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Towards partial fulfillment of the requirements for the Management Research Project subject in the Master of Business Administration Programme. SUBMITTED TO:



PATEL CHINTAN J. (Enrollment no) 117130592052




This is to certify that Mr. CHINTAN JAYPRAKASHBHAI PATEL. are the students of Semester

III of MBA programme (2003-05) at N.S.V.K.M.S. MBA college, Himatnagar affiliated to Gujarat Technological University have successfully completed their MANAGEMENT RESEARCH PROJECT titled as Macro Analysis Of Higher Educational Sector In India in partial fulfillment of their academic year 2011-2012 of the 3rd semester M.B.A. Programme.

Date: Place: Visnagar

___________________________ ___________________________

Project Guide
(Mr. Jayaashish Sethi)

External Evaluator


In M.B.A. Semester III, as a part of our curriculum we have to study and present an industry along with all its surrounding issues by doing its macro analysis in the subject so called Management Research Project-1; Based on interest, our group decided to select Higher Education Sector in India as the topic for project. The purpose of selecting higher education sector as a subject is, its growing speed in service sector. Further, Education is desired for itself, as it opens up a vast world of opportunities and ideas to the educated person. It also adds great instrumental value in the process of economic growth and development. The improvements that India has made in education since independence are nevertheless substantial. In this project we have tried to cover each & every issue related to this sector. In addition it presents the influences of political, economical, social and technological factors on higher education sector. This report also mentions various strategies and an effective model for higher education system on the basis of analysis and findings. We got an opportunity to gain practical knowledge in case of education services. Although we cannot claim that our project is 100% free of errors but at the same time it is our institutes assurance that we had tried our level best efforts to justify the work. Several magazines, newspapers, websites and books are referred for the study purpose. Date: 25th October, 2004 Place: Visnagar



We, Rana Chandramauli, Raval Virendra, Satyavadi Vishal the students of M.B.A. IIIrd Semester of North Gujarat University, Patan express our heartfelt gratitude to institute for providing us with much of their precious time, resources & continuous co-operation throughout our project report on Management Research Project I . From the bottom of our heart, we express our heartily gratitude & special thanks to Mr. Jayaashish Sethi for a entrusting us to prepare the report. We are very much thankful to him for his precious advice & guidance throughout our report. It is a matter of great pleasure to have this opportunity to express our whole hearted sense of gratitude indebted to our sirs & professors from NSVKMS M.B.A. College for giving us all the necessary help, guidance & thorough motivation in completion of the report. Their valuable guidance in investigation & unstated help rendered by them in preparation of this project work have helped us a lot to complete our project work within the decided period of time. We owe our parents for their continuous encouragement & moral support during our project report. At last, but not least we heartily offer our gratitude to our God without his blessing survival & success of anybody is a big question. We also thank all who have helped us in preparing this report knowingly & unknowingly in a direct or indirect manner.

Thank You Rana Chandramauli R Raval Virendra J Satyavadi Vishal N


Higher Education System in India Universities and specialized institutes are the centers for higher learning in India. The studies and disciplines cover a wide range of subject from poetry to computer engineering to space research. Most of the universities and higher centers of learning and research are autonomous in function. A good number of universities have a federal structure composed of affiliated colleges on one tier and the university departments on the other. The affiliated colleges teach, in general, undergraduate courses, whereas the university departments conduct postgraduate teaching and advanced research. The university decides the criteria of admission into colleges and coordinates the first-degree examination in the undergraduate programme and award of degree. The education system is flexible in most of the countries abroad. The best part of the education system abroad is that it is not limited to the very rich. The globalization & internationalization is needed to make sense of the varied & complex ways they are affecting higher education worldwide. Restructuring the higher education system is another dramatic development in global market. It is also true that even though the world as a whole is passing through knowledge revolution the four key principles- access, equity, accountability and quality which are been the good old cardinal elements in the development of higher education continue to be guiding principles, even today, while planning for higher education in the 21st century. Significant changes are been introduced in major higher education in goals, structure, financing and content. India has one of the worlds largest higher education systems, which is managed by the University Grants Commission (UGC). Higher Education in India is at crossroads. Our higher education system has grown enormously in last five decades. We also have good education institutions, which are providing value-added training to human power at a premier level. Higher Education System in Indian Universities and specialized institutes are the centers for higher learning in India. The studies and disciplines cover a wide range of subjects from poetry to computer engineering to space research. Most of the universities and higher centers of learning and research are autonomous in function. A good number of universities have a federal structure composed of affiliated colleges on one tier and the university departments on the other. Management, into two categories, can further classify the higher education institutions in India. Viz; public & private. The government central or

state runs the public institutions while private bodies manage private institutions. Higher Education in India is at crossroads. Our higher education system had grown enormously in last five decades. We also have good education institutions, which are providing value-added trained human power at a premier level. It is also true that even though the world as a whole is passing through knowledge revolution the four key principles access, equity, accountability and quality - which have been good old cardinal elements in the development of higher education continue to be guiding principles, even today, while planning for higher education for the 21st century. The aim & objective of UGC is to improve the standards & quality of education, remove the social disparity & regional imbalances in higher educational facilities & restructure the courses including development of career thrust. The Government established university Grants Commission (UGC) by an Act of Parliament in 1956. UGC had no funds of its own. It receives both Plan and Non-Plan grants from the Central Government to carry out the responsibilities assigned to it by law. It allocates and disburses full maintenance and development grants to all Central Universities. UGC received Plan & Non-Plan grants from the union government. It allocates and disburses full maintenance and development grants to the central universities, state universities and the affiliated colleges. The universities and colleges established by the state governments receive UGC funds (Plan) but for specific programmers or under the development schemes. All the environmental factors that are, Political, Economical, Sociocultural & Technical factors are been described in deep in this project.


CERTIFICATE PREFACE ACKNOWLEDGEMENT EXECUTIVE SUMMARY CONTENT RESEARCH METHODOLOGY 1.1 Objectives of Report 1.2 Research Methodology HIGHER EDUCATION IN GLOBAL PERSPECTIVE 2.1 Introduction of Global Scenario 2.2 Global Trends HIGHER EDUCATION IN INDIAN SCENARIO 3.1 Introduction of Education In India 3.2 Structure of Education System 3.3 Coordination 3.4 Institutional Governance 3.5 Study Programmes 3.6 Admission Requirement 3.7 Assessment of The Higher Education Institutional 3.8 Degree & Professional Competence 3.9 International Recognition INDIA V/S GLOBAL SCENARIO PEST ANALYSIS 5.1 Political Factors 5.2 Economic Factors 5.3 Sociocultural Factors 5.4 Technological Factors MICHAEL PORTERS ANALYSIS 6.1 Driving Forces 6.2 Porter Five Competitive Forces OPPORTUNITIES & THREATS ANALYSIS 7.1 Opportunities 7.2 Threats SUGGESTIONS & IMPROVEMENTS CONCLUSION & PREVAILING TRENDS BIBLIOGRAPHY ANNEXURE

I II III IV VI 1 2 2 4

1 2 3

4 5

6 7 8 9





(1) To study Past & Present of the Indian Higher Education System. (2) To understand the role of the government, non-government & individual in education. (3) To evaluate & compare higher education system prevailing in India Vs. World.



1.2.1 Information Needed:

Statistical information from 1950 to 2004 relating to Literacy rates in India State level budget allocation Central Budget Enrollment ration Drop out ratio Colleges & Institutions Contribution of services in overall GDP Indian higher education structure Prevailing statutory bodies & their roles in Indian higher education National Education Policy & its sub-sections National level boards framed by Indian higher education authority UGC & Indian higher education Positions of various countrys in case of higher education system

1.2.2 Data Collection Plan:

There are several means of gathering secondary data. Secondary data provide a starting point for research & offer the advantage of low cost & ready availability. The selection of the method is based on the need of project we have to select a method in such a manner that can maximize the relevant information & minimize the error. The research project is based on secondary data.





Almost every Indian student dreams of going abroad to pursue higher education. The lure of acquiring state-of-the-art professional skills, which are much sought by employers all over the world, is indeed tantalizing .Moreover; the range of courses is diverse. The education system is flexible in most of the countries abroad. The best part of the education system abroad is that it is not limited to the very rich. Even middle class students have access to the excellent educational system through scholarships and grants on the basis of their records. This in turn helps to meet the needs of a vast multi cultural student community from all over the world. Added to this the degrees abroad are practical in orientation. All these factors hold an alluring charm for the discerning student.



The globalization and internationalization is needed to made sense of the varied and complex ways they are affecting higher education in the United States and worldwide. In broad terms, globalization refers to trends in higher education that have cross-national imp0loications.These include mass higher education; global marketplace for students, faculty and highly educated personnel; and the global reach of the new Internet based technologies, among others. Internationalization refers to the specific policies and initiatives of countries and individual academic institutions or systems to deal with global trends. Examples of internationalization include policies relation to recruitment of foreign students, collaboration with academic institutions or systems in other countries, and the establishment of branch campuses abroad. A few countries dominate global scientific systems, primarily multinational corporations or academic institutions in the major Western industrialized nations over the new technologies, and the domination of English creates for the countries that use English as the medium of instruction and research. All this means that the developing countries find themselves dependent on the major academic superpowers. Two works provide comparative global perspectives in international education that are insightful, sensitive and thought provoking: provides a broad historical and contemporary analysis of internationalization trends in the United States and Europe. While he argues that there have always been international elements in higher education, dating back to the medieval roots of the university: internationalization has not been the primary goal of academic. One

area that has grown significantly is transnational higher education. Examples include offshore and branch campuses in other countries and collaborative degree programs with university8ies and business enterprises abroad. Distance l3earning technologies are often used to deliver part of the entire educational program. Australia and Britain has been especially active in establishing transnational programs. More than 1,40,000 international students were involved in academic programs under the auspices of British universities elsewhere in the world. The United States has come relatively late to transnational education. India has a large academic system, controlling more than 5.6 million students. It ranks 3rd among countries sending students to the united states, with more than 42000 students studying abroad. India also receives more than 10,000 students from abroad, manly from other developed country. International students are now significant factors in US highest education. Open Doors report that more than a half million foreign students spend more than $11 billion on tuition and living expenses and more than twothird of foreign student receive most of the funds for their educations from personal and family resources. Relatively few of self funds are also the case in Britain, where as student mobility points out, about 60% pay for the bulk of their studies. The impact of the international students on American higher education is worried. While they constitute 2.7% of undergraduates, foreign students accounts for 12% of graduate enrollments. Foreign students are concentrated in a relatively small number of US colleges and universities. (SOURCE: Ministry of HRD, 2002) The flow of students overseas move largely from the developing countries to the industrialized nations. The United States has a large and diversifies set of institutes of higher education that provides a college or university education to over one-third of the U.S. college-age population. This access to higher education ranks the United States among those countries with the most open education system in the world. Globalization and internationalization are now central issues for higher education-worldwide. INTERNATIONAL STUDENTS STUDING IN US IN 2002-03.

COUNTRIES India China Korea Kenya Indonesia Thailand Malaysia

% CHANGES 12 02 05 11 -10 -14 -11

NUMBERS 74,603 64,757 51519 7,862 10,432 9,982 6,595

(Source: 2nd November 2003 Times of India) With compare to other countries, more number of Indian students goes abroad for further studies. With compare to last year 12% increment in it. Significant changes are been introduced in major higher education in the following areas: In goal-with an orientation toward the needs of the market, society, and individuals; In structure decentralization (in contrast to soviet centralized planning); In the autonomy of higher education institution emergence of higher education, four- and two year programs along with the traditional five- years program. and the elimination of a bias toward engineering specialties; In financing diversification of financial sources instead of a reliance solely on state financing; and In content increasing the humanitarian components in the curriculum, and diversifying programs and courses. Restructuring the higher education system is another dramatic development in global market. Over the past decades, the major higher education system (like USA, UK, Britain, Russia, Japan, china, etc.) was shaped and reshaped as per circumstances.





3.1.1 Overview:
The Indian constitution provides that the Central and there State Government can bring laws and frame policies on education or in simpler words the subject education is the responsibility of both the respective state Government as well as Government of India. Therefore whereas almost every state has its own Secondary Education Board and is responsible for establishing State Universities and maintaining them the Central Government acts as a cocoordinator and determining a uniform standard of education in the country.


The first separate department for education was created ion 1910 to look after the education in India. But it was created after India achieved its independence on 15th august 1947. A full-fledged Ministry of Education was established on 29th august 1947. The nomenclature and responsibility of the Education Department has under gone some changes since independence. The present Department of Education is one of the four constituent departments of the Ministry of Human Resource Development, which was created on 26th September 1985. Education has been in prime focus thought India development plans. Its importance can be gauged from the fact that it is included as a part of the directive principles of state policy in the Constitution, which state that the State shall endeavor to provide within a period of 10 years from the commencement of this Constitution, for free and compulsory education for all children until they complete the age of fourteen years. Educational policies and progress are reviewed in the light of the goal of National Development and priorities state from time to time. The National Policy on Education was formulated in 1982, and was later updated in 1992, where specific responsibilities for organizing, implementing and financing its proposal were assigned. The total budgetary expenditures on education by the education department of the center and the States has increase from Rs. 644.6 million in 1951-52 to Rs. 3,00,000 millions in 1995-96.There are, at present 130 plans schemes in the department with a total in Eighth plan outlay of Rs.74430 millions.

The states of political and economic factors are also responsible for determining the educational policy. Foe example, in the Second Five year plan 1956-60 when heavy industries become the basic industries, the socialistic education was given and was put emphasis on conversion of basic education and secondary and higher education. Also, when India saw the economic crises and the school attendance rate fell in 1960s a big reconsideration on the whole education was done establishing the advisory committee including foreigners. Today the system, which was decided by the international conference party, is revolved. It has 10-2-3 systems and in some states it has 5-3-2 systems or 4-3-3 systems. The elementary education is divided in to the first and the latter term. The secondary education is divided to the first term and the latter term, and the first term is for studying the extension of elementary education and the latter term is divided into the college entering course and vocational education course to study. It is the characteristic that scientific education and talent education are done. The rate of the students to enter the first term is 24.6% .For the higher education, 137 higher educational systems aim at the improvement of the qualities of educational and research in scientific technology. At the beginning of the 21st century, Indias literacy rate was 5.3%. It was not until 1922 that a mass movement inspired by Mahatma Gandhi addressed this challenge establishing education programs such as night schools and literacy classes which covered urban areas, as well as villages and remote areas. National schools and educational institutions participated, in addition to some regional governments, but without lasting momentum. The year 1937 witnessed the first literacy activities in Bihar. A teacher and student based Mass Literacy Committee started literacy classes, supported by the installation of village libraries. The movement, however, was discontinued after the end of the Congress Government in 1939, when most libraries also ceased to exist. At that time literacy programs were left to state-sponsored NGO activities, which resulted in an incoherent variety of methods, materials and content. In India there was a clear recognition of the necessity to link formal and non formal education (1986 National Policy on Education.)Emphasis was placed on vocational skills and continuing education through means of rural libraries, some rural newspapers and distance courses, and through programs; on health and community leadership. By this time, activities in literacy and adult education were divided between several regional programs, adult education centre, institutes of higher learning, and voluntary agencies.

