Rohini, The problem with an incentive based approach is that it ignores those who cannot offer an incentive. What would be the use of this industry (bookes / educationsla material etc) --- to a poor kid who cannot afford books. The only solution is an efficient public school system. Without it, any incentive based system would result in distortionary effects. The private industries could supplement the public school system. While I disagree with the tone and manner in which you have been criticized, perhaps we all need to climb out of our ivory towers and unlearn some of the prejudices that we have because of who we are --- before we discuss matters of state policy. And when I say "We" - I include myself and all others who have been educated in private schools or in other ways enjoy the advantages of a rapidly developing - and increasingly exploitative- India.