Higher ed spending to rise 13% yearly over next decade

India’s expenditure on higher education will grow nearly 13% annually in the next 10 years driven by the private sector, said a report released by human resource development (HRD) minister Kapil Sibal on Thursday, November 11. “Higher education spends in India are currently estimated at Rs. 46,200 crore (Rs. 462 billion) and are projected to grow over Rs. 150,000 crore (Rs. 1500 billion) in the next 10 years, reflecting an average growth rate of 12.8%,” said the joint report by audit and consulting firm Ernst and Young (E&Y) and industry lobby Federation of Indian Chambers of Commerce and Industry (FICCI).

The report says a typical Indian household spends the most on education today after food and transport. Average household education expenditure in India has risen from 1.46% of annual income in 1981 to 2.55% in 2008 and 7.5% in 2010. “Nearly 55% of Indian middle-class households have started saving for higher education of their children,” the report said.

Changing macroeconomic trends are creating new categories of students. They are also increasing the willingness to pay for academic quality, employability-linked education as well as foreign education. “The shift towards a services economy is creating a large demand for skilled workforce, which in turn will drive enrolment in higher education,” the report said.

The private sector contributes 92% of the education spending, and within this space, professional courses account for 62%. Since government-run institutions are not geared towards professional courses, 62% of spending in this segment is on general courses. Increased spending over the next decade will boost enrolment, private participation, and better curriculum in higher education sector.

Amitabh Jhingan, partner and education sector leader at Ernst and Young, said the projected higher education expenditure signalled robust growth. Rajan Bharti Mittal, President of FICCI, said education is the “biggest game changer” for India and critical for sustained economic growth.

The report says India’s higher education system is already the largest in the world in terms of number of institutes, and the third largest in terms of enrolment. India has 13.6 million students pursuing higher education in 25,951 institutions. The U.S. has 17.76 million students in 6,700 institutions and China has 25.35 million students at 4,000 higher education institutions.

The report highlights a dramatic growth in the number of colleges and universities in India over the past decade. “The number of universities and colleges has almost doubled, led by massive participation by the private sector. Since 1950-51, the number of universities has increased from 28 to 504,” it said.

Sibal said India needs another 800 universities to cater to growing demand. “India has to create a critical mass of educated people for its own economy,” the minister said. “While over 220 million students are in schools, just 14 million are in higher education. Here we have to expand without compromising quality. It’s a daunting task and partnership of public and private sector is a necessity.” Mittal of FICCI called for tax breaks and incentives to encourage the private sector to invest in vocational education, e-education, training and skill development.

Source: Mint, November 12, 2010

Sibal vows synergy between HRD and science ministries

On his first day of assuming temporary charge as the science and technology minister, Union human resource development (HRD) minister Kapil Sibal infused activity in the otherwise lacklustre ministry. He promised to bring synergy between his two ministries. An alliance between them will be established in a month.

“I think human resource development and science and technology are linked to an extent. Education is the foundation and it is of various kinds,” Sibal said. The minister said currently funding for science education came from various sources like the University Grants Commission (UGC) and scientific departments.

Thus, sometimes different projects with similar aims are funded by various departments. It is better to have a common funding mechanism. “In the HRD ministry, I had interactions with all the science and technology secretaries,” he said, indicating the issue had been in his mind. “In fact, science and technology should be embedded in all ministries,” he added.

Sibal takes charge of the ministry after about a year and half. In his previous stint in the ministry, he had energized the ministry by announcing several initiatives and regular interaction with the media. On a lighter vein, Sibal said: “This is a temporary assignment. But I do temporary jobs in a permanent manner.” Sibal also met U.K. science minister David Willetts and discussed cooperation between the two countries and an initiative on food security and sustainable crop production research for international development.

Source: Mail Today, November 12, 2010

U.K. minister for universities and science visits India

U.K. Minister for Universities and Science, David Willetts has arrived in Delhi today for a week long visit to the capital, to Bangalore and to Pune. The Minister returns to India soon after his visit in July 2010 when he played a central role in helping to forge the new U.K.-India enhanced partnership under the joint leadership of Prime Ministers Singh and Cameron.

Minister Willetts’ early return is an opportunity to renew contact with Indian counterparts in order to maintain the momentum of the July visit. It underlines the U.K.’s strong commitment to deepen its partnership with India in the essential areas of education, science and research.

While in Delhi, the Minister will meet the Union Ministers and key officials at the Ministries of Human Resource and Development, Agriculture and Science and Technology. He will deliver a key-note speech during the inaugural session at the Federation of Indian Chambers of Commerce and Industry (FICCI) Higher Education Summit. Mr. Willetts has been invited to be the joint guest of honour to launch National Education Day and will co-chair the U.K.-India Education Forum. He will also meet members of the Planning Commission and visit the Industrial Training Institute (ITI) in Gurgaon. In Bangalore, among other activities, Mr. Willetts will visit the Indian Space Research Organisation (ISRO). In Pune, Mr. Willetts will meet leading industrialists and visit the Indian Institute of Science, Education and Research (IISER), the National Chemical Laboratory (NCL) and the Venture Centre.

Commenting on this important visit, Mr Willetts said: “Our Prime Ministers have put education at the top of our shared agenda. Collaboration in education between the U.K. and India goes back over many years, but is also constantly changing and innovating. India and the U.K. have a strong track record of collaborating in science and research. In the last year U.K. bodies have committed over £30 million (Rs. 2 billion) to jointly-funded research programmes. The challenges that our two societies face are increasingly global in nature and solutions will increasingly be found by working together.”

Source: British High Commission, New Delhi, November 11, 2010