Evaluation of the NAEP had shown high motivation, especially among women, but had brought criticism mainly with regard to the quality of functionaries training, lack of monitoring credibility, insufficient support through mass media, and difficulties in coordinating voluntary agencies with the governments. A lack of arrangements for ongoing and post literacy learning was also noticed.

3.1.3 Statistics:
India is home to 17% of worlds total population accommodated in an area of 24% of the worlds total area. As against 2820 languages in the entire world, as many as 325 languages are effectively used in India alone. After every 8-10 kms, local dialects change in India. The country has witnessed phenomenal educational development both in qualitative and quantitative terms, since independence. However, the national goals of Universal elementary education and total eradication of illiteracy have still remained elusive. The Government is committed to achieving these national goals and has been steadily increasing the budgetary allocation for education. The country has also made significant strides in higher and technical education. India spent 4.11% of its GDP on education during 2000-2001 but about 44% of its adult population remains to be made literate. When compare the population, area density rates and level of public expenditure on education in India and some of our neighboring countries, Afghanistan with 63.75% adult literacy is at the top, closely followed by Bangladesh, Nepal and Pakistan.

Literacy Rate 7.2% Illiterate Population 287.0 million

SOURCE: 2000 figure estimated by UNESCO Institute for Statistics, July 2000

National Literacy Goals

YEAR Total adult literacy rate (%) Female adult literacy (%) Male adult literacy rate (%) 2005 75 75 75

Before is 1976. Education was the exclusive responsibility of the states. The central government was only concerned with certain areas like coordination and determination of standard in technical and higher education etc. the substantive, financial and administrative implication required a new sharing of responsibility between the union government and the states. Union government accepts a large responsibility to reinforce the national and integrative character, to maintain quality and standards to study and monitor the educational requirement of the country. The central government continues to play the lead role in the evolution and monitoring of education policies and programme. Both central and state governments have responsibility for providing education. Both together invest about 3.5% of national income on education in 1994-95, as per the latest available data. This amount to about 10% of all government expenditure. The Government has resolved to raise the proportion of national income to be invested in education to at least 6% by the beginning of the 21st century. Higher education in India has witnessed an accelerated growth since independence and an exponential growth in he 1990s; has been classified by a study of the World Bank in 1994 as one of the Low Income Countries enrolment ratio in the world. There are issues of concern, for example: India has an extremely high student-teacher ration of 1 : 24 Mushroom growth of unorganized teaching bucket shops imparting higher and technical education. The system is unable to provide education to the increasing masses. Societys participation in holding responsibility with government higher education is crucial. (Source: Census of India)



Like most modern education system in the world, the education system in India comprises mainly of three levels: primary, secondary and higher. In all, they can be listed in detail as follows:

PRIMARY EDUCATION: Duration of compulsory education: Age of entry: 6 Age of exit: 12

Structure of school system : Primary: Type of school providing this education: Lower Primary School (Standard I to V) Length of program in years: 5 Age level from: 6 to 11 Middle: Type of school providing this education: Middle School (Standards VI to VIII) Length of program in years: 3 Age level from: 11 to 14 SECONDARY EDUCATION: Secondary education usually lasts between two and four years. After two years, pupils who have completed ten years of education (Standard X) take the Secondary School Certificate. Pupils completing further two years of education (standard XII) sit four the higher/senior Secondary school Certificate. Secondary: Type of school providing this education: Secondary School (Standard IX to X) Length of providing in years: 2 Age level from: 14 to 16 Certificate/diploma awarded: Secondary School Certificate Senior Secondary: Type of school providing this education: Senior/higher secondary School (Standard XI to XII) Length of providing in years: 2 Age level from: 16 to 18 Certificate/diploma awarded: Senior/Higher Secondary School Certificate HIGHER EDUCATION: Higher Education System in India Universities and specialized are the centers for the higher learning in India. The studies and disciplines cover a wide range of subjects from poetry to computer engineering to pace research. The most of the Universities and higher centers of learning and research are

autonomous in function. A good number of universities have a federal structure composed of affiliated colleges on one tier and the university departments on the other. The affiliated colleges teach, in general, undergraduate courses, whereas the University departments conduct postgraduate teaching and advanced research. The university decides the criteria of admission in to colleges and coordinates the first-degree examination in the undergraduate program and award of degree. Some other types of universities teach both undergraduate and postgraduate courses in general disciplines as well as in technical and professional courses. There are no affiliated colleges attached to them. There is a third category of Universities and institutions where technical and professional courses are taught at undergraduate and postgraduate levels. Names like Indian institute of technology, Birla institute of technology, All India institute of Medical Science and research, Indian Forest Research Institute, Indian Veterinary institute can be quoted. Some institute only offer postgraduate and research courses such as Indian Agriculture Research Institute and Post Graduate of Medical Research. Higher education is provided by 237 Universities, which includes 34 Agricultural universities, 15 Medical Universities, 39 deemed Universities and 11 institution of national importance. These include the Indian Institutes of Technology. Most universities belong to the affiliating and teaching type in which departments impart instruction at the postgraduate level and undertake research. A second type comprises the unitary universities. Agricultural universities stress research and extension work. There are also technological universities. There are eight open universities. There are also research institutions outside the university system and research laboratories, as well as some 10,600 colleges, most of which are affiliated to universities. Statutory bodies such as the Academic Council, the Senate/Court and the Executive Council/Syndicate govern universities. Funding for State universities largely comes from the State governments but they also receive grants from the University Grants Commission. Higher education falls mainly under its jurisdiction. Professional institutions are coordinated by different bodies. The All India Council for Technical Education (AICTE), established in 1987, is responsible for the coordination of technical and management education institutions. Bodies such as State councils of Higher Education were established recently. The Maul Ana Azad National Urdu University opened in January 1999.

India has one of the worlds largest higher education systems, which is managed by the University Grants commission (UGC). The aim and objective is to improve the standards and quality of education, remove the social disparity and regional imbalance in higher education facilities and restructuring the courses including development of career thrust.

Main laws /degrees governing higher education: Degree: National Policy on Education Year: 1992 Degree: National Policy on Education Year: 1986 Academic year: ---Classes from: July to April Long vacation from: 15 May to 15 Jul Languages of instruction: Bengali, English, Gujarati, Hindi, Punjabi, Tamil, Urdu.

Central Universities Institutions Deemed to be Universities State Universities Institutions of National Importance Total Degree Awarding Institutions Colleges (Degree & above level) Of which Arts, Science, Commerce Colleges Engineering and Technical Colleges Medical colleges Teacher Training Colleges Research Institutions Other Post-Secondary Institutions Intermediate/Junior/Pre-Degree Colleges Polytechnics

13 39 172 11 237 9278 6759 418 655 697 65

4011 1029

Statistics: 28.21 million in higher education 90,000Indian students go abroad every year to further their education More PhDs in India per capita than anywhere in the world 50% increase in Government student loans for overseas education Only 237 universities throughout India 10,600 Higher Education Institutes Source: UGC Annual Report, 1995-96 (New Delhi: UGC), & Selected Educational Statistics, 2002 (New Delhi: Ministry of Human Resource Development). Purpose and Objectives of Higher Education: World Bank in its report The Higher Education: Lessons of Experience (World Bank, 1994) has aptly defined the purpose and objectives of higher education as follows: Higher Education is of paramount importance for economic and social development. Institutions of higher education have the main responsibility of equipping individuals with the advances knowledge and skills require for positions of responsibility in government, business and the professions. The objective is to develop competencies and enable them to become knowledge and skill oriented citizens so that they can actively participate in the socioeconomic development of the country. India education system has been evolved overtime to develop individuals ability in the areas in which they excel. Continuing education is an emerging mission critical dimension of the education system. The propose and objective is to ensure the at the knowledge and competencies of the individual in his area of specialization of trade are being continuously upgrade and are in line with the current knowledge and technological development globally. There are three levels of qualifications in the higher education system: Bachelor/undergraduate level Masters/post-graduate level Doctoral/pre-doctoral level

Diploma courses are also available at undergraduate and post-graduate levels. The Bachelors degree in arts, commerce and sc8iences is of three years (after 12 years of school education).In some places there are honors and special courses available. These are not necessarily longer, but indicate greeted depth of study. Bachelors degree in professional fields like agricultre,densitry,engineering,pharmacy,technology and veterinary medicine generally take four years, while architecture and medicine may take up as an integrated degree lasting five years after(10 + 2) schooling, or as a three-year course after Bachelors degree. The Masters degree is normally of two years. It could be coursework based with or without thesis or research. Admission to post-graduate programmers in engineering and technology is dome on the basis of Graduate Aptitude Test in Engineering (GATE) or Combined Medical Test (PMT) for Masters course in medicine. A pre-doctoral programmed Master of Philosophy (M.Phil.) is taken after completion of the Masters degree. This can either be completely researchbased or can include coursework as well.Ph.D is awarded two years after the M.Phil. or three years after the Masters degree. Students are expected to 2write a substantial thesis based on research. Finance in Higher Education in India: UGC receives Plan and Non-plan grants from the union government. It allocates and disburses full maintenance and development grants to the central universities, state universities and the affiliated colleges. The universities and colleges established by the state governments receive UGC funds (Plan) but for specific programmers or under the developments schemes. Financing higher education: 20th century Late2000 governments across the world financed Australia (1988) France (1984) Norway (1987) India (1990) US 90.0 % 80.0 % 89.5 % 90.0 % 90.0 % 70.0 %

Financing of higher education remains a major problem at the dawn of the twenty-first century In view of the development of higher education, the state cannot hope to be the sole and even the main source of financing a sector as a whole. Source: World Conference on Higher Education Organized By the World Bank Educational Expenditure: Educational Expenditure as Percentage of GDP (Current Prices) All India Year 1950-51 1960-61 1970-71 1975-76 1980-81 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 GDP (Rs. Crores) 8,979 15,254 39,708 71,201 1,22,427 2,33,799 2,60,030 2,94,851 3,52,706 4,08,662 4,77,814 5,52,768 6,30,772 7,32,874 8,68,019 10,06,286 11,49,215 12,84,000 13,42,000 14,10,020 Total Educational Expenditure (Rs. Crores) 114 344 1,118 2,105 3,641 7,457 8,450 10,430 12,409 15,292 20,761 22,639 25,303 28,599 32,875 39,299(R.E.) 43,723(B.E) 48,900 52,400 66,189 Educational Expenditure as Percentage of GDP 1.27 2.26 2.82 2.96 2.97 3.19 3.25 3.54 3.52 3.74 4.34 4.10 4.01 3.90 3.79 3.91 3.80 3.79 3.99 4.01

2000-01 2001-02

15,43,050 15,97,800

74,450 81,230

4.30 4.79

Source: Census of India 2003 Grants Provided To Higher Education: Year 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 Source: Census of India In the academic session 1990-2000, UGC provided funding to the universities to the tune of exceeding Rs 9 million. The breakdown is as follows: Plan 1371.4 1415.0 2342.0 2077.7 2015.0 3522.0 2603.5 3800.0 Non-Plan (Rs. in million) 3,080.9 3,369.5 3,455.9 4,508.2 4,650.0 5,450.0 10,090.0 6,400.0

Central universities

o Maintenances expenditure o Development assistance

Rs 6059.10 million Rs 1066.40 million

State Universities
o Grants University level Studies: (1) University level first stage: Bachelor:

Rs 1435.10 million

First degrees generally require three years full time study. Leading to Bachelor of Arts, Commerce, Science degrees. Entrance to an Honors course may require a higher pas mark in the higher secondary or pre-university examinations. An Honors degree does not generally involve longer study but

indicated greater specialization. In professional subjects, courses last for four to five years. (2) University level second stage: Masters Degree: A Masters Degree in Arts, Science and Commerce generally requires two years of study after a first degree. The Indian Institutes of Technology offer three semester studies leading to ME, MSc (Eng) and M.Tech. Degrees. Masters courses in Engineering and Technology normally require between one-and-a-half and two years study after a first degree. Candidates must qualify through the graduate Aptitude Test in Engineering. In Medicine and Surgery, the Masters degree takes two years after MBBS/BDS. (3) University level third stage: M.Phil., PhD.: One-year M. Phil. programs are open to those who have completed their second stage postgraduate degree. It is a preparatory program for doctoral level studies. Some universities admit MBBS/BE degree holders to PhD courses. The PhD program involves a two years research study and the submission of a thesis, as well as an oral examination. (4) University level fourth stage: D.Sc, Dlitt: The Doctor of Science (D.Sc.) and the Doctor of Literature (Dlitt) degrees are awarded by some universities two; to three years after the PhD for original contributions. University Professors Reader/associate professors Senior lecturers Tutors and demonstrators Enrolment Pattern: Degree level Post graduate level Diploma certificate Research (6.810 million) (0.756 million) (0.100 million) (0.068 million) 88.0 % 9.8 % 1.3 % 0.9 % 23.00 % 27.90 % 16.70 % 32.40 %

The preference for professional courses in the university and its colleges is low because there are institutions for technical and professional education. Total number of Students in higher education is 70.78 lakhs student and lecturers are 3.31 lakhs, which increased approximately 1-11.5 % than last 3 years. Source: Indian higher education Survey 2002 Subject enrolment pattern: Arts Commerce Science Professional Faculties 40 % 22 % 19 % 19 %

