpins any discussion on funding. countries in this period, India turned to the private sector
Higher education can serve both private and public to fill the gap.173
interests. But its classification as one or the other is
often a political process.169 In India, higher education was Over a 30-year period, government expenditure increased
considered a public good, with the government as the in nominal prices from Rs. 1053 crores to Rs. 39,797 crores
primary higher education provider until the 1990s. There (Table 7). Most of the increase was a result of the 11th
has been a marked shift in policy, with higher education Five Year Plan (2007-12) when the central government
being classified as a ‘non-merit’ good in 1997.170 The allocation to higher education was increased nine-fold.174
classification has a bearing on the resources allocated However, in real terms, there was a five-fold increase in
to the sector. higher education spending from 1980-1981 to 2010-
2011.175 More importantly, enrolments in this period
Post-independence, the government-funded most, increased 10 times (Table 1). Comparing the annual
if not all HEIs in India. Government funding of HEIs growth rate of enrolment and government expenditure
progressively increased until the 1980s. In 1979-1980 paints a clearer picture as shown in Figure 13. From
for instance, government funding accounted for 79% 2001-2011, while government expenditure increased at a
of all expenditure on higher education in the country, rate of 10.9% per year, enrolment increased at 21.25% per
up from 49% in 1950-1951.171 As we discovered in year. This gap in enrolments and government spending
Chapter 1, increased government expenditure on was filled by the private sector. Unlike government or
higher education was in consonance with the growth government-aided HEIs, most private HEIs do not receive
of the higher education sector through government and government funding. They are almost entirely reliant
government-aided HEIs until the 1980s. In the 1980s on student fees. This means that private HEIs only run
and 1990s, India was faced with an unprecedented courses that are profitable and charge fees much higher
demand for higher education. Unlike previous decades, than government HEIs. Therefore, the expansion in
the demand could not be met solely through increased higher education in the last two decades was funded by

Table 7: Government spending on higher education (in Rs. Crore)

Year University Level Technical Education Total

1980-81 N/A N/A 1,053.2
1985-86 1,106.59 350.26 1,456.85
1990-91 2,311.85 753.01 3,064.86
1995-96 3,871.33 1,290.25 5,161.58
2000-01 9,194.79 2,528.02 11,722.81
2005-06 11,013.34 3,657 14,670.34
2010-11 28,788.11 11,009.78 39,797.89
2014-15* 51,112.99 19,111.59 70,224.58
Data Source: Annual Analysis of Budgeted Expenditure on Education, MHRD, various years
*Budget estimate

169
Carnoy, M., Froumin, I., Loyalka, P. K., & Tilak, J. B. (2014). The concept of public goods, the state, and higher education finance: a view
from the BRICs. Higher Education, 68(3)
170
Tilak, J. B. (2004). Public subsidies in education in India. Economic and Political Weekly
171
Tilak, J. B., & Varghese, N. V. (1991). Financing higher education in India. Higher Education, 21(1)
172
Carnoy, M., Froumin, I., Loyalka, P. K., & Tilak, J. B. (2014). The concept of public goods, the state, and higher education finance: a view
from the BRICs. Higher Education, 68(3)
173
Carnoy, M., Froumin, I., Loyalka, P. K., & Tilak, J. B. (2014). The concept of public goods, the state, and higher education finance: a view
from the BRICs. Higher Education, 68(3)
174
Tilak, J. B. (2017). Union-State relations in India’s Higher Education. NUEPA Occasional Paper, 50
175
Authors’ estimates

39
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

households.176 There is no data available on household The long-term shift from a government-funded higher
expenditure on higher education. But a 2016 study education system to one funded by households has
found that household expenditure on higher education many implications for the higher education system in
ranged from 15.29% (rural households) to 18.36% (urban India. We examine this in the following sections.
households) of total household expenditure.177

A more reliable indicator of the shift in higher education 3.2 Government spending on
funding are student loans. In 2013-14, 8% of all
students enrolled in HEIs were funded by an education higher education
loan.178 Rs. 70,282 crores were released as funds for
student loans in 2013-2014. By comparison, the total From 1990-1991 to 2003-2004, government spending on
government expenditure on higher education in 2013- higher education ranged between 0.5% to 0.6% of GNP,
2014 was Rs 64,982 crores.179 In fact, student loans have amongst the lowest in the world.181, 182 Since 2008-2009,
exceeded government expenditure on higher education public spending on higher education in India has varied
since 2007-2008.180 between 1.1% to 1.3% of GDP.183 According to the 2015
data, India’s government spending on higher education is
the highest in South Asia.184 It also compares favourably
to some developed countries.185

Figure 13: Growth rates of enrolment versus expenditure (1981-2011)

25

21.25

20

15

10
10 10.9

6.3
7.8
5 5.7

0
1981-91 1991-01 2001-11

Expenditure (Real Prices) Enrolment

Data Source: Authors’ calculations based on data from AISHE and MHRD

176
Varghese, N V (2015): Challenges of Massification of Higher Education in India. CPRHE Research Paper Series No. 1
177
Chandrasekhar, S., Rani, P. G., & Sahoo, S. (2016). Household Expenditure on Higher Education in India: What do we know & What do
recent data have to say? (No. 2016-030). Indira Gandhi Institute of Development Research
178
Rani, P. G. (2016). Financing higher education and education loans in India: Trends and troubles. Journal of Social Science, 12(4)
179
Ministry of Human Resource Development, “Analysis of Budgeted Expenditure on Education 2011-12 to 2013-14”, (2015) available at
<http://mhrd.gov.in/sites/upload_files/mhrd/files/statistics/ABE2011-14.pdf>
180
Rani, P. G. (2016). Financing higher education and education loans in India: Trends and troubles. Journal of Social Science, 12(4)
181
Central Advisory Board of Education, “Financing of Higher and Technical Education”, (2005)
182
Central Advisory Board of Education, “Financing of Higher and Technical Education”, (2005)
183
Until the recent past, higher education spending was measured in GNP terms
184
Comparison based on data from the UNESCO Institute for Statistics (UIS), 2016
185
Comparison based on data from the UNESCO Institute for Statistics (UIS), 2016

40
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Table 8: Government expenditure on

However, unlike more developed countries, government
higher education, as % of GNP
spending on higher education is far more integral to the
Year Share of GNP (%) sector in India. Most government and government-aided
1990-91 0.61 HEIs rely almost entirely on government funding. We
discuss the institution-level issues in the next section.
1995-96 0.49
Now, we turn our focus to the broad patterns in higher
2000-01 0.62
education funding in India.
2003-04 0.5
Data Source: Report of the Central Advisory Board of Education, 2005
3.2.1 Centre-state funding in
Table 9: Government expenditure on higher education
higher education, as % of GDP
The union and state governments are considered
Year Share of GDP (%)
‘equal partners’ in higher education in India.186 But their
2008-09 1.18
relationship in the governance and funding of higher
2009-10 1.29 education has been in a state of flux since independence.
2010-11 1.34 Until 1976, higher education was under the State List of
2011-12 1.13 the Constitution, with the role of the central government
2012-13 1.19 limited to setting standards and the administration of
central universities.187 The 42nd Amendment in 1976,
2013-14 1.26
moved higher education to the Concurrent List, which
2014-15 1.22
gave the central government a larger role in the regulation
Data Source: Annual Analysis of Budgeted Expenditure on of higher education.
Education, MHRD, various years

Figure 14: Share of state and central government funding for higher education (%)

100%

90%
38.6 38.2
34.9 33.3
80% 38.3 40.1
42.8
70%

60%

50%

40%
61.4 65.1 66.7
30% 61.7 59.9 61.8
57.2
20%

10%

0%
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14^ 2014-15*

State Centre

Data Source: Authors’ calculations based on Annual Analysis of Budgeted Expenditure on Education, MHRD, various years

186
Tilak, J. B. (2017). Union-State relations in India’s Higher Education. NUEPA Occasional Paper, 50
187
Tilak, J. B. (2017). Union-State relations in India’s Higher Education. NUEPA Occasional Paper, 50

41
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Through the UGC and regulators for professional and A direct consequence of this is the increase in affiliated
technical programmes, the role of the union government colleges, which are an easy source of revenue for state
has extended beyond standard-setting. These bodies can universities.190 The initial push towards allowing private
frame rules and norms on a wide range of issues, including colleges and universities also came from the states,
but not limited to the eligibility and service condition for who could not afford to finance the expansion of the
teachers, the conduct of entrance examinations and higher education sector on their own.191 The imbalance
the grant of licenses to establish HEIs. This leaves little in centre-state funding also explains the problems with
regulatory room for the states as HEIs are required to capacity and quality discussed in Chapter 1. One area
comply with these norms or state-level regulations that that both the centre and states have paid increasing
draw upon norms established by central regulators.188 attention to in recent times is technical education.
Further, the existing role of the UGC in fund disbursal
The outsized role played by the central government is and the proposal for an individual and exclusive body to
not reflected in the funding of higher education. State play the part are discussed in Chapter 5. We now turn to
governments spend a lot more than the central government. the varying funding patterns in technical and university
Since 2008-2009, state government spending has, on education in India.
average, accounted for 60-65% of total government
spending on higher education. State governments spend 3.2.2 University and technical education
more on higher education as central government funding
is limited to a small number of institutions. In 2015, it was For funding purposes, higher education in India is
estimated that only 6% of all enrolled students study in classified into two categories - university and technical
central government institutions.189 education. University education refers to traditional
three-year programmes and their corresponding
There is also a difference in the nature of central and masters and doctoral programmes. These courses are
state government funding. A large percentage of plan run by affiliated colleges in the university system. They
grants disbursed by the central government go to are regulated by the respective universities in addition to
central universities. On the other hand, most of the state the state government and the UGC. Technical education
government expenditure is through non-plan grants. Plan refers to courses such as engineering, medicine,
or development grants are grants tied to specific projects management, etc., which have a specialised vocational
or with specific objects. Non-plan or maintenance grants focus. These programmes are regulated by regulators
cover the operating expenses of an HEI. Thus, central such as the AICTE, MCI, etc. (Figure 22).
HEIs with plan funding can improve in quality and focus
on academics and research. Whereas, state-funded HEIs, There has been an increasing demand for technical
which constitute a majority of the HEIs in India, rely on a education over the last two decades due to increasing
thinly spread pool of non-plan grants for the day-to-day job opportunities for the graduates of these programmes
running of the institution. (Chapter 1). This is also reflected in the increased
government spending on technical education. From
The imbalance in centre-state funding has two 26.6% in 2008-09, the proportion of government funding
consequences. First, centrally-administered HEIs are on technical education has increased to 46.6% in 2014-
usually of a higher quality and are considered ‘islands 15.192 Interestingly, both central and state governments
of excellence’. This follows from the fact that they are have increased their spending on technical education
better funded, with specific development objectives in while reducing or slowing down their expenditure on
mind. Second, state governments and universities with university education.
limited funding rely on other means to fill the gap.

188
Tilak, J. B. (2017). Union-State relations in India’s Higher Education. NUEPA Occasional Paper, 50
189
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper
Series No. 6
190
Most central universities are not affiliating
191
Matthew, Anthony, (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
192
Authors’ calculations based on MHRD’s Analysis of Budgeted Expenditure on Education

42
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Table 10: Government expenditure on technical and university education (in Rs. Crore)

University Education Technical Education Total

Year
State Centre State Centre State Centre

2000-01 75.1 24.9 56.3 43.7 71.1 28.9

2005-06 78.8 21.2 58.3 41.7 73.7 26.3
2010-11 68.7 31.3 44.1 55.9 62.1 37.9
2014-15* 66.7 33.3 56.1 43.9 61.8 38.2
Data Source: Tilak (2017) and Annual Analysis of Budgeted Expenditure on Education, MHRD, various years
* Budget estimate

The gap is wider for central government spending. The strategy to address issues of expansion, equity and
central government’s expenditure accounts for more excellence. Central funding under the scheme are linked
than half the spending on technical education, while to academic, administrative and financial reforms of state
state governments account for almost two-thirds of the higher education.195 The scheme was designed in such
expenditure on university education. Increased central a manner that grants would be dependent on outcomes
government expenditure on technical education is a and based on State Higher Education Plan (SHEP) as a
response to the rapid expansion of low-quality, private benchmark for state and institution performance.
HEIs offering technical programmes.193 In the last
decade, the central government has increased funding to Funding under RUSA is based on two components—
improve the quality of existing technical institutions and norm-based and performance-based, thus incentivising
to establish more institutions of the same quality (IITs, well-performing institutions and decision-making. The
IIMs etc.). norm-based approach grades HEIs based on their level
of compliance with regulations. Under performance-
The bulk of central funding is through plan grants. based funding, State Higher Education Councils (SHECs)
This means that most government-funded technical prepare SHEPs that serve as a benchmark against which
institutions receive funding with specific objectives state and institutional performance are evaluated and
for development and further improvement, allowing graded, and funding is disbursed according to the level
them to thrive. State government funding is primarily of achievement. The current position of the state and
through non-plan grants that are ad hoc, and, in many HEIs with respect to the indicators is determined in the
cases, based on political considerations. These create annual SHEP along with targets for the financial year.
inefficiencies in the system.194 Therefore, the quality of The responsibilities of the SHEC with respect to planning,
government-funded technical education has improved, execution and evaluation in this regard are discussed in
while the quality of university education has suffered. Chapter 5. Upon meeting certain prerequisites, states
receive funds based on achievements and outcomes in
key impact areas—access, equity and excellence. While
3.2.3 Rashtriya Uchchatar using a comprehensive outcome and results-based
Shiksha Abhiyan approach to direct funding is a step in the right direction,
the process to evaluate states and HEIs through either
In 2013, the government launched the National Education of the two approaches can be considered a duplication
Mission, or Rashtriya Uchchatar Shiksha Abhiyan (RUSA) of efforts made by NAAC. Data from budget allocation
to provide strategic funding to higher and technical since the launch of RUSA shows a rapid increase in
institutions in states. Under this Centrally Sponsored allocation made for the scheme as well as utilisation of
Scheme states are required to develop comprehensive funds (Table 11).
state higher education plans with an interconnected

193
Tilak, J. B. (2017). Union-State relations in India’s Higher Education. NUEPA Occasional Paper, 50
194
The problems with ad-hoc funding and incremental are discussed in greater detail in Section 4
195
Notes on Demand for Grants, Union Budget, various years

43
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Table 11: Budget allocation towards Rashtriya Uchchatar Shiksha Abhiyan (RUSA) (in Rs. Crore)

