New Delhi: Industry body Assocham has asked deregulation of higher and technical education saying the Government’s control over it is costing India a whopping foreign exchange outflow of Rs 50,000 crore per annum.
Nearly 1.2 lakh students leave the country every year and the government collects Rs 7,000 crore of revenues through imposition of cess, which is utilised for subsidies purposes but not for creating additional institutions, it said in a paper on ‘Licensee Raj and its implications on higher and technical education´.
The total amount spent on education is about Rs 91,000 crore per year in which 15 per cent of it goes to Center and remaining 85 per cent to the states and meets only 13 per cent of our higher education demand, it said, adding that this makes it necessary that the foreign exchange loss of Rs 50,000 crore per annum is arrested without any further delay to create IIMs and IITs.
“The license raj needs to be scrapped to permit Indian industry to build excellent management and engineering institutions to fulfil the demand-supply gap and create quality education,” Assocham President Venugopal Dhoot said.
The paper revealed that the total expenditure for education is nearly 8 per cent of GDP, about 3.3 per cent from government and 4.7 per cent from private participation. Most of this private funding is confined to urban areas where only 30 per cent people stay. This includes funding of unaided school and colleges, capitation fees, payment for students studying abroad, tuition classes, coaching classes and the like.