3,51,000 teachers deliver higher education (March 2001). Of these 78,885 are in 236 universities and the balance in the affiliated colleges. Increment of 2-2.5 % every year from last decade has been noted. Source: Ministry of HRD, 2002 Types of higher education: Higher education is essentially of two types: general education and professional education. While many normal universities in India provide both types o\f education, there are some universities, which exclusively provide professional education only, and some, which are exclusively general. Among the professional universities that number 78 in 1997, 34 are agricultural univers8ities, 21 engineering and technological universities, a few management institutions etc. Among the few universities that are devoted exclusively to general education, mention may be made of language universities, institutions of oriental learning, and other such universities. Besides the universities and other institutions, arts, science and commerce colleges and professional (engineering, medicine, agriculture, teacher education etc.) colleges provide these two types of education respectively. Types of higher education institutions: Higher education is offered in India in a variety of institutions and in a variety of ways as well. The several institutions can be listed as follows:

Universities Central Universities Institutions deemed to be universities State Universities Institutions of National Importance Research Institutions, and Colleges

Central universities are established by the union government and are funded by the UGC to a great extent, while state universities are established by state governments and are funded by UGC and state governments. The central/state universities can also be classified into two types: affiliating and teaching and unitary. Teaching in affiliating universities takes place in colleges (generally under-graduate courses and in a few colleges, postgraduate courses) and in university departments (generally post-graduate courses).The largest number of universities in India belongs to this type, viz, affiliating and teaching. In the case of unitary universities, all teaching, largely confined to post graduate level, takes place in one campus. There is also a mixed type of university where teaching takes place in constituent colleges and in the university departments. Generally the university and the colleges are located in a city. Some special institutions of higher learning, generally specialized in a major area of study, are accorded the status of universities and they are called institutions deemed universities e.g. Indian Agricultural Research Institute, Indian Institute of Science, Birla Institute of Technology and Science etc . They are not generally multi-faculty institutions. These are also created by and/or with the approval of the central government. In addition, there are 11 institutions of national importance created by the central government, including six Indian Institutes of Technology, the Indian Statistical Institute, the All- India Institute of Medical Sciences, etc. All these institutions and universities award degrees on their own. Apart from degree awarding university level institutions described above, there rte 9278 colleges that provide mostly bachelors and sometimes masters level education. A majority of the colleges are arts, science and commerce

colleges offering education in humanities, natural sciences and arts. There are about 400 engineering and technical colleges, more than 650 medical colleges and nearly 700 teacher education/training colleges. The universities are classified into several, but not necessarily mutually exclusive categories in the Annex. For instance, open universities are listed separately; but the list includes a central Open University in the list of central universities as well. Most universities listed under state universities are general universities. Exclusive professional universiti9es like agricultural universities, technological universities, and medical universities are listed separately. But a majority of them are also state universities. The list is meant to give a flavor of the variety of types of universities and other institutions that India has. There is yet another type of university level institution, known as research institutions (e.g., Indian Institutes of Management, 40 research laboratories of the council of Scientific and Industrial Research (CSIR), institutions that come under the scheme of the Indian Council of Social Science Research and other institutions. These institutions are not oriented towards awarding degrees, but degrees are awarded through universities with which they are affiliated. Most of these institutions are recognizes as centers of doctoral work. Therefore, they do not normally award bachelors or masters degrees. Some of them offer diploma or certificate courses. The primary function of many of these institutions is non-degree related research, and training in some cases. Public and Private Institutions: The higher education institutions in India can be further classified, by management, into two categories, viz, public and private. The public institutions are run by the governmentcentral or state, while private institutions are managed by private bodies. Private institutions again include totally private (or familiarly known as self-financing) institutions with no state assistance, and partially private (state assisted) institutions. The last categories of institutions are generally known as private aided institutions .From total 10600 colleges 7200 are belonging to the private institutes formerly, which was 5700.But gradually increment in was being noted. Open learning/distance education:

Besides, presently there are eight open universities in the country, including one central university and five stage universitiesall run by the government. They offer a wide variety of courses leading to diplomas and degrees, many of which are identical to those awarded by formal universities. Many conventional universities also offer correspondence courses through the postal system and they are occasionally supplemented by contact classes. The courses offered and the degrees awarded are generally identical to those of the formal university system. Open universities/distance education systems offer a few additional diplomas and degrees as well. None credit courses are also offered by some of these institutions. There are 59 institutes/directorates of distance education as part of conventional universities.

There are several co-coordinating agencies in higher education in India. While most of the general higher education falls within the jurisdiction of the UGC, professional institutions are co-ordinate by different bodies. The AllIndia Council for Technical Education (AICTE), established in 1987, is responsible for co-ordination of technical and management education institute. The other statutory bodies are Medical Council of India (MCI), Central Council of Indian medicine, the Homeopathy Central Council, the Indian Council of Medical Research (ICMR), Indian Nursing Council, the Dental Council, the Pharmacy Council, the Bar Council of India, the Indian Council of Agricultural Research (ICAR), etcetera are also a few such bodies at state level, such as State councils of Higher Education, which were established recently. There are three other bodies that function somewhat differently .viz. Institute of Chartered Accountants, the Institute of Costs and work Accountants, and the Institute of Company Secretaries. All the above ones are statutory bodies and each deal with a professional field, dealing with education, training and /or practice. The UGC, AICTE, MCI, ICAR are some of the prominent ones and others are less popular and less effective. The less popular ones take more interest in the case of practice and training, rather than in formal higher education. There is yet another type of a co-coordinating agency, called Association of Indian Universities (AIU), which was earlier known as the Inter-University Board of India. All the universities and other university play an important role as an agency of dissemination of information and as an advisor both to the government and/or UGC and universities.


The university governance consists of Visitor (generally in the case of central universities only).Chancellor, Pro-chancellor, Pro-Vice-Chancellor, Senate or a Court, Syndicate or Executive Council, the Academic Council and other bodies. All universities do not necessarily have pro-chancellor and provice-chancellor. The visitor (chancellor in the case of state universities) is the formal head of the university. He approves all statutes and ordinances made by the Executive Council and he has appellate powers and can request an inspection and inquiry into the functioning of the university. He appoints the vice-chancellor. Generally he exercises all these powers though the Ministry/Department of Education of the government (at the centre or state). The Senate or the Court is the supreme body of the university and it has powers to approve (or repeal) ordinances made by the Executive Council, before they are sent to the visitor for approval. The Vice-Chancellor is the most important functionary in the university and is responsible for the administration of the university as a whole. He is the principal executive and academic head of the university. He is the ex-officio chairman of the Executive Council, the Academic Council and the Finance committee. The Executive Council is the chief governing body of the university and exercises its authority on all matters over administration, governance and financing of the university. It is, however, dependent upon the advice of the Academic Council and other bodies. The Academic Council is a large body exercising powers on all academic matters including new courses, curriculum and degree/diploma programs, which are to be later approved by the executive Council before they are sent to the UGC for approval. At the college level, while the principal is the head of the institution, they are governed by the government, the UGC and the university. While there role of the university in the affairs of the colleges is confined to academic matters, the role of the government and UGC extends to planning, administration and financing issues. Colleges have little freedom to design and offer new courses, or to have their own syllabi. The syllabi, courses etc., have to be approved by the university and the UGC. Mostly, the colleges offer only those courses that are recognized and approved by the university. The courses developed by special colleges like the autonomous colleges, which now number 45 in all, established after the National Policy on Education 1986 was formulated, also need to be approved by the university before they are introduced. The main

difference between autonomous colleges and others in academic affairs is that while normal colleges adopt the courses developed by the universities, autonomous colleges can de4velop and propose new courses to the University for Approval. Admissions in Professional Institute:

1984 1985 1989 1990 1991 1992 1993 1994 1996 1997 1998 1999 2000 2001 2002 HRD, Annual Report 2002

Seats Used
1,84,957 1,89,013 1,86,344 1,89,135 1,86,219 1,87,812 2,08,465 2,11,701 2,25,254 2,35,797 2,76,068 2,98,750 3,02,902 3,49,074 3,56,098


Almost all degrees of the universities in India can be classified into three levels: Bachelors, Masters and Doctoral. Doctoral degrees include predoctoral (M.Phil. and Pre- PhD.) degrees. Other levels that include certificate and diploma courses are relatively few. Though most of them are post-graduate diplomas, there are very few under-graduate diploma courses offered by the universities in India. Thus, all courses can be divided into the following: Certificate and Diploma courses Bachelors Degree Courses

Masters Degree Courses Pre-Doctoral Degree Courses Doctoral Degrees


Under-graduate courses normally are of three years (four or five years in the case of professional courses), and Masters levels courses are of two years duration (sometimes three years in the case of sciences and professional courses).Universities have a very varied pattern regarding pre-doctoral and doctoral courses. Pre-doctoral courses leading to M.Phil (or Pre-PhD.) degrees are generally of 1-2 years (or 2-4semseters and doctoral studies take 2-5 years in many universities. The sequences of course programmes are generally structured, i.e., introductory units are followed by fundamental units, which are followed by advanced units. To take advanced units, quite often the successful completion of introductory or fundamental units is a pre-requisite. Within each unit, practical work precedes the theoretical part. The syllabi, several units (papers) and their sequence are to be approved by the universitys Academic Council, and later by the UGC or another appropriate body. A number of diploma and certificate courses of varying duration(less than one year to three years) are offered by universities in India. They also cover a wide range of areas. Some universities have adopted the semester system at masters and pre-doctoral levels but a majority of the universities and colleges do not follow a semester system. Generally the general and professional streams are mutually exclusive, in the sense that one who has taken courses in arts and sciences at the bachelors level cannot join a professional course at the masters level, while the other way is generally admissible, i.e., those who have studied professional courses at bachelors level can gain admission to general courses. This kind of streamlining takes place at the senior secondary level itself. In Grade xI in the school, a student has to choose arts, science, commerce courses or professional courses. In the case of professional courses, further streamlining is also made between medical and engineering courses. Those who have studied arts, science or commerce courses at senior secondary level are not eligible for admission into professional courses.

Generally there is no requirement for any practical experience to obtain a degree in general education. In professional education, such as medicine, however, practical experience in the form of internship is necessary. The curriculum of most technical and professional higher education includes some practical training either in the workshop or in the actual field. The National Cadet Corps (NCC) used to be compulsory; for every male student in higher education institutions, but it is longer compulsory.

Examinations are conducted by the universities. Few universities or institutions have an internal assessment system. The majority of them have only public examination systems and one has to obtain 35-40 % of the marks in each paper to pass the course. Many universities allow students to retake examinations to improve their grades/marks. Whatever may be the method of evaluation: the performance of a student is evaluated in every individual course. Based upon the percentage of marks obtained, students are awarded classes/divisions: first class, second class and pass. Some universities award grades Such as: A plus, A, A minus plus, B minus, etc. The document finally awarded after successful completion of studies mentions the name of the student, the name of the degree, the field of study, the title of examination, year, the name of the university/institution that confers the degree, etc. Most often in the case of bachelors and masters degree (but rarely in the case of M. Phil. degree) courses, overall grades divisions are also mentioned in the document. In addition, a grade sheet or a marks sheet is given to every student, including those who fail in the examination, listing the marks/grades obtained in each course. At Doctoral level dissertations are evaluated at least by three examines in most cases, including necessarily an external examiner from a foreign university. Successful performance in a vivavoice examination is also usually required for the completion of the Doctoral studies.


Admission requirements are varied but the minimum eligibility conditions for entrance into institutions of higher education are somewhat common. Students seeking admission into; under graduate courses (bachelors

degree level education) should have completed normally 12 years of schooling and passed the senior secondary level examination conducted by either national or state boards. They should be at least 17 years old. There are relaxations in these requirements in the case of distance education or Open University programmes that allow much more flexibility. Every institution of higher education can set its own conditions above this minimum eligibility condition, say in terms of percentage of marks secured in the board examination. The majority of the programmes specify additional special requirements. Entrance to most professional courses is controlled by entrance examination conducted by each institution or by a group of institutions in the country or in a state. In a select few areas, the entrance examination is followed by interviews. Entrance examinations are also held by some universities for admission to masters level courses and pre and doctoral studies in general education. Admission requirements in most degree/diploma courses do not include any practical training or on the job experience. But nowadays for admission in certain advanced courses, some sort of practical experience is being insisted upon. For instance, for degree and diploma courses in diploma courses in business management in some universities (e.g., Indira Gandhi National Open University) some amount of supervisory, managerial or; professional experiences is an essential qualification. However, such a requirement regarding practical experience is waived in the case of students with higher levels of qualifications (higher degrees). In consonance with the protective discrimination policies of the government, most institutions offer relaxations in eligibility conditions to the recognized weaker sections of society, in terms of percentage of marks secured in the qualifying board examination. A proportion of student places in higher education are also reserved for weaker sections, including women.

Degree conferring agencies:

Only universities, institutions deemed to be universities, and other institutions, but not colleges can confer degrees and diplomas. These institutions are authorized to do so when the course programs have been approved by the concerned bodies like the UGC and AICTE. Since all colleges are necessarily affiliated to one univer45sity or another (or they are constituent colleges of a university), they cannot directly confer degrees or diplomas on their own, but the students in those colleges are conferred by the university with

which the given college is affiliated. As already mentioned, many research institutions (not institutions deemed to be universities and institutions of national importance) do not have powers to confer degrees on their own, but they can award diplomas and certificates.


Once recognized by the UGC or the AICTE or a similar body, an institution university or an institution deemed to be a university, college, or institution of national importance, or research institutionis expected to maintain a good standard and quality of educational and their degrees and diplomas are recognized throughout the country. No other assessment is made, except in the case of any specific problem. No ranking of the universities based on indicators of quality; of education has ever been attempted, though the need for the same has been highlighted often by quite a few committees and commissions. There are provisions for penal action or withdrawal of recognition of an institution if reasonable quality and standard are not maintained and /or if an institution is found involved in serious malpractices. But these provisions are rarely used. Of late, the AICTE and the National Assessment and Accreditation Council (NAAC) have been given a grater responsibility for the proper accreditation of the technical, management and other institutions of higher education based on sound objective criteria.


Generally in most fields, a higher education degree is considered as a pre-requisite for (a) admission for further education and (b) employment in the formal labor market. In the case of employment in professional areas like medicine, law, engineering, architecture, accountancy, etc., this is more important. Generally in most professional cases, additional training or internship/apprenticeship of about one year is necessary to obtain a license for practice. These licenses are issued by the co-coordinating agencies/bodies with which theory are associated. In the case of good employment, a degree from a higher education institution is increasingly becoming an essential pre-requisite. Even in the private sector and in the informal sector this is the case, though of a lesser extent. In the case of the public and the private sectors, degrees/diplomas are

only an essential pre-requisite. Most organizations offering employment conduct interviews and/or tests as well.


