Future Forward: A Roadmap for Growth and Transformation in Indian Higher Education

India is experiencing an exciting evolution in higher education.

With its huge population of about 1.4 billion increasingly recognizing the importance of learning, demand for quality education in India is skyrocketing. This trend is creating excellent opportunities to establish educational institutions that promise to be both a smart business move and a boon for the country’s progress. 

We have engaged with leading policymakers, management team members, and decision influencers in the Higher Education sector to understand the key drivers for transformation in private universities. Our aim is to identify and analyse the following: 

• The current state and future prospects of higher education in India. 
• The impact of the National Education Policy (NEP) 2020 on private universities. 
• Primary drivers contributing to growth and transformation within the sector. 
• The challenges faced during the transformation process in higher education. 

Higher Education in India

Over the last 10 years, the higher education sector in India has seen growth in almost all parameters, including: 

1. Universities

The number of universities in India has increased significantly from 2012-13 to 2020-21. In 2012-13, there were a total of 600 universities, out of which 209 were privately managed. By 2016-17, the total number of universities had risen to 864, with 312 being privately managed. The growth continued, and in 2020-21, India had a total of 1,113 universities, with 445 of them being privately managed. 

2. Colleges 

The number of colleges affiliated with universities in India has grown over the years. In 2012-13, there were 240 affiliating universities with 35,525 colleges under them. The majority (75%) of these colleges were privately managed. The number of colleges continued to increase, reaching 42,343 in 2019-20 and 43,796 in 2020-21. Among the colleges in 2020-21, almost 80% were privately managed, indicating the magnitude of the role played by the private sector in India’s higher education system. 

3. Students

Student enrolment in India’s higher education system has witnessed a vast amount of growth over the last five years. The number of students enrolled increased from 3.57 crore in 2016-17 to 3.85 crore in 2019-20 and further to 4.13 crore in 2020-21, representing an approximate growth of 15.89% over the five-year period. The Gross Enrolment Ratio (GER) in higher education for the age group of 18-23 years has also improved, estimated at 27.3 in 2020-21 compared to 25.6 in 2019-20, based on the 2011 population projection. 

In terms of the distribution of students across different types of universities in 2020-21, 73.7% of the total enrolled students are in government universities, while 26.3% are in private universities. This is despite the fact that government universities account for approximately 60% of the total universities in the country, while private universities make up the remaining 40%. 

The Impact of NEP 2020

The NEP 2020 envisions an education system rooted in Indian ethos that contributes directly to transforming India. It aims to instill among the learners a deep-rooted pride in being Indian, not only in thought, but also in spirit, intellect, and deeds, as well as to develop knowledge, skills, values, and dispositions that support responsible commitment to human rights, sustainable development and living, and global well-being, thereby reflecting a truly global citizen.

We are at the cusp of a transformation in the Higher Education sector in India. With the National Education Policy (NEP) 2020 coming into effect, we can expect some major changes in the next few years. The policy aims to achieve a 50% Gross Enrolment Ratio (GER) by 2035, up from the current 27.3% in 2020-21. This ambitious goal will require massive investments in infrastructure, capacity building, and regulatory changes. 

1. Ambitious Goals and Multidisciplinary Approach

One of the key features of the NEP 2020 is the promotion of multidisciplinary education and research universities. Students will have the option to choose from a wide range of subjects, allowing them to pursue a major in one field and a minor in another, such as Civil Engineering with Music, Physics with Fashion Design, or Law with Photography. Stand-alone agricultural, legal, health science, technical universities, or management schools will be encouraged to become multidisciplinary institutions offering holistic and multidisciplinary education. 

2. Encouraging Institutional Evolution

Over a period of 15 years, every affiliated or standalone college is expected to develop into either an autonomous degree-granting college or a constituent college of a university. The policy also places a strong emphasis on Open and Distance Learning Programs, with online courses and Massive Open Online Courses (MOOCs) playing an important role in achieving the 50% GER target. 

