Reasons for Privatisation of Higher Education in India

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Education, especially higher education, is a great need for a prosperous, advanced nation like India. Education is recognized worldwide as an important investment in human capital. It is the key to new technologies and economic growth. Government has a responsibility to provide access not only to all its citizens but also reasons of the pursuing of higher education. Significant investment is needed to address these needs. In India, however, shortages continue to be a major obstacle. The Indian government, therefore, welcomes the creation of stocks to facilitate the acquisition and collection of resources to expand higher education.

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India has a very high level of higher education as we have today 250 universities, more than 10,500 colleges and 55 lakhs of students taught by more than 3 teachers. And the proportion of University and College students in the appropriate age group of 16-23 years is disappointing 6%. This is very low compared to the developing world, with 20% in Egypt and Thailand, 10% in Turkey, 11% in Brazil and 16% in Mexico. In developed countries, however, access to higher education is up to 40% or more. Thus, although higher education in India is generally prevalent, inadequate access continues to cause concern. This issue, therefore, requires critical scrutiny.

On the one hand, we are concerned about the so-called 'mushroom growth' of universities and colleges, and on the other hand, they are unable to provide access to education even on an equal footing with many other developing countries in the world. In addition, while the enrolment of women and those of SC / ST and other retrospective communities has improved, they are still heavily represented. Therefore, the issue of accessibility and equality needs to be addressed through the adoption of alternative strategies.

As we all know, providing increased access to education, meeting the challenge of equality and improving the quality of education all involve significant investment. There is a great need to ensure the continuous flow of funds required to implement and implement appropriate programs and activities. However, there is a problem with resource fragmentation. The proposed approach is to investigate additional ways to produce resources instead of relying entirely on the takeover of the State. It is important here that the higher education system seeks the participation of Government and non-governmental organizations. A certain amount of private finance thus seems unavoidable in making the deficit caused by insufficient government funding.

Lack of adequate funding for education is a major problem. While total investment in education as part of gross domestic product (GDP) increased from 1.2 percent in the 1950s to 3.7% in the 1990s, it is still below 6 percent as stated in the National Policy on Education. University education has been hit hard. Many institutions of higher learning are facing major financial challenges. Two important questions arise immediately: First, what is the reason for a complete overhaul of the 40-year policy of state support for higher education, and second, how can the government extend financial support to higher education at a time when the country is facing severe resource depletion?

As the provision of free and compulsory basic education in the first phase is a constitutional obligation, budget allocations for this field continue to increase while the University and higher education have secured an illegal contract for the sixth consecutive year. This is in line with the stated goal of the Union Government that the lion's share of higher education funding should come from sources other than the government. The consequences of inadequate investment in higher education are critical. Although universities are in the process of urging the government to increase their budgets, some of them are at the same time taking steps to make their finances.

It is high time that the university system has used long-term resource planning instead of taking government support lightly. Each University will now have to identify ways to produce resources, both internal and external, depending on the type of program offered and location. The Punnayya Committee established by the UGC and the Swaminathan Panel of AICTE has made extensive recommendations in this regard. Internal measures, among others, can include financial efficiency, the overall economy in spending, integration and sharing of departmental and institutional resources and most importantly, financial planning. Depending on the external resources, the key mechanisms include contributions from alumni, philanthropists and others, consultations, university and industry links, etc.

In most tertiary institutions, at present, tuition fees are very high there is little to gain while the repetitive costs per student are very high. In fact, the highest financial review is overdue. The need to increase tuition fees by at least 20% of recurring costs per student and at the highest level in higher technical and technical studies is supported. The increase in fees for foreign students at higher levels is being talked about by placing seats in selected institutions such as IIT and IIMS. While measures like these seem realistic, their effects need to be thoroughly evaluated before making any decision on the issue. In particular, the interests of the poorest students in general and those of Indian students who are opposed to foreign students admitted on the basis of higher incomes need to be protected.

The most undeniable way to create additional resources is to contact charities, alumni and others such as business houses and industry concerns about voluntary donations. To encourage this the financial action of the Government of India provides a 100% tax exemption in respect of taxpayer contributions to a university or national higher institution. Also, University-Industry communications have become a platform for this. The Swaminathan panel recommended the creation of a fund for the collection of education taxes from industry and other consumer organizations. The establishment of the Education Development Bank of India was proposed at a cost of Rs 1,000 per share by the State Government, the Central Government and overseas financial institutions. Raising money through consultation work or service delivery by industry institutions or other professional organizations is another highly recommended option. As an incentive, part of this money will be paid individually while the rest will be added to University funds. It is worth mentioning here the official view that the methods of improved financial planning, consultation and other activities will not be in line with Government grants for industries that consider the 'admission' of one or more institutions of higher learning.

The biggest problem in the relationship between industry and academics is that maybe both don’t know what the other wants. While universities may not be able to see the specific needs of the industry, the latter do not know the type of collaborative universities they are looking forward to. Can a start be made by sharing the infrastructure each one is known to have?