Most of the universities and the institutions recognized by the UGC or by other authorized public agencies in India are members of the Association of Commonwealth Universities. Besides, India is partly to a few UNESCO conventions and there also exist a few bi-lateral agreements, protocols and conventions between India and a few countries on the recognition of degrees and diplomas awarded by the Indian universities. But many foreign universities adopt their own approach in finding out the equivalence of Indian degrees and diplomas and their recognition, just as Indian universities do in the case o foreign degrees and diplomas. The Association of Indian Universities plays an important role in this. There are no agreements that necessarily bind India and other governments /universities to recognize, en masse, all the degrees/diplomas of all the universities either on a mutual basis or on a multi-lateral basis.






As per the National Education Policy, every year the committee members are required to held meeting, in which they discuss the points regarding the system of higher education and passes resolutions as per requirements. The following are the major resolutions passed: Thirty-Sixth Meeting New Delhi, 18-19 September 1972: In this meeting they want to lead major modifications for higher education. They were passed resolution relating to: Need for improvement of standards Professional preparation of teachers Improvement of curricula and examination reform Development of national services programs to make higher education relevant and meaningful to the youth and national needs Improvement of colleges (including the program of crating autonomous colleges) Development of postgraduate education and the promotion of research The need to extend higher education to neglected areas Importance of relating education and productivity recommends that experimental projects be organized in selected educational institutions by the University Grants Commission co-operation with industries To plan the development of the program To develop a close co-ordination between educational institutions and industrial, commercial and agricultural enterprises and recommends that the services of persons engaged in industry, commerce, agriculture and other productive activities be utilized in university teaching. Special budget from five year plan.

(Source: Provisions made in 1975-76 by The Central Advisory Board of Education:

The Board would, however, like to draw the attention of Government to the close link between education and socioeconomic progress and point out that the disproportionately severe cuts now imposed on education will ultimately harm the long term interests of the nation. The Board, therefore, expresses the hope that larger resources (Finical Allocation) would be made available to education as soon as possible. The Board also recommends that the highest emphasis should be placed on institutional planning (as well as planning at district and regional levels) and the maximum use of human efforts which, besides being an end in itself, can also make up to a large extent, the shortfall in financial investment. The Board is of the view that an initiative in the matter should be taken by the Central Government so that the State Governments may also follow suit. The board has passed the following provisions for the purpose of educational progress: By reviewing all non-Plan expenditure with a view to eliminating programs and practices which are no longer relevant and using the funds for initiating new programs or for supporting existing programs which are in need of additional funds; By pooling non-Plan and Plan funds together so that any economics on the non-Plan side become available for development activities; By making a more effective use of teaching personnel; By better use of available buildings and equipment to accommodate more students or to develop new programs; By mobilizing community support to supplement plan allocations. The board has framed the overall strategy for educational development, which was modified by the standing committee. The following strategy may be adopted, both at the Centre and in the States: (General Strategy) In higher education more drastic steps will have to be taken to regulate enrolments. There should be considerable restraints in the establishment of new universities and if a decision becomes inevitable, the criteria prescribed by the UGC should be strictly adhered to. A climate of enthusiastic and sustained hard work should be created tin all educational institutions through a deep involvement of teachers, students and the community in all programs of educational reconstruction.

Programme of Qualitative Improvement: (1) The Board recommends that programme of qualitative improvement should receive the next highest priority. Programme of Qualitative Improvement: (2) A transformation of the content of education at all levels and in all forms is the most important programme of qualitative improvement. Programme of Qualitative Improvement: (3) Programme of qualitative improvement form a package deal. These include: adoption of dynamic methods of teaching; development of curricula; improvement of textbooks and other teaching and learning materials; examination reform; improvement of pre-service education of teachers and provision of inservice education; improvement of supervision and adequate provision of equipment and facilities in all educational institutions. Programme of Qualitative Improvement: (4) The Board welcomes the strategy for the development of higher education outlined by the UGC which lays emphasis on consolidation, examination reform, emphasis on research & selective development of institutions, including recognition of autonomous colleges. Programme of Qualitative Improvement: (5) Since programmes of qualitative improvement depend essentially on human effort by teachers, students and the community, a system of institutional planning should be universally adopted as early as possible. Programme of Qualitative Improvement: (6) In view of the limited firms available, a programme of institutional improvement may be started on a selective basis. The facilities of these upgraded institutions should be made available to the students of schools in the neighborhood & also utilize for providing in service education to their teachers.

Changes in National Education policy (relating to Educational Administration)

As changes in education administration required they have passed the following modifications: The concept of administration visualized by the Board, including full responsibility of planning and academic work such as

curricula, textbooks, improvement of the status of teachers, adoption of new teaching methods, examination reform etc. The Board recommends that the system of multiple level planning and administration district, lock and institutional should be introduced. The establishment of the National Staff College for Educational Planners and administrators. To appoint a full time officer for each state government: The establishment of Bureau of Statistics and Information at the Centre and in each State; The strengthening of the State Institutes of education and State Institutes of Science Education, especially for teacher training programmes The strengthening of the administrative and supervisory machinery; Establishment of the National Council of Teacher Education and State Boards of Teacher Education. To have one Secretary at State level Total outlay of Rs. 3200 Crores from E Programmes Major recommendations: I. II. III. (Source: Constituted by the Central Advisory Board of Education for Higher Education System (on July 6-7 1989): To be considered and emphasized that basically the concerns about autonomy of colleges, formulation of academic calendars, setting up of State Councils of Higher Education, improvement in standard etc. are interrelated and cannot be considered in isolation. Main Ingredients of the Programme Transformation of the educational system Improvement of standards

It was not possible for a Central agency like the University Grants Commission to exercise control over the States and basically the relationship between the UGC and the States is one of cooperation and collaboration. The need for crating a climate for expediting grant of autonomy of colleges was emphasized. The main recommendations:
(1) Autonomous Colleges:

The representatives of most of the State Governments supported the concept of the scheme of autonomous colleges. It was agreed that the State Governments would give a fair trial to the concept and try and grant autonomy to as many colleges as possible. The scheme would promote elitism amongst colleges; It would lead to, devaluation of the university degrees; There would be misutilisation of funds by unscrupulous managements and the teachers would not have adequate representation in the management of the college affairs; and Concern was expressed about the capacity of autonomous colleges to conduct examinations in a fair manner. (2) Academic Calendar: Though the UGC has prescribed that the actual days in an academic year should not go below 180 days, the Group expressed concern that in most of the universities including the Central Universities the number of teaching days is far below the prescribed norm. (3) State Councils of Higher Education: The Group reiterated the need for expediting the process of setting up of State councils of Higher Education in all the States as per the revised guidelines circulated by the UGC. (4) Qualifying Test for Teachers:

The Group unanimously supported the proposal to have a national qualifying test for appointment of lecturers in universities and colleges. The national level test will be conducted, by the UGC. It was agreed that the State Governments would be free to conduct their own test, which would be accredited by the UGC. The tests conducted by any of the States would be recognized by other States or the UGC. The Group emphasized the need for finalizing the modalities by the States as early as possible so that all recruitments after 1-1-1990 are made from candidates who have been declared as qualified in the tests. (5) Examination Reforms The Group was of the view that it is desirable to vigorously continue efforts in the directions of examination reforms by all the States/Universities. A view was also expressed that supplementary examinations should be abolished and there should be no gaps between examinations. Internal assessment credits and grading should also be given their due place in the scheme of evaluation. Provisions made in 1980 regarding higher education for focused development: The recommendations regarding expansion and qualitative improvement of higher education: The pressure on higher education is bound to increase consequent upon the increase in enrolment at the school stage. There is a pressing need for relieving the pressure on institutional facilities for higher education by providing opportunities for continuing education through correspondence courses, evening colleges and also through facilities for appearing for the examination privately. The need for vocationalisation of education, particularly at the intermediate stage, has been recognized. Non-government colleges have also played a significant role in the development of higher education. There should be substantial programme for the development of facilities in the colleges. Research programmes should be developed in close collaboration with the universities.

Steps should be taken for the maximum utilization of existing physical and laboratory facilities in the colleges and the universities by adopting the shift system, where necessary, so as to meet the demands of increased enrolment of students. In planning for the expansion and development of higher education, adequate attention should be paid at every stage to the provision of student amenities and substantial provision made for the same. Particular significance should be attached to the recommendation under 5 (b) regarding autonomous colleges, which are expected to play a significant role in quality improvement of higher education. To keep pace with the programmes of quality development of higher education, and evaluation of diversification and vocationalisation suggested above, it would be necessary to adopt more valid and reliable method of evaluation. Amendments made in National Education Policy: The amendment would also emphasize in particular the need to develop correspondence course on a large scale. However, the following amendments were as per requirement for improvement of higher education. Coordination and collaboration between centre and states: The conference records its sense of appreciation of the growing coordination between the centre and state Governments in respect of curriculum development and reform, textbook evaluation, streaming of educational structure and educational planning. It recommends that the tempo gained by this close cooperation between the States and the Centre is put to maximum use not only for the purpose of educational reconstruction but also for national integration.

Considering the restraint on resources and the need for maintenance of

standards, as well as to safe guard against unplanned growth of Universities and colleges, the guide lines provided by the Universities Grants Commission for establishment of new Universities should be strictly observed. Not allow permission for establishment of news colleges. The courses in the colleges should be related to the socio-economic deeds of the area.

In order to give a more balanced academic programme to the students in

a society, which is being increasingly broad under the influence of science and technology, some Universities may try to develop new types of science-cum-humanities courses programme at the under graduate level. Post-graduate education should be provided, as far as possible, in University departments, post-graduate centers and through a coordinated programme by groups of colleges. Special efforts may be made to diversified general education courses in Arts, Commerce and Science, particularly at the under graduate level, so as to relate this to national problems and to employment opportunities. Research programmes in Universities should be more and more related to the socio-economic and other need of the area, region sand country. In the matter of UGC Grants to Universities, priority should be given for restructuring and reorganization of courses and examination reforms. It was noted that in case of UGC Grants for development of colleges, a considerable element of matching share was involved.

Government Resolutions on National Policy on Education 1992: Government considers the recommendation of the education commission and its decisions are included in the resolution on the national policy on education. Copies of the resolution were send by the Ministry to other Ministries concerned, the State Government, the Universities Grants Commission, the Universities etc. for information and necessary action the implementation of the national policy on education is largely the responsibility of the state Governments; and the Centre is not in a position to do much in this matter for the following reason. The centre has no authority over education which is mostly a State subject. The centre can directly influence educational policies of the State provided it is in a position to give substantial financial aid. This is possible only through a large centrally sponsored sector. In the absence of authority or funds, the Centre can only act as an advisor or a guide and concern it self with tasks like research, experiments or pilot projects.

The following resolutions were made in this policy statement: The emoluments and other service conditions of teachers should be adequate and satisfactory, having regard to their qualification and responsibilities. It has been divided to conduct pilot projects for reduction of wastage and stagnations and some funds for this have been provided in the Centre plan. A committee has been set up to work out the details. The Government of India has adopted the scale of pay for Universities and college teachers recommended by the UGC and the education commission. The academic freedom of teachers to pursue and publish independent studies and research is and to speck and write about significant national and international issues should be protected. Teachers education particularly ion service education should receive due emphasis. Prior to the adoption of the national Policy on Education, Ministry of Education on the advice of the planning commission, had taken steps for the formulation of a 12 Crores schemes for writing of books at Universities level at regional languages with a view to switching over to regional languages as media of instructions at the University stage. In nearly 15 Universities the proportion of the students opting for regional languages as medium at the first degree level is about 90% in 17 the regional languages can be used as medium of education at the post graduate state also. International languages special emphasis needs to the laid on the study of English and other international languages. World knowledge is growing at a tremendous pace. Especially in science and technology. India must not only keep up this growth but should also make her own significance contribution to it. Regional imbalances in the provision of educational facilities should be corrected and good educational facilities should be provided in rural and other backward areas. Implementation of the Recommendations of the Commission particularly those relating to pay scales: Education

There is demand from various quarters that the pay scales of teachers in Private Schools and Colleges should be the same with the pay scales of teachers in Government Schools and Colleges. At least one Central University may be set up in each State: This problem is being agitated since some time, past but so far no policy decision has been taken in this regard. The Universities in different States with their limited resources and the available amount of grant from the U.G.C. have not been able to make improvement to the desired extent. The State Government are so burdened with their financial problem that they are not in a position to develop the Universities in each State and turn it into Central University. By this the State Government may get some financial relief, which can also help the growth of other Universities in the State. The necessity to establish a Central University in this State needs special consideration in view of the fact that out of the total population of 1, 75, 48,846 the S.C. and S.T. population is, more than 27 lakhs who are generally backward in all respects of life, Special attention is required to develop educational facilities for this large number of S.C. and S.T. population. The education in the State in general is also very poor compared to other advanced States in India. Therefore a full fledged, University develops from all sides needs to be established in a centrally located place of the State. The Brain Drain i.e. the constant migration of the talented youth from India to U.S.A; U.K; Australia and other countries: The most disturbing development in recent years is the fact that more and more promising scientists and other capable persons are leaving India in search of better employment abroad. This too, when we need them most here to visualize and implement Programmes for National uplift. This migration of talent abroad has been fittingly called Brain Drain. We have to stop it, if we are to survive as a Nation.

