Indian Higher Education

New realities,
new possibilities:
The changing face of Indian
higher education
Contents
Foreword 2
Executive summary 4
Introduction 6
New demand and supply realities 13
New possibilities 30
New possibilities – Diversity 33
2 New realities, new possibilities:

The changing face of Indian higher education
New possibilities – Collaboration 59
Agenda for the Government 90
Glossary 96
Acknowledgements 100
About FICCI 102
New realities, new possibilities: 1

Foreword
Dear readers, Further, there is also a growing Federation of Indian Chambers of
acknowledgement by the Commerce and Industry (FICCI) as
The Indian higher
government to collaborate with the a change agent has been working
education sector is
Indian private education providers, diligently towards influencing the
going through an
industry as well as foreign education government to bring about requisite
epochal change given
providers to achieve the ambitious policy changes for providing the
the emerging new
targets set for the nation. ICT is right impetus to the growth of higher
realities and new possibilities to
also being integrated into the higher education sector. The FICCI–
deal with the issues of expansion,
education interventions for Ernst & Young Study has done
inclusion and excellence. The
reaching out to the masses with a reality check on the drivers of
government interventions are
quality programmes. change and the possibilities in the
towards removing the existing
higher education sector in the
entry and operational barriers and Unfortunately, in spite of having
coming decade that would help take
facilitate autonomy, accountability well defined statutory bodies at the
quality higher education to
and collaborations. However, central and state levels, a coherent
the masses.
diversity and diversification of higher set of meaningful policy guidelines
education, a critical aspect, has not have eluded the Indian higher We are grateful to Ministry of
received due recognition and needs education sector, so far. Hopefully, if Human Resource Development,
to be debated and included in the the legal instruments that are sought Government of India and all
reform roadmap. to be created emerge through the partners and Sponsors for their
legislative process, and perhaps go support in organizing the FICCI
The Indian higher education system
through the judicial scrutiny, and Higher Education Summit 20010
is divided into two broad categories:
if implemented in their true letter titled Renovations in Indian
one for scholarly pursuits and
and spirit, we can hope to see some Higher Education: Renewed Focus
achievements in universities/
significant improvement in quality of on Autonomy, Accountability
colleges and the other for work–
higher education being imparted. & Partnerships on 11 and 12
force requirements in technical
November 2010 in FICCI, New Delhi.
institutions, polytechnics etc. It is In the meantime stakeholders
We are sure that the deliberations in
now increasingly being recognized concerned about the future of higher
the conference will help us in coming
that this dichotomy should be education in India should seek to
up with concrete recommendations
erased and shifted away from understand the basic rationale
that will be submitted to the
undue emphasis on “manpower– behind these measures and help
Government at the highest level
oriented” planning (annual turn out to address them in their own
for consideration.
of graduates, growth rate, gross domains of involvement in whatever
enrollment ratio, employability etc) way possible. Since the nation’s
and adopt a more holistic approach economic future and global stature
to higher education at every level, are intricately associated with
not just at the university or the credibility of higher education
college level. system, one can only hope that Warm regards,
there is sufficient wisdom in the
Prof M Anandakrishnan
society not to let the present state of
Chairman
entropy to persist.
FICCI Higher Education Committee

Dear readers, set for increased collaboration
between Government, private
The higher education
players, industry and international
system in the
educational players in the field
country is poised
of higher education which can
at a crucial stage in
significantly improve access,
its growth. On one
equity as well as quality. Promoting
hand, it can empower our youth,
diversity in the higher education
unleash the potential presented
sector, wherein centres of
by India’s demographic advantage
excellence co–exist with large
and propel India into the ranks of
mass based institutes, is important
the developed nations of the world.
keeping in mind the different
However, on the other hand, if
realities of India. The use of
the higher education system does
technology to expand reach could
not reform and upgrade itself, our
also emerge as a game–changer in
demographic dividend could turn
its ability to provide good quality
into a demographic disaster.
and affordable higher education to
This report highlights the changing the large numbers of people who
face of higher education. Over the are denied access. Through this
last few years the sector has seen report, we have tried to put forth
tremendous growth. The number some of these possibilities which
of institutes has doubled over the can bring about a quantum change
last ten years backed by strong in the higher education system.
private sector participation. The
I hope this report provides
Government is in the midst of
insights on the directional change
introducing large–scale reform,
which Indian higher education
to improve quality and establish a
is undergoing and ideas for
streamlined regulatory mechanism.
accelerating the growth of Indian
Student demand is also changing,
higher education.
focusing on global quality as well as
employability linked education.
All these factors in conjunction,

have considerably changed the
characteristics of the India higher
Warm regards,
education sector, and have created
tremendous opportunities and Amitabh Jhingan
possibilities for the system to Partner, Education sector leader
reinvigorate itself. The stage is Ernst & Young

Executive summary
The Indian higher education system has established The Government has also augmented supply through
itself as one of the largest in the world, in terms of enhanced funding and by setting up new institutes.
number of institutions and student enrolment. Higher
While the increased supply is a step in the right
education spends in India are currently estimated at
direction, there is a need to align supply to the changing
INR46,200 crores and are projected to grow to nearly
needs of students. The report highlights how this
INR150,000 crores in the next 10 years, reflecting an
alignment can be brought about through diversification
average growth rate of 12.8%.
and collaboration in the higher education space.
Against the backdrop of this high growth, the nature of
While the Government continues to be the cornerstone
demand for higher education is witnessing a change.
of the higher education system, it needs to play a
Changing macro–economic trends are influencing the
much larger role in facilitating the new possibilities to
composition and preferences of students, leading to
effectively cater to the emerging demands of students.
new demand–side realities. These include increasing
Other areas like privatization and globalization also
spends on education, new categories of students,
require incentives from the Government to steer the
willingness to pay for academic quality, increasing
India’s higher education system into the league of the
demand for global education and demand for
best in the world.
employability–linked education.
These possibilities also provide the means to build a
With substantial participation from the private sector
more robust higher education system by addressing the
and growing interest from foreign players, supply of
primary challenges of access, equity and quality.
higher education has increased substantially.

The Government can play a much larger role in The lack of faculty is emerging as the biggest challenge
facilitating the new possibilities to effectively cater to to the continued growth of the sector and faculty
the emerging demand scenario. It needs to further development needs to be taken up on a national mission
encourage private sector investments in higher mode. Structural changes such as fee rationalization,
education to meet the funding gap. It also needs to introduction of robust governance mechanisms and
promote diversity by encouraging vocational and regulatory reforms also need to be expedited.
distance education as well as teaching universities.
Drivers Possibilities
New category of customers Diversification

• New category of customers • New modes of delivery
• Increasing spends on education • New types of institutes
• Demand for academic quality • New types of courses
• Increasing demand for global
education
• Demand for employability linked
Collaboration
education
• Foreign players
• Rapid Privatization
• Industry
• Globalization
• Government
• Increasing Government investments

Introduction

The Indian Higher Education system has over
26,000 institutes across varied fields of study
Form of existence Universities and Central Universities 40

university–level
institutions Deemed Universities 130
Institutions of National Importance 33
Institutions established under State

5
legislations
State Private Universities 53
State Universities 243
Colleges Autonomous colleges

25,951
Affiliated colleges
Field of study General UG Grad PG
• BA • MA • PhD
Arts
• BSc • MSc • DPhil
• BCom • MCom
Science • BBM
• BIT
• BHM
Commerce
• BEd
Professional • MBBS • M.Tech
Engineering
• BE • MBA
• B.Tech • MS/MD
Management • BDS • MDS
Medical
Others
Sources: MHRD: Annual Report 2009–10

It is one of the largest in the world, in
terms of number of institutions as well as
student enrolment
India has one of the largest higher education systems in the world
Student enrollment in higher education (in million) Number of higher education institutions
25.35 ~26,000
17.76
13.64
9.37 ~6,706
4.57 ~4,000
China USA India Russia Brazil India USA China
• India’s higher education system is the largest in terms of number of institutions and third largest in
terms of enrollment
Increase in student enrolment in higher education

Enrolment in higher education per year (in million)
13.6 • There are ~13.6 million students undergoing

5.9% 11 higher education in India, nearly half of these
CAGR
8.4 students have joined the system over the last
6.6 decade
4.9
3.6
1985–86 1990–91 1995–96 2000–01 2005–06 2008–09
Growth in number of higher education institutions

