Higher education serves as the backbone of national progress, providing intellectual capital, fostering innovation, and shaping the future workforce. In India, public-funded state universities, recently termed as State Public Universities (SPUs) in a NITI Aayog report, stand as a pivotal force in shaping the country’s educational landscape. With 495 institutions constituting over 42% of India’s university-level institutions (ULIs), their role is indispensable in achieving the ambitious objectives set by the National Education Policy (NEP) 2020. However, as India aspires to elevate its global standing in education and economic growth, the pressing need for reform, investment, and strategic policy interventions in SPUs and self-financed private universities (SFPUs) alike cannot be ignored.
The issue at hand is twofold: while SPUs continue to struggle with financial constraints, faculty shortages, and governance inefficiencies, self-financed private universities face challenges of affordability, quality retention, and lack of access to public funding. Addressing these issues holistically is imperative to ensure that higher education in India does not remain bifurcated into two isolated systems—one struggling with funding and autonomy, and the other grappling with sustainability and access to financial support.
The Enduring
Significance of State Public Universities
SPUs have historically played a crucial role in educating millions of students across diverse socio-economic backgrounds. Their contributions in producing skilled professionals, researchers, and entrepreneurs have significantly impacted India’s economic and scientific advancements. Recognizing this, the 11th Five-Year Plan allocated over ?16,000 crore for their revival, followed by the launch of the Rashtriya Uchchatar Shiksha Abhiyan (RUSA) in the 12th Plan to enhance infrastructure and academic quality. However, despite these efforts, financial support has remained inconsistent, as evidenced by the actual expenditure of just ?186 crore on RUSA in 2023-24 against the budgetary allocation of ?1,500 crore. The recent Pradhan Mantri Uchchatar Shiksha Abhiyan (PM-USHA) promises renewed focus with a budget allocation of ?1,815 crore in the 2025 Union Budget, but whether this will be effectively implemented remains to be seen.
The NITI Aayog’s report, Expanding Quality Higher Education through States and State Public Universities, highlights that strengthening SPUs is no longer optional but a necessity. It underlines their strategic positioning to cultivate talent for India’s future economic and technological growth. However, systemic issues such as inadequate infrastructure, insufficient faculty recruitment, poor student-teacher ratios, and the reliance on contractual appointments continue to plague these institutions. Governance inefficiencies further exacerbate the situation, affecting curriculum quality, industry collaborations, and career progression opportunities for students.
Self-Financed
Institutions: The Fastest-Growing Segment of Higher Education
While SPUs continue to battle financial instability, self-financed private universities (SFPUs) and self-financed private deemed universities (SFPDUs) have emerged as the fastest-growing segment in higher education. From an enrolment of 2.17 lakh students in 2011-12, SFPUs witnessed a meteoric rise to 16.2 lakh in 2021-22. SFPDUs also recorded substantial growth of 54.5% over the same period. These institutions, established through state assembly acts, function independently of government funding and rely entirely on tuition fees for sustenance.
However, the sustainability of SFPUs and SFPDUs is increasingly under threat due to the rising costs of higher education. Inflation, faculty salary revisions, dearness allowance increments, and compliance with stringent regulatory frameworks have collectively escalated operational expenses. This presents a dilemma—raising tuition fees could make education unaffordable for a large section of students, yet keeping fees low risks financial instability, making it difficult to retain qualified faculty and maintain quality standards. The consequence is a potential decline in academic excellence and an exodus of students seeking better options elsewhere.
Reevaluating Access to
Public Funding for Private Higher Education
A contentious issue in higher education policy is whether self-financed private institutions should receive public funding. The prevailing argument against such funding stems from concerns over private profit-making. However, this perspective may no longer be entirely valid, as these institutions are not legally barred from generating profit. Furthermore, they operate under stringent regulatory frameworks similar to public-funded universities, ensuring accountability and adherence to quality standards.
If India is to truly achieve the NEP 2020 target of a 50% gross enrolment ratio (GER) in higher education by 2035, a more inclusive funding approach is required. While public resources should primarily support SPUs, selective funding for research, development, and quality enhancement in self-financed institutions should not be ruled out. A possible model could involve competitive grants and research fellowships, allowing both public and private institutions to compete on merit rather than institutional categorization.
The Way Forward: An
Integrated Approach to Higher Education Reform
For India to build a
globally competitive higher education ecosystem, a multi-pronged approach is
necessary:
Enhancing Public
Investment in SPUs
Increased and sustained financial support for SPUs is non-negotiable. The PM-USHA initiative must ensure timely and adequate disbursement of funds, focusing on upgrading infrastructure, faculty recruitment, and research capabilities. Moreover, governance reforms are critical to improving autonomy and accountability in university administration.
Innovative Funding
Models for Private Institutions
Instead of outright public funding, a structured model of research grants, tax incentives for quality improvement initiatives, and industry partnerships can provide financial relief to SFPUs and SFPDUs. Such models exist in other countries, where private institutions benefit from public funding without compromising accountability.
Industry-Academia
Collaboration
Both SPUs and private universities must strengthen their ties with industries to enhance research output, improve employability, and secure alternative funding streams. Corporate-sponsored research, incubation centers, and work-integrated learning models can bridge the financial and skill gaps in higher education.
Quality Benchmarking
and Accreditation
A unified accreditation framework ensuring periodic quality audits across all institutions—public and private—would instill greater accountability and improve education standards nationwide. A focus on learning outcomes, faculty qualifications, and research productivity should guide accreditation policies.
Student-Centric
Policies and Financial Aid
Financial constraints should not deter students from accessing quality education. Expanding scholarship programs, interest-free education loans, and flexible fee structures could ease the financial burden on students, ensuring equitable access to both public and private institutions.
A Unified Vision for
Higher Education
The future of India’s higher education system cannot hinge on a fragmented approach that isolates public and private institutions in separate silos. Both SPUs and self-financed institutions play a crucial role in meeting the growing demand for quality education. While SPUs remain the backbone of affordable, inclusive higher education, private institutions bring in much-needed flexibility, innovation, and scalability.
A well-balanced policy
framework, driven by equity, excellence, and financial sustainability, is
necessary to harness the strengths of both sectors. If India aspires to become
a knowledge economy and a global leader in education, it must bridge the divide
between public and private higher education institutions, ensuring that
quality, accessibility, and affordability remain at the heart of the nation’s
academic growth.
(Views
are personal. Email: dipakkurmiglpltd@gmail.com)