Field of study Engineering & Architect Science

America Europe Asia Oceania Others Total 1029 269 4 157 14 1473 407 80 2 136 6 631

Technology & Industry Commerce, Business Administration, Management Arts Agriculture and Forestry Medicine, Pharmacy Dentistry & Veterinary Sciences Law Banking Services Fine Arts Others Total

162 556

53 323

4 56

148 792

14 50

381 1777

136 23 334

50 41 425

4 -4

43 15 95

2 1 49

235 80 907

8 15 47 305 3022

32 16 11 118 1418

---10 84

2 7 11 308 1714

1 --51 188

43 38 69 792 6426

Source: Ministry of Human Resource Development Number of Indian Students Going Abroad by Field of Study & Sex


Education has continued to evolve, diversify and extend its reach and coverage since the dawn of human history. Every country develops its system of education to express & promote its unique socio-cultural identity & also to meet the challenges of the times. There are moments in history when a new direction has to be given to an age-old process. That moment is today. The country has reached a stage in its economic & technical development when a major effort must be made to derive the maximum benefit from the assets already created & to ensure that the fruits of change reach all sections. Education is the highway to the goal. With this aim in view, the Government of India announced in January 1985 that a new Education Policy would be formulated for the country. A comprehensive appraisal of the existing educational scene was made, followed by a countrywide debate. The views & suggestions received from different quarters were carefully studied. THE 1968 EDUCATION POLICY AND AFTER: The National Policy of 1968 marked a significant step in the history of education in Post-Independence India. It aimed to promote national progress a sense of common citizenship and culture, and to strengthen national integration. Since the adaptation of the 1968 Policy, there has been considerable expansion in education facilities all over the country at all levels. A beginning was also made in restructuring of courses at the undergraduate level. Center of advanced studies were set up for post-graduate education and research. The rural area, with poor infrastructure and social services, will not get the benefits of trained and educated youth, unless rural-urban disparities are reduced and determined measures are taken to promote diversification and dispersal employment opportunities. THE ESSENCE AND ROLE OF EDUCATION: Education has an acculturating role. It refines sensitivities and perceptions that contribute to national cohesion, a scientific temper

and independence of mind ands spiritthus furthering the goal of socialism, secularism and democracy enshrined in our constitution. Education develops manpower for different levels of the economy. It is also the substrate on which research and development flourish, being the ultimate guarantee of national self-reliance. Education is a unique investment in the present and the future. This cardinal principle is the key to the National Policy on Education. NATIONAL SYSTEM OF EDUCATION: The constitution embodies the principles on which the National System of Education is conceived of. The concept of a National System of Education implies that, up to a given level, all students irrespective of caste, creed, location or sex, have access to education of a comparable quality. The national System of Education will be based on a national curricular framework which contains a common core with other components that are flexible. India has always worked for Pease and understanding between nations, treating the whole world as one family. True to this hoary tradition, education has to strengthen this world view and motivate the younger generation for international co-operation and peaceful co-existence. This expects cannot be neglected. To promote the equality, it will be necessary to provide for equal opportunity to all not only in access, but also in the conditions for success. In higher education in general and technical education in particular, steps will be taken to facilitate interregional mobility by providing equal access to every Indian of requisite merit, regardless of its origins. EDUCATION FOR EQUALITY: DISPERITIES: The new policy laid special emphasis on the removal of disparities and to equalize educational opportunity by attending to the specific needs of those who have been denied equality so far. THE EDUCATION OF SCHEDULED CASTES: The central focus in the SCs educational development is their equalization

with the non-SC population at all stages and level of education, in all areas and in all the four dimension rural male, rural female, urban male and urban female. THE EDUCATION OF SCHEDULED TRIBES: The some measures will be taken urgently to bring the scheduled tribes on per with others. Regulation of fees and admission (Prohibition of capitation fee), selffinancing, provision of financial support to, needy and talented students: The need for adequate resource mobilization to reduce the high level of subsidy being given from the Government exchequer towards recurring cost of Technical Education and for further developments. Fee structure in Government, Government aided and University institutions should be enhanced and, if necessary, in stages, so as to augment resources. A realistic maximum limit of fees should be prescribed by AICTE for self-financing Engineering colleges and polytechnics, keeping in view the elimination of collection of the capitation fees in any form altogether. Punitive measures may be enforced by AICTE/State Government for curbing malpractices such as collection of capitation fee, With, regards to admissions, the norms prescribed by AICETE should be followed by all institutions so that quality of standards could be improved. This will also eliminate the malpractice of giving admissions to undeserving students. Institutions should strive to mobilize resources, generated internally through sponsored research, consultancy, technology transfer, continuing education program, testing etc. which should meet at least 10% of the recurring costs. To encourage, private investment to the Technical Education System the amount invested or donated may be exempted for income tax. In current year changes in development as well as tuition fees are noted. (Fees structure)

National plan for Higher Education approved by cabinet in February 2001: 1. Introduction: The National Plan for Higher Education, which was approved by Cabinet in February 2001, identified five key policy goals and strategic objectives necessary for achieving the overall goal of the transformation of the higher education system. These are: To increase access and to produce graduates with the skills and competencies necessary to meet the human resources needs of the country. To produce equity of access and outcomes and to redress past inequalities through ensuring that student and staff profile reflect the demographic composition of South African Society. To ensure diversity in the institutional landscape of the higher education system through mission and programme differentiation to meet national and regional skills and knowledge needs. To build high- level research capacity, including sustaining current research strength and to promote research linked to national development needs. To restructure and consolidate the institutional landscape of the higher education system to transcend the fragmentation, inequalities and inefficiencies of the apartheid past and to enable the establishment of South African Institutions consistent with the vision and value of a non-racial, non-sexist and democratic society. The proposals for the restructuring and consolidation of the institutional landscape, which were approved by cabinet at its meeting of 29 may 2002, will enable the necessary structural changes to be effected, which will lay the foundation for the transformation and reconstruction of the higher education system. However, institutional restructuring is in itself not sufficient to achieve the broader goals and objectives for the transformation and reconstruction of the higher education system. For e.g. merging two weak institutions would not necessarily results in a strong institution. It would, however, lay the basis for creating a strong institution through, for instance:

Ensuring better staff: student ratios thus enabling the development of strategies to improve poor throughput and graduation rates. Rationalization of programs where there is duplication and overlap, which would allow for a more effective and efficient distribution of programs resulting in: i. ii. iii. iv. Economies of scale through reducing unit costs. Economies of scope through broadening the range of courses on offer thus increasing student choice and enabling greater responsibilities to changing labor market requirements. More effective utilization of existing academic staff capacities. Enhanced administrative and management capacity through the consolidation of existing personnel, especially at middle management level.

However, to achieve the broader goals and objectives for the transformation and reconstruction of the higher education system, that is, to ensure and equitable, sustainable effectively to the human resource, skills, knowledge and research needs of the country, the institutional restructuring proposals should be infused and implemented in parallel with the other four policy goals and strategic objectives outlined in the National Plan. These are discussed below. 2. Access: In terms of increasing assets and producing graduates with the skills and competencies necessary to meet the human resource needs of the country, the National Plan proposes the following: 2.1 Expanding access through increasing the participation rate, that is, the percentage of 20-24 years olds enrolled, from 15% to 20% over the next ten to fifteen years. This is necessary to address the imperative for equity, as well as high-level professional and managerial skills needs. There is currently an endemic shortage of such skills, in particular, in the science and economic based fields. 2.1.1 The international evidence suggests that there is a close correlation between economic development and the level of the participation in higher education. Increasing the participation rate to 20% will bring South Africa in line with the participation rate incomparable middle income countries.

2.1.2 However, increasing the participation rate to 20%, which would require an additional 200,000 students, is not possible in the short to medium-term because of inadequate throughputs from the school system. This is being addressed through a range of programmes targeted at improving school performance, including the consolidation and restructuring of the technical colleges into Further Education & Training Colleges, which would facilitate access to higher education, especially for the unemployed youth, through providing targeted higher education programmes. 2.1.3 In the short-term, the focus would be on improving the efficiency of the higher education system in producing graduates. The current graduation rate of 15% per annum is well below that of a normal system, which should be graduating about 30% of enrolled students annually. The National Plan establishes graduation rate targets that institutions would have to meet. 2.1.4 The National Plan recognizes that efficiency improvements also require addressing the underlying factors that contribute to low graduation rates. In this regard, it proposes: To fund academic development programmes, that is, programmes targeted at addressing the teaching and learning needs of students from disadvantaged school backgrounds, as an integral component of a new funding formula. It should be noted that as an interim measure, Rs. 30 million was allocated for academic development programmes in the 2000/2001 financial year to support activities over a two-year period, that is, the 2001 & 2002 academic years. To review & strengthen the National Student Financial Aid Scheme. The review will focus on the size & coverage, as well as the income cut-off for eligibility, of the National Student Financial Aid Scheme to support some 100,000 students. Rs. 500 million was allocated as part of the 2002/2003 budget for higher education & the remaining Rs. 187 million consists of the reinjection of recovered loans from past students. In addition, Rs. 50 million of the totals was targeted at students enrolled in teacher training programmes, which is a national priority. Increasing the participation rate through recruiting workers, mature students & the disabled, in particular, women, on the basis of recognition

of prior learning. In the short-term, it is proposed to establish a 5% target for such enrolments. 2.1.5 In addition, the participation rate should also be increased through recruiting students from the Southern African Development community (SADC) region as part of the SADC Protocol on Education, which commits member states to targeting a maximum of 10% of their student places for students from other SADC countries. 2.1.6 Access to higher education would not be adversely affected by the proposals to restructure & consolidate the institutional landscape of higher education, as all the existing sites of delivery would remain intact, including in rural areas. In fact, in rural areas restructuring would facilitate increased access through ensuring the development of programmes that address the human resource & skills needs of rural communities. 2.1.7 In addition, special attention will be paid to ensure that the fee structures & admission requirements of the restructured institutions, especially those resulting from the merger of historically black & white institutions, do not adversely impact on access. 2.2 Shifting the balance in enrolments over the next five to ten years from 49% to 40% in the humanities; 26% to 30% in business & commerce; & 25% to 30% in science, engineering & technology. 2.2.1 Further shifts are not possible in the short to medium-term because of the low number of students matriculating with the required proficiency in mathematics & science. This is being addressed through a comprehensive programme on improving mathematics & science education in the schools, including the in-service training of 10,000 teachers. Rs. 25 million has been allocated for this programme focused on 102 schools in the rural & urban nobal points. 2.2.2 The desirability of shifting the humanities total below 40% is also debatable given the continued needs for skills in education, law, private and public sector management, the social services and the arts. 2.2.3 In addition irrespective of the balance in enrolments, the key issues is to ensure that the curriculum is restructured to reflect non-racial, non-sexist and democratic values, as well as quipping all graduates with the skills

and competencies required to function in modern society, In particular, computer literacy, information management, communication and analytical skills. This will complement the National Curriculum Statement, which provides for the development of these skills in grades one to nine of the school system. The Ministry will convene a national conference to initiate a process for curriculum reform in higher education. 2.2.4 The restructuring of the curriculum must be link to the enhancement of quality. Quality assurance, which includes the accreditation of academic programmes, quality adults of institutions and quality promotions, is the responsibility of the Higher education Quality Committee of the Council on Higher Education. The Higher Education Quality Committee was established in May 2001. It has developed a policy framework to guide its work and has proposed a new academic policy, including a revised qualifications framework for higher education. The new academic policy is in line with the National Qualifications Framework and is intended to improve the portability of higher education qualification, thus promoting greater student mobility between different institutions and different qualifications. The new academic policy is currently the subject of public consultations and will be finalized by the end of the year. 3. Equity: In terms of equity, the National Plan proposes the following: 3.1 Institutions would have to establish targets, including strategic for achieving the targets, to ensure equity in the demographic composition of the student body. This applies in particular, to those historically white institutions in which black students constitute less than 50% of the total head count enrolments. 3.1.1 The increases in the participation rate must primarily focus on increasing the participation rate of African and Colored students. In this regards, it should be noted that although black student constitute 71% and African students 59% of total head count enrolments, the participation rate continues to be characterized by gross inequalities. The participation rate of African and Colored students is 12% while that of white students is 47% and Indian students 39%.


Equity targets must focus in the fields-in which black and women students are under-represented in particular, business, commerce, science, engineering and technology programmes, as well as in postgraduate programmes in general. In this regards, it should be noted that the Ministry is in the process of securing $3 million of donor funding for a scholarship programme to support women students in undergraduate programme in which they are currently underrepresented. The scholarship initiative also includes a research and monitoring component, which aims, amongst others, to examine the impact of institutional cultures on the academic progress of the scholarship recipients. Equity in access must be complemented by equity in outcomes through the development of academic development programmes, as currently the drop-out and failure rates for black students is significantly higher than that for white students, institutions would have to development strategies indicating how they intend meeting the gradation rate targets established in the National Plan. In addition, language will not be allowed to act as a barrier to access or success. In this regards historically Africans-medium intuitions would be required to provide dual or parallel medium instruction in strategic and high-cost programmes such as medicine and engineering. Intuitions would have to develop regional strategies to promote the access of disabled students. As a first step, the Ministry intends identifying three institutions that could became the focal point for the development of infrastructure and resources to cater for the needs of disabled students. Establishing a National Higher Education Information and Applications service, this would facilitate race and gender access through:





4. Institutional Diversity: The national plan proposes to ensure institutional diversity through mission and programme differentiation based on the type and range of qualifications offered. In this regard, the National Plan proposes: 4.1 That the programme mix at each institution will be determined on the basis of its current programme profile, as well as its demonstrated capacity to add new programmes to the profile, including the relevance of the profile to the institutions location and context and its responsiveness to regional and national priorities, in particular, governments Human Resource Development Strategy. 4.2 To continue to maintain, although in a flexible manner, the existing mission and programme differentiation between technikons and universities for at least the next five years. This is necessary to avoid academic drift, especially as there is a tendency for technikons to want to shift their focus from primarily offering career-oriented programmes at a diploma level to degree-level programmes at both the undergraduate and postgraduate levels. 4.2.1 Academic drift would impact adversely on the ability of the higher education system to meet the governments access goals and human resource development priorities, especially the goal of expanding career-oriented programmes at all levels, in particular, shorter-cycle certificate and diploma programmes in science, engineering and technology. 4.2.2 The access of technikon students to degree programmes should be facilitated through ensuring greater portability of programmes and qualifications between universities and technikons. The proposed new academic policy provides a framework for enabling portability and mobility.