Financial Year 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Budget Estimate 400 2,200 1,155 1,300 1,300 1,400 2,100
Revised Estimate 240 397.47 * 1,300 1,300 1,500 —
Actual 6.95 * 1,037.03 1,416.06 1,245.98 * —
Data Source: Notes on Demand for Grants, Expenditure Budget, Ministry of Finance, various years
* Data not available

3.2.4 Recommendations
a. Increase regulatory and funding capacity 3.3 Institution-level funding
of state-level authorities

The UGC and other regulatory agencies set norms on India follows a negotiated or incremental model for
issues ranging from teacher pay to eligibility conditions, the public funding of HEIs, a common model in many
leaving little room for state-level authorities. However, developing countries.197 But the incremental model
states take on a larger burden when it comes to funding explained below brings many inefficiencies to the system,
HEIs. This lopsided arrangement has led to a scenario exacerbated by reduced government spending over the
where state-funded HEIs receive more directions than last two decades. As a consequence, funding agencies
funding to improve their quality.196 The establishment have prioritised cost recovery measures in HEIs. These
of State Higher Education Councils is a welcome move. measures range from increasing fees to introducing self-
However, their role is so far limited to a funding and financing courses. We discuss the incremental model of
implementing agency. At present, the UGC and other funding and the recent moves towards cost recovery in
central regulatory agencies are overburdened. Setting up government HEIs below.
regional offices in coordination with state governments
will help improve the quality and oversight over HEIs in
the particular region.
3.3.1 Incremental model of funding
Funding in this model is not based on performance criteria
b. Increase plan grants to state-level but on the negotiating capacity of the HEI in relation to
the funding agency (UGC or State governments). For
institutions
instance, an increase in enrolment does not necessarily
Most of the funding disbursed by state governments guarantee increased funding.198 There are three kinds
is in the form of non-plan grants. These grants meet of funding arrangements in the negotiated model:
only the operational expenses of an HEI and are incremental budgeting, ad-hoc negotiations and fixed
often awarded in an ad-hoc manner. For state-level revenue agreements.199 In India, incremental budgeting is
institutions to improve, they need to be awarded a the most common form of funding.200 In this model, grants
larger share of plan or development grants. Tied to are made on annual increments at a fixed rate.201 These
specific objectives, these funds will help improve the increments are neither performance-based nor need-
quality of state-level institutions. Setting up regional based. A common feature of the incremental budgeting
regulatory and funding agencies will aid in the funding model is the tight restrictions placed on expenditure. This
and execution of plan grants. is also the case in India, where spending is restricted to a
prescribed list of admissible expenditures.202

196
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper
Series No. 6
197
Albrecht, D., & Ziderman, A. (1992). Funding Mechanisms for Higher Education: Financing for Stability, Efficiency, and Responsiveness.
World Bank Discussion Papers. World Bank
198
Albrecht, D., & Ziderman, A. (1992). Funding Mechanisms for Higher Education: Financing for Stability, Efficiency, and Responsiveness.
World Bank Discussion Papers. World Bank
199
Albrecht, D., & Ziderman, A. (1992). Funding Mechanisms for Higher Education: Financing for Stability, Efficiency, and Responsiveness.
World Bank Discussion Papers. World Bank
200
Sharma, M. (1985). State Funding of Universities: A Study of Maintenance Grants to Universities. Assoc. of Indian Universities
201
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper Series No. 6
202
Sharma, M. (1985). State Funding of Universities: A Study of Maintenance Grants to Universities. Assoc. of Indian Universities

44
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Funding at the state level depends on the availability control over funds they generate. If they receive
of state resources and can be subject to ad hoc government funding, any income generated is adjusted
negotiations.203 HEIs with greater autonomy (like the against the funds granted to them.209 Since they receive
IITs, IIMs etc.) have fixed revenue agreements with the funding irrespective of cost recovery measures, HEIs
government.204 have very little incentive to adopt such measures. For
this reason, the Punnayya Committee had suggested
The incremental funding model is inefficient. Since setting up a fund for the generated income to be utilised
a flat increment is negotiated each year, not based on for the development of HEIs.210
improvements or needs, there is very little incentive for
HEIs to become more efficient.205 As a consequence, In the last decade, focus has shifted to the question of
funds and resources are spent inefficiently. Despite autonomy itself. As we saw in Chapter 2, the government
the problems with the incremental model, it is not easy has adopted a policy of granting autonomy to high
to shift to a new model of funding. One of the efforts performing HEIs. One of the benefits of autonomy is the
to address this issue has been through cost recovery financial freedom to explore cost recovery measures
measures. without government interference. However, this has
faced pushback from faculty at some government
HEIs.211 The resistance to financial autonomy is primarily
3.3.2 Cost recovery based on two concerns. First, the quality of well-funded
Policy focus started shifting towards cost recovery in the public universities may suffer without government
1990s, against the backdrop of rising demand for higher funding. Second, cost recovery measures invariably lead
education and private sector entry. Many committees to an increase in fees which could make higher education
have discussed the issue of cost recovery since. less accessible. The DNEP19 also highlights the need
to grant greater autonomy to HEIs, both academic and
The Punnayya Committee (1991) set a target of 15%- financial, to enhance the quality of higher education; this
25% for cost recovery and suggested that 65% of the is further discussed in Chapter 5.
expenditure in HEIs should be dedicated to teaching
and research.206 The Swaminathan Committee (1992) HEIs that are best placed to implement cost recovery
looked into possible options for cost recovery for measures are also ones that receive a lot of government
both the government and HEIs. Its recommendations funding. Institutions like the IITs have already introduced
included charging industries a higher education cess; many cost recovery measures by increasing their fees
developing self-financing courses; and charging higher eight-fold in the last decade.212 But introducing such a
fees from students who can afford it.207 The Birla- model across the board could affect the quality of HEIs by
Ambani Committee (2000) took a more radical view on curbing funding for academic and research programmes.
fees, suggesting a user-pays principle, where students However, a distinction must be drawn between the
paid the full cost of higher education.208 The committee operational and development expenses of HEIs.
suggested that economically and socially backward
students could be supported by loans and scholarships. Cost recovery measures are primarily aimed at recouping
operational expenses. Development funding, on the
A stumbling block in implementing cost recovery other hand, is used to develop academic and research
measures is that government-run HEIs do not have infrastructure. One way of drawing this distinction is

203
Sharma, M. (1985). State Funding of Universities: A Study of Maintenance Grants to Universities. Assoc. of Indian Universities
204
Albrecht, D., & Ziderman, A. (1992). Funding Mechanisms for Higher Education: Financing for Stability, Efficiency, and Responsiveness.
World Bank Discussion Papers. World Bank
205
Albrecht, D., & Ziderman, A. (1992). Funding Mechanisms for Higher Education: Financing for Stability, Efficiency, and Responsiveness.
World Bank Discussion Papers. World Bank
206
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper Series No. 6
207
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper Series No. 6
208
Matthew, Anthony, (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
209
Panigrahi, Jinusha (2017): Resource Allocation and Innovative Methods of Financing Higher Education in India, CPRHE Research Paper Series No. 6
210
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
211
Pathak, V. (2018, March 23). UGC autonomy notice sparks fear of fee hikes. The Hindu
212
Fees at IITs have been increased from Rs 25,000 in 2008 to Rs 2 lakhs in 2016. See (2016, April 7). Annual fee for UG courses at IITs hiked.
The Hindu

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R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

through creating a one-stop nodal research agency, like (the UGC or the respective state government). Agencies
many countries around the world.213 The role of such that award these grants cannot also oversee the quality
councils is to fund high-quality research and innovation. of research being produced. For this reason, as proposed
India is moving towards such a model with the Higher in the DNEP19, a National Research Foundation should
Education Financing Agency (HEFA), that supports be setup. The ICSSR already plays this role in social
research and innovation at prestigious institutions sciences. However, it administers a very small amount
through CSR funds.214 It is too early to comment on the of funds to a select few institutions.215 On the other hand,
success of this programme as it was launched less than the HEFA is looking to play the role of a funding agency
a year ago. Further, to meet a portion of the development by pooling CSR funds. But, as a funding agency, it does
expenses, the DNEP19 proposes establishing the not appear to have the capacity for oversight. A body
National Research Foundation (NRF) to streamline solely dedicated to boosting research and innovation
funding for research and innovation in HEIs. will also free up other agencies to focus on improving
underfunded HEIs.
A natural consequence of implementing cost recovery
measures is the increase in fees. Autonomous
institutions especially are not subject to fee caps set by
3.4 Funding private
regulatory agencies or affiliating universities. However, institutions
this could make higher education more expensive and
beyond the reach of economically backward students. So far, we have discussed government spending on
We discuss the various options for student-level funding higher education. However, this accounts for a small
in the following section. proportion of higher education expenditure as privately-
owned HEIs outnumber government ones. Privately
owned institutions make up 77.8% of all HEIs in India
3.3.3 Recommendations and account for 67.3% of all enrolments.216 There is little
a. Move away from incremental data available on the sources of funding for private HEIs
model of funding since they do not disclose their spending. Even if they
do, it has been suggested that these accounts are not
Many alternatives to the incremental funding model accurate. The lack of data in funding has implications
exist, such as the voucher system and outcome-based beyond transparency requirements. Without enough data,
funding, to name a few. Going forward, the government it is difficult to regulate private HEIs. It has been argued
could explore these alternatives or incorporate aspects that private HEIs are almost entirely funded by student
of these models. With the Pradhan Mantri Vidya Lakshmi fees. Increasing student fees in private HEIs can make
Karyakram under the NSDL e-Governance loan platform, higher education less accessible. We discuss both the
the government is moving towards a voucher system transparency and affordability of private education below.
by easing the process of getting a student loan. The
government could take this a step further by directly
subsidising student loans rather than funding HEIs.
3.4.1 Transparency
This would make higher education more accessible and Until the 1980s, the government tracked the sources of
reduce the burden on households. funding for HEIs.217 The increase in the number of private
HEIs in the following decades has made it harder to track
b. Establish a research council to fund and funding. It is easier to track government HEIs as their
budget must be approved every year by the concerned
oversee research and innovation
government agencies, but no such data is available for
There is a need to make an explicit distinction between private HEIs.
funding for research and operational expenses. Though
grants are divided into plan and non-plan grants for this Private HEIs, however, do report their funding and
purpose, these grants are awarded by the same agency expenditure to their respective university or regulator.

213
Canada and the US for instance have National Research Councils that coordinate and fund research at the national level
214
“Higher Education Funding Agency (HEFA) approves projects for Rs. 2,066.73 Cr to six higher education institutions”, Press Information
Bureau, 29 November 2017, <http://pib.nic.in/newsite/PrintRelease.aspx?relid=173962>
215
See for a discussion, Chatterjee, P. (2002). Institutional context of social science research in South Asia. Economic and Political Weekly
216
AISHE 2017-18
217
See, Education in India series

46
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Some even publish their financial statements publicly.218 In the absence of legal routes to turn a profit, HEIs
However, DNEP16 called out the veracity of accounts resort to unscrupulous means. The most commonly
maintained by private HEIs. The report noted that with heard complaint is that managements sell their quota
minimal oversight the system encourages opacity in the of seats on the black market to the highest bidder. They
financial management of HEIs.219 It cites the example of have also been found to flout other norms. For instance,
capitation fees being charged as a ‘parallel economy’ the Tandon Committee found that some private HEIs
that is unreported in financial statements.220 (deemed universities) accepted students far beyond the
approved intake.224 The Committee also found that the
One of the reasons this ‘parallel economy’ exists is fee charged in many deemed universities is much higher
because for-profit HEIs are not allowed to operate in than government or court-approved limits.225
India. Privately owned HEIs in India are incorporated
as charitable trusts and are usually family-run In recent times, legal means of profiting from private
operations.221 They can generate a surplus,222 but are HEIs have emerged. One popular model is to outsource
expected to reinvest the surplus into the development of teaching and management of the HEI to an outside
the institution.223 However, the administrators of these company through a service agreement.226 Teachers and
trusts invest their own money and expect a return on other staff are hired by the company. But the company is
their investment. not constrained by the non-profit requirement that HEI

Figure 15: Education Services Agreement structure

Foreign
Investors

Outside India

The Trust / Society / Sec.8 Company

India influenced and, where passive, controlled Returns from Investment
by the investor Investment

Trust
/ Society Education Ser-
/ Sec.8 The Trust / Society / Sec.8 Company will vices Company
Company Running pay the Education Services Company in
the school return for the services provided based on a
contractual arrangement

The Trust / Society / Sec.8

Company will generate revenue
from running the school The Education services Company will
provide management and other services
to the school

Students
The School will receive fees
from the students
School

Source: Investment in Education. Nishith Desai Associates (Ed. 2010)

218
See for instance, the financial statement of RV College of Engineering, Bengaluru <https://rvce.edu.in//sites/default/files/Financial-
statements-2016-17.pdf>.
219
Ministry of Human Resource Development, “Draft National Education Policy 2016”
220
Ministry of Human Resource Development, “Draft National Education Policy 2016”
221
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
222
TMA Pai Foundation v. State of Karnataka, AIR 2003 SC 355
223
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
224
Tandon Committee (2009): Report of the Committee for Review of Existing Institutions Deemed To Be Universities
225
Tandon Committee (2009): Report of the Committee for Review of Existing Institutions Deemed To Be Universities
226
Nishith Desai Associates, “Investment in Education Sector”, January 2018, available at <http://www.nishithdesai.com/fileadmin/user_
upload/pdfs/Research_Papers/Investment_in_the_Education_Sector.pdf>

47
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

managements face, so profits could be transferred to the this proposal has been discussed for more than two
company as a fee. This arrangement has been touted as decades, it has been a non-starter since fees are the
a way for foreign institutions to enter the Indian market primary source of revenue for private HEIs. In fact, even
(Figure 15).227 But there have been instances where the government expenditure on scholarships has fallen since
companies are also owned by the management. To be 1990-91.
sure, there is nothing illegal about such an arrangement.
HEIs hire outside consultants to provide several services. Table 12: Government expenditure on scholarships
However, the lack of transparency around funding and
expenditure in private HEIs will allow managements to Total Government % of Total
exploit such arrangements. Expenditure on Expenditure
Year
Scholarships on Higher
(in Rs. Crore) Education
Governments and regulators have sought to better
regulate private HEIs over the last two decades. The first 1990-91 13.3 0.43
step in this respect ought to be greater transparency. 1995-96 16.54 0.32
Strictly enforced transparency requirements will help 2000-01 18.45 0.15
unearth corrupt practices at private HEIs. It will also 2005-06 49.1 0.33
enable better regulation of arrangements such as the
2010-11 45.14 0.11
one illustrated in Figure 15.
2014-15 80.66 0.11

