Education System of India: Its Functions, Drawbacks and Its Contribution

Why is India still a developing country and what is stopping it from being a developed country? This particular question strikes me every time when I read something about Indias education system. I see Indias education system as a stumbling block towards its objectives of achieving inclusive growth. Let me inform you about certain startling facts. India is going to experience a paradox of nearly 90 million people joining the workforce but most of them will lack requiste skills and the mindset for productive employment according to a report in DNA. India has about 550 million people under the age of 25 years out of which only 11% are enrolled in tertiary institutions compared to the world average of 23%. I wouldnt be laying too much emphasis on the drawbacks of Indias public education system because it has been an issue well debated over in the past and the main flaws have already been pointed out before. I will be focussing on how the education systems failure is leading to another social issue of income inequality and hence, suggest certain policies to improve Indias education system and reduce inequality. The really critical aspect of Indian public education system is its low quality. The actual quantity of schooling that children experience and the quality of teaching they receive are extremely insufficient in government schools. A common feature in all government schools is the poor quality of education, with weak infrastructure and inadequate pedagogic attention. What the government is not realising right now is that education which is a source of human capital can create wide income inequalities. It will be surprising to see how income inequalities are created within the same group of educated people.Let me illustrate this with the help of an example: Let us take P be an individual who has had no primary or higher education. His human capital is zero and hence it bears no returns. Let Q be an individual who completed his MBA from S.P Jain college and let R be an individual who completed his MBA from IIM Ahmadabad. The average rate of return for an MBA student is 7.5% (hypothetical). Q gets a rate of return of 5% and R gets a rate of return of 10% due to the difference in the reputation and quality of the management school. Let the income of P, Q and R be 1.In a period of 10 years, P will be having the same income as he does not possess human capital. For the same time period Q will earn an income of (1+0.05)^10=1.63 and R will earn an income of (1+0.10)^10=2.59. Now lets see what happens when the rate of return on human capital doubles. Earnings of P will not change since he does not have any human capital. Now Q is going to earn (1+0.10)^10=1.63 and R is going to earn (1+0.20)^10=6.19. Flabbergasting! As soon as return on human capital increases proportionately income inequality increases. With return on human capital doubling, QS income increases by 59% and Rs income increases by 139%.

The above example just shows the effect of the quality of human capital n income inequality. So if the government does not improve education system particularly in rural areas the rich will become richer and the poor will get poorer. Hence, it is imperative for the government to correct the blemishes in Indias education system which will also be a step towards reducing income inequality. Certain policy measures need to be taken by the government. The basic thrust of government education spending today must surely be to ensure that all children have access to government schools and to raise the quality of education in those schools. One of the ways in which the problem of poor quality of education can be tackled is through common schooling. This essentially means sharing of resources between private and public schools. Shift system is one of the ways through which common schooling can be achieved. The private school can use the resources during the first half of the day and the government school can use it during the second half. It is important to remember that the quality of education is directly linked to the resources available and it is important for the government to improve resource allocation to bring about qualitative changes in the field of education. Common schooling is one of the ways in which government can use limited resources in an efficient way and thus improve resource allocation. Another reason for poor quality of education is the poor quality of teachers in government schools .Government schools are unable to attract good quality teachers due to inadequate teaching facilities and low salaries. The government currently spends only 3% of its GDP on education which is inadequate and insufficient. To improve the quality of education , the government needs to spend more money from its coffers on education. Most economists feel that the only panacea to the ills of the public schooling system is the voucher scheme. Under the voucher system, parents are allowed to choose a school for their children and they get full or partial reimbursement for the expenses from the government. But however, the voucher system will further aggravate the problem of poor quality of education in government schools. Such a system will shift resources from government schools to private schools. This will worsen the situation of government schools which are already under-funded. Moreover, if the same amount given as vouchers can be used to build infrastructure in schools then the government can realize economies of scale. For example- The centre for civil society is providing vouchers worth Rs 4000 per annum to 308 girls. This means that the total amount of money given as vouchers is Rs 1232000. If the same amount can be used to construct a school and employ high quality teachers who are paid well then a larger section of the society will enjoy the benefit of education. A school can definitely accommodate a minimum of 1000 students. I hope government takes certain appropriate policy measures to improve the education system otherwise inequalities are going to be widespread and Indias basic capabilities will remain stunted. Let us strengthen the case for a stronger education system. India market introduction Last updated August 2011