4.2.3 The proposed establishment of comprehensive institutions through the merger of universities and technikons provides an innovative institutional and organizational framework for addressing the underlying factors that give rise to the tendency for academic drift within techmikons, as well as the issue of the portability of programmes and qualifications between universities and technikons. 4.3. The implementation of the mission and programme differentiation process began last year. All higher education institutions submitted their proposed programme and qualification profiles for the next five years, that is, 2002to 2006, at the end of July 2001. The profiles were analyzed by the Department and discussed with each institution between October and November 2001. The approved programme and qualification profile for each institution is in the process of being finalized and will be released shortly. 4.4 The programme and qualification profile process has also enabled the department to identify a broad range of potential areas for programme collaboration and rationalization within each region, in particular, in costly and under-subscribed programmes. The following programmes, which cut across all the regions, have been identified. Agriculture and natural resources. Architecture and environmental design. Visual and performing arts. Business and management, in particular, Administration (MBA) programmes. Engineering, in particular, mining engineering. Health sciences, in particular, postgraduate programmes in general and dentistry and nursing in the Western Cape in particular. In this regard, the dental schools of the Universities of the Western Cape. In addition, undergraduate nursing programmes would be restricted to the University of the Western Cape and the new merged technikon. Master of Business

Languages and literary studies. Library and museum studies. Public administration and social work. 4.4.1 The continued funding of the identified programmes from the 2004/05 financial year would be subject to institutions jointly reviewing and submitting proposals for programme collaboration and rationalization by the end of the year. In the event that joint proposals are not submitted, the department will determine the framework for programme collaboration and rationalisation. 4.4.2 Programme collaboration and rationalization could take two forms: (i) The establishment of a regional school for the identified programme within one of the existing institutions. This would result in the closing down of the programme in other institutions within the region and the transfer of staff (if required), students and equipment to the identified institution. For example, in KwaZuluNatal, the Universities of Durban-Westville, Natal, Zululand and Technikon Natal, all of which offer music have agreed to establish a regio9nal school for music at the University of Natal. The establishment of a common teaching platform, in particular, in postgraduate programmes, which require specialist staff to teach the necessary combination of courses that, constitute the programme. A common platform would consist of a planned framework of inter-related programmes and qualifications from different institutions based on their strengths but that are available to students from all institutions. For example, in the Western Cape, the Universitys of Cape Town, Stellenbosch and the Western Cape offer a joint Masters in Labor Law, which enables students registered in any one of the three institutions. Although each institutions has specialist niche areas, the combination provides a broad set of choices offered by specialists in their fields, which could not be offered by the institutions separately. Similarly, in KwaZulu-natal, the Universitys of Durban-Westville and Natal and the Durban Institute of Technology (established through the merger of ML Sultan Technikon and Technikon Natal) offer a joint qualification in public Health.




The provision of distance education in contact institutions will also be regulated as part of the programme and qualification profile process. No new programmes would be approved unless they address identified national and/or regional needs and do not duplicate or overlap with programmes offered by the dedicated distance education institution to be established through the merger of the University of South Africa, Technikon South Africa and the distance education campus of Vista University. Furthermore, institutions would not be allowed to continue with existing programmes if they do not comply with the above criteria. To ensure greater accountability and the more efficient use of limited research resources, the National Plan proposes that research should be funded as a separate component in new funding formula. This is informed by the fact that although currently 15% of the subsidy allocation to universities (but not technikons) is for research funding, 65% of research outputs and 70% of all masters and doctoral graduates are produced by only 6 universities, i.e. Cape Town, Witwatersrand, Natal, Free State, Pretoria and Stellenbosch. 4.6.1 The separation of research funding is intended to maintain current capacities while building new capacities and centers of excellence in a focused manner linked to institutional niche. Research funding will consist of three components:

A separate research component within the funding formula based on research outputs, including at a minimum, masters and doctoral graduates and research publications. Earmarked funds to build research capacity. Earmarked funds to facilitate research collaboration between institutions. 4.6.2 Greater co-ordination in the determination of national research priorities and funding between the different State departments and science councils will also promote the more efficient use of resources. The Ministry will work closely with the Ministry of Arts, Culture, Science and Technology to facilitate the development of a co-coordinated framework.

5. Implementation: The successful implementation of the institutional restructuring proposals, as well as the broader renewal and transformation agenda is dependent on: 5.1The availability of the necessary administrative, management, leadership and governance capacity. In this regard, the existing capacity-building initiatives, which are supported by the Department through bilateral agreements, will be reviewed and strengthened, in partnership with the higher education sector. The existing capacity-building initiatives include: Enhancing institutional governance through capacity-building programmes targeted at institutional councils, institutional forums and student structures. Improving academic programmes at the historically black institutions through capacity-building programmes focused on institutional planning, staff development, student support and curriculum restructuring. 5.2The development of new institutional cultures and identities based on the values of non-racism, non-sexism and democracy, including recognizing and validating the diverse cultures that constitute South African society. The institutional culture and ethos in the historically white institutions continues to be Eurocentric with little or no attempt to locate these institutions in the context of Africa. This acts as a barrier to both black students and staff from developing their potential to the full. It is imperative that institutions develop and implement institutional policies to transform institutional culture and practice in relation to, amongst others, the following: Curriculum to meet the needs of a diverse student body, including the integration of indigenous knowledge systems. Language policy both for instruction and administrative purposes, in particular, in the case of merger of a historically Afrikaans-medium institution and a historically English-medium institution. Sexual violence and harassment, including initiation rites and practices.

Student structures such as halls of residence, sport and cultural clubs and associations. Support structures for international students, in particular, students from the Southern African Development Community and the rest of the Continent. 5.2.1 All higher education institutions will be required to indicate in their three-year rolling plans, the strategies and steps they intend taking to transform their institutional culture and practice in order to create and enabling environment for all students and staff. As a first step in this process, the Ministry will convene a national conference of higher education constituencies to facilitate the development of a framework and process for addressing the transformation of institutional culture and practice. 5.2.2 The Ministry will monitor the changes in institutional culture and practice through it recently established Race, Gender and Values Chief Directorate. 5.3 A combination of planning and funding levers will be used to achieve the policy goals and strategic objectives for the transformation and reconstruction of the higher education system. This is a fundamental departure from the current and inherited situation in which the size and shape of the higher education system is determined by a combination of student choice and institutional preference to national goals and objectives. 5.3.1Higher education institutions would be required to submit annually threeyear rolling plans indicating the strategies and targets, including time-frames, they intend putting in place to respond to the national policy goals and strategic objectives, as outlined in the National Plan. 5.3.2The approval by the Ministry of the institutional three-year rolling plans would determine the level of funding of each institution. 5.3.3Institutions that fail to meet the approved targets within the specified timeframes would be penalized through a reduction in their funding level. 5.3.4The implementation of the planning process began in 2001 with the submission by all higher education institutions of their proposed programme

and qualification profile for the next five years, i.e. 2002/2006.The approval of the programme and qualification profiles, which is in the process of being finalized, will determine the funding of each institution from the 2003/2004 financial year. 5.4The effective use of funding as a lever for change to achieve national goals requires the development of a new funding formula based on the funding framework and principles outlined in the White Paper on Higher Education. 5.4.1A draft framework for a new funding formula was released in March 2001 for consultative purposes. The draft framework is in the process of being refined in the light of the comments receives. It will also be modeled to assess its impact on the sustainability of the proposed new institutional structure. It is anticipated that a new funding formula would be phased in from the 2003/2004 financial year. Statutory bodies governing higher education in India: The higher education system, comprising of various universities, colleges, professional institutes etc caters to around 7 million students. Though State Governments are responsible for establishment of State Universities and running them, Government of India is primarily responsible for framing major policies relating toe higher education in the country. University Grants Commission (UGC): It is Government of India entity is responsible for coordination, determination and maintenance of standards, and release of central grants to the universities. Apart from this, Government of India has also established sixteen central universities in the country, which are totally funded by the UGC. Taking advantage of the great demand for higher education especially for professional courses, many dubious institutes have also come up. Even otherwise, sometimes the syllabus of a particular course offered by an institute may be outdated and not up to the mark. The government on its part had created various statutory bodies to ensure that the education organizations that operate within their framework provide qualifications, which are quality assured and formally recognized by institutions, providing employers and government authorities. These statutory bodies are also responsible for providing grants and

various awards. These are 12 such bodies dealing with higher education in various fields: All India Council for Technical Education (AICTE) Distance Education Council (DEC) Indian Council for Agriculture Research (ICAR) Bar Council of India (BCI) National Council for Teacher Education (NCTE) Rehabilitation Council of India (RCI) Medical Council of India (MCI) Pharmacy Council of India (PCI) Indian Nursing Council (INC) Dental Council of India (DCI) Central council of Homeopathy (CCH) Central Council of Indian Medicine (CCIM) The All India Council for Technical Education (AICTE) : It was establish by an Act of Parliament to develop, promote and coordinate technical education in the country. Technical Education broadly covers the field of engineering & technology, architecture & town planning, management, pharmacy and applied arts & crafts. The council grants approval for starting new technical institutions and introduction of new programs in consultation with the agencies concerned. Recently it has also created a separate body-National Body of Accreditation (NBA) that gives accreditation to institutions and grades the courses offered by them. Distance Education Council (DEC) It is the apex body responsible for promotion and maintenance of standards of open and distance education in India. These are ten open universities in India at present and Indira Gandhi National Open University (IGNOU) is the only National Open University, the remaining nine are a State Open University (SOUs); however there are 62 university level traditional institutions, which also impart education through correspondence/distance mode. Indian Council for Agriculture Research (ICAR):

It keeps the information and provides consultancy on agriculture, horticulture resource management, animal sciences, agricultural engineering, fisheries, agricultural extension, agriculture education, home science and agricultural communication. It has the mandates to co-ordinate agricultural research and development programmers. Bar Council of India (BCI): It is formed under Advocates Act, 1961. It promotes legal education and lay down the standards of professional education and ethics for advocates. The National Council For Teacher Educaiton (NCTE): It was established by an Act of Parliament and is responsible for planned and coordinated development for teacher education system throughout the country. The Council regulates and maintains norms and standards in teacher education system and gives recognition to institutions offering courses or training in teacher education. Rehabilitation Council Of India (RCI): Regulates the training policies and programmes in the fields of rehabilitation and standardizes training courses for paramedics engaged in rehabilitation of people with disabilities Like MCI it also establishes reciprocity with foreign universities/institutes in the matter of mutual recognition of qualification awarded in the field of rehabilitation. It also maintains Central Rehabilitation Register of persons possessing the recognized rehabilitations qualification. Medical Council of India (MCI): It was established as a statutory body with the aim of maintaining uniform standards of medical education in the country at undergraduate and post-graduate levels. It is mandatory for a doctor to register himself with the Council after gathering necessary medical qualifications. Another important function of the Council is to establish reciprocity with foreign countries in the matter of mutual recognition of medical qualifications. The Council also maintains Indian Medical Register containing information about all medical practitioners in the country.

Pharmacy Council of India (PCI): It prescribes, regulates and maintains minimum educational standards for the training of pharmacists. It prescribes the syllabus, norms, etc., for the institutions and regulations for diploma course in pharmacy. It registers Pharmacists. Indian Nursing Council (INC): It is responsible for regulation and maintenance of a uniform standard of training for Nurses, Midwives, Auxiliary Nurse-Midwives and Health Visitors. It prescribes the syllabus and regulation for various nursing courses. It inspects Nursing Schools and examination Centers to maintain uniformity and the requisite standard of Nursing Education. Dental Council OF India (DCI): Its main objective is to regulate Dental Education, Dental Profession and Dental ethics in the country. It recommends to the Government of India to accord permission to start to Dental College, start higher course and increase of seats. Central Council Of Homoeopathy (CCH): It is a statutory body responsible for paying down the minimum standards of education in Homoeopathy and recognizing of derecognizing medical qualification. It advices Central Government in matters of connected with the study and practice of Homoeopathy. The Council also maintains a Central Register of Homoeopathy containing details of Homoeopath practitioners. Medical Council of India (MCI): It was established as a statutory body with the aim of maintaining uniform standards of medical education in the country at undergraduate & postgraduate levels. It is mandatory for a doctor to register himself with the Council after gathering necessary qualifications. Another important function of the Council is to establish reciprocity with the foreign countries in the matter of mutual recognition of medical qualifications. The Council also maintains Indian Medical Register containing information about all medical practitioners in the country.

Pharmacy Council of India (PCI): It prescribes, regulates & maintains minimum educational standards for the training of pharmacists. It prescribe the syllabus, norms etc. for the institutions & regulations for diploma course in pharmacy. It registers pharmacists. Indian Nursing Council (INC): It is responsible for regulation & maintenance of a uniform standard of training for Nurses, Midwives, Auxiliary Nurse-Midwives & Health Visitors. It prescribes the syllabus & regulations for various nursing courses. It inspects Nursing Schools & Examination Centers to maintain uniformity & the requisite standard of Nursing Education. Dental Council of India (DCI): Its main objective is to regulate Dental Education, Dental Profession & Dental ethics in the country. It recommends to the Government of Indian to accord permission to start a Dental College, start higher course & increase of seats. Central Council of Homoeopathy (CCH): It is a statutory body responsible for laying down the minimum standard of education in Homoeopathy & recognizing or derecognizing medical qualification. It advises Central Government matter of connected with the study & practice of Homoeopathy. The Council also maintains a Central Register of Homoeopathy connecting details of Homoeopath practitioners. Central Council of Indian Medicine (CCIM): It is responsible for lying down and maintaining uniform standards of education in the fields of Ayurveda, Siddha and Unani and regulating practice in these systems. The Council prescribes the curriculum and syllabus for undergraduate & post-graduate education in these systems and amends them form time to time as per requirements. It also advises the Central Government in matters relating to recognition of medical qualification of Indian Medicine. The

Council also maintains a Central Register of Indian Medicine containing details practitioner of these systems.


India is the seventh largest and second most populous country in the world. A new spirit of economic freedom is now stirring in the country, bringing sweeping changes in its wake. A series of ambitious economic reforms aimed at deregulating the country and stimulating foreign investments had moved India firmly into the front ranks of the rapidly changing nation. India has no fundamental conflict between its political and economic systems. Indias time tested institutions offer foreign investors a transparent environment that guarantees the security of their long-term investments. Indias dynamic and highly competitive private sector has long been backbone of its economic activity. It accounts for over 75% of its Gross Domestic Product and offers considerable scope for joint ventures and collaborations. Today, India is one of the most exciting emerging markets in the world.