Year-wise number of universities and colleges in India
25,951
• Higher education in India has seen an
unprecedented boom in the number of
11,146 colleges and universities in the last decade.
5,748 The number of universities and colleges have
4,738
3,277 almost doubled, led by massive participation
578 1,819
28 45 93 123 184 266 504 by the private sector
1950–51
1960–61
1970–71
1980–81
1990–91
2000–01
2009–10*
• Since 1950–51, the number of universities

has increased from 28 to 504, while colleges
have grown from 578 to 25,951 during the
same period
Number of Universities Number of colleges
Sources: MHRD: Annual Report 2009–10; Making the Indian higher education system future ready FICCI Higher Education Summit 2009

Current estimates indicate the spends
on higher education in India to be nearly
INR46,200 crores…
Higher education spending in India
Total spends on higher education

~INR46,200 crores
in India
Private institutions account for majority of the spend Professional courses dominate the landscape
Public institutes
8% General courses
40%
Private institutes
92%
Professional
courses
60%
Majority spends in public are in the area of general courses while spends in private
institutions are dominated by professional courses
Share of general and professional courses in public Share of general and professional courses in private
institutions institutions
Professional courses
Professional courses
38%
62% General courses
38%
General courses
62%
Sources: EY Analysis

These spends are expected to grow on the back
of several drivers like increasing GER, services–
driven economy, favorable demographics…
1. Increasing GER 2. Move to a services driven economy

• While India’s GER in higher education is low as • The shift towards a services economy is creating a
compared to other countries, it has increased from large demand for skilled work force which in turn will
7% in 2001 to 12% in 2010 drive enrollments in higher education
• As per the estimates of the National Knowledge • The demand for educated workforce (graduates
Commission, the GER is expected to rise to 15.5% and above) is expected to increase from around 41
by 2012 million in 2007 to nearly 58.5 million by 2012
3. Favorable demographics
Population aged 15-24 (in lacs)
2339.8
India
2188.1
929.8
Europe
1015.4
448.8
USA
429.4
29.2
Australia
28.2
6.9
Singapore
5.4
2010 2005
• India has the largest target population for higher education in the world. Currently, the Indian
population in the relevant age group to enroll into a higher education course is more than that of
Europe, USA and Australia combined
Sources: Netscribes Higher Education Report, 2009

… and high expenditure on higher education
4. High expenditure on higher education
Routine expenditure (in %) Non-routine expenditure (in %)
Food 51.1 Ceremonies 51.5

Transport 10.5
Medical 27.4
Education 7.4
Education 7.8
Clothing 6.9
Durables 5 Travel 3.9
Housing 4.7 Others 9.3

Health 4.7
Others 9.8
• Education is the third largest expenditure group for an average Indian household
• Nearly 55% of the Indian middle class households have started saving for higher education of
their children
Sources: The Max New York Life – NCAER: India Financial Protection Survey; Pawan Agarwal: Envisioning the Future 2009; EY Analysis

On the back of favorable drivers the spends on
higher education are projected to grow over
INR150,000 crores in the next 10 years
Spends in the higher education segment are expected to increase to

INR155,015 crores by 2020
Estimated size of higher education segment (INR crores)
155,015
2.8%
CAGR 1
87,024
46,231
2010 2015 2020
• If we assume the standard population growth rate, a GER of 20% in 2020 and a 5% inflation in
fee levels, the higher education segment spends would reach INR155,015 crores in 2020
However it requires an investment of INR360,640 crores to create the additional

capacity
Investment requirements over the

~INR360,640 crores
2010–2020 period
• The expansion of higher education system will require considerable investment to create
additional capacity.
• Keeping in mind the target GER of 20% and taking into account the prescribed infrastructure for
educational institutes, we would need to invest INR360,640 crore

New demand and
supply realities
New Demand realities
There are various demand–side trends shaping

the higher education system in India
Changes in the composition, characteristics and preferences of students

coupled with various macro–economic trends are transforming the face of
Indian higher education
Increasing spends on
education
5 2
Demand for
New categories of
employability-linked
students
education
New demand realties
Increasing demand for Willingness to pay

global education for academic
quality
4 3

Increasing spends on education
Rising GDP and consumer expenditures have led

to an increase in per capita spends on education
Gross domestic product (GDP) per capita has been rising

Gross domestic product per capita (1999-2000
prices) INR per annum During the period 1981–08, GDP per capita has
30,532 increased by almost 300% (at constant prices) from
INR10,409 in 1981 to INR30,532 in 2008.
10,409 In CAGR terms, this translates to a rise of 3.92%
during the period.
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
As a result, per capita expenditure on goods and services has been increasing
Private final consumption expenditure per capita
(1999–2000 prices) INR per annum In per capita terms, consumer expenditure on goods
and services, including education, has also been
17,138
increasing.
During the period 1981–08, household expenditures

8,268
have increased by over 200% (at constant prices)
from INR8,268 in 1981 to INR17,138 in 2008.
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
In CAGR terms, this translates to a rise of 2.64%

during the period.
At the same time, per capita value and percentage spends on education have
also been rising
Private final consumption expenditure on Private final consumption expenditure on education
education per capita (1999–2000 prices) (as a % of total private final consumption expenditure)
INR per annum per annum
437
1.46% 2.55%
121
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
During the period 1981–08, consumption

expenditures on education (at constant prices) have Share of education as a percentage of total
increased from Rs.121 in 1981 to INR437 in 2008. household consumption expenditure has been
increasing steadily from 1.46% in 1981 to 2.55%
In CAGR terms, this translates to a rise of 4.70% in 2008.
during the period.
Sources: Central Statistics Organization (2008 and 2009), International Monetary Fund, World Economic Outlook Database, October 2010, MHRD

New categories of students
A significant part of the incremental demand

for higher education is set to emanate from
traditionally under–served sections (1/2)
Enrollments from the rural population are expected to rise

Number of rural enrollments in higher education
Rural enrollments in higher education have been

11,051,264
rising at a CAGR of 6.14% since 1994 and are
9%
R 5. expected to reach ~11.1 million in 2020
CAG 8,204,179
6,090,574
4,297,227
3,107,534
2,233,824
1994 2000 2005 2010 (E) 2015 (F) 2020 (F)
Rural enrollments as a percentage of total enrollments are increasing

Rural enrollments as a percentage of total enrollments
Rural enrollments have increased from around one–

38.40% 38.60% 41.00% 39.41% 40.77% 42.18%
third of total enrollments in 1994 to approximately
two–fifths currently. This percentage is expected to
go up to 42.18% in 2020.
1994 2000 2005 2010 (E) 2015 (F) 2020 (F)
GER in rural areas is expected to reach 12.84% in 2020

GERs for rural India in the Indian higher education
segment
Although GERs in rural areas have been much lower

20.00
than the total GERs, they have been rising steadily
15.49 and are expected to reach 12.84% in 2020.
12.59 12.00 12.84
10.08 9.27
8.85
7.51 6.76
4.66 5.58
1994 2000 2005 2010 (E) 2015 (F) 2020 (F)
Total Rural
Sources: UGC: Higher Education in India 2008; 11th Five Year Plan Volume II * 2004–05, EY Analysis

A significant part of the incremental demand

for higher education is set to emanate from
traditionally underserved sections (2/2)
A growing number of women are expected to enroll in higher education institutes

Number of women enrolled in higher education
Over 6.1 million women are enrolled in higher

7% 12,140,235 education institutes currently. This number is
CAGR
expected to grow at a CAGR of 7% to reach 12.14
8,655,820
million in 2020
6,171,480
2010 (E) 2015 (F) 2020 (F)
Proportion of women amongst the total student population is expected to rise

Women entering higher education as a percentage of
total number of students
43.01% 46.33% Out of the total student population for higher

39.93%
education in 2020, almost half are estimated to
be women.
2010 (E) 2015 (F) 2020 (F)
GER of women is expected to reach 19.26% in 2020

GERs for women in the Indian higher education
segment
20.00 19.26 While the GER of women in higher education is

15.49 currently at 9.96%, it is expected to rise to 19.26%
13.85
12.00 in 2020.
9.96
2010 (E) 2015 (F) 2020 (F)

Total Women
Sources: UGC: Higher Education in India 2008; 11th Five Year Plan Volume II * 2004–05, EY Analysis