3.4.2 Affordability of private education Data Source: Annual Analysis of Budgeted Expenditure on
Education, MHRD, various years
The expansion of the higher education sector in India
was funded by households. There is little or no data on In 2005, the Central Advisory Board of Education (CABE)
the proportion of the higher education sector funded noted that the scholarship budget is an easy target when
by households. Education loans, which funded just 8% cuts are made to public expenditure on education.232
of all enrolled students in 2013-14, exceeded the total From Table 12, we see that this trend has continued
government expenditure on higher education.228 It would since. From 0.43% in 1990-1991, the scholarship budget
be safe to assume that student fees are the single accounted for just 0.11% of the total expenditure on higher
biggest source of funding in the higher education sector. education in 2014-2015. With limited funding, very few
In fact, private HEIs which do not receive government students receive financial support from the government.
funding are funded almost entirely by student fees.229 For instance, the needs-based National Scholarship
The average tuition fee for a regular four-year B.Tech Scheme has an annual target of 82,000 students (or
course of a private institution is almost twice that for a 0.2% of enrolments in 2016-2017).233 Between loans and
public institution (Table 13). scholarships, less than 10% of enrolled few students
have access to financial support. This does not account
Private HEIs, which now account for three-fourths for students who could not afford to enrol in HEIs. As
of all enrolments, in general charge higher fees than observed in the cases of China (Double First-Class
government HEIs. In the case of technical programmes, University Strategy) and South Korea (Brain Korea
their fees can be almost ten times higher.230 A commonly- 21)234, the transition from a mass to a universal higher
cited policy option to address the growing cost of education system is not possible without increased
education is to create scholarships for economically and financial support.235
socially-backward students in private HEIs.231 Though

227
Nishith Desai Associates, “Investment in Education Sector”, January 2018, available at <http://www.nishithdesai.com/fileadmin/user_
upload/pdfs/Research_Papers/Investment_in_the_Education_Sector.pdf>
228
Rani, P. G. (2016). Financing higher education and education loans in India: Trends and troubles. Journal of Social Science, 12(4)
229
Tilak, J. B., & Varghese, N. V. (1991). Financing higher education in India. Higher Education, 21(1)
230
British Council (2014): A Brief Overview of Chinese Higher Education System, available at <https://www.britishcouncil.in/sites/default/
files/higher_education_system_of_china.pdf>
231
Birla-Ambani Committee Report (2000): Report on a Policy Framework for Reforms in Education
232
Central Advisory Board of Education, “Financing of Higher and Technical Education”, (2005)
233
See MHRD’s Scholarships & Education Loan: <http://mhrd.gov.in/scholarships-education-loan-0>.
234
Cases of China and South Korea discussed in detail in Chapter 4
235
Central Advisory Board of Education, “Financing of Higher and Technical Education”, (2005)

48
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Households will continue to be the primary funder of HEIs At the beginning of this chapter, we stated that higher
so long as gains from higher education remain high.236 education has elements of both private and public good.
Recent estimates suggest that the rate of return for higher Higher education serves public interest in the sense
education in India is between 12%-15%.237 This is higher that education is a rivalrous241 and excludable242 good.
than in many developed countries.238 Importantly, the rate A snapshot of the tuition fees to prepare for courses in
of return for primary education in India is falling.239 This engineering and technical education in Table 13 suggests
will serve to increase the demand for higher education. that households are willing to pay large amounts to
With high rates of return, governments can justify shifting access these degrees. We also find that the cost of
the financing of higher education to households.240 Such higher education, for instance for a regular four-year
households will not rely on scholarships but are likely B.Tech degree, is on average twice as high for private
to rely on credit. To meet this demand, the government HEIs. Therefore, higher education, as a service, cannot
should at least look to improve access to student loans. be necessarily classified as a public or private entity.

Table 13: Cost of pursuing engineering and technical education (in Rupees)

Preparation for Entrance Examination

S No Institution 2-year Course Preparation

1 Aakaash Institute (Delhi) 3,33,350
2 Bansal Classes (Kota) 2,86,000
3 Brilliant Tutorials (Delhi) 1,10,000
4 FIITJEE (Delhi) 3,50,000
5 Narayana Academy (Delhi) 3,59,000
6 Vidyamandir Classes (Delhi) 3,25,000
Degree Course
S No Institution 4-year B.Tech Degree Type
1 Delhi College of Engineering 6,45,000 Public
2 Indian Institute of Technology Delhi 10,00,000 Public
3 National Institute of Technology Delhi 5,00,000 Public
4 Netaji Subhas University of Technology 2,28,600 Public
5 Ahmedabad University 6,92,000 Private
6 Amity University 8,12,000 Private
7 BITS Pilani 12,72,000 Private
8 Manipal Institute of Technology 15,50,000 Private
9 Vellore Institute of Technology 6,92,000 Private
Authors’ compilation

236
Carnoy, M., Froumin, I., Loyalka, P. K., & Tilak, J. B. (2014). The concept of public goods, the state, and higher education finance: a view
from the BRICs. Higher Education, 68(3)
237
See for a discussion, Smrutirekha Singhari and S Madheswaran, “The Changing Rates of Return to Education in India: Evidence from NSS
Data”, ISEC Working Paper 358 (2016)
238
Carnoy, M., Froumin, I., Loyalka, P. K., & Tilak, J. B. (2014). The concept of public goods, the state, and higher education finance: a view
from the BRICs. Higher Education, 68(3)
239
Singhari, S. and Madheswaran, S., “The Changing Rates of Return to Education in India: Evidence from NSS Data”, ISEC Working Paper 358 (2016)
240
Carnoy, M., Froumin, I., Loyalka, P. K., & Tilak, J. B. (2014). The concept of public goods, the state, and higher education finance: a view
from the BRICs. Higher Education, 68(3)
241
Rivalrous: one student’s enrolment at an HEI prevents another student from enrolling and reduced their chance of obtaining higher education
242
Excludable: a student’s ability to pay fees prevents another student who has not paid fees from accessing an HEI

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R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

3.4.3 Recommendations
a. Greater transparency in private sector funding b. Improve access to financial support
It is difficult to address many of the problems in private As India rapidly expands its higher education sector,
sector HEIs without enough data on funding. It may the question of affordability will become more urgent.
be difficult to effectively enforce transparency norms Universal access to higher education involves bringing
immediately on private HEIs. An important first step every student into the system. At present, funds
must be collecting data on funding. The AISHE, for dedicated to financial support are inadequate and have
instance, is a valuable resource for data on enrolments seen a significant decline in the last two decades. It may
and HEIs. It contains both aggregated and unit-level data not be possible for the government to suddenly increase
which allows researchers and policymakers to zoom the number of scholarships., but it can make credit more
in on specific issues or to make broader assessments accessible and at preferential terms for the economically
when necessary. A similar database for funding will help backward.
provide valuable insights into the functioning of private
HEIs. For one, it will help clarify the magnitude of the
‘parallel economy’ in private higher education.

3.5 Summary of recommendations

Recommendations Objective

Regulatory capacity of state-level authorities Reduce the burden on central agencies and improve
should be expanded the quality of state-funded HEIs
Increase plan grants to state-funded HEIs Improve the quality of state-funded HEIs
Move away from incremental funding model Make government funding more efficient
Distinguish between development and operational
Set up National Research Foundation
funding, and catalyse research in HEIs
Improve transparency in private funding of
Better regulate private HEIs
higher education
Improve access to financial support Make higher education more affordable

50
 04

CHAPTER
Research and
Innovation

The creation, application and dissemination of new ideas and technologies find
its roots in fundamental research conducted in HEIs. Good quality, independent
research actively feeds into pedagogy through cutting-edge curriculum, forms
the basis of business development in the corporate sector, and can also be the
anchor for policy-making.243 ‘Research universities’ in the United States, China
and South Korea are considered to be the driving institutions of the 21st century
knowledge economies. India, in contrast, lacks a culture of independent academic
research, except for a handful of research institutes.

This chapter is divided into four sections. In Section 1, we describe the research
environment in Indian higher education institutions. Here, we also briefly touch
upon the reforms initiated in countries like China and South Korea to build world-
class research institutions and demonstrate the need for India to learn from their
positive experience. The section also describes the shortcomings of India’s poor
research output. In Section 2, we give details about India’s research potential. This
includes analyses of how much money is spent on research and development
(R&D) in Indian universities and colleges, the knowledge products generated
from research, and the resulting impact from dissemination of research works.
In studying metrics for these parameters, we particularly draw comparisons to
China to highlight its remarkable growth in research.

In Section 3, we examine the issue of inadequate expenditure on research

activities in HEIs as well as research institutions. Recommendations to promote
research within the university system and outside, in research institutions, are
summarised in Section 4.

243
Ravi, S.“Strengthening India-U.S. Relations through Higher Education”. The Modi-Obama
Summit: A leadership moment for India and the United States. Brookings India Initiative
Report. September 2014
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

4.1 The research landscape Pioneering institutes, top universities and Centres
of Excellence have a greater role in creating and
Research in HEIs, across the world, is a measure of disseminating new knowledge. They should acknowledge
quality of higher education. Research is “uncovering or that teaching and research are complementary and
generating new knowledge, or solving particular practical mutually supportive activities for academics. A better
or theoretical problems”.244 It is a form of conducting research environment attracts high-quality faculty.
systematic and rigorous enquiry that leads to outputs— For an HEI to grow into a high-performing knowledge
new ideas and innovation, which are then disseminated. institution, quality publications are crucial for its growth,
The discovery of new knowledge, ideas and technologies visibility, brand equity and relevance. In turn, high-quality
is essential in driving the future of society and humanity. publications are likely to position the university to foster
global collaborations, which would ultimately attract
In HEIs, research has a direct impact on the quality of good faculty and students.248
teaching. In the larger context, research contributes “not
only [to] general education and cultural enrichment, but The revenue model of HEIs in India is such that
also [to] professional training and certification, lifelong monetising activities of teaching and training is easy, but
education, the inculcation of democratic values, the not of research. The tuition fees collected from students,
provision of social mobility, the pursuit of fundamental in private as well as public institutions alike constitutes
research, the development of advanced technology, the a significant share of the revenue of HEIs.
provision of advanced medical care and public health,
support for agricultural development, material resources, Indian HEIs have produced an increasing number of
conservation and economic development” (Rhodes, research publications in recent years, but with low
2004).245 It has a personal as well as societal purpose. impact. This is driven by several factors such as low
output of PhD candidates, skewed government funding
In India, research is not viewed as a primary and for fellowships, research documentation and publication,
vital function of academics and is seldom measured. etc., and lack of international research collaborations.
More specifically, research leading to PhD degree in a Further, Indian universities place a stronger premium
university is an extension of postgraduate education. on teaching rather than research; a significant portion
Therefore, research has to be seen as a core function of of faculty’s time is devoted exclusively to teaching
an HEI, affiliating or unitary.246 Apart from industry-based due to high workload. The severe shortage in teaching
research, research conducted at independent think-tanks staff along with hiring of ad-hoc and part-time faculty
has become increasingly important and relevant for members has skewed priorities among faculty members,
policy-making. The government is the primary consumer as discussed in detail in Chapter 1. The lack of a
of the work produced by research institutions. Research performance culture, segregation of R&D institutions and
institutions have the necessary skills and expertise to low morale among academics have ensured that even
provide inputs that are crucial to policy-making. the country’s top universities remain largely teaching-
focussed with limited research and doctoral education.
Indian HEIs have failed to identify the true potential of
a system that provides skilled human resources for In contrast, countries such as China and South Korea
a strong research and development ecosystem. The have built vibrant academic systems. With research as
Yash Pal Committee (2009) criticised HEIs for treating the very basis of their higher education system, they
teaching and research as separate activities. It pointed have positioned themselves for leadership among the
out that universities have been reduced to centres of knowledge-based economies.
teaching and examining masses, without any scope or
desire to encourage innovative thinking. It called for all China’s higher education system has developed over
research bodies to connect with HEIs and create teaching the years through policy reforms introduced in a
opportunities for researchers, and all universities to be phased manner: 211 Project, 985 Project, Key Discipline
teaching and research universities.247 Innovation Platform, Key Discipline Project, and most

244
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
245
Rhodes, F. H. (2004). Reinventing the university. Reinventing the University. London: Economica
246
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
247
Yash Pal Committee (2009): Report of the Committee to Advise on Renovation and Rejuvenation of Higher Education
248
Ernst & Young Pvt Ltd. “Higher Education in India: Twelfth Five Year Plan (2012-2017) and Beyond”. FICCI Higher Education Summit 2012

52
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

recently, the Double First Class University Plan.249 focused universities that deliver high-quality research
Initiated in 2015, the Double First Class University Plan output and research-focused graduates.254
aims to create world-class universities and disciplines
by the end of 2050. The programme is geared towards 4.2 Research capacity
“building an innovation excellence culture to enhance the
level of scientific research” so that by 2050 China would The abstract nature of research makes it hard to
be a higher education power. 250 The sector has been a measure. This report breaks down research capacity in
key focus area in the last two decades. Both national terms of input, output and impact. The following section
and local governments in China funded universities to elaborates on these three aspects as measures of
improve facilities, build research centres, raise standards research capacity.
of research and attract world-renowned faculty. Research
suggests that Project 985 (1998) had a positive effect on Here, we would like to point out that this section uses data
publication outputs of the 39 universities it supported, compiled from a variety of sources. This goes to show the
thereby leading to rapid advancement of China’s major poor understanding of and lack of need felt for measuring
universities in the international league.251 In China, more research in India. No well-integrated data sources or
than two dozen higher education research centres and dashboards exist to study the scale of research being
several government agencies are involved in higher conducted in India, even at a sectoral level.
education policy.252 No such independent research or
policy centres focusing on higher education exist in India. The level of national expenditure on R&D and number of
trained personnel conducting research are input metrics
Similarly, South Korea began focusing on university-led to measure research. Output is measured using metrics
innovation in 1998. The Brain Korea 21 (BK 21) project such as number of publications – journals, papers,
was a national endeavour to prepare high-powered and articles and books. Metrics to measure the impact of
creative Korean graduates. BK21 aimed at fostering research – number of citations, count of newspaper
world-class graduate schools and high-quality scholars editorial citing, number of patents filed and revenue
by providing funds to HEIs. The government invested $1.2 earned from royalties, licenses or high technology
billion in universities over a period of seven years. South exports — differ depending on the field in which research
Korea’s performance—in terms of the amount of research is conducted.255
conducted and its impact—in R&D has been exemplary in
a very short period. BK21 has successfully changed the
university atmosphere and improved research activities
4.2.1 Inputs for research
in graduate schools.253 In terms of funds devoted to expenditure on R&D, India
is falling way behind other countries. India’s gross
India, on the other hand, is struggling with a generally expenditure on R&D (GERD) as a proportion of GDP in 2015
poor university system and a frail higher education sector. (0.65) is almost similar to that in 1996 (0.62) (Figure 16).
Previous chapters of this report detail the complexity of In sharp contrast, China’s expenditure on R&D has risen
India’s academic institutions. To compete successfully rapidly and almost quadrupled in two decades, while
as a knowledge-based economy and expand, India needs the United States’ expenditure has increased steadily.
HEIs that (i) produce bright and employable graduates, Chinese universities have quickly recognised that PhD
and (ii) support sophisticated research and technology students are the workforce of research business. In 2017,
in diverse fields. India should aim to position itself Tsinghua University (China) awarded more than twice the
among the top five countries in terms of research papers number of doctorates compared to those conferred by
published, citations and the number of PhD degrees MIT (USA).256 South Korea’s GERD has increased almost
awarded by 2030. This requires developing research- 1.5 times since 2006.

