CII Report Flags India’s Education Spending, Suggests Reforms Inspired by Global Models

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Notebook with a pen on a table in a classroom at a school

India’s education sector faces significant challenges due to underinvestment, as highlighted by a recent Confederation of Indian Industry (CII) report. The study, titled “Comparative Study of School Education Systems: India, Australia, China, Indonesia, Sweden, Thailand, UK, and USA,” underscores that India’s education spending has stagnated between 2.7% and 2.9% of GDP over the past six years. To meet global standards, the report recommends increasing this allocation to 6% of GDP.

Education Spending Comparisons

The report provides a detailed analysis of education systems across eight countries, showcasing varying spending patterns:

  • Sweden: 6.7–6.9% of GDP
  • UK: 5.3–5.6%
  • Indonesia: 3.7–4.3%
  • Thailand: 4.0–4.3%
  • India: 2.7–2.9%

India’s stagnant allocation contrasts sharply with nations like Australia, which recorded an 8% increase, and China, which saw a 2.4% rise in spending over the same period.

Key Findings and Challenges

The study identifies key areas where India lags behind:

  • Gross Enrollment Ratio (GER): While primary-level enrollment is high at 103.4%, secondary-level GER is 79.6%, significantly lower than countries like the UK (100%), Sweden (100%), and China (92%).
  • Rural-Urban Disparities: Inadequate infrastructure, teacher shortages, and high dropout rates hinder equitable access to education.
  • Gender Gaps: Persistent inequalities limit opportunities for female students.

Globally, other countries face unique challenges, such as:

  • China: Stress and mental health issues from an academically intense system.
  • USA and UK: Financial disparities affecting resource allocation.
  • Sweden: Immigration-driven diversity challenges.

Recommendations for India

The report suggests actionable strategies to enhance India’s education system:

  1. Increase Spending: Raise the education budget to 6% of GDP.
  2. Infrastructure Development: Invest in rural areas to address disparities.
  3. Vocational Training: Expand apprenticeship programs and align them with industry needs, inspired by models in Sweden and Australia.
  4. Digital Education: Promote e-learning through platforms like DIKSHA and virtual labs.
  5. Teacher Training: Upskill educators and incentivize rural deployment.
  6. Disability-Inclusive Policies: Develop clear frameworks and allocate resources for special education.

Role of NEP 2020

The National Education Policy (NEP) 2020 is a cornerstone for reform, aiming to transform India’s educational landscape through holistic learning, vocational education from Grade 6, and reduced reliance on standardized exams. However, the report emphasizes that effective implementation, teacher training, and collaboration among stakeholders are critical to its success.

Dedicated task forces at state and national levels are recommended to oversee NEP 2020 initiatives, ensuring seamless integration of technology, vocational skills, and holistic learning frameworks.

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