Higher education sector challenges in federalism and commercialisation
Source:The Hindu ↗
Why It Matters
Provides a critical lens on contemporary educational reforms and their intersection with constitutional principles. It is essential for framing balanced answers in GS2 regarding the efficacy of NEP 2020, challenges to cooperative federalism in concurrent subjects, and issues of equity and quality in higher education.
Summary
An analysis of the systemic issues undermining India's education sector, structured around three primary critiques: centralisation, commercialisation, and communalisation. The article argues that the Union Government's approach to implementing the National Education Policy (NEP) 2020 undermines federalism by bypassing States, financialises higher education through debt-based funding via HEFA, and compromises institutional integrity through ideologically driven curriculum revisions and academic appointments.
Key Points
- Centralisation: The Union government is bypassing States in NEP 2020 implementation, notably by withholding Samagra Shiksha grants to force adoption of the PM-SHRI scheme and proposing UGC guidelines that sideline States in appointing university Vice-Chancellors.
- Commercialisation: The replacement of UGC block-grants with loans from the Higher Education Financing Agency (HEFA) forces public institutions to raise student fees, reducing accessibility while the NEP 2020 allegedly facilitates unchecked privatisation and omits explicit reference to the RTE Act.
- Communalisation and Politicisation: Revisions to NCERT textbooks and the dilution of academic appointment qualifications (e.g., 'Professors of Practice') in premier institutes are criticized as attempts to institutionalize ideological pliancy and alter constitutional ethos.
- Federalism Breakdown: Education is in the Concurrent List, but institutional dialogue has stalled; the Central Advisory Board of Education (CABE), meant for Centre-State consultation, has not convened since 2019.
Important Terms
National Education Policy (NEP) 2020
The 2020 framework aims to overhaul India's education system with a 5+3+3+4 school structure, multidisciplinary higher education, and foundational literacy goals, replacing the 1986 policy to meet 21st-century needs.
UPSC context
GS Paper II (Social Justice/Education); central to questions on structural reforms and human resource development.
Higher Education Financing Agency (HEFA)
A joint venture between the Ministry of Education and Canara Bank (NBFC) that provides interest-free loans for infrastructure in premier institutions, shifting higher education funding from traditional grants to debt-based financing.
UPSC context
GS Paper II (Government Policies); critical for analyzing the commercialization and financial sustainability of higher education.
PM-SHRI scheme
A centrally sponsored scheme to develop 14,500 'exemplar schools' implementing NEP 2020. It has faced federalism critiques for linking broader educational funding (SSA) to mandatory state participation through MoUs.
UPSC context
GS Paper II (Federal Structure); highlights tensions in cooperative federalism and conditional central funding.
Central Advisory Board of Education (CABE)
The oldest and highest advisory body on education in India, comprising Union and State representatives. It facilitates coordination and provides recommendations on policy implementation, curriculum, and administrative reforms.
UPSC context
GS Paper II (Statutory/Regulatory Bodies); relevant for discussions on consultative processes and federalism in education.
National Council of Educational Research and Training (NCERT)
An autonomous organization established in 1961 to assist central and state governments in school education. It develops the National Curriculum Framework (NCF) and publishes model textbooks used nationwide.
UPSC context
GS Paper II (Education); significant regarding curriculum standardization and controversies over academic revisions.
Samagra Shiksha Abhiyan (SSA)
An overarching program for school education from pre-school to Class XII. It subsumes the former Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA), and Teacher Education (TE) schemes.
UPSC context
GS Paper II (Social Sector); the primary funding mechanism for universalizing quality school education in India.
University Grants Commission (UGC)
A statutory body established to coordinate, determine, and maintain standards of higher education. It provides grants to universities and monitors the quality of academic appointments and institutional governance.
UPSC context
GS Paper II (Regulatory Bodies); essential for questions on institutional autonomy and central regulatory control.
Prelims Trap
HEFA provides direct non-repayable block grants to public universities for infrastructure development.
HEFA provides 10-year loans, not grants. Institutions must repay the principal using their internally generated revenue, while the government services the interest portion.
Static Concepts Connected
How did Education become a Concurrent List subject?
- Original Status: Education was originally a State List subject (Entry 11) in the 7th Schedule of the Constitution.
- 42nd Amendment: Moved to the Concurrent List (Entry 25) in 1976, enabling the Union government to legislate and launch national schemes (like RTE).
- Executive Power: Even on Concurrent subjects, executive power ordinarily lies with States unless a specific Union law explicitly reserves it for the Centre.
What is the Higher Education Financing Agency (HEFA)?
- Corporate Structure: A Section 8 (Not-for-profit) joint venture between the Ministry of Education and Canara Bank.
- Loan Mandate: Finances infrastructure in premier educational institutions through 10-year loans rather than traditional block grants.
- Repayment Mechanism: Institutions must repay the principal from internal accruals (fees, research earnings), while the Government services the interest.
Cross-Topic Patterns
CSS conditionality & Fiscal Federalism
Withholding Samagra Shiksha grants over PM-SHRI non-adoption mirrors recent disputes in borrowing limits and matching grants, highlighting increasing friction in tied-fund federalism.
Financialisation of Social Sector
The transition from UGC block-grants to HEFA loans parallels broader public policy shifts towards monetising public infrastructure, raising equity and access concerns in human capital development.
Expect a 2026 prelims statement testing HEFA's corporate structure (JV with Canara bank) and its loan-vs-grant mechanism for universities.
Linked PYQs · 5
Linked PYQs · 5
- 2024MainsGS2
What changes has the Union Government recently introduced in the domain of Centre-State relations ? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism.
- 2020MainsGS2
National Education Policy 2020 is in conformity with the Sustainable Development Goal-4 (2030). It intends to restructure and reorient education system in India. Critically examine the statement.
- 2022MainsGS2
The Right of Children to Free and Compulsory Education Act, 2009 remains inadequate in promoting incentive-based system for children's education without generating awareness about the importance of schooling. Analyse.
- 2015MainsGS2
The quality of higher education in India requires major improvements to make it internationally competitive. Do you think that the entry of foreign educational institutions would help improve the quality of higher and technical education in the country? Discuss.
- 2014MainsGS2
Should the premier institutes like IITs/IIMs. be allowed to retain premier status, allowed more academic independence in designing courses and also decide mode/criteria of selection of students. Discuss in light of the growing challenges.