249
Peters, M. A., & Besley, T. (2018). China’s double first-class university strategy: .
250
Peters, M. A., & Besley, T. (2018). China’s double first-class university strategy: .
251
Peters, M. A., & Besley, T. (2018). China’s double first-class university strategy: .
252
Altbach, P. (2005). India: A world-class country without world-class higher education. International Educator, 14(6)
253
Moon, M., & Kim, K. S. (2001). A case of Korean higher education reform: The Brain Korea 21 Project. Asia Pacific Education Review, 2(2)
254
Ernst & Young Pvt Ltd. “Higher education in India: Moving towards global relevance and competitiveness”. FICCI Higher Education Summit 2014
255
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
256
Tsinghua University may soon top the world league in science research. (2017) Economic and Political Weekly

53
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 16: Gross expenditure on R&D, as a proportion of GDP

4.5 4.23

4
3.5 3.14
3 2.69
2.74
2.5 2.44
2.11
2 2.26
1.5
1.03 1.27
1
0.5 0.65 0.62
0.56 0.75 0.82 0.83
0
1996 2001 2006 2011 2016

South Korea Japan USA China Brazil India

Data Source: Adapted from UNESCO Institute for Statistics (UIS), 2016
Note: For India, the latest data available is for 2015, not 2016.

As shown in Figure 17, India also lags in the number of a steady rise in its research capacity. Figures 16 and 17
full-time researchers per one million inhabitants. China together suggest that there is a high correlation between
and South Korea’s increased expenditure on research GERD and the number of researchers; countries with
and policy reforms has resulted in a manifold increase higher GERD have greater research capacity.
in researchers in the two countries. The U.S. has seen

Figure 17: Number of researchers per one million inhabitants

2200
South Korea 4100
7100

3100
US 3800
4300

438.4
China 920.7
1200

152.5
India 135.3
216.2

0 1000 2000 3000 4000 5000 6000 7000

1996 2006 2016

Data Source: Adapted from UNESCO Institute for Statistics (UIS), 2016
Note: For India, the data available is for 2000, 2005, 2010. For India, South Africa and US, the latest data available is for 2015.

54
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Table 14: Top 10 most popular PhD disciplines

Discipline 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Science 5,393 4,305 5,822 5,623 6,607 8,026 8,880
Social Science 4,215 4,597 3,721 2,960 3,248 3,524 3,894
Engineering & Technology 2,081 2,186 2,583 2,597 2,785 3,366 4,907
Agriculture 1,804 3,203 2,307 1,545 1,956 1,865 4,426
Indian Language 1,535 1,720 1,997 1,384 1,669 1,557 1,936
Medical Science 1,239 1,644 900 985 1,226 1,507 1,422
Management 694 717 1,102 1,071 983 1,522 1,667
Commerce 874 936 1,052 1,334 1,179 923 1,304
Education 724 725 851 727 822 1,626 996
Foreign Language 481 687 746 595 635 710 814
Data Source: AISHE, various years

Through the years, several commissions have the number of journals indexed and the proportion of
recommended that the shortage of faculty in higher publication of journals in two separate databases, Web of
education can be overcome by offering a large number of Science and Scopus, along with country ranks for the U.S.,
postgraduate and research scholarships, and upgrading China and India in 2013. Expectedly, the bulk of journals
teachers’ salaries (Radhakrishnan Commission).257 Yet, are published in the U.S.. China’s share of STEM papers,
academic institutions in India remain severely under- as per Scopus, has risen from 4% in 2000 to 19% in 2016,
resourced. AISHE data shows that between 2011-12 which is more than U.S.’s contribution.260
and 2017-18, there has been more than a 60% increase
in the number of PhDs awarded. The subject areas The SCImago Journal Rank (SJR), a measure of a journal’s
shown in Table 14 account for almost 90% of the PhDs impact and influence, ranked 34,171 journals published
awarded. While the number of PhDs awarded in Science, globally in 2017. Of these, 13,947 were American, 672
Commerce, Education and the languages has increased were Chinese and 525 were Indian. Figure 18 shows
in absolute numbers over time, they remain unchanged the SJR score for the top ranking journals in all three
as a share of the total number of degrees awarded. There countries. The highest ranking journal globally is from
has also been a decline in the share of PhD degrees the U.S.. China’s top-ranking journal held a global rank
awarded in the fields of social sciences (9%) and medical of 361, while India’s highest-ranking journal, Bulletin of
science (14%) since 2011-12. Though HEIs are expected Astronomical Society of India, ranked 966.
to have a balanced focus on research and teaching, the
trend in terms of PhD degrees awarded suggests that Table 15: Journals indexed in Web of
few institutions have real research focus.258 A decline in Science and Scopus, 2013
the number of scholars with PhD degrees translates to
a shortage of faculty in HEIs. As a result, the quality of Journals
postgraduate education remains poor. Country WoS Scopus
N % Rank N % Rank
4.2.2 Research output US 4,176 30.7 1 5,858 28.4 1
China 269 2 6 489 2.4 6
Publication count is a key measure of the productivity of
research. These include the number of journals, papers/ India 200 1.5 11 436 2.1 7
articles and books published. Research journals are a Source: Mongeon, P., & Paul-Hus, A. (2016). The journal coverage
key outlet for research publications.259 Table 15 shows of Web of Science and Scopus: a comparative analysis.
Scientometrics, 106(1), 213-228.

257
Mathew, Anthony (2016), Reforms in Higher Education in India: A Review of Recommendations of Commissions and Committees on
Education, CPRHE Research Paper Series No. 2
258
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
259
Thorat, S., & Verma, S. (2017). Social Science Research in India: Status, Issues, and Policies. Oxford University Press
260
Scopus

55
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 18: SJR Score for top ranking journals, by country

CA: A Cancer Journal for Clinicians (US) 61.786

Nano Research (China) 3.064

Bulletin of the Astronomical Society of

2.44
India (India)

0 10 20 30 40 50 60 70

Data Source: SCImago, (n.d.). SJR — SCImago Journal & Country Rank [Portal]

The SCImago Institutions Rankings (SIR), a classification computing. The other top-ranking institutions are from
of academic and research-related institutions ranked the U.S. (3), Singapore (2) and Hong Kong (1). 261
by a composite indicator that combines three different
sets of indicators based on research performance, Publication count of papers in refereed scientific
innovation outputs and societal impact measured by and technical journals is also an output measure of
their web visibility, ranked 5,637 institutions in 2018. Of research.262 As per Figure 19, whereas the number of
these, 759 institutions were American, 375 were Chinese research papers published in India has increased in the
and 271 were Indian. In the list of top 50 institutions, last two decades, it still significantly lags behind those
27 institutions are from the U.S., while six are from released in other countries.
China. No Indian institution appears in the list of top
100 institutions. The Council of Scientific and Industrial Tsinghua University in China is predicted to be on track
Research, ranked first among Indian institutes, has to produce the top 1% most highly cited STEM papers by
a global rank of 132, followed by National Chemical 2022. In 2013-16, MIT led in the top 1% STEM papers,
Laboratory, globally ranked 275. while Tsinghua produced more of the top 1% most highly
cited papers in maths and computing.263 China is also
Between 2013-16, China alone had four universities now the largest contributor to papers published in global
among the top 10 universities that published papers science, accounting for 23% of the scientific publications
in the top 1% most highly cited journals in maths and in international journals indexed by Scopus. 264

261
Tsinghua University may soon top the world league in science research. (2017) Economic and Political Weekly
262
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
263
Tsinghua University may soon top the world league in science research. (2017) Economic and Political Weekly
264
Study International Staff. (2018, November 22). China is set to beat the US for top STEM research. Here’s why.

56
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Figure 19: Number of publications

7,00,000 640251

6,00,000
483595
5,00,000

4,00,000 346788

3,00,000

2,00,000 148832

1,00,000
28899 20851
0
US China India

1996 2006 2016

Data Source: SCImago, (n.d.). SJR — SCImago Journal & Country Rank [Portal]

Table 16 shows that, since 2004, the number of journals certain ‘fake’ journals in recent years. Of the 6,791
and articles published in various subject categories journals published in India between 2004 and 2018,
has not changed much. In fact, the number of papers 11% are published in Health Science, Pharmacology and
published between 2014-18 is much lower than that Pharmaceutical Science, followed by Biological Sciences
for 2004-08 and 2009-13. An inadequate number of (7%) and Agricultural subjects (5.3%). A similar trend is
journals further discourage undertaking of research observed for papers published by subject area: 12% of
in universities and research institutions. Perhaps, a the 12,15,890 papers are published in Health Science,
decline in the journals published between 2014-18 Pharmacology and Pharmaceutical Science, and 8%
could be a direct consequence of the UGC derecognising each in Biology and Agriculture.

Table 16: Journals and articles published in India, by subject category

Journals Papers/Articles

Subject 2004-08 2009-13 2014-18 2004-08 2009-13 2014-18

Health Science & Pharma 205 292 249 48,072 1,08,314 60,437
Biology, Botany & Zoology 152 177 144 44,971 55,677 27,306
Agriculture, Veterinary Science & Forestry 126 126 113 50,382 47,817 16,404
Physics & Chemistry 67 72 44 23,320 33,674 15,486
Other Science and Technology 48 54 36 12,374 17,370 10,248
Social Sciences 133 144 124 15,719 19,633 8,665
Engineering & Computer Science 78 105 61 8,235 21,243 7,246
Energy & Environment 49 48 41 14,611 16,575 6,789
Arts and Humanities 47 57 46 5,719 7,965 3,649
Business & Management 47 67 50 3,862 6,966 3,480
Mathematics & Statistics 53 56 47 8,008 9,436 3,235
Earth Science & Astronomy 39 36 29 5,981 5,725 2,534
Others 9 9 8 1,487 1,938 764
Total 2,185 2,564 2,042 4,97,182 7,16,666 3,37,653
Data Source: Authors’ compilation using Indian Citation Index
Note: Number of journals across the years are cumulative figures.

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R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

Even at an institution-level, the performance of research a. Predatory journals

councils like the UGC, AICTE, etc. and individual HEIs has
been dismal. Table 17 shows the publication performance ‘Predatory’ journals are fake and low-quality journals that
of institutions for the years 2004-19, as reported by lack a transparent editorial board and charge authors with
each institution. This data has been prepared using one article processing fees. They tend to accept submissions
of the few sources available for such information, the quickly with little peer review, publish hoax papers, ask
Indian Citation Index. Limited availability of such data for money to publish and appoint fake scholars to the
demonstrates the need to maintain this information editorial board.265 The lack of culture around research
across all fields. Regulatory bodies in different areas in India and little regard for scientific concerns makes
should build the capacity to collect, tabulate, analyse publishing in predatory journals attractive to young and
and disseminate data on research and publications. inexperienced researchers. Studies show that publishing
For instance, the ICMR can gather similar statistics for in predatory/fake journals is linked to the academic
all medical institutions, the AICTE should maintain such culture and sociocultural environment in universities in
data for all engineering and technical HEIs, etc. developing countries. Most fake journals (62% or 456
journals) are located in India, followed by Nigeria and
India’s contribution to the pool of knowledge through Turkey,266 China, in contrast, has one predatory journal.
research in different fields has been sub-optimal. The
poor quality of its research output can be attributed In recent times, several research frauds were uncovered
to the presence of predatory journals, inadequate peer which highlighted the need to raise awareness about well-
reviews and ineffective plagiarism policy. recognised, high-quality and peer-reviewed journals.

Table 17: Research publications, for select institutions (2004-2019)

Journals Papers/Articles Citation Cited Articles

Organisation-level
University Grants Commission (UGC) 22 27 12 5
Indian Council of Agricultural Research (ICAR) 157 790 668 264
All India Council for Technical Education (AICTE) 26 44 28 10
Indian Council of Social Science Research (ICSSR) 39 67 40 13
Indian Council of Medical Research (ICMR) 98 388 1,407 199
National Council of Applied Economic Research (NCAER) 30 88 58 26
HEI-level
All India Institute of Medical Sciences-New Delhi 262 6,545 6,903 2,230
Indian Institute of Management- Ahmedabad 79 334 240 95
Indian Institute of Management -Bengaluru 48 142 62 36
Indian School of Business 24 43 24 15
Institute of Rural Management Anand 43 91 66 27
Indian Institute of Technology- Delhi 282 1,676 1,613 546
Indian Institute of Technology- Kharagpur 330 1,851 1,053 454
Indian Institute of Technology- Roorkee 98 1,703 1,407 199
Data Source: Authors’ compilation using Indian Citation Index’s Institution Analyser
Note: Figures as reported by each institution to Indian Citation Index.