A number of mid–career professionals are also

returning to colleges for advanced degrees,
spurring the demand for executive education
Demand for executive education programs from working professionals
1. The demanding work–culture and rapid developments in management are leading professionals
to stay abreast of latest trends and developments within their industries and to continually
improve their skill–sets.
2. Many professionals who joined the industry straight after securing a professional degree, return
to colleges to garner additional qualifications to take them to the next step in their careers
3. These trends have led many senior professionals to opt for executive education, during the
course of their careers.
4. A large number of institutes have launched courses in the last decade to cater to this
trend.
Institutes offering executive education programs:
Institute and program name Year of Type Course Duration Min. experience
Introduction (months)
ISB PGP 2000 Full -time 12 2 years (preferred)
Great lakes PGPM 2004 Full -time 12 2 Yrs.
IIM A PGPX 2005 Part-time 12 Age:27
IIM L WMP 2005 Part-time 36 3 Yrs.
IIM C PGPX 2006 Full -time 12 5 Yrs.
IIM L IPMX 2008 Full -time 12 6 Yrs.
ISB PGPMAX 2009 Part-time 15 10 Yrs.
IIM B EPGP 2009 Full -time 12 7 Yrs.
IIM I EPGP 2010 Full -time 12 5 Yrs.
Sources: Interviews; Institutes’ websites

Willingness to pay for academic quality
Despite the rise in fees of academic programs,

number of applications for quality programs
have been rising
Even though the cost of high–quality programmes have been rising…

Cost of programmes INR lakhs
CAGR CAGR CAGR CAGR CAGR CAGR CAGR

25.7% 36.6% 29.6% 34.1% 45.6% 32.0% 11.6%
21.5
13.5 13.7
13
12.4
10.95
10
8
3 3 3.42
2.55 2.1 2.06
IIM Lucknow IIM Kozhikode IIM Indore IIM Bangalore IIM Calcutta IIM Ahmedabad ISB
2005 2010
…the number of applicants with respect to capacity still remain very high
IIMs ISB
99%
83%
1% 17%
Accepted candidates/seats Rejected applicants

(as a % of total number of (as a % of total number
applicants) of applicants)
Source Leveraging Public Private Partnerships for India’s Education Sector; Institute websites, www.livemint.com,; Indian Higher Education Envisioning
the Future, Pawan Agarwal

Willingness to pay for academic quality
Rise in incomes and availability of loans have

contributed to consumers’ willingness to pay
Willingness to pay is being driven by several factors
Growth in the number of high income households

Number of households (million), % of total number of households
2001–02 2009–10
65.2, 35% 41, 18%
13.8, 7% 48.7, 21%
109.2, 58% 140.7, 61%
High income households – Households earning over INR1,80,000 p.a. (2001–2002 prices)
Middle income households – Households earning between INR45,000 – INR1,80,000 p.a. (2001–2002 prices)
Low income households – Households earning less than INR40,000 p.a. (2001–2002 prices)
Greater availability of student loans

Growth in student loan accounts and portfolio in India
120000 700
100000 600
80000 500
400
60000
300
40000 200
20000 100
0 0
1990–91 1995–06 2000–01 2001–02 2002–03 2003–04 2004–05 2005–06
Amount outstanding (INR million) Number of loan accounts (in thousands)
A number of schemes have been launched by banks to tap the potential of the education loans segment.
Several banks have entered into tie–ups with educational institutes to provide student loans without any
collateral. Education loans disbursed by Indian banks rose by 51% to INR15,000 crore for the FY 2007 and rose
by 34% to INR20,000 crores in FY 2008
Source: National Council for Applied Economic Research: Website; Indian Higher Education Envisioning the Future, Pawan Agarwal

Increasing demand for global education
There has been an increasing trend of students

wanting to study abroad
Factors influencing students to study abroad
1. Capacity constraints in domestic institutes offering quality programs
2. Aspiration to study from a top–ranked global university
3. Increasing income levels and ability to spend
4. Opportunity to migrate to a high–wage country in search of higher salaries post qualification
Number of Indians applying for education abroad

A third of the total GMAT test takers in the world are …and almost two-fifths of total test-takers in Asia
from Asia... are from India.
China
30%
United Asia
88,267 India
States 39%
49% 33%
South
Korea
Europe 9%
9%
Taiwan
Australia and Mexico, Caribbean 6%
Others Japan
Pacific Islands and Latin America 9% Thailand 4%
0% Canada 3% 3%
Africa 3%
3%
The number of Indians taking the GMAT has been increasing significantly year–on–year
GMAT tests taken by Indian citizenship 2005–2009
30,633
.7% 28,570
CAGR 17
21,481
16,541
13,544
2005 2006 2007 2008 2009
Source: International Finance Corporation: Website; 2009 World Geographic Trend Report for GMAT Examinees; 2009 Asian Geographic Trend Report
for GMAT Examinees

Increasing demand for global education
Making India the second largest source of

international students
Number of Indians studying overseas
After China, the highest number of students going overseas to study are from India
Number of students studying overseas
159,779
150,194
109,577
94,446
66,475
53,417
1990–00 2000–01 2001–02 2002–03 2004–05 2005–06
Out of the 160,000 students studying overseas in 2005–06, 50% were in the
United States
Percentage of Indian students studying in foreign

countries 2005-06
Other countries
13% English speaking countries such as US,
Singapore Australia, UK, Canada and Singapore are the
3%
most popular destinations for students to study.
Canada
4% This trend has led a number of non–English
USA
48% speaking countries such as Germany, Holland
UK and France to also offer programs in English.
15%
While students generally prefer United States
Australia and Germany for post–graduate courses,
17% other countries are witnessing a rise in
undergraduate and non–degree enrollments.
Source: Making the Indian higher education system future ready – FICCI Higher Education Summit 2009, Foreign education providers in India – UKRERI,
Indian Higher Education Envisioning the Future, Pawan Agarwal

Demand for employability–linked education
Better job prospects and salaries from

professional courses have led to a rise in
demand for employability linked education
Students rank placements as one of the key criterions for institute selection
Respondents to student survey conducted by a popular online forum in 2009 ranked placements as the
most important criterion in selecting a business institute.
Career and earning prospects of graduates are directly proportional to the

relevance of education to the industry
This is evidenced by the fact that 80% of the graduates in general streams (BSc/ BA) are perceived to
be unemployable by the industry.
Consequently, professional courses that provide better job prospects and

salaries have been in demand
Skilled manpower shortages in specific industries are leading to the demand for courses within
corresponding domains:
Sectors facing Incremental skilled Shortfall in highly Courses in demand

manpower manpower requirement skilled manpower
Engineering, MBA – Marketing, Telecom
shortage (in lakhs till 2022) (estimated actuals till
Management
2022)
BCA, MCA, Programming, BPO/KPO
Electronics and IT Management, Foreign Language
33 3,30,000
Hardware
Auto Financing and Insurance,
IT and ITES 53 5,30,000 Engineering, Sales and Marketing
Auto 350 17,00,000 MBBS, MD, BDS, MSc/ Bsc – Nursing,
Healthcare 120 1,10,00,000 MBA – Healthcare
Logistics, Retail Management, MBA –
Organized Retail 173 13,00,000
Operations, Fashion
Media and
30 10,00,000 Film/TV Production, Direction, Mass
Entertainment
Communication, Animation
Banking, Insurance Risk Management, Structured Finance,
42.5 7,00,000
and FS Credit Evaluation, Insurance
Real Estate and Real Estate Management, Sales
490 15,00,000
Construction and Marketing, Civil Engineering,
Legal Services N.A. 1,50,000 Architecture
BA, LLB, LLM
Education 86 80,00,000
BEd/BT, Med, MSc, PhD
Textile, Apparel and
309 10,00,000 Merchandising, Fashion Design,
Jewelry
Jewelry/Accessory Design
Tourism and
36 9,00,000 Hotel Management, Tourism
Hospitality
Sources: National Skill Development Corporation; India Today: Website; Education Times: Website; EY Analysis, Indian Higher Education Envisioning the
Future, Pawan Agarwal

New Supply realities
Several changes in supply side characteristics

are shaping the higher education segment
New supply side realities
Rapid increase in private Indian players going

sector participation abroad and entry
of foreign players
into India
Rapid Globalization
Privatization
New supply
realities
Increasing Government investments
Government increasing
investments in higher education
and opening new institutes

Rapid privatization
There has been a rapid increase in private sector

participation
The share of unaided private higher education institutions in the country has
grown significantly in the last few years
Unaided private higher education institutions as a percentage of total institutions
63.21%
42.60%
2001 2006
Number of professional unaided private higher education institutions
1,617
There has been a rapid growth
1,150 in the number of professional
999
736 669 682 780 private higher education
204 174 233 institutions
Pharmacy Engineering Management Computer Medicine

applications (MBBS)
1999–00 2006–07
Percentage share of public and private institutions in professional

courses (2006-07)
5 9 This growth is reflected in

36 38 the dominant share of
50
unaided private higher
95 91 education institutions in
64 62 professional courses
50
Pharmacy Engineering Management Computer Medicine

applications (MBBS)
Private Public
Sources: XIth Five Year Plan; AICTE and other Professional Councils of Education

