India's chief economic adviser Anantha Nageswaran has called for states to have a bigger role in driving the next phase of higher-education reforms, arguing that India’s ability to convert its demographic advantage into long-term growth will depend on how quickly universities adapt to changing economic and technological realities.
Speaking at the CII Global Higher Education Summit in New Delhi, Nageswaran said states must move away from a high-control approach towards stewardship, address faculty shortages through flexible mechanisms such as professors of practice, and shift the focus of regulations from inputs to outcomes. A professor of practice is a specialized faculty position designed to bring industry experts, practitioners, and professionals directly into the classroom.
He also stressed the need for a more entrepreneurial approach to public administration, and for financing of higher education institutions to be based on differentiated roles and measurable outcomes rather than uniform rules.
Regulatory overhaul
The CEA’s remarks come against the backdrop of the government’s move to overhaul higher-education regulation through the Viksit Bharat Shiksha Adhishthan Bill, 2025, which aims to reduce regulatory control, strengthen accreditation and shift oversight towards outcomes, while giving institutions greater autonomy. The bill was introduced in the Lok Sabha on 15 December and subsequently referred to a joint parliamentary committee for wider scrutiny.
The bill seeks to replace the existing regulator-heavy framework by creating a single overarching body for higher education and doing away with multiple layers of control. Its areas of focus include reducing regulatory oversight, shifting from input-based to outcome-based regulation, enhancing institutional autonomy, promoting multidisciplinary education and research, and improving transparency and accountability in line with the National Education Policy, 2020.
Experts divided on new bill
Some educators and startup founders have welcomed the bill while others have criticised it for introducing excessive centralisation.
Dr Sanjeet Singh, pro vice-chancellor of Marwadi University, a private university in Rajkot, said, “The Viksit Bharat Shiksha Adhishthan Bill is a decisive step in repositioning Indian higher education from degree-focused learning to capability-led nation building. It empowers universities to translate research into real-world impact. We have already patented indigenous technologies. This framework strengthens our mission to produce ethical innovators and globally competitive talent for India’s future."
Arjun Mohan, founder of startup consulting firm EdStart, said, “The UGC’s role as both a granting authority and a regulator was somewhat complicated. Moving to a clearer, cleaner regulatory structure is a positive step, as it brings more transparency and clarity in oversight and registration." He added that the bill seeks to replace the UGC-led model by clearly separating regulation, accreditation and funding functions under a streamlined institutional framework.
However, Dr Shyma Jose, assistant professor of economics at Jesus and Mary College, Delhi University, said, “The new bill represents an excessive centralisation of higher education, stripping existing bodies like the UGC, AICTE, and NCTE of their regulatory powers. By separating funding from regulation, it risks turning financial support into a tool for rewarding or penalising institutions based on ideological beliefs of the ruling party at the Centre."
She added, “Such a centralised framework could lead to punitive annual audits, heightened job insecurity, steep fee hikes, and further privatisation of higher education. Moreover, the commission’s governing structure appears dominated by bureaucrats rather than academics, with no clear provisions for ensuring representation of marginalised groups."
Demographic window
The CEA highlighted that higher education reform is becoming ever more urgent as India approaches a demographic inflection point, with millions of young people expected to enter the workforce over the next two decades. “The quality, relevance and adaptability of universities will determine whether this demographic dividend translates into sustained economic growth or becomes a missed opportunity,” he said.
Nageswaran also called for deeper industry engagement in curriculum design, research and governance, noting that closer collaboration could help align education with labour market needs. “Industry can co-design curricula, offer credit-bearing internships, support applied research, share infrastructure, and participate meaningfully in governance,” he said, adding that cooperation among the union government, states, industry and citizens could help India position itself as a global hub for learning and ideas.
The CEA said the global higher education landscape was undergoing a structural shift, with traditional destination countries facing demographic, fiscal and political constraints, and Asia emerging as a new centre for learning, research and innovation. This, he said, presented India with an opportunity to attract international students, provided domestic institutions were equipped to compete on quality and outcomes.
According to the India Brand Equity Foundation (IBEF), a commerce ministry body, India's education market is growing rapidly and is projected to touch $313 billion by FY30, up from $117 billion in FY23. Higher education alone was valued at $68.06 billion in 2024, and is expected to nearly double to $134.84 billion by 2033, at a compound annual growth rate (CAGR) of 8.1%. The K-12 segment, valued at $48.9 billion in 2023, is also growing quickly and is estimated to hit $125.8 billion by 2032, at a CAGR of 10.7%.
One nation, one regulator
Speaking at the event, Anil Sahasrabudhe, chairman of the National Education Technology Forum, said recent reforms have been laying the foundation for a more student-centric and future-ready higher education ecosystem. He said the proposed regulatory framework aimed to bring all higher education regulators under a single umbrella with single-window approval, allowing institutions to offer multidisciplinary programmes with greater ease.
Highlighting the role of the National Education Policy, 2020, Sahasrabudhe said initiatives such as the National Credit Framework and digital enablers such as APAR ID were giving students greater flexibility through modular learning pathways and verifiable, paperless academic credentials.
While emerging technologies such as artificial intelligence, augmented and virtual reality, and digital platforms are powerful tools, he said human intelligence, ethics and values must remain central to education.
Naushad Forbes, past president of CII and chairman of the CII National Higher Education, R&D, Technology and Innovation Council, said the most durable source of resilience for any economy is the quality of its human capital. Forbes, who also spoke at the event, argued that economic transformation depends not just on generating knowledge but on helping skilled individuals convert ideas into practical outcomes. He also called for a significant increase in public research funding within universities and greater institutional autonomy.
Corporate participation growing
The emphasis on state-led reforms and outcome-based regulation in higher education aligns with the evolution of corporate participation in education. A CII study on cosporate social responsibility (CSR) in education, released at the CII summit on Wednesday, noted that education has emerged as the single largest area of corporate social spending in India, accounting for nearly a third of total CSR expenditure, or about ₹12,000 crore in FY24.
The study said most CSR-funded education programmes are now aligned with national priorities such as foundational literacy and numeracy, skill development and rural inclusion, areas in which state governments play a decisive role in implementation.
However, the report also flagged structural gaps that reinforced the CEA’s call for institutional reform, particularly faculty shortages, uneven regulatory capacity and weak sustainability once funding cycles end. Corporates report that while learning outcomes and access have improved, long-term continuity depends heavily on stronger public institutions and clearer governance frameworks, especially at the state level, it said.
The report said while CSR in education is entering a more mature phase, with rising year-on-year investments and better monitoring systems, it has limited influence on systemic reform.