265
Xia, J., Harmon, J. L., Connolly, K. G., Donnelly, R. M., Anderson, M. R., & Howard, H. A. (2015). Who publishes in “predatory” journals?.
Journal of the Association for Information Science and Technology, 66(7)
266
Demir, S. B. (2018). Predatory journals: Who publishes in them and why?.Journal of Informetrics, 12(4)

58
 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

The UGC removed 4,305 journals from its list of approved Latin America, the Middle East and Africa, has a poor
journals in 2018. Recently, the UGC also issued a record when it comes to academic misconduct and
‘white list’ of 38,653 approved journals (2019) that plagiarism.270 The pressure to publish in India, along
are recognised as legitimate mediums through which with poor understanding of research misconduct and
researchers can publish their articles; the methodology citation in academic work, has resulted in a high number
followed by UGC to determine the quality of journals of incidents of plagiarism. As per the UGC’s regulation
was subsequently made public.267 Although, it is too issued in 2018, a Departmental Academic Integrity
early to determine the impact of derecognising journals, Panel (DAIP) is constituted within each HEI in India
a standard has certainly been set for researchers. We to appropriately deal with cases of plagiarism. DAIP
can hope that the measure has a positive impact on the investigates the cases and submits its recommendations
quality of research produced. to an Institutional Academic Integrity Panel (IAIP), also
set up at the institution-level. Even so, at the central and
b. Peer reviews institutional level, the mechanism to detect plagiarism
and penalise researchers is not clear. No studies have
While publication is a crucial portion of the research been conducted to quantify the incidents of plagiarism in
process, peer review is an equally important step to India yet, but it would not be wrong to say that research
evaluate the work. Peer-reviewed or refereed journals misconduct is on the rise and has to be curtailed to
have an editorial board of subject experts. All article improve quality.
submissions are reviewed and evaluated before they
are accepted for publication. The key purpose of a peer 4.2.3 Impact of research
review assessment is to establish a quality control
in scholarly publishing.268 The standard procedure of Despite an increase in publications, low citation impact as
peer review has proven to improve the presentation of indicated by ‘citations per document’ in Table 17 implies
research.269 Currently, the UGC treats all peer-reviewed that the quality of Indian research papers is not at par with
journals at par with its list of approved journals, with no that of other countries. The relative impact of citations
distinction to categorically determine quality check. for India is half (0.51) of that of the world average (1.0);
the relative citation impact for China is 0.61, and that for
c. Plagiarism policy the U.S. is 1.24.271 As one of the lowest-income countries
in the world at the turn of the 21st century, China’s rise
As we stress the need for knowledge creation from our to becoming a super-power in scientific knowledge in
universities and researchers, we are looking for original less than two decades is remarkable. India should make
ideas and concepts. India, along with countries from efforts to replicate the same.272

Table 17: SCImago Journal & Country Rank (1996 - 2017)

Country Rank Documents Citations Citations per document H-index

US 1 1,10,36,243 26,76,12,868 24.25 2077
China 2 51,33,924 3,92,44,368 7.64 712
India 9 14,72,192 1,26,37,866 8.58 521

Data Source: SCImago, (n.d.). SJR — SCImago Journal & Country Rank [Portal]
Note: A plausible reason for citations per document being low for China is that not all articles published in China are written in English.

267
University Grants Commission, see list here: <https://www.ugc.ac.in/journallist/methodology.pdf>
268
Rowland, F. (2002). The peer review process. Learned publishing, 15(4)
269
Gitanjali, B. (2001). Peer review--process, perspectives and the path ahead. Journal of Postgraduate Medicine, 47(3)
270
Heitman, E., & Litewka, S. (2011, January). International perspectives on plagiarism and considerations for teaching international trainees.
In Urologic Oncology: Seminars and Original Investigations (Vol. 29, No. 1). Elsevier
271
Ernst & Young Pvt Ltd. “Higher Education in India: Twelfth Five Year Plan (2012-2017) and Beyond”. FICCI Higher Education Summit 2012
272
Xie, Q., & Freeman, R. B. (2018). Bigger Than You Thought: China’s Contribution to Scientific Publications (No. w24829). National Bureau of
Economic Research

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Figure 20: Number of patent applications filed

14,00,000
1245709
12,00,000

10,00,000

8,00,000 704936

6,00,000

4,00,000 287831 293904

231588
194579
2,00,000
7262 10669 14961
0
US China India

2009 2013 2017

Data Source: World Intellectual Property Organization

In the subjects of science and technology, a good indicator working groups; views and perceptions of researchers.274
to measure the impact of research and innovation is the We suggest that the number of references made to
number of patent applications filed by a country. Figure academic research work in parliamentary deliberations,
20 shows that the number of patent applications filed policy documents as well as in judgments of law courts
by Indian residents has more than doubled since 2009. should be used as indicators to measure the impact of
However, the number remains small in comparison to non-scientific and non-technical research.
countries such as the U.S. and China. In particular, China
has shown impressive growth in the last decade in its
patent application filings.
4.2.4 Poor incentive structure
for research
China’s capacity building, policy reforms and investment
in the higher education sector have fostered world-class One of the key reasons behind poor research
standards in Chinese HEIs, while Indian HEIs have been performance of Indian HEIs has been the lack of rewards
caught unprepared. There is a wide gap between the provided to researchers. Any cutting-edge research
performance of the two countries, which will only diverge and its dissemination through publication of high-
further unless measures are taken to improve research quality journals are designed to help drive the quality of
performance of Indian HEIs. institutional activities. As explained earlier in this chapter,
research is of value to HEIs because it helps them gain
The impact of research conducted in social sciences, arts reputation and foster global collaborations. The prestige
and humanities is harder to measure and report but has a of universities, globally, depends on the publications its
direct impact on public discourse.273 So far, only anecdotal faculty produces. Therefore, researchers who publish
evidence exists to present the impact of social science their work are valuable assets to institutions, and the
research on policy issues: reference and citations made research work has to be monetised by more than merely
in policy documents; linkages of researchers via policy providing researchers with credits for the same.

273
Thorat, S., & Verma, S. (2017). Social Science Research in India: Status, Issues, and Policies. Oxford University Press
274
Thorat, S., & Verma, S. (2017). Social Science Research in India: Status, Issues, and Policies. Oxford University Press.

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While researchers have academic freedom in India, the contributions to extending the HEI’s international
current system provides few incentives to foster highest reputation as an excellent research institution, and can
standards. Rewarding high performing faculty members also provide a fair share of revenue to the HEIs. Countries
is a proven way of building a culture of performance. like the U.S., Canada, Germany and Spain provide
Research shows that ‘producers of ideas and concepts’ permanent guarantee of employment or—‘tenure’—to
respond to incentives.275 This, in turn, can increase their faculty members who pursue high-quality research and
competence and make them more productive, effective, demonstrate a strong publication record.281 This job
efficient and satisfied in the long run. Today, faculty in security promotes academic freedom such that scholars
India’s top universities and institutions, and even Centres are free to explore any topics in their research and
of Excellence are struggling with low productivity and low teaching without the fear of being fired.
morale. If they are neither incentivised nor encouraged to
take ownership nor granted rights over their creations, Some Indian HEIs allow faculty members to engage
they are bound to create less or nothing at all.276 in various Consultancy & Research Grant (C&RG)
assignments or Sponsored Research Projects.282 For
One reason behind China’s remarkable growth in instance, IIM-A and IIM-B view engaging in consulting
research is the strong incentive structure it put in place assignments as a ‘dynamic learning process’ for the
by monetising research work. Around 1990, Nanjing faculty.283, 284 These grants strengthen the research
University in China became the first institution to provide profile of an institution, contribute to the institute’s
payment to researchers for getting their research revenue and enhance the brand value of the HEI. C&RGs
published. The payment amount rose from $25 (1990) are an opportunity for the faculty to apply their ideas
to $120 (mid-1990) and was as high as $165,000 in to practical problems. The growth of services and IT
2016.277 ‘Cash-per-publication’ has become common in sectors requires more R&D activities to be undertaken
China with academics being awarded over $100,000 per by the industry, and HEI faculty members can plug this
paper published in “top Western journals” like Lancet and gap. However, stringent rules and guidelines issued by
Nature, which is 20 times the annual salary of an average HEIs for such assignments discourage researchers from
academic.278, 279 pursuing these projects.

Similarly, Stellenbosch University in South Africa A monthly allowance provided by the HEI can improve
rewarded productive researchers with incentives to boost pursuance of research. Institutions like the Indian
publication rates. In 2011, the university announced Statistical Institute and All India Institute of Medical
awards worth $5,000 to 39 academics who contributed to Sciences grant stipends to postgraduate students
accredited publications. Matching this, the government and research fellows; such reward programmes hold
too announced an additional award of the same amount great promise.285 Publications transfer new knowledge
to drive up publication. Between 2000 and 2010, South to a global audience and serve the larger cause of
Africa more than doubled the number of its paper dissemination of information and increased application of
publications. Their research incentive system is believed research findings and results. Globally, providing awards
to be one of the key drivers of this increase. The incentive as incentives is not only about money, but also aims
scheme saw an increase in the percentage of international at increasing the number of international publications,
papers published, from 52% in 2008 to 66% in 2012.280 without compromising quality, and motivating staff to
publish regularly. Such reform can only be driven by
By incentivising research in countries like China institutional change.
and South Africa, publications are seen as critical

275
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
276
Agarwal, P. (2006). Higher education in India: The need for change (No. 180). Working paper
277
Tsinghua University may soon top the world league in science research. (2017) Economic and Political Weekly
278
Study International Staff. (2018, November 22). China is set to beat the US for top STEM research. Here’s why.
279
Paid to publish-the Chinese cash cow. (2018, March 21)
280
Tongai, I. Incentives for Researchers Drive Up Publication Output. University World News. (2013, July 13)
281
Franzoni C., Scellatom G. and Stephan P. (2011). Changing Incentives to Publish. Science Policy. American Association for the
Advancement of Science
282
No comprehensive list of HEIs that allow their academic staff to undertake sponsored C&RGs is available.
283
Consulting at IIM-A, see <https://www.iima.ac.in/web/iima/consulting>
284
Consulting at IIM-B, see <https://www.iimb.ac.in/consulting>
285
Indian Statistical Institute, Prospectus at <https://www.isical.ac.in/~admission/Documents/IsiAdmission2019/ISI-Prospectus-2019.pdf> (2019)

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4.2.5 Recommendations
a. Incentivise research output for c. Mandate peer-reviews and put in place
researchers and HEIs strict academic integrity policy
We have discussed the need to build an ecosystem that It is imperative that as publication output increases, the
nurtures the interest of faculty members and researchers quality of research is not compromised; there should
and rewards them monetarily for publishing work. be no trade-off. We have to nurture a culture of quality,
Limiting the teaching hours of faculty and freeing them especially among young and aspiring researchers. Peer-
of tedious administrative tasks will allow substantial reviewed papers and journals grant more credibility to the
time to engage in research. The process to procure work, and therefore, have greater chance to create impact.
funding for research, for HEIs and researchers, should be Like publications, peer reviews too should be incentivised.
purely meritocratic. As stated above, the parameters to Further, strong anti-plagiarism policies, consistent across
determine the quality of research output, depending on all HEIs, should be put in place to discourage research
the area of research, can be the number of research papers misconduct. Courses on research ethics should be made
published in top journals globally, impact of citations, mandatory at all institutions, irrespective of the degree,
h-score286, and number of patent applications filed and to increase awareness among young researchers. Focus
granted. This will encourage institutions to create a on quality should be the priority in order to compete with
conducive environment for research and innovation, and global leaders like the U.S. and China.
also attract high-quality faculty members to HEIs. India
can learn from the successful experiences of countries d. Research councils to take ownership of
like China and South Africa to incentivise researchers.
publishing journals

b. Promote research collaborations, Research councils should take on the responsibility

of delivering high-quality research outputs in their
nationally and internationally
respective subject areas. Bodies like AICTE, ICSSR, CSIR
The government introduced the Global Initiative should have their own journals. The impact factor for
of Academic Networks (GIAN) in 2014 to increase these should also be regularly updated. Further, research
the number of reputed international academics, councils should maintain a database of article and journal
entrepreneurs and industry experts in Indian academic publications and citations in their respective fields. With
institutions. The initiative has successfully tapped into research councils playing a greater role in publishing and
the talent pool of world-renowned faculty visiting Indian recognising journals, the issue of researchers falling into
campuses, but this has not translated into research the trap of predatory or fake journals can be avoided.
collaborations between Indian and foreign institutions.
Indian HEIs need to follow a “mentor model” to inculcate
a productive environment for quality academic
4.3 Funding
research. Promoting research-focused collaborations
between top-tier international institutions and Indian 4.3.1 Insufficient funding leading to
HEIs will expose universities and academics to global limited research output
standards of scholarship, and enhance the existing
research infrastructure. Increased brand equity of the The challenge of low research output can be traced to
institutions will, in turn, attract motivated and high- its funding. Figure 21 shows the expenditure on R&D,
quality faculty that can further contribute to the global broken down by source of funds, for the U.S., China and
knowledge pool. Within India, top-ranking institutions India in 2011 and 2016. During this time, while research
like the IITs, IIMs, AIIMSs, ISB and IISc should follow has primarily been driven by business enterprises in the
suit to provide research assistance to medium and low- U.S., and China, the government has played a key role in
performing HEIs. funding R&D in India. However, the Indian government’s
expenditure on R&D remains small when compared to
the U.S. and China. An even smaller share of expenditure
is spent through HEIs in India.

286
Hirsch index score, or h5-index score is calculated for a journal suggesting that during the past five years, the journal published at least h
articles that were cited at least h times. For more, see <https://scholar.google.com/intl/en/scholar/metrics.html#metrics>

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Figure 21: Source of funds spent on R&D (in Thousand Current PPP $)

4,00,000 3,63,753
3,49,685
3,50,000
2,94,092
3,00,000
2,50,000
1,87,684
2,00,000
1,50,000
1,00,000 54,974 62,435 59,028
70,851 67,520
40,474
50,000 29,067 19,650 21,681 26,103 30,875
17,044
1,952 1,962
-
Business Government Higher Business Government Higher
enterprises Education enterprises Education

2011 2016

United States of America China India

Data Source: Adapted from UNESCO Institute for Statistics (UIS), 2016
Note: For India, the latest data available is for 2015, not 2016. The figure excludes expenditure of ‘Private Non-Profit’ entities.