Rapid privatization
While established players are expanding many

new players have announced entry plans
Established Indian education players

• VIT university is planning to open a campus in Chennai by 2012
• Amity University is planning a campus in Gwalior and Manesar and a campus in either US, Australia or Middle
East
• Symbiosis is planning a medical college in Pune and an offsite campus in Noida
• Thapar University is planning a 22 acre campus in Chandigarh
• GD Goenka Group has partnered with Lancaster University to foray into higher education segment through
the G. D. Goenka World Institute
• NIIT has recently launched the NIIT University
• Centum Learning, a Bharti associate company is planning to open 20 college campuses in three years
New players
International for–profit education players
• Large foreign education players like Apollo Global, Laureate International Universities and Devry Inc are
eyeing an entry into the higher education sector in India
Indian corporates
• Reliance group is planning to set up a ‘world–class’ university in either Mumbai or Delhi
• Reliance ADAG is planning a university in Bhopal
• The B.K. Modi led Spice Global group is planning a 100 acre university in Uttar Pradesh
• Future group has recently launched the Future Innoversity
Sources: dnaindia.com, vccircle.com, economictimes.indiatimes.com, livemint.com, buseniss–standard.com, timesofindia.indiatimes.com, indiamag.in

Globalization
A large number of foreign universities have also

announced plans to enter India
Foreign players are entering the segment via collaborations…

1. Collaborations
• Foreign players have established significant presence via large number of collaborations with Indian institutes.
Some of the recent collaborations are:
• Nottingham Trent University (UK) and Prin.L.N. Welingkar Institute of Management Development &
Research (Mumbai) for Bioinformatics programme
• International Hotel Management Institute (Switzerland) and Kohinoor — IMI Khandala School of Hospitality
Management (Pune).
• London School of Economics & Political Science (UK) and City School of Social and Managerial Sciences
(Chennai)
• Warwick University (UK) and ITM, Gurgaon
• While Carleton University, Sheridan College, Pickering University and Quest University are some of the other
players who are eager to forge tie ups with Indian institutes through collaborations
… and are now also announcing plans to open campuses in India

2. Campuses
• News articles have indicated that foreign players are also planning to open campuses in India. Some of the
recent examples are:
• York University, Schulich School of Business — Planning a 100 acre campus in Mumbai
• Georgia Tech — Plans to set up a 250 acre campus in Hyderabad
• Duke University, Fuqua School of Business — Planning to open a 25 acre campus in India
• Virginia Tech University — Plans to build a 30–acre campus in Chennai
Around 161 foreign educational providers are engaged in about 230 academic
collaborations with 143 Indian institutes
Sources: UKIERI: Foreign Education Providers in India 2008, economictimes.indiatimes.com, business–standard.com, timesofindia.indiatimes.com,
studycanada.learnhub.com

Globalization
At the same time Indian higher education

players are establishing campuses abroad
BITS Pilani – Dubai

Manipal University – Malaysia, Nepal Dubai, Antigua
SP Jain Centre of Management – Dubai, Singapore, Sydney
Amity University – Singapore, London, San Francisco
Established Indian players are leveraging their strong brand name and competencies by
establishing presence abroad
Sources: Business Standard: Website, Institute websites

Increasing Government investments
The Government is committing large amounts

of funds to the HE sector and also setting up
new institutes
Increasing investments on higher education by the Government
Total Central Government expenditure on higher Total State Government expenditure on higher
education (INR billion) education (INR billion)
196.2 3.2%
9.6% CAGR 1
CAGR 2 137.1
135.4 83.0 116.2
117.4 107.1
46.4
69.6 80.4 41.3 115.2
38.2 93.7 99.6
34.2 89.0 113.2
76.1
35.4 42.2 16.7 21.8
13.4
2005–06 2006–07 2007–08 2008–09 2009–10 2005–06 2006–07 2007–08
Plan Non-plan Plan Non-plan
• The Central Government’s proposed expenditure in 2009–10 is substantially higher than

2008–09
• There has also been a substantial increase in State Government expenditure on higher education
The Central Government plans for setting up new institutes
Planned Central Government institutes
Planned Central Government institutes • The Central Government has announced

plans of opening 16 central universities,
14 innovation universities and new IITs
and IIMs
• The Central Government‘s focus is
16 central 14 innovation towards opening new institutes of
8 IITs 7 IIMs
universities universities academic excellence
Sources: Union Budget: 2005–06, 2006–07, 2007–08, 2008–09, 2009–10; MHRD: Analysis of Budgeted Expenditure on Education, 2003–2004 to
2005–2006, 2005–06 to 2007–08

New
possibilities

India’s higher education system is bogged down
by the fundamental challenges of inadequate
access, inequity and poor quality
Inadequate access
Gross Enrollment Ratio (GER) (percentage) 2007
82%
75% India’s GER for higher education at 12% is
significantly below the global GER average of 26%
in 2007
26% 23%
12%
Global USA Russia China India

average
Availability of suitable number of

institutions across regions to fulfill
Access demand
Provision of suitable infrastructure,

trained faculty and effective
Equal opportunity for all Equity Quality pedagogy in higher education
sections of society to institutions aimed at delivering
participate in higher education expected outcomes
Inequity Poor quality
SJTW Top-500 universities rankings, 2010

There are large equity variations in the
country across states, areas, gender and
USA 154
communities:
UK 38
State Area Canada 23
Bihar — 5.7 Rural — 7.5

Australia 17
Uttaranchal — 15.1 Urban — 23.8
Brazil 6 Despite having one
of the largest higher
Gender Communities Russia 2
education systems
Female — 10.6 SC/ST/OBC — 7.3 India 2 in the world very few
Indian institutes are of
Male — 14.4 Others — 17.2
China 22 world class quality
Sources: EY Analysis, UNESCO Global Education Digest 2009, UGC: Higher Education in India 2008, 11th Five Year Plan Volume II * 2004–05,
Academic Ranking of World Universities: Website

The changing realities are leading to the
emergence of new possibilities which could
assist in solving the key challenges facing HE
Realities
• New category of customers • Demand for employability linked education
• Increasing spends on education • Rapid privatization
• Demand for academic quality • Globalization
• Increasing demand for global education • Increasing investments
Possibilities
Diversity Collaboration
• New modes of delivery • Foreign players
• New types of institutes • Industry
• New types of courses • Government
Solving the problems of poor access, equity and quality

• Diversity in the system will help improve access • Collaboration with foreign players and industry
and reduce inequity by reaching out to a larger will provide the system with a global and industry
population through innovative modes of delivery orientation thus improving quality and
and • Public private collaborations can significantly
• Diversity would make the system more relevant via improve the quality of existing public institutes
new types of institutes and courses thus attracting while also increasing capacity
more students

New possibilities:
Diversity
Encouraging diversity in India’s higher
education system will help resolve the issue of
poor access and inequity
Diversity provides a means of tackling the issue of inadequate access and inequity
facing the higher education system by:
1 Improving supply 2 Increasing availability 3 Meeting diverse

across inaccessible of relevant courses student needs
parts of the country for under–served
sections
Diversity in higher education
Vocational and new age courses Study centers and technology

enabled modes of delivery
New types New modes

of courses of delivery
Diversity
New types of institutes
Premium, mass and specialized institutes
There is a need to evolve operating models and academic programs that truly cater to
the diverse needs of the Indian youth

New
modes of
delivery

Promoting new modes of delivery/distance
education will yield several benefits to the
higher education system
Perceived benefit Impact
Improving access • Study centers: Have the opportunity to deliver classroom teaching outside
university campuses
• Technology enabled learning: Has the potential to reach out to students across
inaccessible parts of the country
Reaching out to diverse

• New modes of delivery are ideal to cater to the demand for part time
education
student needs
Financially efficient • New modes of delivery eliminate the need for heavy investments in
means to increase infrastructure and are financially efficient thus allowing the poorer sections of
access society access to higher education at affordable costs
Use of innovative delivery modes like online, mobile, study centers provide an
opportunity to increase GER rapidly & reduce inequity in the system

Distance education has evolved from the
traditional text book correspondence courses
to study centers and technology aided learning
Modes of delivery in distance education have evolved from the traditional

methods of correspondence to study centers and now even education even via
mobile phones
TV, Mobile
etc.
Study
centre,
online
Correspondence Emerging modes of delivery

courses using like online, TV and mobile have
text books and the potential to reach out to a
printed study larger student population thus
material
increasing the access potential
New modes of delivery and access potential
New modes of distance education