Market environment With a population of 1.21 billion, India accounts for approximately one-sixth of the worlds population and according to the 2011 Census results this shows a 17.64% increase in the population over the last ten years. It is expected to overtake China by 2030 and will then become the most populated country in the world. The economy of India, when measured in USD exchange-rate terms, is the tenth largest in the world, with a GDP of USD 1.53 trillion (2010). It is the fourth largest in terms of purchasing power parity. It is the second fastest growing major economy in the world, with a GDP growth rate of 8.5 per cent for the fiscal year 2010-11. Growth is expected to average 8.7% a year over the period from 2012/2013 to 2015/2016. India's large service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sectors contribute 28.6% and 14.6% respectively. Agriculture is the predominant occupation in India, accounting for about 52% of employment. Major industries include telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, information technologyenabled services and pharmaceuticals the labour force totals 500 million workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish. In 2009-2010, India's top five trading partners are United Arab Emirates, China, United States, Saudi Arabia and Germany. While 181 million have been added to the population since the last census, this growth rate is slowing down, and in turn a decline in national poverty rates has also occurred 45.3% in 93/94 to 37.2% in 04/05. This still means, however, that nearly 450 million people in India live in poverty. This has a severe social and economic impact and a major bearing on educational investment. India nevertheless has the second-largest education system in the world, with more than 115 million children attending primary school and more than 26 million students enrolled in tertiary education. Education in India falls under the control of both the Union Government and the states, with some responsibilities lying with the Union and the states having autonomy for others. India's improved education system is often cited as one of the main contributors to the economic rise of India. Much of the progress, especially in higher education and scientific research has been credited to various public institutions. The private education market in India is merely 5% although in terms of value is estimated to be worth $40 billion in 2008 and will increase to $68 billion by 2012. As of 2011, there are 1,522 degree-granting engineering colleges in India with an annual student intake of 582,000, plus 1,244 polytechnics with an annual intake of 265,000. However, these institutions face shortage of faculty and concerns have been raised over the quality of education. India's higher education system is the third largest in the world, after China and the United States. The main governing body at the tertiary level is the University Grants Commission (India), which enforces its standards, advises the government, and helps coordinate between the centre and the state. Accreditation for higher learning is overseen by 12 autonomous institutions

established by the University Grants Commission.

Market characteristics The Indian education system is based upon 12 years of schooling. Teaching of English is compulsory in all states/union territories, generally in Classes VI to X. Students are attracted to the UK by shorter courses, reputation for quality, the opportunity to work while studying and after graduation, streamlined visa procedures, a safe environment, centralised admissions (UCAS) and family ties. India sends the second-largest number of people to the UK for further education after China. India and China together make up nearly one third of all non-EU students in the UK HE system (32.7 per cent), and the top five sending markets (China, India, USA, Nigeria and Malaysia) account for more than 50 per cent of non-EU students in HE in the UK. There has been an increase from 40 educational agents representing UK education in 1999 to more than 600 in 2011 with over 70 per cent of students going to the UK using their services. More than 25 UK universities have opened regional offices in India. US welcome the highest number of international students from India after China. The USA remains the dominant destination for Indian students, reflecting the fact that post-education opportunities in the country are perceived to be significantly higher than in other countries by Indian students. Indian students constitute the largest segment of international students in the USA, accounting for over 15% of its total international student population in 2009. The number of Indian students in the USA in 2010 grew to 104,897 from 103,260 in 2009 an increase of 1.6%. Meanwhile, Australia continues to market aggressively in India, emphasising the relatively low cost of its degrees, and the number of Indian students in the country grew 56% over the review period. However, applications from India appear to be slowing, in part because of the very high publicity received by a number of violent racist attacks on Indian students in Australia. Although the UK is far from perfect in this respect, it is perceived as a safer destination country than many others. Canada represents an easy option with immigration advantages, while New Zealand attraction is also linked to immigration. France and Germany having entered the market in 1997 have marketed themselves as affordable destinations with subsidised tuition fees. The number of Indian students choosing the UK remains comparatively high, thanks in part to the strong cultural links between the two countries, a very well established Anglo-Indian community, widespread family ties in the UK, and the efforts of the UKs universities to promote themselves in India. Indian student numbers in the UK grew by 224% from 2002/03 2009/10 and the long-term prognosis is good. The UK remains an attractive destination for many Indian students.

Market opportunities

India is predominantly a higher education market, approximately 70 per cent postgraduate, 30 per cent undergraduate. While the further education market is still relatively small, there is potential for growth, as there is a greater need for skills in a more service sector-led economy. As India has virtually no comprehensive vocational system of its own, possibilities also exist for consultancy from the UK further education. There is a limited market for foundation courses (except Art & Design), due to the large number of UK universities that accept Indian schoolleaving qualifications for undergraduate entry. British Council India believes that there is potential in developing partnerships and working with the private sector rather than student recruitment to the UK alone for long term sustainable growth. There is a very limited market in India for independent schools. Education UK India has organised exploratory missions promoting UK education in second and third tier cities apart from consolidating the markets in the metros. These mini exhibitions (Emerging markets campaign) were received positively in by students and also UK delegates that participated in these exhibitions remarking the fact that there were equal numbers of quality enquiries from the cities.

Our infrastructure and strategic education priorities India is divided into four regions, each served by a British Council office: Delhi, Mumbai, Chennai and Kolkata. British Libraries operate in Chandigarh, Ahmedabad, Pune, Bangalore and Hyderabad. Every office and British Library has public access and an Education UK resource centre. British Council India's strategy is to develop and expand both off and online services to reach more of our target audiences in more cities in India. Throughout the year Education UK is involved in addressing the student community via various outreach programmes conducted across cities in India. Education UK also creates platforms between the UK institutes and the local counter parts to understand and explore opportunities for partnerships and collaborations. With digital going strong Education UK ensures that their presence is maintained across the major web portals, student communities and virtual exhibitions. An essential part of our strategy revolves around changing perceptions of the UK, especially though our website and publications. The overall impact of our work in this field is to make the UK a more attractive destination in terms of both study and lifestyle. http://www.britishcouncil.org/eumd-emi-marketing-report-template.htm