Not only is government funding for research inadequate, with milestones in 2020, 2030 and 2050 were initiated to
but it is also more skewed towards central universities. allow universities to meet the needs and requirements of
As per the UGC’s Annual Report 2017-2018, 58.75% of the the 21st century. The growth of China’s higher education
grants (including research grants) were released to central sector shows that money is a critical input. Funding is the
universities and 18.05% to colleges of central universities. key driver that has motivated universities to produce top-
These institutions together accounted for only 15.8% class research, as presented in Figure 21.
of the PhD students.287 Similarly, 6.15% of the grants
were released to state universities and colleges of state In 2018 the Indian government granted ‘Institution
universities (4.9% and 1.25% respectively), and 4.11% to of Eminence’ status to six universities to give special
institutions deemed-to-be universities. The share of PhD attention to research and teaching, and achieve world
students was 34.3% in state public universities, and 21.6% class status; the provision was extended to 14 other
each in Institutes of National Importance and deemed institutions in August 2019.290 The policy is believed to
universities-private, as per AISHE 2018-19.288 be an adaptation of China’s Double First Class University
Plan. It will be critical for the government to learn from
Research activities in the U.S. are primarily funded by China and invest in these institutions in a planned and
the corporate sector, private foundations and individual phased manner to achieve the ultimate objective of
donors. In addition, the constitution of federal-funded fostering world-class teaching and research institutions.
bodies like the National Academies of Science, Engineering Towards this, the DNEP19 proposes setting up a National
and Medicine (NASEM) and National Science Foundation Research Foundation (NRF) to develop a national vision
(NSF) allowed experts to address crucial research for enhancing research productivity and streamlining
questions of national importance. China has heavily research funding in the education system while also
invested in improving its best universities. Since 1995, encouraging inter-disciplinary research in social
the Chinese government has spent billions of dollars to sciences, science and technology, arts, languages, etc.
turn China’s top-ranking institutions into internationally The NRF would subsume numerous existing research
competitive research universities.289 A series of reforms initiatives like IMPRINT, IMPRESS, SPARC and STARS.291

287
AISHE Report 2017-18
288
UGC Annual Report, 2017-18
289
Altbach, P. (2005). India: A world-class country without world-class higher education. International Educator, 14(6)
290
(2019, August 3). UGC names 14 more names for Institute of Eminence tag. The Indian Express
291
IMPRINT-Impacting Research Innovation and Technology- for Tech Research; IMPRESS-Impactful Policy Research in Social Science-
for social sciences research; SPARC-Scheme for Promotion of Academic and Research Collaboration- Joint research with foreign
universities; STARS-research in fundamental science.

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4.3.2 Inadequate industry linkages and innovation centres working with renowned advanced
role of corporates manufacturing companies.297 It employs more than 500
highly qualified researchers and engineers conducting
The connection between India’s HEIs and research centres research of practical use to over 100 industrial partners.
and industry is tenuous at best.292 While the onus lies on A few Indian HEIs have followed suit: for instance, the
the government to drive fundamental research, all applied Indian School of Business has about 10 research centres
research should be primarily driven and used by the and institutes to connect industry and academia to
industry. Contrary to this, the expenditure from industry advance education, research and outreach (Munjal
towards research in India is insufficient. For instance, the Institute for Global Manufacturing, Max Institute of
ICMR’s share of expenditure on research reduced from Healthcare Management and Punj Lloyd Institute of
16.95% in 2012-13 to 12.46% in 2016-17.293 Research Infrastructure Management, to name a few); IIT Delhi
conducted by university researchers for industry is the has collaborations with industry partners in various
primary channel through which knowledge and technology areas of science and technology (including DAILAB298,
are transferred from academic to applied settings. Eklavya and the Nanoscale Research Facility). Such
partnerships should be encouraged and incentivised by
In most industrialised countries, there is a strong link the government to provide sustainable solutions.
between university and industry to facilitate the exchange
of technology and ideas. In particular, university research Another avenue of financial support for research in India
centres are the most attractive external sources of has been through Cooperative Research Associations.
technology R&D for the industry.294 Further, the role These are thematic institutions, primarily set up to
of government is critical for a successful relationship undertake scientific R&D in a specific industry domain.
between research centres and industry. Industry funding Table 19 lists expenditure on R&D by select Cooperative
to support university researchers has considerably Research Associations in India in various fields. These
increased in most OECD countries as firms are seeking organisations provide a platform for collaborative
direct access to scholars.295 In the United Kingdom, engagement between academic research and the
university-industry linkages have equipped researchers cooperative world, hence maximising the benefits of
to “to integrate the worlds of scientific research and research through an enhanced process of utilisation,
application”.296 In Singapore, the government has played commercialisation and technology transfer.299 They
a key role in fostering a successful relationship between have a strong focus on education and training. These
research centres in academic institutions and industry agencies are recognised by the central government’s line
(Lee & Win, 2004). ministries to carry out research and testing activities,
and in some cases, are also supported by the ministry
The Advanced Manufacturing Research Centre (AMRC) through funds and grants. Cooperative Research
at the University of Sheffield is a classic example of Associations work closely with national and international
successful academia-industry partnership funded by the agencies, academicians and researchers, and also have
state’s Industry Catapult Program. AMRC was founded a provision for graduates and postgraduate students to
in 2001 as a network of world-leading research and pursue research work to fulfil their academic purpose.

292
Gupta, D., & Gupta, N. (2012). Higher education in India: structure, statistics and challenges. Journal of education and Practice, 3(2)
293
ICMR’s Annual Reports, 2012-13 and 2016-17
294
Lee, J., & Win, H. N. (2004). Technology transfer between university research centers and industry in Singapore. Technovation, 24(5),
295
Hottenrott, H., & Thorwarth, S. (2011). Industry funding of university research and scientific productivity. Kyklos, 64(4)
296
D’Este, P., & Patel, P. (2007). University–industry linkages in the UK: What are the factors underlying the variety of interactions with
industry? Research policy, 36(9)
297
The University of Sheffield Advanced Manufacturing Research Centre, see <https://www.amrc.co.uk/pages/about>
298
DAILAB- DBT-AIST International Laboratory for Advanced Biomedicine at IIT Delhi
299
International Co-operative Association

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Table 19: Expenditure on R&D by select Cooperative Research Associations (in Rs. Crore)

Name 2005-06 2010-11 2014-15

The Automotive Research Association of India 63.35 67.14 115.85
Tea Research Association 9.04 47.12 55.94
Electrical Research & Development Association 7.5 42.65 50.17
Amul Research and Development Association * 9.58 20.25
The South India Textiles Research Association 3.68 13.39 17.81
Ahmedabad Textile Industry Research Association 4.11 5.93 13.3
The Synthetic & Art Silk Mills Research Association 3.35 10.81 10.47
Indian Rubber Manufacturing Research Association 1.02 7.88 8.96
Wool Research Association 0.88 1.61 5.48
Indian Jute Industries Research Association 3.48 3.08 5.05
Man Made Textiles Research Association 1.3 2.44 4.61
The Bombay Textile Research Association 2.74 2.76 3.63
Northern India Textile Research Association 4.31 2.22 2.4
Petroleum Conservation Research Association * 0.39 1.54
The SIMA Cotton Development and Research Association * 0.16 0.14
Total 104.75 217.16 315.60
Data Source: Department of Science and Technology
*Data not available

The possibilities for corporate funding devoted to R&D few. Research institutions lack a stable revenue model,
increased in recent years when India adopted new unlike teaching institutions. Philanthropic support
CSR rules in 2014. The provision mandates qualifying through CSR funds should therefore be encouraged to
companies to contribute at least 2% of their average bring India at par with countries like the U.S. and China,
net profits from the preceding three years on social where private philanthropy has long supported scholarly
development-related activities, also prescribed under the research.301
Companies Act 2013.300 The rules allow support extended
to ‘research’ in areas such as poverty, education, health, 4.3.3 Recommendations
environmental sustainability, gender equality, skill
development, among others to be recognised as a CSR a. Encourage corporate endowments and
activity. However, India is yet to leverage CSR funding industry linkages
enough to support research and innovation. Since there
are no clear and formal rules to categorise money spent There are limited sustainable market solutions to support
on research as CSR, there is no data available on CSR research. 302 In India, thus far, the government has been
funds devoted to research activity. the biggest supporter of research, unlike countries such
as the U.S. and China, where philanthropists and business
Further, the emergence of private independent research enterprises are the biggest funders. The government
institutions conducting policy relevant high-quality should make efforts to make it easier for firms to
empirical research and providing recommendations is facilitate and be actively involved in research. Corporate
promising. This research is aimed at the government endowments can help build sound infrastructure to
and seeks to impact policy. Brookings India’s model carry out research activities and set up R&D facilities on
to support research work through a strong network of higher education campuses. HEIs should be allowed to
founders has made it a sustainable institution. However, monetise research by easing norms for consultancy and
examples of such organisations running successfully are research projects.

300
Thorat, S., & Verma, S. (2017). Social Science Research in India: Status, Issues, and Policies. Oxford University Press.
301
Ravi, S. (2016, January 27). Support research as Corporate Social Responsibility in India. The Times of India.
302
Ravi, S. (2016, January 27). Support research as Corporate Social Responsibility in India. The Times of India.

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Locally, linkages between the NRF, national research Formalise CSR expenditure on research
centres, research laboratories, cooperative research
institutions and Centres of Excellence in top universities The potential for CSR monies to support R&D activities
should be established to promote collaborative applied in HEIs as well as research institutions has not been fully
research and create relevant knowledge for the industry. realised. CSR rules under the Companies Act should be
This can help build research-focused institutions that amended to categorically include ‘research’ as one of the
have the skills and expertise to undertake research in activities listed under the guidelines. The rules should
multiple disciplines. formalise that money spent on research, as a separate
heading, can be accounted for CSR expenditure. The data
on expenditure on research through CSR should then be
reported to the Ministry of Corporate Affairs, just as it is
done for other activities.

4.4 Summary of recommendations

Recommendations Objective

Incentivise research output Increase publication output

Apprise Indian scholars of global standards of
Promote research collaborations conducting research and expose them to improved
infrastructure
Mandate peer-reviewed publications and create
Enhance quality of research output
stringent academic integrity policy
Greater opportunity to publish in legitimate and
Start journals run by research councils
recognised high-quality journals
Encourage corporate endowments and industry Make fundamental research industry-oriented and
linkages sustainable
Formalise CSR expenditure on research as a Make available resources for funding research and
separately listed activity provide data on expenditure

66
 05

CHAPTER
Regulatory
System

Having addressed significant challenges that the Indian higher education

sector faces, the final major impediment towards a well-structured system are
the numerous regulatory roadblocks. The Indian higher education system is
over-regulated. This has inhibited innovation and creativity, and led to issues
with accreditation of HEIs, their autonomy and inadequate funding. Given the
rapid expansion of the higher education sector in the last two decades, and
the emergence of multiple agencies and providers, it is imperative that the
regulatory regime is revisited and reformed.

Over the last decade, several proposals have been made to reform the regulatory
structure, with the fundamental aim of revamping the University Grants
Commission (UGC). These include the Yash Pal Committee that proposed the
establishment of the National Commission for Higher Education and Research
(NCHER), the Draft National Education Policy 2016 (DNEP16) put out by the
Ministry of Human Resource Development, the Repeal of the UGC Act or the
Draft Higher Education Commission of India (HECI) Bill, and the National Higher
Education Regulatory Authority of India (NHERA) as envisioned in the Draft
National Education Policy 2019 (DNEP19). These recommendations are proof
that the need to reform the regulatory structure has been realised and there
is intention to transform the sector as well. However, these recommendations
have not been acted on and reforms have not been implemented.

This chapter is divided into four sections. Section 1 gives a complete blue-
print of the current regulatory regime, outlining the roles and responsibilities
of various bodies. In Section 2, we describe the three most basic and critical
regulatory challenges that HEIs face – accreditation, autonomy and funding.
Section 3 provides a quick review of recommendations made in the last decade
to ease regulations in the higher education sector.
R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

5.1 Blueprint of the regulatory and was assigned the additional tasks of expansion,
diversification, streamlining and coordination of and
structure of Indian higher among HEIs.309
education
The UGC remains the nodal regulatory body for higher
The Radhakrishnan Committee (1948) emphasised the education. It has two major responsibilities: (i) to
need to create a legislative framework for universities coordinate, determine and maintain standards of HEIs,
to operate under a strong governing body. Its and (ii) to provide funds to HEIs. It also advises central
recommendations led to the establishment of bodies and state governments on the measures needed to
such as the UGC and AICTE.303 At present, 14 regulatory improve university education. With the rapidly evolving
bodies operate in the higher education sector in India higher education landscape in India, the UGC became the
across general education, technical education and central policy-making body in India. However, one of the
professional education. The higher education sector biggest failures of the commission has been its failure to
needs to be regulated to ensure planned and coordinated implement policies, norms and standards.
development of HEIs, provision of quality education and
equity and social justice, as well as to prevent unfair In addition to the UGC, 14 professional councils are
practices.304 However, the sector has been over-regulated responsible for recognition of courses, promotion of
since independence, leading to several inefficiencies. professional services and providing grants to HEIs.310
These councils have oversight on education in a
There is a long-standing debate about whether the particular discipline and determine standards in that field
existing regulations suffice or does the system need in coordination with the UGC. A list of all professional
more regulations for effective implementations of rules councils is given in Figure 22.
and norms.305
The AICTE a national-level body set up in 1945, is the
Recent committees and draft policy proposals all suggest advisory body for all matters relating to technical
reducing the complexity in the structure of higher education but lacks any statutory powers. The AICTE
education. The common theme in their recommendations Act was subsequently enacted in 1987 to ensure: (i)
is to comprehensively restructure governance and proper planning and coordinated development of the
funding at the central level.306 The idea of a single apex technical education system; (ii) promotion of qualitative
regulator for higher education, with coordination councils improvement of technical education in relation to
in all knowledge areas, has been in discussion for more planned quantitative growth; and (iii) regulation and
than two decades now.307 However, a complex regulatory proper maintenance of norms and standards. 311
system with multiple levels of governance has resulted in
several challenges in the sector. The Medical Council of India (MCI) was constituted to
establish uniform and high standards in Indian medical
5.1.1 The current regulatory regime education and monitor medical practice throughout
the country. It also oversees the recognition of medical
When the government appointed the UGC in 1945 to give qualifications, accredits medical universities and
grants to central universities, the move was resisted colleges, and grants registration to medical practitioners.
by forces against centralisation. In 1947, the provision The District Education Council (DEC) is the apex body
was expanded to bring all other universities under the for Open Distance Learning in India. It is responsible
purview of the UGC.308 The UGC Act (1956) formally for promotion and coordination of open universities,
made provision for governmental financial support to all and determining and maintainging their standards. The
universities. By 1973, the UGC evolved in its functions Indian Council of Agricultural Research (ICAR) is an