Study Centers Technology aided learning
Overview Courses based on face–to–face Courses based on self instructional
tutoring, laboratory and hands on material delivered using various
experience technologies like online, mobile, TV
etc.
Key Players IGNOU, SMU, PTU, MDU IGNOU, Symbiosis, NPTEL

Study centers
Players delivering courses via study centers

have established strong presence via large
distribution networks and portfolio of courses
Name Distribution network Regional strength Number of programs Course portfolio

offered
Sikkim Manipal 750 LCs (learning East 40 • IT
University (SMU) centers) • Management
• Allied Health
Sciences
Punjab Technical 1,200 LCs North 100+ • IT
University (PTU) • Management
• Hospitality
• Fashion
• Media
Maharishi Dayanand 759 LCs Haryana 24 • IT
University (MDU) • Management
• Law
Annamalai 83 LCs South India 401 • Diverse:

University Sciences, art,
fashion design
etc.
ICFAI Own LC network South India 125 • IT
• Management
• Accounting
• Science / Arts /
Education
Indira Gandhi 3,000 LCs Pan India 338 • Wide range of
National Open courses through
University (IGNOU) 21 Schools of
Studies
IGNOU and SMU are considered to be the leading distance education players in
the country
Sources: SMU, PTU, MDU, Annamalai, ICFAI and IGNOU websites, HT Media Limited

Study centers
IGNOU is the world’s largest university with

over 2.4 million students and has grown using
the study centre model
Background
Overview • IGNOU was established in 1985 by an Act of the Parliament as a Central

University.
• It has also constituted the Distance Education Council (DEC) in India
Network • IGNOU operates through 21 Schools of Studies in 61 regional centers, 3000

learner support centers and 60 overseas centers in 36 countries
Enrollment • It has more than 2.4 million students enrolled from India and overseas
Study Centre Model of IGNOU
IGNOU’s Study • Course–specific academic counseling: IGNOU provides face to face sessions
Centre Model has between learners & counselors at Study Centres (SCs) to clarify doubts & answer
been successful in academic queries. Besides academic counseling, SCs also conduct practical
decreasing learner sessions to provide hands–on–training.
isolation as well as • Assessment: Assignments form the continuous evaluation part of assessment,
providing academic, where student submits the assignment responses at the SC as per the
administrative and assignment date given by the study centre. IGNOU also conducts term–end
informative support to examination at SCs to measure student performance.
the students
• Responsiveness: Counselors at IGNOU study centers shoulder the responsibility
of providing timely and quality feedback to students via written or verbal
evaluations on assignments, and overseeing students’ laboratory work.
• Academic facilities: Besides the faculty support, IGNOU SCs are also equipped
with audio–listening, video–viewing, and tele–conferencing facilities
Sources: IGNOU: Profile 2010; IGNOU: Website

Study centers
While Sikkim Manipal University is the largest

private sector provider of distance education
Background
Overview • Established on the Public–Private–Partnership model between the Manipal

Education Group and the Government of Sikkim, Sikkim Manipal University (SMU)
is the first Indian university to be built on the PPP model.
Network • Operates through a network of more than 750 learning centres in the country
and 25 overseas centres in 25 countries.
• Academic content & teaching is defined by SMU and infrastructure is provided
at local level by these learning centres.
Enrollment • With more than 400,000 students on its rolls, SMU provides distance
education courses through Sikkim Manipal University Distance Education
(SMU–DE).
Study Centre Model of SMU
SMU’s Study Centre • Basic support services: The study centres offer the basic support services to
Model provides a range students in terms of providing the course material, conducting practical sessions,
of support services to providing assessment and feedback, etc.
the students including • Counseling: Apart from basic academic inputs, counselors at learning centres
the online delivery of provide guidance on career, course and all issues pertaining to the overall growth
lectures through VSAT of the individual.
• Industry/Alumni interaction: Learning centres provide industry experts for
interaction on a weekly basis whereby students are given a complete insight
on the vital aspects of working in their chosen field. In addition, SMU–DE has
a 1.5 lakhs strong alumni base who come in to assist students with lectures,
counseling, guidance and job opportunities
• VSAT delivered lectures: To overcome the huge shortage of good faculty at
various learning centers, SMU–DE provides interactive classes through VSAT.
Thus, VSAT creates a unique interactive environment enabling teacher–led
training to a large number of students in different learning centres and
geographically dispersed sites.
Creating classroom environment through EduNxt
• To make the whole self–learning system enjoyable and not time bound, SMU has introduced EduNxt–
Technology enabled Internet based learning platform.
• Mock tests, videos, presentations and case studies are updated real time on this platform helping students to
stay in sync with the industry. Students can also access faculty mentors, industry experts, virtual classrooms,
self–learning materials and over a million books and journals over the Internet.
Sources: SMU: Prospectus – Fall 2010; SMU: Website

Study centers
Both have grown by providing a diverse range

of academic programmes and are announcing
large expansion plans
Indira Gandhi National Open University
Academic programmes
• IGNOU offers assortment of programmes on varied subjects and disciplines such as teaching, management,
communication, languages, tourism and journalism in different structures including certificate courses of six
month duration, one–year diploma courses, degree and PG diploma courses
• IGNOU offers a wide variety of courses ranging from an affordable MBA to a premium Bachelors Degree
Diploma programmes Bachelor degree programmes Master degree programmes

INR1,600– INR2.1 lakhs INR850–26,750 INR4.5 lakhs INR21,000 INR2.4 lakhs
20,000
• Management • Diploma in • Commerce • 3D • MBA in • MBA in
• Legal Computer • Hospitality Animation Banking & Aviation
Process Generated and Hotel and Visual Finance Business
Outsourcing Imagery Administration Effects Management
Future plans
Expand overseas • In order to further expand its overseas presence, IGNOU plans to open study
presence centers in Africa and six European nations, including Germany and France.
Sikkim Manipal University
Academic programmes
• Offers more than 40 different programmes across 11 disciplines including IT, management, journalism and mass
communication, fashion design and applied biotechnology at Diploma, Graduate, PG Diploma and PG Degree
levels
Diploma programmes Bachelor degree programmes Master degree programmes

INR20,900 INR71,000 INR44,700 INR1.0 lakhs INR42,800 INR1.0 lakhs
Information Hospitality Information Hospitality Information Clinical Research
Technology and Catering System and Catering Technology and Regulatory
Management Management Affairs
Future plans
Expand local presence • SMU targets to expand its study centre base from 250 districts to cover 500
districts by next two years.
Sources: IGNOU: Profile 2010; SMU: Prospectus – Fall 2010, Press Trust of India, United News of India

Technology aided learning
Several players are also starting to deliver courses

via technology aided modes of deliveries
Key players Technology aided modes of delivery Offering
Online TV Radio Mobile Other
NPTEL Content on engineering

related subjects
Macmillan
India
Online courses with IIM–C,
IIT–D, MDI, IIFT
Symbiosis Several post–graduate

diploma programs &
certificate programs
Amity
University
Online BBA / MBA, PG –
Diploma (Management and
language programs)
IGNOU Online, TV, Radio, Mobile

phones and tele–education
While the internet is well established as a delivery model, TV and mobile phones are fast
emerging as new modes of delivery
Sources: NPTEL, IGNOU,, Symbiosis Centre for Distance Learning websites, develop.emacmillan.com

MHRD has started the NPTEL program to

provide content in engineering by partnering
with leading educational institutes
Overview NPTEL (National Programme on Technology Enhanced Learning) a project funded

by the MHRD was conceived in 1999 to pave the way for introducing multimedia and
web technology to enhance learning of basic science and engineering concepts
Program partners
Seven IITs and the Indian Institute of Science have worked together to develop web and video based material
for basic undergraduate science and engineering courses in order to enhance the reach and quality of technical
education.
Current program
Courses The NPTEL program has currently developed 255 courses in the fields of technical
education (Mechanical / Civil engineering, biotech etc.) with 130 video based courses
and 125 web based ones. Currently four courses have been developed by IISC rest
have been developed by the IITs
Infra and pricing Web–based and video courses are available to download from the NPTEL website.
For the video courses DVD’s are provided while the You Tube NPTEL channel is also
running. All courses are priced at INR200 (exclusive of postal charges).
Enrollments NPTEL has around 4,400 videos on You Tube in 120 courses and 2.6 million viewers
(channel) and about 23 million (uploads) so far
Future plan Currently, Phase 2 of NPTEL program is being implemented and it plans to launch
over 950 new courses across 15 disciplines by 2012, out of which 500 will be
video–based
Sources: NPTEL Website

