India’s Education Spending Under Scrutiny

January 4, 2025

India’s education system faces challenges according to a recent study. The report compares educational investments across eight countries, revealing India’s stagnation in spending. The Confederation of Indian Industry (CII) released the study, which advocates for an increase in India’s education budget to 6% of GDP. This recommendation aligns with global standards and aims to elevate the quality of education in the country.

Overview of the Study

The study titled ‘Comparative Study of School Education Systems’ evaluates eight countries – India, Australia, China, Indonesia, Sweden, Thailand, the UK, and the USA. It spans the years 2018 to 2023, providing a comprehensive analysis of education spending and policies. The findings indicate that India’s education spending has remained stagnant between 2.7% and 2.9% of GDP over the past six years.

Global Education Spending Trends

The report marks stark contrasts in education spending. Developed nations like Sweden allocate between 6.7% and 6.9% of their GDP to education, while the UK spends 5.3% to 5.6%. Developing countries such as Indonesia and Thailand also exceed India’s spending, with allocations of 3.7% to 4.3% and 4.0% to 4.3%, respectively. The study puts stress on the urgent need for India to increase its spending to align with global benchmarks.

Comparative Growth Rates

The report notes that while Australia experienced an 8% increase in education spending, China recorded a modest growth of 2.4%. In contrast, India’s spending showed no growth during the same period. Indonesia and Sweden exhibited minor fluctuations, with Indonesia declining by 2.8% and Sweden returning to its baseline. These trends highlight India’s critical need for strategic investment in education.

Importance of Strategic Investment

The report asserts that India’s low allocation for education signifies a critical imperative for national investment. The consistent range of 2.7% to 2.9% of GDP is lower than the 5-7% spent by many developed economies. This underinvestment has serious implications for the quality of education and overall development in India.

Data Sources and Methodology

The study employs a strategic sampling approach, relying on secondary data from various reliable sources. These include government reports, international organisations like the OECD and UNESCO, and academic publications. The methodology focuses on key areas such as educational structure, funding, curriculum, equity, and vocational training.

Implications of NEP 2020

Since the introduction of the National Education Policy (NEP) in 2020, the Government of India has initiated several reforms aimed at improving the education sector. An official from CII emphasised that NEP 2020 promotes holistic learning and supports children’s overall growth. The policy aims to assess India’s educational standing compared to other nations and develop recommendations for effective implementation.

NEP 2020 focuses on holistic learning for children.
The OECD is an international organisation promoting economic growth.
UNESCO stands for the United Nations Educational, Scientific and Cultural Organisation.
Sweden’s education spending ranges from 6.7% to 6.9% of GDP.
Australia’s education spending increased by 8% recently.

Recommendations for Improvement

The study provides several recommendations for enhancing India’s education system. It suggests increasing the education budget to meet the 6% GDP target. The report also advocates for the implementation of vocational and digital education as part of the NEP 2020 framework. By learning from best practices in other countries, India can improve its educational outcomes.

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