Privacy is the practice of private ownership, management and control of organizations. Doing the opposite can mean lowering the rules, which means that there will be less government control. It means the expansion of the private sector and the downsizing of the public sector. It also means that areas set aside for the public sector will be open to the private sector. The shift to stock exchanges reduces government role and increases the role of private, corporate and local government. Switching spaces mainly take decisions with financial responsibility and management.

Areas of change in the field of education are mainly decision and financial responsibility, management and the appropriate high quality curriculum. Self-employment by private sector executives in the complete absence of government intervention. Such institutions generate their own revenue through higher costs, user costs and full utilization of resources.The development of higher education in various forms and forms over the past decade in India.

1. The need for competitiveness: The main reasons for the sale of shares depends largely on the reasons for doing well to promote a highly competitive economic environment. The performance of state-owned enterprises is considered to be ineffective. It is believed that private ownership and control are effective in terms of resource allocation and function.

2. Rapid population growth: India has a population of about one hundred and thirty-five crores. To provide a large number of people it is necessary to have more private institutions. To meet the need for higher education for young people in the country to make it a secret to pursue higher education is a must.

3. Financial burden on government: Higher education in India is under financial pressure. Government / government can no longer bear the financial responsibility of state-owned enterprises. Current spending on education in India is not more than 3.5% of GDP. The institution itself agrees that the minimum must be 6%. Very little is used for higher education. This compares favorably with international standards, especially in comparison with countries such as South Africa, which puts eight percent of the GNP in education. Therefore, there is a need to change policy when using private resources.

4. Education is economically viable: Education is no longer treated as a social service but as a necessary economic response. Investment in education is seen as a contributing factor to human resource development. In this effort private initiative can help as the private sector is a beneficiary of the information industry.

5. Seeking quality: Private institutions do not require long procurement processes and resources. In order to procure and maintain quality infrastructure and equipment such as furniture, buildings, various types of laboratories and skilled and trained staff, who are not paid as required, it is necessary to keep it private.

6. Rapid growth of school education: A growing number of schools are naturally driven the need for higher education that the government can provide; therefore, the demand for higher education is done privately by the need of the hour.

7. To meet the need for a skilled workforce: Very little step from public sectors due to limited freedom. Private institutions are free to start modern and advanced studies to meet the need for courses facilitate national economic development. Market needs and times can be fulfilled. For this to be done privately it is necessary.

8. Reducing corruption: To control government corruption sector, private sector is much needed. Privacy prevents corruption from others breadth and brings some discipline. As a result, there will be power use.

9. Desire for more independence: The provision of higher education policy will provide institutional independence and will be less dependent on government. This will eliminate political interference in the administrative, administrative areas and finance.

10. Information-based economic co-operation: In today's world there is a need liaison between UGC, higher education institutions, industry, R&D institutions and funding agencies. This can be achieved through a collaborative process where they will be partners in various activities, complementing each other to reach their ideas, goals and objectives. This can be achieved privately participation.

11. Technological advances: Information transformation has also been introduced strengthened due to technological advances such as microchips, genetics, communications, robots, lasers, satellite TV growth and computer technology. Due to limited resources the public sector cannot meet the needs of the sector and other economic sectors. So the private sector has to train technological strength and respond to market needs.

12. Greater obligation for those receiving education: Years ago education is regarded as a free public benefit thus reducing education. Customizing an education where the recipient will bear the full cost will help you have brought great responsibility upon them. As a result, students are more likely seek efficiency and quality in teaching.

13. Increasing demand for enlightened workers: In recent years, there have been changes in the field of technology. It has been instrumental in growing the market economy.

14. Comforting Things: There is general pressure to make the education system self-contained. One of the things is economic and social change in the world. Whenever globalization becomes linked to market freedom, will lead to encouraging government to seek systems that are efficient, flexible and costly.

15. Demand on demand side: Government Program cannot cope with the increase in registration because they have to raise money for taxpayers. In this case, private provision is the only way the education system can grow in response increasing demand.

16. Paradigm Shifts: India is slowly evolving into a rapid track of economic and industrial development, which has led to several paradigm shifts in higher education.

17. Foreign University Entry: Foreign Direct Investment (FDI) is an important global tool. Since the government has no money FDI is allowed to enter higher education. Overseas universities are expected to provide state-of-the-art teaching, research and virtual infrastructure that will attract major foreign investment to India and even transform brainstorming. However, the government will need to create playgrounds at the same level in all institutions and ensure that their facilities are monitored. Their entry should also enhance qualifications in research and other fields, rather than focusing on the undergraduate programs.





1. Jayprakash Narayan (2005). Converting Higher Education in India. Retrieved on February 5, 2014 from

2.Kapu D. & Pratap Bhanu Mehta P. B. (2004). The Transformation of Indian Higher Education: From Halism-Baked Socialism to

Half Capitalized Capitalism. Center for International Development Harvard University Working Paper, pages 1-35.

3. Tilak J. B. (1997). The Crisis of Higher Education Finance in India. Higher Education Policy, Vol.

10 (1), pages 7-21.

4. Bajaj Shammi (2012). Making Higher Education Highly Done - Boon or Ban. International Research Journal in 

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