Macmillan Publishers has also partnered with

leading education institutes like IIM and IIT to
provide online courses in management
Overview Macmillan Publishers India Ltd. has partnered with leading Indian institutes like IIM–C,
IIT–D, MDI Gurgaon and IIFT to provide online management development programs
IIM–C
Overview Macmillan has partnered with IIM–C to provide a course in Corporate Finance for
working professionals
Course details Three–month course with a fee of INR6,742
IIT–D
Overview Macmillan has partnered with IIT–D to provide courses in Finance for non–finance
executives, International Finance and Supply Chain Management
Course details Each course is priced at INR8,824 and ranges from 2–3 months
MDI Gurgaon
Overview Macmillan has partnered with MDI Gurgaon to provide course in E–business and
Customer Relationship Management
Course details Each course is priced at INR5,393 and is 2 months in duration
IIFT
Overview Macmillan has partnered with IIFT for a course in Export–Import trade
Course details Program is participatory in nature, with no grading
Sources: develop.emacmillan.com

Symbiosis Centre for Distance Learning has

successfully used the online model to achieve
huge growth
Background
Overview • Established in 2001 and part of the Symbiosis Society, Symbiosis Centre for
Distance Learning (SCDL) ranks among the country’s leading private sector
providers of open and distance learning
Enrollment • Has enrollments of over 2,00,000 students based in India and 41 other
countries
Academic programs
SCDL offers nearly 136 Diploma in Computer Generated Imagery Corporate Programs
courses across various • Management • Post Graduate Diploma in Business
streams Administration
• Information Technology
• Education, Humanities & Social Sciences • Management Development
• Law Program
Online correspondence model of SCDL
SCDL offers numerous • Blended learning methodology: SCDL provides students with access to all
low–cost student the three forms of learning, namely, published/printed self–learning material,
support services e–learning and pre–recorded DVD lectures and faculty interaction.
through its distance • Call centre: SCDL is one of the few institutes to have its own full–fledged call
learning model centre in Asia. The call centre as well as the student care centre resolve any
query related to SCDL and its courses.
• Virtual classrooms: SCDL has expanded its distance learning model by
introducing the virtual classrooms and online faculty chat sessions, which allow
the students to be in constant contact with the faculty and get their queries
resolved. Students can see and refer to all the questions and answers asked in a
particular session, which adds as a supplementary aid to their learning.
• e–Learning facilities: SCDL has successfully leveraged the content and brand
equity of Symbiosis Society to provide a highly interactive e–learning content
to its students, through case studies and practical examples. Other e–learning
facilities provided by the SCDL include submission of assignments and receiving
of feedback, on–demand examinations, syllabi, counseling, fee payments etc.
• Facilitates placement: SCDL facilitates the placement process by uploading the
manpower recruitment request of various companies on its own website.
Sources: SCDL: Website; The Times of India website

Mobile and tele–education are also emerging as

new technology aided modes of delivery being
pioneered by IGNOU
TV and radio
Overview Gyan Darshan and Gyan Vani are IGNOU’s initiatives (in collaboration with other
bodies) in TV and Radio which have been operational from 2000 and 2003
respectively.
Program Gyan Darshan is a bouquet of four channels on vocational, technical and higher
education and sustainable development while Gyan Vani has 37 operational radio
channels imparting educational courses.
Mobile phones
Overview Indira Gandhi National Open University (IGNOU) has collaborated with Nokia in
order to offer certificate programme in English via mobile phones to start from
January 2011
Coverage The program will initially start in six districts of Maharashtra. After six
months, depending on the response, program will be launched at a
national level.
Delivery and The six months programme is a broken up into three levels that include English in
price daily life, English in education and joining the workforce. The fee of the programme is
INR1,900. The course will be in English offered mainly through SMS.
Tele–education
Overview IGNOU and TCIL have set up a pan African e–network for connecting Indian institutes
to 53 countries of Africa for providing tele–education. The network worth INR5,429
million was inaugurated by the Government of India on February 26, 2009 .
Program The programmes under this network are vocational as well as academic, including
masters in business administration, human resources, marketing, tourism
management and environment studies and various other professional degrees.
Enrollment Over 600 students have enrolled for these courses
Sources: Indiaenews.net, updates.highereducationinindia.com, timesofindia.indiatimes.com

New
types of
institutes

Promoting new types of institutes will yield several
benefits to the higher education system
Fulfilling demand for • New types of institutes can cater to the large demand for quality affordable
affordable education education
Reducing student
• High quality institutes which collaborate extensively with foreign institutes can
cater to the growing demand for global education
export
Meeting industry needs • New types of institutes can cater to industry needs for qualified job ready
students
New models of institutes are coming up to serve the diverse needs of the students and
the industry

Premium, mass and specialized institutes are
opening up to provide best–in–class standards
of education
Higher Education Institutes
Premium Mass Specialized
Premium HEIs have evolved Mass HEIs have evolved from Specialized HEIs have
over the last decade and the need to provide evolved from the growing
are comparable to the best affordable education demands from the economy
in the world. They target to the masses for niche skills
Overview students planning to go
abroad for higher education
Such institutes justify Such institutes derive Such institutes offer only
their premium fee high demand for their specialized courses to
structure by offering their courses by offering them cater to specific sector /
Value students with the best of at an affordable price field
Proposition global standards in point to the students
terms of infrastructure,
curriculum, faculty,
systems and processes
Jindal Global Law Centum Learning University of Petroleum

School, Indian School of and Energy Studies,
Key players
Business FHRAI Institute of
Hospitality Management

Premium
Premium HEIs position themselves as global brands

offering high quality education at a premium fee
USP of premium institutes
Globalized content • Premium HEIs leverage their international partner network to bring globalized
and Best of Faculty content for its students. These institutes recruit the best of faculty from across
the globe to design and deliver the programmes.
Methodology of • These institutes employ a host of global teaching methods such as class
teaching presentations, group assignments, on field research and field visits, video
conferences, web based learning, live simulation exercises, etc.
International exposure • These institutes have collaborative arrangements with global education
to students institutes and industries which provide international exposure in terms of
internship and job offers.
World class • Another USP of these institutes is the world class facilities supporting the
infrastructure and institute such as multi–media classrooms, Wi–Fi campuses, state of the art
latest technology auditoriums, well stocked libraries etc.
Jindal Global Law School – Commanding a Premium for Quality
Overview Course offering and fees
Jindal Global Law School (JGLS) has positioned itself as • 5–Year B.A. LL.B. (Hons.) Programme: INR5.0 lakhs
India’s first global law school. The institute focuses on per year
providing globalized legal and policy education in the • 3–Year LL.B. Programme: INR6.0 lakhs per year
country
• 2–Year LL.M. Programme: INR4.0 lakhs per year
Focus on teaching quality and content Collaborative arrangements
JGLS’s faculty–student ratio of 1:10 is among the best • JGLS has international collaborations with Harvard
in the country. The institute has faculty members drawn Law School, Yale Law School, United Nations
from various globally acclaimed institutes with good University and several other reputed law schools and
academic records, work experience and educational universities worldwide.
qualifications.
Sources: The Pioneer: Website; Jindal Global Law School : Website

Mass
Mass institutes are offering a range of

affordable courses targeted at price–sensitive
students
USP of mass institutes
Focus beyond • Traditional knowledge imparted through the regular curriculum is generally
traditional knowledge perceived to be insufficient to address the staffing needs of various industries.
Hence, mass institutes focus on providing job–oriented skills and knowledge to
its students.
Methodology of • Mass institutes offer their courses at an affordable price, thus, generating
teaching greater demand. In addition, they also address the skill gap and enhance the
career prospects of students.
International exposure • The presence of a very strong network enables mass institutes to reach the
to students target audience.
Centum Learning — Scalable business model built on domain expertise
Overview Course offering and fees
Centum Learning (CL), a Bharti Group firm, has interests • 2–Year MBA Programme: INR25,000–50,000 per year
in higher education and vocational training. With a • 3–Year BBA Programme: INR15,000–30,000 per year
capital efficient model, the company offers affordable
courses in sales, supervision and customer services,
• 1–Year Diploma Programme: INR12,500–INR25,000
per year
especially for sectors such as retail, automobile and
telecom. • Corporate Readiness Programme : INR70 per hour
Employability focus Pan India reach
The company’s course materials and practices have a • The company has a pan India presence reaching
strong focus on employability and applicability . some of the remote and rural parts of India through
its network of 130 Centum Learning Centers spread
The company has formed a JV with National Skill
across 90 cities. It plans to increase this number to
Development Corporation (NSDC) to provide job–
500 over the next five years.
oriented skills to 11.5 million people by 2022.
Sources: India Today: Website; Centum Learning: Website