303
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5
304
Ayyar, R.V.V (2013): “Unfashionable Thoughts: An Ex-policymaker’s Perspective on Regulation in Education”, Paper presented at the
Workshop on Educational Policy, Hyderabad: Tata Institute of Social Sciences
305
Varghese, N.V. and Garima Malik (2015): “Institutional Autonomy in Higher Education in India”,University News, 53(3)
306
Gupta, S., & Chattarji, S. (2019). Protests, repression, restructuring: contemplating Indian higher education in 2018. Postcolonial Studies, 22(1)
307
Yash Pal Committee (2009): Report of the Committee to Advise on Renovation and Rejuvenation of Higher Education
308
Abrol, D. (2010). Governance of Indian Higher Education: An Alternate Proposal. Social Scientist, 38(9/12)
309
Malik, Garima (2017), Governance and Management of Higher Education Institutions in India, CPRHE Research Paper Series No. 5
310
See <https://www.ugc.ac.in/page/Professional-Councils.aspx#she>, UGC
311
See <https://www.aicte-india.org/about-us/history>, AICTE

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 R e v i v i n g H i g h e r E d u c at i o n i n I n d i a

autonomous body under the Department of Agricultural individual SCHEs has been known to vary depending on
Research and Education, and coordinates, guides and the leader of the organisation in each state.315
manages research and education in agriculture. The
ICAR has played a pioneering role in developments in
agriculture, such as ushering in the Green Revolution,
5.2 Key regulatory issues
through its contribution to research and education.
5.2.1 Assessment and accreditation
In 1988, the UGC issued guidelines to set up State The task of performance evaluation, assessment and
Councils of Higher Education (SCHE). Respective state accreditation of HEIs has been assigned to National
governments have established SCHEs to prepare, plan Assessment and Accreditation Council (NAAC). The
and coordinate academic, advisory and administrative council functions through a General Council and
functions in the higher education sector.312 SCHEs were Executive Committee, and has advisory as well as
constituted to consolidate the efforts and investments consultative committees to guide practices. Statutory
of HEIs in each state.313 With state-level planning and bodies are also set up within NAAC to steer its policies.316
coordination, SCHEs were expected to play an active Chapter 2 of the report presents details on the number
role in strengthening of non-viable colleges. The biggest of HEIs accredited by NAAC and NBA thus far; NAAC
drawback observed in the functioning of SCHEs is that alone has accredited 341 universities and 7695 colleges
they are led by bureaucrats, and not educationists.314 (November 2018).317
For the higher education sector to thrive, SCHEs should
be viewed as the catalyst for efficient and effective NAAC conducts assessment of HEIs in three stages:
coordination between the central government and HEIs, (i) Self-study report (SSR) with metrics for quantifiable
while keeping their autonomy intact. This can be done facts and figures and descriptive responses, (ii) student
by giving greater power to SCHEs to develop higher satisfaction survey, and (iii) peer team report. The
education in their particular state. For instance, the wide assessment is based on curricular aspects; teacher-
mandate provided to the Andhra Pradesh State Council learning and evaluation; research, innovations and
for Higher Education has enabled it to grant permission extension; infrastructure and learning resources; student
to establish and run private unaided degree colleges, support and progression; governance, leadership
conduct tests for admission in professional courses and management; and institutional values and best
as well as promote sports and other extracurricular practices.318
activities in academic institutions. The power granted to

Figure 22: List of Professional Councils

• All India Council of Technical Education (AICTE) • Bar Council of India (BCI)
• Medical Council of India (MCI) • Central Council of Homeopathy (CCH)
• Indian Council for Agricultural Research (ICAR) • Central Council for Indian Medicine (CCIM)
• National Council for Teacher Education (NCTE) • Council of Architecture
• Dental Council of India (DCI) • Distance Education Council (DEC)
• Pharmacy Council of India (PCI) • Rehabilitation Council
• Indian Nursing Council (INC) • National Council for Rural Institutes (NCRI)

Source: UGC

312
Centre for Policy Research in Higher Education (CPRHE) and National Institute of Educational Planning and Administration. A Report of
the Consultative Meeting on State Higher Education Council (SHEC). February 2018.
313
See <https://www.ugc.ac.in/page/Professional-Councils.aspx#she>, UGC
314
Anandakrishnan, M., State Councils of higher education: Expectations and Experiences in N V Varghese and Garima Malik (eds), India
Higher Education Report 2015
315
Anandakrishnan, M., State Councils of higher education: Expectations and Experiences in N V Varghese and Garima Malik (eds), India
Higher Education Report 2015
316
National Assessment and Accreditation Council, Annual Brochure 2018
317
National Assessment and Accreditation Council, Annual Brochure 2018
318
National Assessment and Accreditation Council, Annual Brochure 2018

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The assessment process is a combination of the SSR and processes and decisions that should ideally be under
peer review report. The SSR determines the functioning of the purview of HEIs require permission from the UGC.
the HEIs with reference to the criteria mentioned above. These include starting an academic programme through
Peers validate the SSR through criterion-wise scores and Open and Distance Learning, opening a new department
a detailed assessment report. The criterion score is used or school, or fostering collaboration with a foreign
to arrive at institutional Cumulative Grade Point Average. university. The restrictions create an environment of
The HEI is assigned a grade by NAAC depending on its dependence and centralised decision making. Restricting
CGPA. The final result of assessment and accreditation the independence of HEIs limits the intellectual potential
exercise is a combination of qualitative and quantitative of institutions and independent thinking of faculty as
metrics.319 well. As a result, limited autonomy impacts the quality
of institutions.
Any institution undergoing re-assessment follows the
same process and methodology as that of assessment Some recent measures have been taken to promote
and accreditation. If an HEI fails to get the accreditation, greater autonomy among HEIs. The Indian Institutes
it has to wait at least a year before undergoing re- of Management Bill 2017, announced 20 IIMs as
assessment. As a review mechanism, the HEI is obligated Institutions of National Importance and conferred on
to respond to recommendations made by the peer team them the power to grant degrees.320 The act also reduced
in the previous assessment and accreditation report, and government representation on IIM Boards and allowed
specify the quality improvements it has gone through. the Board to appoint the Director. Similarly, in 2018, the
UGC granted graded autonomy to 60 HEIs with the aim
Accreditation is of great value to institutions. One of of promoting and institutionalising excellence in higher
its many benefits is that it provides objective data as education.321 322 More recently, the government’s decision
evidence to facilitate performance funding for HEIs. to declare 20 HEIs as Institutions of Eminence (IoE) has
It provides reliable information on the quality of the been welcomed as these institutions will have greater
institution for stakeholders in the public as well as autonomy in conducting operations. These include
private (funders and employers) sector to make informed relaxed norms in admitting foreign students, fixing fees
choices. But thus far, the actual value of this benefit and recruiting foreign faculty.323
has not been realised in the Indian higher education
system. The prospect of assessment and accreditation
also acts as an informed review process through which
5.2.3 Funding
the HEI itself stands to benefit. It can internally identify In the current set-up, the UGC is the statutory body
areas of planning, innovations and resource allocation responsible for giving grants to centrally-funded HEIs
based on weaknesses and opportunities observed in the based on the principles of equitability and need. As per
assessment process. the conventional funding mechanism, these grants are
seen as expenditure on a basic public good, and are not
recovered.324
5.2.2 Autonomy
Chapter 2 of this report gives a detailed explanation of Chapter 3 of this report provides data and information
what autonomy means, the effect it has on HEIs, and on government expenditure on university and technical
the process of granting autonomy. It also recommends education. We also find that state bodies have little
providing autonomy to a greater number of HEIs and to no control over setting norms regarding financial
easing the process. Under the current regulatory regulations. Moreover, an incremental model of funding
framework, there is an urgent need to address the followed by HEIs has diluted standards of pedagogy and
operational and financial autonomy of HEIs. At present, research in the ecosystem. The lack of transparency in

319
National Assessment and Accreditation Council, Annual Brochure 2018
320
PRS Legislative Research. The Indian Institutes of Management Bill, 2017a
321
“In a historic decision, 60 Higher Educational Institutions granted autonomy by UGC : Shri Prakash Javadekar”, Press Information Bureau,
20 March 2018, <http://pib.nic.in/newsite/PrintRelease.aspx?relid=177751>
322
“Graded Autonomy to Promote and Institutionalize Excellence in Higher Education .” Press Information Bureau, 23 July 2018, <pib.nic.in/
newsite/PrintRelease.aspx?relid=180895>
323
“Government Declares 6 Educational ‘Institutions of Eminence’ ; 3 Institutions from Public Sector and 3 from Private Sector Shortlisted .”
Press Information Bureau, 9 July 2018, <pib.nic.in/newsite/PrintRelease.aspx?relid=180478>
324
Gupta, S., & Chattarji, S. (2019). Protests, repression, restructuring: contemplating Indian higher education in 2018. Postcolonial
Studies, 22(1)

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financial regulation of private HEIs and limited funding The committee’s report noted that “a well-designed
options has led to private HEIs being entirely funded by regulatory structure will also help to promote a high
student fees, therefore, limiting access to better-reputed degree of professionalism in managing HEIs” (Yash Pal
HEIs which provide quality education. Committee Report, 2009). In the current landscape, the
higher education system is highly over-regulated with
Promoting financial autonomy of HEIs will encourage multiple agencies having overlapping functions, often
them to seek funding from sources other than the leading to inefficiency and corruption.
government. Subsequently, an independent external
regulator can hold institutions accountable for More so, these regulatory agencies were established
maintaining standards as well as following rules and based on various Acts; the regulatory provisions and
norms. This can go a long way in resolving the financial functions for different bodies were created at various
challenges faced by public and private HEIs in the current points in time under different legislations. However, the
system.325 So far, the focus has been on developing nodal responsibility of the higher education system, as
and improving the quality of public institutions due to assigned to the UGC, is not validated in the provision of
restricted access to central funding.326 other Acts.328 This has resulted in duplication of efforts,
discrepancies arising from overlapping functions, and
poor coordination among the statutory bodies and their
5.3 Review of recent committee processes and mechanisms.
recommendations and draft
policies The committee suggested a revamp of the overarching
regulatory body to set up the National Commission
for Higher Education and Research (NCHER); the
Over the last two decades, several commissions have NCHER would subsume roles and responsibilities of
made recommendations that suggest overhauling all existing regulatory bodies. The regulatory functions
the regulatory structure. Draft policies and bills have of all Professional Councils329 would be transferred to
outlined continuing challenges and potential solutions the NCHER. The councils would then be responsible
to ease regulatory norms for HEIs. However, policies for conducting tests to practice the profession and
and recommendations have not been adopted or only suggest syllabi to HEIs; the task of designing the
implemented. In this section, we review some of the curriculum and structuring the coursework would be
critical recommendations made to restructure the left to the HEI. The committee believed that pooling the
regulatory bodies in the higher education sector. roles and responsibilities of various regulatory bodies
(UGC, AICTE, NCTE, DEC, etc.) under the NCHER would
insulate it from political and government interference.330
5.3.1 Yash Pal Committee, 2009 The report proposed setting up SHECs, at the state level,
About a decade ago, in 2009, the Ministry of Human to coordinate with the NCHER and manage regulations
Resource Development set up a committee under the of state universities with minimal interference from
chairmanship of Prof. Yash Pal to examine reform of the the centre. The need for SHECs was emphasised in the
higher education sector. ‘The Committee to Advise on National Mission on Higher Education (2013) under the
Renovation and Rejuvenation of Higher Education’, also 12th Five Year Plan.331
referred to as the Yash Pal Committee, recommended
structural changes in the ecosystem to transform the The Yash Pal Committee also highlighted the need to
idea of a university.327 It particularly emphasises that increase accreditation capacity by certifying independent
any change in the governance structure of centrally- accreditation agencies to assess HEIs and determining
funded institutions, as well as state-funded institutions, norms. The proposed NCHER would also determine the
should be aimed at achieving more autonomy for HEIs. process of setting up as well as shutting down HEIs.

325
Gupta, S., & Chattarji, S. (2019). Protests, repression, restructuring: contemplating Indian higher education in 2018. Postcolonial
Studies, 22(1)
326
Ernst & Young Pvt Ltd. “Higher Education in India: Twelfth Five Year Plan (2012-2017) and Beyond”. FICCI Higher Education Summit 2012
327
Central Advisory Board of Education, “Financing of Higher and Technical Education”, (2005)
328
Central Advisory Board of Education, “Financing of Higher and Technical Education”, (2005)
329
13 Professional Councils existed at the time when the committee was under way
330
Report of ‘The Committee to Advise on Renovation and Rejuvenation of Higher Education’, 2009
331
Centre for Policy Research in Higher Education (CPRHE) and National Institute of Educational Planning and Administration. A Report of
the Consultative Meeting on State Higher Education Council (SHEC). February 2018.

