Do it 1991-style: Three reforms India needs in higher education

Why have we landed ourselves in the current mess involving NEET, JEE, and other high-stakes exams? While India has the potential to lead the world in higher education, we are burdened by the mushrooming of coaching institutions, rampant cheating and a lack of trust in exam bodies, bureaucratisation of higher educational institutions, degradation of the university system, and, most concerningly, stress and mental pressure on our youth.

Over 35% of recorded suicides in India occur in the 15-24 age group. In 2022, more than 750,000 students also left India to pursue higher education abroad, a 35% increase from the previous year. Projections indicate that Indian households will spend an estimated $70 billion on foreign education by 2025, 14 times the govt’s 2023 higher education budget allocation. These students are leaving not because they cannot find a seat in our institutions but because they seek quality education.

India needs reforms for higher education akin to the sweeping economic reforms of 1991. Three primary issues must be addressed to bring accountability to our educational institutions: faculty quality, financial model and governance issues. Currently, Indian institutions fall into two categories: those that depend on govt for 90% of their sustenance and those that rely on student tuition for 90% of their survival. The over-reliance on govt funds causes major governance and scalability issues in publicly funded institutions, while depending on tuition fees brings quality and trust issues in private institutions. Both models are flawed and perilous. For example, 23 IITs admit roughly 16,000 undergraduate students, and 20 AIIMS admit about 2,000 MBBS students, highlighting the issue with scale. One single large university in the US would admit as many undergraduate students as our 23 IITs put together. Here are three essential reforms that the sector needs:

1. Improve quality of faculty in Tier-2 institutions and universities: One salient feature of the US system of education is that there is not much difference between their Ivy League universities and their Tier-2 institutions when it comes to quality of instruction at the undergrad level. The same can’t be said here. This often creates a stampede of sorts for admission into a handful of elite institutions in India. The creation of more IITs and AIIMS has inadvertently led to a significant decline in the quality of education in Tier-2 institutions and universities. Faculty recruitment is often mired in legal complications and litigation in govt institutions. Even approval of positions from respective govts can take years, forcing these institutions to hire contract faculty. Faculty recruitments must be based purely on merit. To address this, create a national pool of IIT/AIIMS-grade faculty and mandate these people to teach in Tier-2 colleges and universities. These faculty must be hired centrally with the active participation of IITs/AIIMS, offered IIT/AIIMS faculty pay scales, given a similar teaching load, and provided generous grants to perform high-quality research. It’s important that such a pool helps establish a culture of excellence wherever they work. Even their promotions must be based on standards of performance similar to these elite institutions. Over a period of time, increase this pool of faculty nationally to improve the standards of education outside our elite institutions.

2. Provide outcome-linked grants to institutions: Linking grants to outcomes can incentivise higher educational institutions to boost student enrolment and encourage faculty to secure competitive research grants. Funds should be linked to student enrolment numbers, research grants generated, patents filed, and IP licensed to industries. This will drive institutions to expand enrolment and increase research productivity. To support higher education sustainably, institutions must diversify their revenue streams. Policies should encourage philanthropy, industry participation, and generous overheads on research grants.

Additionally, government policies should promote the development of substantial endowment funds, similar to those in top US universities. Implementing ‘study-now-pay-later’ schemes, akin to Australia’s HELP program, can ensure affordability and support diverse career pursuits. These schemes allow students to defer tuition payments, repaying them once their income exceeds a specified threshold. This approach balances the need for immediate educational investment with long-term financial viability, ensuring that higher education remains accessible without placing undue financial strain on students or govt.

3. Address governance issues: The National Education Policy (NEP) 2020 emphasises autonomy for educational institutions. However, excessive bureaucratic interference and controls have caused governance structures in academic institutions to hit a new low. Implementing NEP’s reforms is crucial. Building a strong board and empowering it to make financial, administrative, and academic decisions is essential. With a proper financial model that promotes expansion, excellence, and equity, coupled with administrative autonomy, our higher educational institutions will thrive.

It’s imperative we use the recent NEET fiasco as a wake-up call.

Professor Rao is vice-chancellor for BITS Pilani group of institutions and former director, IIT Delhi. Views expressed are personal.