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Indian students spend Rs55 cr a year on higher education

Indian students spend Rs55 cr a year on higher education
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First Published: Mon, Mar 17 2008. 04 00 PM IST
Updated: Mon, Mar 17 2008. 04 00 PM IST
New Delhi: Over Rs55,000 crore per annum is repatriated out of India on 4,50,000 students who go abroad for pursuing a professional career since they are not accommodated in domestic institutions in the field of management, accounting, engineering and chartered accountancy.
According to a report brought out by Assocham, it is recommended that educational institutions be set up in India on the lines of IIT and IIM in order to restrict the outgo of students.
The paper highlights that vocational education and training are still not a priority. China which has over five lakh vocational schools as against 3000 in India where technical education also continues to be controlled by the centre, as a result of which shortage of seats and opportunities in high quality education are missing.
About 99% of all entrance examination participants in the IITs and IIMs are rejected due to capacity constraints. The rejected top 40% get admission anywhere in the world provided they pay for it. Over 1,50,000 students every year go overseas for university education which costs India a foreign exchange outflow of $10 billion per annum. This amount is sufficient to build many IIMs and IITs.
As a result of controlled higher education, human development index is very low in India leading to multiple problems such as corruption, population, poverty, unemployment, productivity, environment, HIV/AIDS, primary health, infa mortality, tourism etc.
The Paper recommends that if India wants to be a developed nation, it ought to put its house in order in the form of high class quality and human capital. Population growth in India is plus 1.6006 as against minus 0.033 in Germany, minus 0.088 in Japan and plus 0.39 in case of South Korea.
Key Findings
* Higher education in India is so subsidized that on an average, an IIT student pays only $120 per month as fees in IIT while those going abroad for pursuing a career shell out $1500 to $5000 per month in similar institutes in countries like USA, Canada, Australia, Singapore and UK
* If higher education is deregulated, there is no reason why India cannot earn $50-100 billion per year and provide at least 10-20 million additional jobs in the field of education alone
* Countries like Singapore are planning to have 1,50,000 foreign students and Australia has nearly 4 lakh foreign students which earns Australian dollar 12 billion per year. India has only 27,000 foreign students and has no plans for any regulated increase because of controls in higher education
*The primary reason as to why large number of Indian students seeking professional accomplishments are forced to go out of the country and seek admission in foreign educational institutions is mainly because of a lack of capacity as Indian institutions are riddled with high capacity constraints
*This trend can be reversed with the opening up of a series of quality institutions with public-private partnerships by completely deregulating the higher education scene
* Vocational education percentage in India is at a meager 5% of its total employed workforce of 459.10 million as against 95% of South Korea, 80% of Japan and 70% of Germany. This makes a strong case for India to allocate a substantial percentage of its budgetary allocations to promote vocational education to make India a manufacturing hub
* In India’s organized sector, employment is estimated at 27 million as against 450 million of unorganized sector based on the 2005-06 government figures
* Likewise, percentage of youth enrolled for higher education while in South Korea is 80% and Germany and Japan 40% each, in India it is just 8%. Secondary school enrolment in India is just 35% against 100% of Germany, Japan and South Korea
* GDP per person per year in case of India is estimated $ 714 as against $38450 of Japan, $35061 of Germany and $ 18327 of South Korea. The GDP of Germany for 2006-07 is estimated at US$ 2875 and that of Japan $4883. South Korean GDP is estimated at $898 while in case of India it is just $806
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First Published: Mon, Mar 17 2008. 04 00 PM IST
More Topics: students | higher education | Assocham | IIT | IIM |