The Economics of Higher Education in India (2000–2019): Navigating Challenges and Unlocking Opportunities

Abstract

The period of 2000-2019 was simultaneously challenging and opportune for higher education in India. Given the very low percentage of government funding for the sector vis-à-vis the GDP, the sector experienced gigantic funding deficits. As a consequence, it suffered from insufficient infrastructure and scarce multidisciplinary research, with huge regional inequalities - city-region universities compared to rural ones. The application-based system and increased focus on standardized testing favoured the students from the richer strata, and the enrollment rates among the economically weaker sections declined due to the increasing tuition fees. However, programmes such as RUSA and IoE measures enhanced the infrastructure and faculty quality, which helped in improving the global competencies. The use of ICT tools and e-learning modules such as SWAYAM kept the teaching-learning environment vibrant. International cooperation incorporated best practices, which enhanced research activities and student exchange programmes. Higher education contributed to economic development through knowledge and skill building, innovation, and entrepreneurial growth, thus making it an investment for national prosperity.