(5.2.1) GDP:
Economy: Growth rates, 1991-92 to 2002-03 2002-03saw a big fall in agricultural output, and official GDP growth estimate for 2002-043 is 4.7% Given good monsoon, CII for 2003-04 is at least 6.8% GDP growth Last five years has seen slackening of the GDP growth rate, largely due to fall in manufacturing growth and poor performance of agriculture

Source: Confederation of Indian Industry August 2003

In the year 1991-92 3.80% of total GDP was spend on education. But it increases to 4.11% in 2000. in total GDP there are approximately 30% (of total GDP, Indian Economic survey 2002) contribution of services. Also with overall GDP there is also increment of education development. Economy: GDP Growth for 2003-04:

Growth Forecast for 2003-04: If rainfall remains as good as it has been, then agricultural output should increase by anything between 4% & 5.5% With industrial growth expected at 6.5% & services at 7.5%, CII has revised the growth forecast upwards Particulars Lower Middle Upper Earlier 6.0% 6.2% 6.4%l Now 6.8%

Growths of services are expected at 7.5%, which also includes major contribution of education services. This year as per future predicted by UGC,

scope of higher education in India will expand with compare to other developing countries because of universalization of higher education. If efficient implementation of major programs will be done as per pre-planning then it will become the base of economic growth, development & prosperity. Economy: International growth comparison:

However, India has recorded one of the highest growth rates in the 1990s Only China has had a GDP higher than India and grew faster than India And, given the size of the market, the choice is not China versus India It is China and India India needs higher growth States worth investing in

(5.2.2) Economy: Inflation

Inflation directly affects on the investment and spending made by the government as wall as private players. If it will grow up chronologically it restrict spend able funds by major players. High inflation rate restricts the spending power of major population behind higher education. Due it inflationary effect, marginal increment on fee structure of higher education, unable to fulfill expectations of steak holders. (5.2.3) Balance Of Payments:

There has been a sharp rise in net invisible inflow (service income + transfers) in 2002-2003. Capital inflows have increased cue to arise in banking in and other capital inflows; foreign investment and loans have declined. As par national educational policy (resolution passed in Sept. 2000) now entry of foreign institutional as wall as direct investment allowed in Indian higher education. It will directly effect on the growth and expansion if this sector by way of value addition in highly qualified services. Exchange rate depreciated in the past:

Until July 2002, rupee gradually devalued against US$ However, the weakening of the US$, current account surplus, higher remittances and interest rate differential has led to an appreciation since July 2002

In current year with compare to last decade rupee has gained string position. It will help to Indian students to study in foreign university. Simultaneously if foreign university wants to enter in favors universalization of higher education. The given below graph indicates appreciation in rupee value against foreign currency. Exchange rate is appreciating rapidly:

Over the past year, the rupee has appreciated by 4.7 %, with the appreciation of during the last quarter being particularly sharp. It has now comprehensively breached Rs. 47 and is will breach Rs. 46 any day. CII expects it to rule below Rs. 45.50 by October (5.2.4) Centers fiscal deficit:

Combined fiscal deficit is higher than in 1990-91 The central governments deficit for 2003-03 is 5.9% of GDP, tacking combined deficit to over 10.5% this is unsustainable Major financing on higher education is being done by central government. So, level of central deficit affects directly to the investment of government on higher education in next coming years because of limited borrowing capacity from the world resources. But from policy 1991 state level investment on higher education also matters a lot because of app. (60%) spending on higher education from state level. Indian overall fiscal deficit position is given below.

Overall fiscal deficit

(5.2.5) Industrial Growth:

In 1950 contribution of services was 25% (app0 but against it todays role is totally different, as in 2003 it increased to 51% it also opens the window for the higher educations scope & expansion. (5.2.6) Interest rate:

In 2003 year interest rate is decreasing to 6.25 it will provide an opportunity for those who want to take borrowed money for higher education purpose. Major chunk of population can afford prevailing rate of fees for higher education. (5.2.7) Government borrowings: Interest on outstanding internal liabilities of Central Government

(Rs. Crore)

Source: Budget documents As we can see from the following table that government borrowing are increasing year by year in India. Thus, spending on several sector of economy reduces up to great extent. Government can spend less on R & D and other relevant development for higher education. (5.2.8) FDI Inflows: (In US $ million)

Source: world Investment Report (WIR), 2002; UNCTAD

As India is developing country so, there is a great scope of development and due to high market potentiality foreign investors are willing to enter in Indian narrate, no FDI has been increased from 49% to 74% in last decade which has increased the whole money supply in Indian higher education. 5.3 SOCIOCULTURE ENVIRONMENT:

Society, Education and Development: It examines the role of higher education in finding solutions to societys problems and in its developments. That is it will increase efficiency in the area like Lifecycle trends, Career expectations, Consumers activism, Population growth, life expectation, birth rate, Culture mix, language and child labor. (1) Lifestyle trend: Education plays an important role in changing the lifestyle of major population. This impact directly affects the education sector. That is, at first the people did not understand the importance of education, but with the change of Indian traditional culture towards western culture the people become more aware and serious regarding the higher education. (2) Career expectations: Career expectations of the people are increasing day by day. It is due to increasing competition spreader over the economy as well as the rising demand of education people. They undusted the impact of education on the career and so they had started to give much more importance to higher education. It is one of the major influencing factors.

(3) Consumers activism: Formally the education was available only in limited area but with the extension of the varieties of courses in education, the power went in the hands of parents ands students. Thus the students get opportunity to choose among those available varieties and play an active role in developing the path of their carrier. So we can consider consumers activism as a factor influencing the rise in higher education sector. (4) Population Growth: India stands 2nd in the world population. So, as there will be increase in population, there will be direct increase in number of literates and thus it will also increase the rate of students taking the advantage of higher education facilities. Thus we can consider it as a one of the most important sericulture factor. (5) Life Expectation: Formerly Life expectation of major Indian population was less, compared to today because of number of factors. Responsible factors like, latest technology, new innovation relating to healthcare, expenditure on R & D, promotional measures taken by government etc. thus this will indirectly affect the higher education sector that is people will undusted what is importance of higher education. (6) Birth rate: Birth rate are been increasing rapidly in India. Thus the opportunities for education also increasing simultaneously. That is and more numbers of children will enter the higher education so as to differentiate themselves from other children and to have their stands in competition. (7) Culture mix: The increase in globalization has changed the culture of all countries which obviously includes India. The traditional Indian culture has now become a mixed culture economy which includes the culture of neighbor countries, western countries, central countries etc. Thus, the people come across many

different cultures and so their leaving standards are raised which in turn increases the standards of education in their minds. (8) Language: As against 2820 language in the entire, as many as 325 languages are effectively used in India alone. The Government is committed to achieving these national goals and has been steadily increasing the budgetary allocation for education. Universities are governed by statutory bodies such as the Academic Council, the senate/court and the Executive Council /syndicate. Finding for state Universities largely comes from the State governments but they also receive grants from University Grant Commission. The government encourages the study of classical, modern, and tribal languages with a view toward the gradual switch from English to regional languages and to teaching Hindi in Non-Hindi speaking states. The country has also made significant strides in higher and technical education. (9) Child Labor: Although Indian law prohibits the employment of children in factories, the law allows them to work in cottage industries, family households, restaurants, or in agriculture. The bargaining power of local workers goes down if there is cheap labor available, and child labor is cheap labor. Thus the children are attached to work for fulfilling their day to day expense and thus the live studies. Many of the children leave after studying standard 12th at most. So the importance of higher education is neglected this way, which makes great losses to education sector as a whole. So we can say that rising demand of higher education will gradually bring change in Indias sociocultural environment which is very important for any country.


Information technology in higher education It attempt to analyze the role information technology is likely top play in higher education in the incoming knowledge era. The impact that the new technologies are likely to have on the teaching-learning process is reviewed in the Indian context. Reforms and innovations in Higher Education The articles includes in it review the reforms and innovation introduced in the field of Higher Education in recent years, in an attempt to overcome the inadequacies that have crept in higher education. They collectively indicate how the higher education system in India can be revitalized. In view of the rapid changes in the global and domestic information and information technology scenarios, a regular mechanism to mechanism to continually to monitor trends, assess their relevance to our condition and to forecast the shape of things to come will be established. TECHNOLOGICAL CHANGE:

In keeping with the global information scenario, NISSATs thrust areas have also been changing from one five years plan to another. During the seventh five years plan the objective was to create a foundation on which the modern information activities could be built there fore, introduction of computer technologies in LIS environment and development of endogenous capabilities were emphasized. The Eight five years plan was the period of consolidation, establishment of facilities for accessing the global knowledge base, and interlinking of Indian information centers were accorded priority. The ninth five year plan will see developments towards globalization of the Indian information market. Some of the existing activities will required for reorientation. Database development activities are also used in area like business, financial, industrial, technological and public information. Establishment of a chain of sites on different subjects. Establishment of internet training school to run courses to run courses on web site management, home-page development and especially subject information searches. Provision of internet connectivity to library & information centers. Development of web-based course materials of selected subjects. To encourage the growth of the nascent information industry in the industry in the country, abroad-based scheme to promote and support public institutions and private enterprises, in information resources development and service generation will be launched. At the user end, a systematic approach to sensitize and educate users enhancing their search capabilities will be evolved. The search of modern information system hardly ever extends beyond the urban areas, and literate clientele. It is necessary that people living in rural areas, illiterate and backward communities also benefit from the fruits of information technology revolution. Further, certain items of information for the public that people ought to know for their day to day living and for coping up with the emergencies, would be packaged and appropriate dissemination mechanism set up.

A new concept mechanism for capturing information on folk wisdom, biodiversity, ethnic practices etc. has also evolved. This serves two fold purposes, one to take benefits of the existing knowledge and material base, and second, to help registering these against uncalled for exploitation through by other countries. The CD-ROM has emerged as a powerful technology for application in decentralized information system development. However in India we are application yet to make a beginning. Now CD-ROMs on Indian bibliographic, numeric and directory type databases and also CD-Rom version of selected Indian periodicals are also available. The following impacts of technology developments have noted. To cope up with global technical advancement and development, Indian government has to allocate more funds for R & D To implement innovative technology it demands more finance because of more cost of latest technology. Existing as well as new players has also invested more money by this way higher education becomes that much of costlier but it provides high quality & value added services. Increment in fee structure by various players (self finance)

The main affected factor is that whether middle class and other part of the society afford cost of that education. If relatively (like borrowed money) available has that cost of that much effect that student ca bear. There is tremendous changes in student teachers ratio by latest technology because online transaction fast distance barriers. The question is that it restricts job opportunities of that teacher. It can increase in unemployment in less expert teachers while it increases it in case of expert teachers By this way technology affects to: Government

Research agencies Students Institute Universities Financers (state, central) Banks Technology has dual effect on all steak holders.



An industrys attractiveness at a point can be judged by analyzing its driving forces, its critical success factors and degree to which a management team can perform on these factors and especially the major competitive forces. 6.1 DRIVING FORCES: Changes in industrys long term growth rate: Like other developing county India is also realizing the importance of education as a base of economic development. However growth rate of higher education is also affected by these important variables. (A) Investment Decision: Todays scenario is like what may have been sufficient yesterday may be inadequate today it shows that technology changes are on rapid mode. It contributed advancement and development in Indias higher educations. For establishment and up gradation any new player required to have a more investment than last few decades. (B) Intensity of competition:

As foreign players are entering in to the Indian market, the level of competition also rising. (C) Changes in buyer segment: Formally, higher education is limited to the upper middle class of the society, but now picture has change. The fee of higher education is increasing, many other sectors founded opportunity they have started financing to student for higher education. Hence, for higher education large and potential market segments were grown up, including lower- middle, middle middle, and uppermiddle classes of the society. (D) Changes in cost and efficiency: To become competitive in the highly flexible circumstance to provide better quality education, it resulted in to higher cost of services than before. (E) Changes in government regulation: From 1991 (LPG program) India has created boundary less market in the global world. Now in the open economy mode any private player ca enter with less political interference, they are free to compete with grant aid collages. 6.2 PORTERS FIVE COMPETITIVE FORCES: Rivalry among present competitors: There in no close substitute of higher education. But various types of players like grant aid colleges. Self- finance colleges, foreign player, colleges established by collaboration with foreign and home players etc. are competing with each other. The following factors show high level of competition: High investment intensity: It is to create infrastructure and be upgraded with latest technology. No of firms:

No of players are increasing. Product differentiation: As services is intangible in nature little product differentiation. Threats of New Entrance: In case of entry in the area of higher education, one should take permission from the respective statutory bodies. In such a case they have to follow rules & regulations (standards) framed by state & central government such as state education boards norms, Provision of National Education Policy, UGC Act & others. Proprietary product differences: As education has intangible product in nature i.e. service, it is quite difficult to differentiate products. But in highly competitive market, new players are entered in this field even foreign players are also entered. To compete with them one should provide better quality of education with practical oriented training, latest syllabus system, and proper evaluation pattern, advanced technology based infrastructure, job potential based education etc. in case of services it is difficult to differentiate but it can be possible by autonomous treatment like IIT, IIMs etc. Capital requirements: As in case of higher education if we want to establish autonomous Colleges (Private: Without government grant) comparative high investment in case of creating infrastructure like Land, Building, Working Capital, Lab resources, Furniture, Library resources, highly qualified professors etc. if new entrants want to enter they have to complete with many existing Indian players as well as foreign players so advance infrastructure to provide better quality of education with compare to them is needed. Government Policy: In case of higher education government has promoted private players to enter in this filed to build strong economic base (Indian Education Policy 1992). After 1991 policy (LPG programme) new private players are allowed in higher

education. But as compare to last few decades now it is comparatively easy to enter & maintain position in this field. Now a days as compare to other countries Indian government has also started modifications in various policies and provisions of various applicable acts. Statutory bodies also changing their roles and influence on higher education. Bargaining power of Suppliers: Determinants of Supply power: Regular supply of necessity also affects the higher education. But in India the following are the major supplier for education sector. Financial institutes which provides finance to higher education institute. Banks Book publishers & Stationary providers Laboratory instruments suppliers Hardware, software and other electronic device providers

Many numbers of suppliers are available as compare to education market. So, here form college establishment rate, we can say that effective demand creators are less with compare to suppliers. So, suppliers bargaining power is less than colleges and universities. By this way it wont adverse effect on education sector.

CHAPTER 7 OPPORTUNITIES AND THREATS ANALYSIS 7.1 OPPORTUNITIES: Market Potentiality:With the nations institute of tertiary education able to absorb only 6% - 7% of youth of college going age (17-23 years) even as Indias 308 universities and 14000 colleges are hardly surprising that post liberalization India with its fast expanding middle class has emerge as the biggest market for higher education in the contemporary world. The following factor show potential market for education: High population growth rate Changes in life style of major population Increase in per capita income of middle class family Better employment opportunities for qualified people Entry of foreign student by way of univerlisation of Indian education Ease of visa process for foreign student of who want to study in India

Increasing standard of living

Univerlisation of Indian education:Three pathway offer some hope and promise for the future. The first path is labled policy reform. It includes opening up space for private universities. A second pathway for Indian internationalists has to do with partnerships. The final pathway focuses on innovation and leadership, two qualities in greatest need within Indian higher education today.

Foreign direct investment:From 2004 foreign direct invest can invest their money in Indian higher education. As Indian education system facing problem of finance they get spirit of development of it.