3. Increasing Global Participation

To further enhance the quality of education and promote global collaboration, the NEP 2020 encourages globally ranked universities to set up campuses in India. For example, Deakin University Australia is establishing an international teaching campus in India. Similarly, top Indian institutions will be encouraged to expand their presence globally, such as IIT Madras setting up its first international campus in Zanzibar, Tanzania. 

Drivers for Growth and Transformation

Institutes that expertly navigate through these changes should be able to reap growth in revenue, number of students, research output, quality of placements, and global ranking.  

1. Innovative and Flexible Academic Programs 

Innovative and flexible academic programs will play an important role in this transformation. Personalizing the educational experience based on students’ interests, strengths, and career objectives, offering multidisciplinary academic programs for the holistic development of students with broader and diverse skill sets, and introducing innovative programs that include internships, experiential learning, credit transfer, and non-traditional assessment focusing on students’ skills and competencies will be key drivers of growth. 

2. Research and Innovation

Research and innovation are another important aspect of the transformation. Indian universities (both public and private) are currently ranked low on original research and groundbreaking innovation. India invests only 0.69% of its GDP in research and innovation, compared to 2.8% in the United States, 4.2% in South Korea, and 4.3% in Israel. The number of researchers per million population in India is significantly lower than in research-focused economies like China (approximately 1,200 researchers), the USA (approximately 4,300 researchers), and South Korea (approximately 7,100 researchers). Research-focused universities with global academic and research tie-ups will gain tremendously and become an attractive option for students considering studying abroad. This will also have a long-term impact on the research and innovation culture in the country. 

3. Skill Development

Skill development is another key driver for growth and transformation. The Indian academic system is primarily designed for classroom education, but despite having a large pool of graduates, the country faces challenges with unemployable graduates. The impact of Artificial Intelligence (AI) is changing the opportunity landscape, with organizations increasingly shifting routine and process-based work to digital bots and expecting employees to move up the value chain. Skilling is gaining traction and value among employers due to the demand for industry-relevant skills. Skilling universities focusing on employability through specialized courses, vocational training programs, and internships are emerging. Collaborations with industries and professional organizations can further enhance the employability of graduates. 

4. Governance

Governance is another key aspect of this transformation. There is a clear case for distinction between ownership and management in higher education institutions. Administrative autonomy, adherence to purpose, academic freedom, diversity, inclusivity, transparency, and accountability are the bedrock of good governance. There is significant scope for improvement in this area. 

5. Global Accreditations and Partnerships

Global accreditations and partnerships will also play an important role in the growth and transformation of the higher education sector. Partnering with other institutions, universities, and colleges allows Indian Higher Education Institutions to leverage their respective strengths and resources to develop new programs, share expertise, and expand their reach in new markets. Collaborations support student mobility, faculty exchange, and research collaborations. Indian universities can now offer twinning, dual, and joint degree programs, which can be particularly effective for institutions looking to expand their presence in India’s rapidly growing higher education market. 

6. Technology Adoption

Technology adoption is fast emerging as a major differentiator for successful institutions. Implementing smart campuses, digital libraries, virtual classrooms, connecting multiple campuses, hybrid programs, automated administrative systems, and other initiatives can increase efficiency and reduce operational costs. Connecting students, faculty, parents, and alumni to build digital communities, student engagement, immersive experiences, and interactive learning via AR/VR, as well as adaptive and personalized learning experiences, will be crucial for the growth and transformation of the higher education sector. 

7. Inclusivity & Diversity

While the academia, especially in government sector has been in forefront of inclusivity due to statutory requirements, there needs to be a wholistic approach encompassing socio-economic background, gender, language, region and ethnicity that can reap reaping significant academic and societal benefits. Exposure to multiple cultures, languages, and perspective can help cultivate empathy, tolerance, and appreciation for diversity.

Diverse teams (students, teaching staff or administrators) can be innovative and better equipped to solve complex problems. When people from different backgrounds collaborate, they approach challenges from varied angles, leading to more innovative solutions and discoveries. Inclusivity & diversity is not just a buzzword or compliance requirement

Administrative Reforms in the Indian Higher Education Sector

The Indian government has taken several initiatives that can potentially transform the education sector, including the NEP 2020 and the Gujarat International Finance Tec-City (GIFT City). The NEP 2020 aligns with the United Nations’ Sustainable Development Goal 4 (SDG4), which emphasizes inclusive and equitable quality education. The policy strengthens India’s traditions and value systems while modifying and restructuring the educational ecosystem, including regulation and governance. 