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5.3.2 Draft National Education Policy 2016 It called for splitting institutions that have more than
100 affiliating colleges for effective delivery of higher
The Draft National Education Policy 2016 (DNEP16) education.
observed that the current regulatory regime in the higher
education sector looks at input and not outputs.332 It Fee regulation is yet another significant concern that
also highlighted the wide disparity between a handful of DNEP16 addressed. Since the demand for higher
‘Centres of Excellence’ and the many small, affiliated and education in private institutions far exceeds the supply,
badly managed colleges in the country. The draft policy colleges are believed to exploit students by charging
recommended the need for a flexible and nuanced regime a capitation fee. DNEP16 recognised that while the
that rewards high-performing colleges with greater government keeps the fee low to allow wider access to
autonomy while financially supporting and mentoring higher education, to some degree, private institutions
poorly-performing colleges to improve their quality of should be allowed to charge fees to recoup expenses.
education. DNEP16 made it clear that there is certainly
a need to create a legal regime for new institutions and
reframe the mandate of existing regulatory agencies. It
5.3.3 Draft Higher Education
envisioned the establishment of a ‘New Higher Education Commission of India (HECI) Bill,
Management Act’ to establish standards and guidelines 2018: Repeal of the UGC Act
for accreditation agencies as well as for HEIs.
The draft Higher Education Commission of India Bill was
The draft policy recommended making accreditation introduced in 2018 to repeal the UGC Act and establish
mandatory for all institutions, as well as requiring all HEIs the Higher Education Commission of India (HECI). The
to undergo periodic assessment and accreditations. At proposal made it clear that the UGC is not functioning
present, though accreditation is a voluntary initiative for efficiently and the over-regulation of HEIs is hindering
HEIs, it is insufficient in the sense that even the best rated performance.334 The main departure from the UGC was
Indian institutions perform poorly in global rankings.333 that HECI would not have the power to provide grants to
This shows that the current model of assigning grades to HEIs, and its mandate was stated to maintain academic
institutions is inadequate and does not acknowledge the standards in higher education by specifying learning
specialised attributes of high-quality HEIs. Moreover, the outcomes for courses. It would specify the eligibility
Internal Quality Assurance mechanism is underutilised criteria for appointing Vice Chancellors at HEIs.335
to gather data and information that could be used to
monitor and improve the quality of HEIs. To resolve As detailed previously in this chapter, HEIs offering
concerns related to limited accreditation capacity of professional courses are presently regulated by 14
NAAC and NBA, DNEP16 suggested creating a National Professional Councils that conduct qualifying exams
Accreditation Agency (NAA) that would be responsible and specify standards for professional practice in the
for a Quality Assurance Framework. Based on this field. The HECI Bill, however, brings legal and architecture
well-established framework, accreditation would be education under the ambit of HECI. The Bill does not
outsourced to specialised external agencies. All agencies provide any explanation as to why only these two
will require a license from the NAA based on guidelines. councils have been chosen to be absorbed under HECI,
whereas the remaining 12 councils continue to function
Another key challenge is the management of state-run as is. The roles of The Bar Council of India and Council
universities. These institutions are tightly controlled of Architecture will be limited to specifying standards for
by the government, have minimal autonomy and professional practice in these two areas.336
are constrained administratively since they are also
affiliating universities. DNEP16 recommended restricting The Bill also calls to set up an Advisory Council under
the number of affiliated colleges a university can have. HECI to advise on coordination between the center and

332
Ministry of Human Resource Development, “Draft National Education Policy 2016”
333
Several news articles. For example, see <https://www.livemint.com/education/news/indian-universities-draw-a-blank-in-the-s-top-300-
list-1568224442151.html>
334
Bhushan, Sudhanshu. (September 2018). HECI Act 2018 Fails to Address Structural Problems of Higher Education in India. Economic and
Political Weekly-Engage, Vol. 53
335
PRS Legislative Research. The Draft Higher Education Commission of India (Repeal of University Grants Commission Act, 1956) Bill, 2018
336
PRS Legislative Research. The Draft Higher Education Commission of India (Repeal of University Grants Commission Act, 1956) Bill, 2018

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states, and determine standards in higher education.337 management or any regulatory body on content and
The provisions of the Bill apply to all HEIs except to the pedagogy will promote academic autonomy and integrity
Institutions of National Importance.338 of HEIs. At the same time, the draft bill envisions financial
autonomy of HEIs such that institutions themselves
Another crucial difference between HECI and the UGC determine the utilisation of allocated funds as well as
was that unlike the latter, the proposed HECI would make efforts to generate funding independently, from
have the power to order closure of HEIs that failed to sources other than governments.340
adhere to minimum standards. One of the UGC’s biggest
shortcomings was its inability to implement minimum At the same time, it can be argued that the draft Bill
standards among HEIs. The HECI could revoke the does not necessarily grant academic freedom to HEIs. It
permission granted to HEIs to run operations on grounds has been criticised for giving HECI excessive control on
such as failure to comply with rules and regulations, failure academic, administrative and financial matters of HEIs.
to discharge duties and obligations, and if HEI ceases its Unlike the UGC, HECI would have additional powers over
functions. In a unprecedented step, HECI would also have HEIs to grants degrees and shut down an HEI. The UGC
the authority to impose penalties on HEIs that are found regulated every aspect of an institution, from its fees to
to violate norms or contravene regulations. Penalties its curriculum, hence failing to preserve autonomy and
could be imposition of fine, revoking HEI’s permission to promote accountability. The draft HECI bill does not
grant degree, or imprisonment for up to three years.339 clarify how HECI would promote autonomy of HEIs.
On the one hand, while this acquired power of HECI is
important, on the other hand, it also harms the system by One of the biggest critiques of the draft HECI bill is that
giving it excessive power. Perhaps, in future proposals, it does not address which body would play the role of
such authority could reside with the state government. grant disbursal to HEIs. Currently, the UGC has the
power to allocate and disburse grants to HEIs. While the
Currently, degrees can only be awarded by a university, bill envisions that HECI would replace the UGC, it does
deemed-to-be university or institutions specially not have any provision for grant disbursal or clarity on
empowered by the Parliament; they do not need any how the financial aspect of this restructuring would
approval from the UGC. But, in a significant departure work.341 Whether the funding responsibilities of the UGC
from the UGC’s mandate, HECI requires all HEIs to seek would rest directly with the MHRD has not been made
its permission to begin academic operations (and for all sufficiently clear either. After the introduction of the Draft
existing institutions to get permission within three years) HECI Bill, the MHRD indicated that there will be a separate
or award degrees or diplomas. This way, HECI will be in a grant disbursal body that will follow a merit-based
position to ensure that the application complies with the approach to fund disbursal.342 Previously, the National
specified norms of academic quality. Knowledge Commission (2009) had also recommended
that an independent regulator should set standards for
The HECI is envisioned to promote autonomy of HEIs, while the UGC would be responsible for disbursing
institutions and eliminate interference of a regulatory funds.343 However, no details on the kind of mechanism
body in their management. Under the provisions of the the MHRD or the grant disbursal body would follow for
new commission, teachers, researchers and students disbursal of central public funding for higher education
would have the prerogative to determine academic have been stated so far.344
coursework. Minimal interference from the institutional

337
PRS Legislative Research. The Draft Higher Education Commission of India (Repeal of University Grants Commission Act, 1956) Bill, 2018
338
As per MHRD: 94 Institutions of National Importance (INIs). See <https://mhrd.gov.in/institutions-national-importance>
339
PRS Legislative Research. The Draft Higher Education Commission of India (Repeal of University Grants Commission Act, 1956) Bill, 2018
340
Gupta, S., & Chattarji, S. (2019). Protests, repression, restructuring: contemplating Indian higher education in 2018. Postcolonial
Studies, 22(1)
341
Gupta, S., & Chattarji, S. (2019). Protests, repression, restructuring: contemplating Indian higher education in 2018. Postcolonial
Studies, 22(1)
342
“The Grant Disbursal Function to Universities and Colleges Will Be Located in an Independent Entity Which Works in a Transparent, Merit-
Based Approach through an ICT Enabled Platform: Shri Prakash Javadekar .” Press Information Bureau, 23 July 2018, <pib.nic.in/newsite/
PrintRelease.aspx?relid=180882>
343
National Knowledge Commission, Report to the Nation 2006-2009. See <https://www.aicte-india.org/downloads/nkc.pdf>
344
Gupta, S., & Chattarji, S. (2019). Protests, repression, restructuring: contemplating Indian higher education in 2018. Postcolonial
Studies, 22(1)

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Overall, the draft Bill demonstrates the government’s will be governed and run by an Independent Board
intention to develop an ecosystem where HEIs are consisting of people with expertise in relevant areas.346
self-regulated; however, this is a much longer process. The government’s role would be limited to increasing
With its emphasis on outcome-based education, the its financial commitment to higher education. As the
proposed Act has “change(d) the discourse on quality single regulator, NHERA will focus on system outcomes
without looking at the structural problems of higher and empower HEIs in three aspects: good governance,
education”.345 The move to repeal the UGC and constitute financial stability and transparency, and educational
a revamped body with specific and more streamlined outcomes. DNEP19 makes it clear that each HEI should
functions is proof of the government’s desire to focus on have educational outcomes as its goals and that the
reform of the higher education sector. HEI’s progress should be tracked against them. While
NHERA will not prescribe outcome for any HEI, DNEP19
maintains that the focus of HEIs should shift from inputs,
5.3.4 Draft National Education processes, resources and conditions to outcomes.
Policy 2019
The NHERA, like the HECI as described earlier, will
The Draft National Education Policy 2019 (DNEP19) have the power to shut down HEIs that fail to adhere
suggests a complete overhaul of the existing regulatory to regulations. Such authority is crucial for effective
structure in the higher education sector. Four key reasons enforcement and implementation of rules and norms.
have been provided for this. First, the policy acknowledges However, the draft policy has not specified how, in which
that, over time, as multiple regulatory bodies have cases, and in what form NHERA could exercise the power.
come into being, their mandate and functions have These will have to be spelt out clearly.
come to overlap, causing inefficiency and discrepancy
in implementation. Second, the draft proposal gives The roles and responsibilities of different agencies, as
special attention to the lack of accreditation capacity also envisioned in DNEP19, are described below.
that has resulted in a huge backlog of HEIs yet to
undergo accreditation. Third, it recognises that India has a. Accreditation institutions
some of the most stringent requirements for entering
the higher education sector. The proposal does away The policy proposal stated that accreditation, focused
with rigid, rule-based and tedious requirements for on outcomes, can prove to be the primary mechanism
entry into the sector as well as with respect to faculty to ensure effective implementation of regulations in
qualifications and implementation of curricula. And HEIs. It calls to create an independent ecosystem of
finally, DNEP19 suggests that institutional autonomy is Accreditation Institutions (AIs) that would be the very
“non-negotiable”; it commits to the cause of HEIs having “lynchpin of the regulatory system” and the foundation
full autonomy with respect to academic, administrative for ensuring quality education. NAAC would be given the
and financial functions. charge to develop such an ecosystem of multiple AIs,
by issuing licenses to other agencies, and overseeing
As mentioned earlier, the UGC has the dual responsibility the accreditation process in all disciplines and fields.
of determining and maintaining standards for all HEIs NAAC will also put in place an Institutions Accreditation
and disbursing grants to institutions. The proposed Framework, focused on outcomes and their quality, to be
policy categorically separates the functions of used by all AIs. This is expected to yield a consistent and
regulation, provision of education, funding, accreditation standardised template for assessment and accreditation.
and standard-setting as mandates of independent and The draft policy recognises that since accreditation
empowered bodies. DNEP19 recommends setting up the capacity has been a key concern in the Indian higher
National Higher Education Regulatory Authority (NHERA) education system, there will be a requirement of one AI
as the common regulatory regime for the entire sector. for every 200-300 HEIs. As a result, DNEP19 proposed
NHERA will overlook the functioning and operation of reinventing NAAC as an entirely independent and
individual institutions. Responsibilities of each agency autonomous body, separate from the UGC or NHERA.
will be clearly delineated within the new framework. The proposal also mandatorily requires all HEI to be
Precisely to avoid overlaps in jurisdiction, each body accredited by 2030, else they will cease to operate.

345
Bhushan, Sudhanshu. (September 2018). HECI Act 2018 Fails to Address Structural Problems of Higher Education in India. Economic and
Political Weekly-Engage, Vol. 53
346
Ministry of Human Resource Development. “Draft National Education Policy 2019”

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There are two distinct features of accreditation in the d. General Education Council
envisioned regulatory system. First, at present, NAAC
does not guide HEIs, only assesses and accredits them. The General Education Council (GEC) will be set up as
However, the new policy proposes that AIs will function as an academic leadership institution to drive the quality
facilitators and mentors to HEIs, providing them guidance of education. The GEC will define attributes and level
to build on their strengths to qualify for accreditation. of learning for graduating students. The draft policy
Next, the DNEP19 recommends transitioning from the proposed that GEC will be responsible for creating a
existing graded accreditation (HEIs are assigned a National Higher Education Qualification Framework
grade between A++ and C) to binary accreditation (HEI (NHEQF) that would map all higher education
would either be accredited or not: ‘yes’ or ‘no’). Currently, qualifications leading to a degree, diploma or certificate
graded accreditation forms the basis of granting graded in terms of learning outcomes. The NHEQF is envisioned
autonomy to HEIs; binary accreditation is expected to to also allow flexibility in terms of transferring course
empower HEIs and caterogically give them full autonomy. credits. While the draft policy gives HEIs complete
autonomy in designing courses, the GEC will also
b. Professional Standard Setting Bodies develop recommended curricular frameworks that serve
as guides to HEIs.
Professional Standards Setting Bodies (PSSBs) will
develop standards in their respective field of learning e. State Departments of Higher Education
or practice. The 14 existing Professional Councils (see
and State Higher Education Councils
Figure 22) will transform into PSSBs; however, their
regulatory powers over HEIs will be transferred to NHERA, DNEP19 suggests that the Department of Higher
which will act as the sole regulator. Thus, DNEP19 Education in all states will coordinate the higher
suggests that HEIs will have complete educational education system at the state level. This would include
responsibility and autonomy in the professional field developing the institutional architecture in the state such
of study: freedom to design and determine academic that adequate financial support is provided to public
curriculum, course structure and assessment in the field HEIs. Meanwhile, as per the proposal, the SHECs will act
of study, and pedagogy and teacher requirement. as facilitating bodies to share best practices and serve
as a platform for peer support among HEIs.
c. Higher Education Grants Council
f. Private institutions
The suggestion to establish the Higher Education Grants
Council (HEGC) is the most critical component of the DNEP19 has made an unparalleled effort to treat all
new draft policy since this was the big missing piece of private HEIs at par with public HEIs within the regulatory
the regulatory structure proposed in the Draft HECI Bill. regime. Both types of institutions are envisioned to
DNEP19 proposes that funding of all public HEIs will be be regulated on the same criteria, benchmarks and
handled by an independent body that has no regulatory, processes. It further encourages private philanthropic
standard setting or accreditation role. The HEGC would contribution for higher education while emphasising the
have the responsibility of disbursing developmental need to eliminate commercialisation of education. As
grants and fellowships in the higher education sector, also suggested in DNEP16 and the draft EHCI Bill, the
including professional education. The HEGC will newly proposed policy calls for a “progressive regime of
fund institutions as well as individuals, combining fees determination” focusing on a reasonable amount of
responsibilities of the UGC and the AICTE. But it will not cost recovery. HEIs will be allowed to determine the fees
play a role in setting salaries for the staff and faculty in for their programs while ensuring that students also get
HEIs and funding research activities. DNEP19 suggests freeships and scholarships.
setting up a separate entity, the National Research
Foundation, exclusively for funding research activities
and infrastructure. While funding norms for HEIs will
have to be re-examined and streamlined, HEGC will add
emphasis to scholarships and developmental funds to
create new focus areas across all disciplines.

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5.4 Summary of recommendations

Recommendations Objective
Increase accreditation capacity of agencies, Cover maximum number of HEIs to be assessed and accredited,
especially at the state/regional level with improved quality and oversight
Establish standard accreditation framework To bring transparency and consistency in accreditation
Grant autonomy to HEIs on the basis of grade De-regulate HEIs and grant teachers and researchers the
received in assessment academic freedom to design academic coursework
Increase the role of state government in ensuring maximum
Direct more grants to state-funded HEIs
coverage to quality university education
Encourage and incentivise private funding on Reduce government’s responsibility in providing grants to HEIs,
the basis of educational outcomes while making HEIs accountable to an independent third-party

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