Specialized
Specialized HEIs provide specializations in industry

needed subjects and produce ready talent
USP of specialized institutes
Domain specific • Specialized HEIs offer sector focused programmes developed with practical
curriculum inputs from industry experts in relevant domains
Industry based faculty • These institutes draw faculty from various industry associations and leading
companies in the relevant sector, thus, supplementing the curriculum with the
latest knowledge trends
Industry ready talent • These institutes have built a dynamic interface with core sector companies.
They nurture industry ready talent and cater to the high demand of specialized
workforce for the sector
University of Petroleum and Energy Studies – Addressing the ‘Specialization’ Gap
Overview Areas of specialization
• University of Petroleum and Energy Studies (UPES) • Key areas of specialization offered by UPES are:
offers domain specific subjects of petroleum and • Upstream asset management (Oil & Gas)
energy studies to cater to the needs of oil and gas,
power and other core sectors.
• Gas engineering (Oil & Gas)
• The university claims to be Asia’s first and only

• Petroleum refinery engineering (Oil & Gas)
Energy & Core Sector university offering such • Pipeline engineering (Oil & Gas)
programs. • Health Safety & Environmental Engineering
(Oil & Gas)
Strong industry–based faculty and pedagogy • Nuclear energy (Power)
• UPES’ faculty is composed from world–renowned • In addition, UPES also offers niche programmes in
domain experts, as well as academicians and sectors such as information technology, logistics and
lecturers from GCC countries. supply chain, electronics and legal studies, etc.
• To provide hands–on experience to its students,
UPES conducts study tours/industry visits, summer
internships, industry based dissertations and
innovative project work.
Sources: University of Petroleum and Energy Studies: Website

New
types of
courses

Offering quality skill–based courses within higher
education can yield several benefits
Various studies suggest that mainstream higher education has had mixed success
in improving employability of students.
The unmet demand for a skilled educated workforce opens doors for including
quality skill–based educational courses into the formal education space.
Provide employable • Providing job–focused/specialist training in specific sectors and functions, can
skill–sets help improve the employability of graduates.
Enhance access
• By providing skill–based educational courses within the formal higher
education space, institutes can provide options to students looking for more
industry–relevant education, thereby enhancing access.
Sources: Indian Higher Education Envisioning the Future, Pawan Agarwal

Players can offer a diverse mix of courses in
the vocational and new–age segments
Overview
Vocational education refers to job-specific New-age courses refer to skill-based programs

education/training meant to enhance the skill designed to offer specialist training in new-age
levels of learners and improve their employability careers and sectors such as sports, aesthetics,
social service, entrepreneurship etc.
Key courses Key courses
Operational training Fine arts
IT Hospitality Fashion designing Fabric designing
BFSI Media Jewellery designing Interior Designing
Retail Others Animation Retail designing
Aviation Graphics Landscaping
Functional training Others

Finance and Accounts Sports management Rural management
Sales training Event management Entrepreneurship
Management training Wealth management
Soft-skill training
Language training
IT/ BPO finishing school

Vocational courses
While a number of universities are offering

courses across the vocational higher education
space…
Presence of key universities across segments
IT BFSI Retail Aviation Hospitality Media Finance & Sales Mgt Language IT/
Accounts Training Training Training BPO
Manipal
Amity
Symbiosis
IGNOU
Key players
ICFAI
Annamalai
Manav

rachna
PTU
Lovely
JNU
Sources: Institutes’ websites

Vocational courses
…a few institutes have also been able to

provide quality vocational education
MICA • Mudra Institute of Communications, a renowned education provider for

the marketing communications industry, provides diploma programme in
communications
Whistling woods • Whistling woods, Asia’s largest film, television, animation and media arts
institute offers a 2–year MBA in Media and Entertainment and a 2–year
diploma in Filmmaking
ICA • Institute of Computer Accountants, a leading accounts and finance education

provider, offers courses in finance and investment, financial planning and
networking and infrastructure management
AHA • Air Hostess Academy provides courses in aviation and hospitality management
Aptech • Aptech, a leading provider of computer education, offers a wide range of

degree and diploma programmes for 12th pass/college students and engineers
Frankfinn • Frankfinn, a leading provider of aviation, hospitality and travel education,

provides a one year diploma in Aviation, Hospitality and Travel
Management among other courses
Sources: Institutes’ websites

New age courses
Similarly a growing number of universities and

institutes are providing new–age courses
Universities
Amity University • Amity University offers courses in interior design, fashion,

fine arts, social work, performing arts and physical education
Manipal University • Manipal University offers courses in jewellery design and social work
Annamalai University • Annamalai University offers courses in physical education and sports sciences,
music and dance, animation
Jawaharlal Nehru • Jawaharlal Nehru University offers courses in cinematic, visual and performing
University arts
Kerala University • Kerala University offers courses in painting, sculptures and applied arts
NIIT • NIIT offers Bachelors and Masters degree programmes in IT in association with
Kuvempu University of Karnataka
IIHT • Indian Institute of Hardware and Technology (IIHT), one of the leading IT
training organizations, has tied up with Sikkim Manipal University to offer a
Bachelors degree in Infrastructure Management Services
MAPS • Millennium Academy of Professional Studies (MAPS), promoted by Educomp
Solutions, offers an MBA degree from a UGC recognized NAAC ‘A’ Grade
University
Institutes
NIFD • National Institute of Fashion Design (NIFD) has collaborated with Annamalai
University to offer a Bachelors of Science degree in fashion design.
MAAC • Maya Academy of Advanced Cinematics (MAAC) offers a Bachelors degree in 3D

animation and visual effects. The institute has tied up with IGNOU to offer the
programme.
Pearl Academy of • Pearl Academy, in association with IGNOU, offers a wide range of Bachelors
Fashion degree courses in areas such as fashion merchandising and production, textile
design and fashion design.
Sources: Institutes websites; Cygnus Industry Monitor – Higher education July 2010

New possibilities:
Collaboration

Collaborations can emerge as a key to
rapidly improving the quality of India’s higher
education institutes
Collaborations provide a means of tackling the quality issues facing the higher
education system by:
1 Improving linkages 2 Providing a global 3 Improving quality of

with the industry orientation public institutes
Improving
curriculum content Helping in training
4 Improving research 5 and design 6 of faculty
Collaborations in higher education
Course delivery Professional training & certification

Curriculum design and validation Design of curriculum
Faculty training Continuing education
Research Industry internships
Research
Foreign
players Industry
Collaborations
Government
Public-private partnership

Collaboration
with foreign
players

Promoting collaborations with foreign players
will yield several benefits to the higher
education system
Access to international • Collaborations with foreign players will improve quality of Indian institutes by
best practices providing access to international best practices and systems
Richer learning
• Institutes can collaborate with foreign players through twinning arrangements
and student exchange programs to provide their students with global
experience for students
experience
Training of faculty and • Collaborations will allow Indian institutes to get their faculty trained at foreign
access to international institutes while also giving Indian institutes access to international faculty
faculty

There are more than 143 Indian institutes and
161 Foreign Education Providers (FEPs) engaged
in collaboration
Higher educational institutes from UK and USA have entered into maximum
number of collaborations with Indian institutes
Number of foreign players collaborating with Indian Country-wise distribution of collaborating foreign
institutes players
Others
16%
55
11 4 Switzerland
25 3%
16 Germany UK
2% 34%
France
1% Canada
7%
13
Australia
8%
USA
29%
Maharashtra, Delhi and Tamil Nadu account for nearly half of the total institutes
from India with foreign collaboration
Number of Indian institutes collaborating with foreign State-wise distribution of collaborating institutes in
players India
Others Maharashtra
16% 17%
4
1 Uttar Pradesh
6 5%
22
7
West Bengal Delhi
8% 15%
3 1 1 12
25 Andhra Pradesh
10%
15 Tamil Nadu
3 Karnataka 15%
18
13%
4 21
Sources: UKIERI: Foreign Education Providers in India 2008

While private HEIs account for majority of the
collaborations from India, most of the foreign
partners are public institutes
Typology of collaborating Indian institutes
Autonomous aided
Others, 3%
colleges/institutes, 5%
Private company
institutes, 5%
State/government
managed institutions • Nearly 83% of Indian institutes
5% collaborating with foreign
Deemed Universities universities/institutes are in
3% the private sector
State Universities • Only 3 State Universities and
2%
4 Deemed Universities are
Private non-affiliated found to be collaborating with
institutions
48% foreign partners
Private sector institutions affiliated
to State or other university
29%
Typology of collaborating foreign players
Others
9%
However, Public foreign

