Challenges And Budgets: Faced In Indian Education

In India, Education sector is one of the largest in the world with 1.3 million schools, 30,000 college and 542 listed universities. The amount of public money in the education sector is USD 40 billion. The private sector money involved in education stands at a greater value that is USD 60 billion.

In the Financial year 2011-12, the finance minister Pranab Mukherjee allocated Rs.52057 crore for this sector. The government is trying to implement the already successful public-private partnership formula to generate greater interest of corporates in the education sector. So far, it has been successful to generate interest as some large corporations making inroads into the education sector in the last monetary year.

With the RTE Act – Right To Education realized this year, the amount of infrastructure the government has to build for its effective implementation can prove to be a challenge. The Finance Minister is expected to consider this as a priority and give it a much-needed boost.

According to current law, there can be a 100% FDI in the field of education. However, governing bodies such as the All India Council for Technical Education (AICTE) and University Grants Commission (UGC) do not give these for-profit institutions the required licenses.

The result is that for-profit institutions operate without any affiliation and students tend to avoid them as their degree does not carry much value. The issue is expected to come to the fore with other issues like the education Tribunals Bill and the Foreign University Bill.