India has made significant progress in primary education, yet its investment in higher education and research remains inadequate. While middle-income nations like Brazil, South Africa, Indonesia, and Mexico allocate between 0.8% and 1.5% of GDP to higher education, India spends only 0.6%. This shortfall raises concerns about the country’s commitment to a knowledge-based economy and its ability to leverage its demographic dividend.
Underfunding and Its Consequences
Higher education funding reflects a nation’s priorities. However, in India, sectors like defence, infrastructure, and subsidies receive greater allocations, while higher education remains underfunded. The situation worsened with COVID-19, which shifted resources to healthcare and economic recovery. As a result, households bear a higher financial burden, with 15.3% of rural and 18.4% of urban household expenditures dedicated to higher education.
State universities, serving the majority, face chronic underfunding, leading to:
- Overcrowded classrooms and outdated curricula
- Insufficient infrastructure and limited research funding
- A two-tiered system, where elite institutions like IITs and IIMs thrive while regional universities struggle
The Research and Innovation Deficit
India’s R&D spending is just 0.7% of GDP, far below the global average of 1.8%. This limits innovation and global competitiveness, affecting progress in sectors like technology, healthcare, and manufacturing. A World Bank report (2021) highlighted that only a fraction of Indian universities meet international research and quality benchmarks.
The Path Forward: Policy Reforms and Increased Investment
Despite challenges, initiatives like RUSA and NEP 2020 have expanded access. However, quality improvement remains neglected. Bridging the gap requires:
- Higher public spending on education
- Strengthening state universities with better infrastructure and faculty support
- Incentivizing research and innovation through increased R&D funding
- Reducing regional disparities in higher education access
Higher education is a public good, not a privilege. India must prioritize long-term human development over short-term economic gains to achieve Sustainable Development Goal 4 (SDG 4). Investing in education is essential for fostering innovation, social mobility, and global competitiveness.