Ease in legislation frame by statutory bodies for new entrants:As in the latest resolution passed by UGC (Aug 2002), new entrants have to fulfill less legislative requirement as before. It is comparative easy for new players than as before 2002.



Norms frame under general agreement on trade in services:With the advent of greater competition in higher education once WTO norms under the general agreement on trade in service (GATS), which mandates freeing foreign investment in education from 2004 become operational, bad eggs in the teaching fraternity who do not take their collage job seriously may will find them self without them. It is the tremendous changes that are happening in the external environment, which will influence whether and how Indian players will survive against highly advance and latest foreign institutes.

Realities in grant aid collages:-

The fact that salaries in government and minority aided collages are paid directly by sate government from grants of university grant commission has resulted in collage management having limited say in what there teachers do or do not with their times. During official time teachers are not do any productive works. By this way wastage of resources restrict the development of higher education.

High drop out rates:The existing systems have late to embarrassingly high drop-out rate of 27% in 2003. a recant survey found that financial problems, poor student teacher relationship, lack of technology and lack of motivation are the main reason with compare to global scenario.

Indianisation of education system:There haw been so little Indianisation of the education system designed by Lord Macaulay to produce the nation of clerks that we continue to produce clerks with an innate sense of inferiority, it is notable that the fault lies with the reluctance to de-colonize an education system that is obsolete, unoriginal and incapable to produce modern Indians who can compete in the global market. Hence, with compare to other developing countries India finds lacking part in its education system, resulted in to unavailability job prospect even for the highly qualified person. Our education system is not matching with global standard is a big challenge for Indian education. We have entered 21st century our higher education system is facing a bigger challenge. Our higher education system has grown enormously in last five decades. We have an education system that is creating massive number of graduates who find it difficult to get gainfully employed. We also have good education institution, which are providing value-added trained human power at a premier level. But the bigger challenge before Indian higher education system is to bring equity in quality of education across the width and breath of the country.

Scarcity of resources:There are other obvious problems with education in India like spending to little on it (3.55% of GDP instead of the 5% most other country spend) and

allocating large amount of our resources on higher education but the equally important is awareness of quality education good beginning to be to de-colonize the system. Along with the finance we also find lacking of other resources like professional teachers infrastructure, technology etc. Lack of financial resources Interior quality of education while compare with other developing countries Traditional syllabus lacking latest trend Inadequate evaluation pattern totally exam oriented teaching Lack of high job potentiality because of absence of practical knowledge Teaching method Teachers qualification Not enough automation to colleges Mis-management


1) Allocation of resources:
As India is facing financial crisis, players are unable to spend on infrastructure and other value aided factors. Still India requires spending more on research and development oriented activities so there should be special budget allocation for them. As overall 3% - 3.5% of National income is spend on education while compare to other developing countries are spending 5%. So, special provision should be made by central budget allocation by Indian government. State level allocation also differs. Some states are poor in spending on education. State board requires to frame standard polices for it. Statutory bodies should allocate resources on grading based and performance basis to various universities and colleges (even in grant aid)

Some autonomy to players should be given in the selection of sources of resources especially if case of financing. Research institutes established by universities or/and private players-get funds on the basis of performance by UGC.

2) Collage administration:
There are various statutory bodies; national education policy, central government and state level board were framed resolution related to internal collage administration But there is no any special provisions relating to internal collage administration. As per (UGC bulletin June 2002) there should be established any clear authority either state or central so that repetition should be removed as well as mismanagement can be avoided. They should focus on with minimum legislation how colleges and universities administered better. Any specific resolution is required by the UGC to handled internal administration.

3) Role of statutory body:

Statutory body are playing important role in framing policy and planning but there is not that much important role in implementing these programmes. So, proper implementation of every programmer should be taken care of. The following points should be considered at the time of designing of an education system by statutory authority as well as national policy. We must clearly define what we want to achieve through the education system. The benefit of education learning (knowledge) must be clearly explain to and understood by steak holders for that difference between condition of part of population to receive education and those who want must be made very evident. Innovative experiments in learning that has the potential to deliver learning guarantee must be actively encourage and intensively tested. Some legislation action should be taken so that government officials, community members, corporate, parents and the teaching community must take interest in education. Management of education system must reflect the look and feel of a corporate organization without necessarily privatizing education.

Systematic changes in the education system to introduce meritocracy and professionalism in the appointment, transfer, movement, training and compensation of teachers must be given priority. The funds currently deployed by government-$4.6 billion (Rs.22100crore) per year by center and state must be effectively leveraged by appropriate contributions of the community where possible. Technology must be used in a huge way-not only to bring in computer assisted joyful, interactive learning for children but also for training teachers, government education officers and community members. Focus must be shifted from the current text-memory and marks-driven assessment of students to competency based assessment. This also necessitates shifting from teaching to learning and greater importance needs to be accorded to the ability of teachers to manage classroom practices than more subject knowledge. Provision must be made for a structured mechanism for comprehensive review of the curriculum and expected competencies at least once every ten years. After studying Indian higher education system the following areas need to be improved by Indian authority of higher education system. Setting up of a national level mechanism for registering foreign universities in Indian higher education abroad. Clear guidelines and lacos about visa, infrastructure facilities social and welfare programmes and accommodation facilities for students coming to India and students going to abroad. An ordinance should be passed to allow universities to open there campuses abroad. The acceptance of the certification/credit given by the respective institutions should form the part of agreement. The eradicated Indian universities or institute of higher education should have 15%-20% full payment seats for foreign students in every subjects/program as a supernumery position not cutting in to the avail seats of Indian students. In order to have an international context in education the course content should focus on requirements of job market and should have provision for innovative and flexible program. Indian universities should be allowed to offer program through twinning franchisee as well as distance mode.

Foreign students studying in India should have, work permit for a period of three months per year. Total duration of work permit would not exceed one year or twelve months.

Indian education system is not able to compete with global standard. However to make them equally compatible we need improvement in the following areas by autonomous colleges as well as others. Admission criteria Evaluation pattern Program design Syllabus pattern Autonomy in administration Condition for new teacher Infrastructure standard Creativity base learning Practical implementation

Government aid colleges:

In government aid colleges wastage of resources are obvious. Instead of running government aided collages if join venture between private players and government grant providers should be established. Now government should provide grant as borrowed money to private players. By collaboration on the one hand it removes the private monopoly and on the other hand government can maintain its control on those colleges.

Our higher education system has grown enormously in last five decades. India has one of the worlds largest higher education systems, which is managed by the University Grants Commission (UGS). Over the decades, literacy rates have shown a substantial improvement. The total literacy rate, which was only 18.33 percent in 1951, rose to 52.21 percent in 1991 and further increased to 65.4 percent in 2001. Education has been in prime focus throughout Indias development plans. As against 2820 languages in the entire world, as many as 325 languages are effectively used in India alone. India spent 4.11% of its GDP on education during 2000-2001.

Prevailing Traders:
Up till now we have seen major areas governing higher education in India. As from the study, we found the following trends in present higher education system.

1. Budget Allotment Trend: (Rs. In million)

In the academic session 1990-2000, UGS provided funding to the universities to the tune of exceeding Rs. 9 million. Both central and state level budget has gone up. Central universities (Maintenances expenditureRs.6059.10 million, Development assistance Rs.1066.40 million). State universities (Grant Rs.1435.10 million). (Indian scenario, in introduction) From 1950 to 2002 every year expenditure on higher education is increasing. Sometimes due to environmental factors leads minor fluctuations in it like: Increase in foreign deficit, Depreciation in rupee value, Increased in non-plan expenses of last year budget Others The allocation for education has, over the years increased significantly. Plan outlay of education has increased from Rs. 151 crore in the first five-year plan to Rs. 42850 crore in the 10th five year plan (2002-07). (28.21 million in higher education) The expenditure on education as a percentage of GDP also rose from 0.664 % in 1951-52 to 4.11% in 2000-01. the outlay for education in the 10th five year plan i.e. Rs. 42850 crore, is higher than the ninth plan outlay of Rs. 24908.38 crore by 1.7 times. Out of the total spending on education sector by government, it spends 30.25% on higher education. (Indian Scenario)

2. Brand-drain trend:
A long-standing concern for India has been its brain drain. The majority of India students who study in the United States, for example, do not return home. India is eager to make it s own universities more attractive for foreign students. Every year ratio of Indian students going abroad for further studies is increasing. More than 100,000 Indians are currently studying in the US, England, Canada, Australia, New Zealand and Ireland. The following are the main reasons behind it. Lack of job opportunity in India after further studies. Government scholarship Better education facilities & qualities. Flexibility of education in foreign countries.

INTERNATIONAL STUDENTS STUDYING IN US IN 2002-2003. COUNTRY India China Korea Kenya Indonesia Thailand Malaysia %CHANGE NUMBERS 12 2 5 11 -10 -14 -11 74603 64757 51519 7862 10432 9982 6595

Source: 2nd November 2003 Times of India The above table shows the comparison of migration of India students to those rests of world. India is marketing remarkable change in this field. As compare to last year total % change is 12% and the no. of students rise to 74603 in US. This is just comparison of US but it also applied to other developed countries in the world like UK, New Zealand, Germany etc.

3. Innovation Trade:
UGC is going to restricting Indian higher education system. To match Indian higher education with global trade (as LPG programme has contributed a lot) they found out the areas in which modification and implementation are required. The following changes are going on: UGC has adopted a more hands on style of evaluating the academic performance of colleges & universities through its subsidiary the National Assessment and Accreditation Council (NAAC)- increasingly NAACs evaluation process is impacting the disbursement of UGCs grants and allocation of funds to institutions of higher education. Committee for conducting continuous research and finding out major areas (including sub areas), where implementation is required while working with any statutory bodies Suggestions for restructuring of: Admission test Fees structure Syllabus pattern Evaluation pattern Colleges and universitys administration norms Autonomy in running any programme Foreign players policy implementation Legislation governing higher education system Allocation of resources on performance basis to various institutes Up gradation of infrastructure on technology development basis Qualitative improvement in education Promotion of innovative ideas To make more flexible system In a highly competitive market even though there is enough potentiality of market, many numbers of players are entering in it but the question is how to survive in the competitive world. In the age of cut through competition existing as well as new players has to provide better quality education. Those who are able to cope up with innovative ideas they can get competitive advantage (Political & Legal factors)

4. Professional Institute:

(Year 1990 to 2002 Admissions in professional institutes) Census of India, 2002 From 1991 (LPG Programme) has been started to open the door of Indian economy. Gradually, Indian higher education system has allowed private players to start self-finance colleges. As market becoming wider by way of Upper middle, middle-middle, lower middle segments of the society becomes the potential of Indian higher education system Per capital income, increase with compare to other developing country. Living standard of people rising Technological development Socio-economic factors changes Level of poverty reduces Students are ready to take admission in self-finance colleges and quality of education is improving Hence, by this way gradual development of professional institutes has been noted. (Indian scenario (5))

5. Internationalization:
Internationalization is a major trend in higher education. It is also a worldwide phenomenon. The elements of globalization in higher education are wide spared and multifaceted. They include flows of students of across borders: it is estimated than more than 1.6 million students now study out side of their home countries, with more than 547000 studying in the US.

India is concerned about the more than 200 foreign academic institutes using English as the main language of instruction and with a large distance education university (IGNOU), India is in a unique position among developing countries to be a significance participant in international higher education. There are 2 ways of internationalization: Foreign players are entering in the Indian market Indian students are going abroad for further studies As foreign universities are running in the Indian market, in 2002 (as per UGC circular) there are 118 universities (including deem) along with privates institutes running under the foreign universities We following points show its implication: Foreign universities runs programme framed as per their home countries market scenario. Sometimes they offered courses even on excepted in foreign universities They are trying to provide better quality education to Indian students so they are creating strong competition among many Indian grant aid as well as self finances colleges. In case of Indian higher education market, as compare to global standards we are facing inferior quality in grand aid colleges because of: Poor implementation of programs Lack of professional teachers High student Teachers ratio(1:50) in higher education in general end (1:24) in professional colleges Wastage of resources Lick of finance and other resources Now level of competition is increasing, improvement in Indian higher education is being noted. Two important volumes trace the flows of students, patterns of foreign study, and new initiatives in two key countries, the United States and Britain. (Global Prevailing Trend, Indian Scenario (5))

6. Collaboration:
Todays market becomes more flexible and speedy changes are noted in any area. The new trend arise is collaboration between home and foreign players to design polices and implement those programme. Today world become village

and technology can transfer information in even seconds, students have to perform in the international market. (Political factors)

7. Approval trend:
UGC and other statutory bodies are going to liberalize their norms and regulation for approving new institutes and universities. And entry becomes easy with compare to last few decades. LPG programme has changed the picture of Indian higher education. (Political factor)

8. Total No. of students:

As education becomes necessity of major parts of society, more and more students are entering in higher education. Every year increment in enrollment ratio of higher education. (Indian Scenario)

9. Types of educational institutes:

The evolution of variety of courses resulted in to different types of institute. Now more and more private players are entering into the Indian higher education sector. The quality of education is also improving. (3.2)


Quality of education:

Number of new modifications has lead to changes in quality of education. UGC has framed norms for evaluating various institutes. By this way, improvement in quality of education is noted than last few decades. (Indian Scenario) (8), political factor (4))

11. Research oriented learning:

For improving the job potentiality, restructuring in learning pattern has been noted. Research based learning is improving. (Political factors 4.6)

12. Infrastructure development:

Increasing number of players leads more competition. For improving infrastructure, UGC is implementing some infrastructure norms. (Political factors 5.2) Internationalization and Globalization of Indian education opens the door for growth, development and advancement in this area. Now as contribution of services in overall national income is increasing up to 52.1% in 2002. Thus, we can conclude that higher education sector is growing day by day and in future India will stand among the most powerful countries in the area of higher education. As India has more market potentiality than other developing countries, it can develop and grow rapidly to cope up with the global demand.

Global Demand for International Education to 2025:

According to IDP forecasts, the global demand for international higher education is set to exceed 7 million students by 2025. This represents over 4 times the global demand in 2000. Understanding where this demand will come from, by region & country, & its wide-ranging implication for the future of the Indian education industry. We can highlight some of the future treands, which will show the predicted scenario of higher education in India: From 2004, Indian government has permitted Foreign Direct Investment in higher education system, which will bring inflow of money & will solve the problem of scarcity of financial resources. The value of education will grow high, and to develop career higher education will become compulsory need.