GIFT City, a special economic zone and smart city in Gandhinagar, Gujarat, aims to promote India as a global financial, technology, and education hub. The Education and Research Zone (ERZ) within GIFT City is home to several leading academic institutions offering a range of undergraduate and postgraduate programs in finance, technology, management, and related fields. Foreign universities in the top 500 global rankings or reputed educational institutions in their home countries are eligible to set up International Branch Campuses (IBC) or Offshore Educational Centres (OEC) in GIFT City. 

While two Australian universities, Deakin and University of Wollongong have taken the lead in setting up campuses in GIFT City and will start classes in 2024, universities from other nations are also exploring their strategy for entry to Indian market via GIFT City.

Challenges in the Indian Higher Education Sector

1. Regulations and Compliance

The Indian higher education regulatory framework has been built over years and involves multiple authorities at the national and state levels, such as the University Grants Commission (UGC), All India Council for Technical Education (AICTE), National Board of Accreditation (NBA), and various state education boards. Red tape and delays in approvals for establishing new institutes, launching new programs, capacity expansion, and fees regulation can be challenging and time-consuming. 

2. Infrastructure

Infrastructure is another major challenge in the Indian higher education sector. While the government has been focusing on developing 167 Institutes of National Importance, including 23 IITs, 20 AIIMSs, 21 IIMs, 31 NITs, 25 IIITs, 7 IISERs, 7 NIPERs, 5 NIDs, 3 SPAs, 2 NIFTEMs, 7 Central universities, 4 Medical research institutes, and 12 other specialized institutes, there is a huge need to focus on other universities beyond metro cities. India requires major investments in physical (buildings, labs, equipment, computers, materials), digital (internet connectivity, digital libraries), and qualified manpower to deliver the desired academic outcomes. 

3. Funding

Funding constraints are another challenge faced by the Indian higher education sector. Private universities are relatively well-funded, but public universities carry a huge student population. Academic institutes need greater flexibility to attract and retain global talent, offer salaries on par with industry standards, and find funding for research, scholarships, and incubation centres. 

4. Qualified Manpower

Qualified manpower is a key differentiator for higher education institutions. In the last two years, almost all leadership search mandates from leading private universities included requirements such as academic excellence, prior experience, and willingness to lead the P&L with a focus on net revenue. Quality of publishing (h-index, citations) and/or quality of administrative roles, psychometric assessments, and global exposure in the context of education, research, teaching, and collaborations are also important factors. There are gaps between the available and desired talent, primarily in terms of prior experience and willingness to lead the P&L with a focus on net revenue. 

The Transformation of the Indian Higher Education Sector

The higher education sector in India presents multiple opportunities for growth, including multidisciplinary academic programs, online and distance learning programs, partnerships and collaborations with other institutions, and the development of high-quality executive education or continuing education programs. Institutions that adapt to changing market conditions and take advantage of new technologies and delivery models will likely see significant growth opportunities in the coming years. 

The future of Indian higher education sector looks bright, promising, and full of opportunities, driven by factors such as the country’s expanding middle class, the increasing number of private universities, the growing demand for skilled labour, and changes in regulatory processes. India has the potential to establish itself as a hub for high-quality higher education, not just for Indian students but also for international students. This transformation is imperative for the development of a knowledge-based economy and the social, economic, and intellectual growth of the country. 

About the Author

Adarsh Nigam is a Partner at Stanton Chase India and Stanton Chase Singapore. He is also the Regional Leader for Social Impact in the APAC region. He has more than three decades of corporate experience and is currently pursuing a Ph.D. in Management. 

He has led business development and strategy for multiple brands. He has vast experience in sales and marketing, training and development, and knowledge management. 

You can contact Adarsh by dialling +6580697157 or +919820100306. Alternatively, you can also send him an email at [email protected].