Private Universities/Institutes dominate
34% Public the landscape, accounting for
57%
more than half of the total
collaborating foreign players

Collaborations between Indian and foreign
universities deliver 641 programmes across
disciplines
A majority of courses are being offered in the field of Management and IT
Discipline-wise distribution of collaborative programmes
Others Management/Business
18.1% administration
26.5%
Applied science
4.8%
Applied arts
7.0%
Engineering and
Technology/Computer application
Hotel management/
Information Technology
House keeping
22.6%
20.9%
Most courses offered by Indian institutes collaborating with foreign institutes are
at the undergraduate degree level
Distribution of levels of programmes on offer
Ph.D./M.Phil.
Certificate 1%
13%
PG Diploma UG Degree
8% 36%
UG Diploma
19%
PG Degree
23%

Indian institutes are collaborating with foreign
institutes across multiple areas
Key areas of collaboration with foreign players
Course
design/
Course delivery validation/
monitoring
Areas of
collaboration
Faculty
Research training/
exchange

Course Delivery
Courses are currently being delivered via five key

partnership models
Important forms of delivery of collaborative education in India
An Indian HEI enter’s into an arrangement In link programmes, students enrolled

with a foreign institute to offer academic in the host country in one programme
programmes in India or abroad towards the are enrolled in the home country for
award of degrees/diplomas, either another programme through the
individually or jointly, using the completion of the previous programme,
resources of both heading for higher qualification
1 2
Link
Twinning
programmes
arrangement
A higher education
institute of one Under Franchising mode, a
country (home) decides Forms of certain higher education
on the course design, delivery of institute (Franchiser) of one
curriculum, examination collaborative country authorizes another
and other procedures of Franchising institute (Franchisee) in
education
the educational mode another country to provide
Study centre 3
programmes delivered 5 its courses under its
in an educational supervision
institute of another
country (host), which is
not owned by the Distance
institutes of the home learning
country. arrangement
Under this mode, the learner is provided

with course materials via post or web-based
solutions, by the institute of one country
which is self-administered by learners at
home or administered through the
institute in another country.
In all these modes, programmes of the foreign institutes move partly or fully to
host institutes.

Course Delivery
Twinning and link programmes offer student

mobility and thus, have emerged as the most
preferred forms of delivery
1. Twinning gives an institute a means of providing its students with a foreign degree
Case Study (S. P. Jain Institute of Management and Research and Schulich School of Business)
• S. P. Jain Institute of Management and Research (SPJIMR) has launched a 2–year MBA programme with
Canada–based Schulich School of Business (SSB) through a twinning arrangement
• As a part of the programme, students complete the first year at SPJIMR in Mumbai and the second year at
SSB in Toronto. Of the 10 courses offered in the two terms, SSB faculty conducts eight courses while SPJIMR
faculty teach the remaining two.
• Besides giving students the access to 18 specialisation, the programme involves an eight–month real world
strategy field study course where students provide concrete strategic guidance to companies on a real time
basis.
• The programme enrolls 30 students and costs around INR14,72,000. It has been approved by the All India
Council for Technical Education and will lead to students getting a Canadian degree after two years.
2. Link programmes not only provide exposure to two different learning

environments but also help students in getting dual degrees
Case Study (Birla Institute of Technology (BIT), Ranchi and University of Leeds)
• Under its collaborative agreement with the University of Leeds, the Birla Institute of Technology (BIT), Ranchi
offers BE linked with ME in various engineering disciplines to be earned in the University of Leeds.
• The students can do the 3rd and the 4th years of the BE programme at the University of Leeds. They will
study 2 years at BIT and if they go to the University of Leeds after the 4th semester for another 2 years, they
will get an ME from the University of Leeds.
• The major advantage is that in 4 years, the student can get a BE from Birla Institute of Technology and an ME
from the University of Leeds.
Sources: Interviews, UKIERI: Foreign Education Providers in India 2008; BIT Ranchi: Website

Course Delivery
In addition, FEPs are also collaborating with

Indian HEIs via franchising, distance learning
arrangements and study centers
3. Franchising is a form of international outsourcing in which some of the activities,

normally provided by the franchiser, are contracted out to local partner institute
Case Study (The Educational Institute of American Hotel & Lodging Association)
• The Educational Institute of American Hotel & Lodging Association has been operating in India through
franchising with many educational institutes of India such as Lakshya Bhartee Institute of International
Hotel Management (LBIIHM); College of Hospitality & Tourism Studies; Institute of Advanced Management;
Academy of Culinary Education.
4. Distance learning arrangements with foreign institutes have made learning more
accessible and flexible
Case Study (Jadavpur University and Staffordshire University)

• Staffordshire University, in partnership with Jadavpur University, offers M.A. in sustainable development in
India.
• This unique part–time master’s degree is delivered by an online distance learning mode, and can be accessed
by computers with Internet access at home or elsewhere.
• Staff from Staffordshire and Jadavpur interacts with their students to support learning and monitor progress
of the latter through workshops arranged at Jadavpur University.
5. Foreign institutes also operate in India by setting up study centers
Case Study (Bhartiya Vidya Bhawan and Marshall University )

• Bhartiya Vidya Bhawan is a recognised study center of the Marshall University. MBA courses offered in
Bhartiya Vidya Bhawan are validated and designed by the Marshall University and the faculty of that University
have been involved in the course delivery and in the process of selection of students.
Sources: Jadavpur University: Website; UKIERI: Foreign Education Providers in India 2008

Course design/validation/monitoring
Foreign institutes are also playing a key role in

designing, validating and monitoring courses of
Indian institutes
Areas of partnership Cases in India
Course design • Indian institutes are • The MBA and Ph.D

increasingly using curriculum programmes offered by
designed by foreign institutes Academy of Business
to provide their students with Management are designed
global content by the King’s International
University of Science and
Technology (USA)
Course validation • The foreign partner acts as • The courses of Pearl

an awarding institute and Academy of Fashion are
judges whether a programme validated by 4 foreign
delivered by an Indian institutes: Nottingham
institute is of appropriate Trent University (NTU), LDT
quality and standard Nagold, International College
of Professional Photography
and London College of
Fashion.
Course monitoring • The foreign partner monitors • The University of Cambridge

the delivery of courses to International Examination
ensure that quality standards (CIE) monitors the courses
are adhered to, and also offered in Maya Academy
ensures that students receive of Advanced Cinematics.
the most appropriate form of (MAAC) to ensure that
assessment MAAC meets the expected
standards of international
best practices

Faculty training/exchange
Indian HEIs are also increasingly collaborating

with foreign institutes for faculty training and
exchange programs
Areas of partnership Cases in India
Faculty training • Indian institutes are • The Administrative Staff

collaborating with foreign College of India (ASI) has
institute for faculty training. arrangements with John
This enables the faculty Hopkins University (JHU),
to learn global teaching USA for faculty training
practices
Faculty exchange • Faculty exchange programs • Indian School of Business

provide development (ISB) has entered into a
and service benefits to collaboration with MIT Sloan
individual faculty members School of Management
through their participation (MSSM) for faculty exchange.
in academic and research • Under the partnership, ISB
programs of the foreign will send up to two professors
institute a year to MSSM and two to
• Students also benefit from four professors from MSSM
the direct access provided by will teach at ISB.
the presence of international
faculty at host institutes
Sources: ISB website; UKIERI: Foreign Education Providers in India 2008

Research
To raise the standards of research, Indian

HEIs are collaborating with foreign institutes
through multiple avenues
Type of Research partnership Cases in India
Ph.D. Exchange Program • The program enables Ph.D. Amrita University and multiple
students from foreign US universities
universities to conduct
research at an Indian
• Ph.D students from US
universities come to India to
university and vice–versa
conduct research and teach
for a period of 3 months
Joint Research by faculty • Indian institutes also Amrita University and the
collaborate with foreign California Institute for
partner institutes to Telecommunications and
expand opportunities for Information Technology (Calit2)
international mobility of
faculty to conduct research
• Faculty from US universities
visit India to conduct research
Joint Research though • Joint research projects Amrita University with multiple
Project Work offer students an foreign universities
opportunity to interact on
high–value assignments
• Final year engineering
students from Amrita
with international peers and
university and US universities
faculty. In addition, students
simultaneously work on
gain exposure to new
research projects
methodologies and systems
Sources: EY–EDGE 2008: Globalizing Higher Education in India

The collaboration between ITM and Warwick
university illustrates the opportunity to leverage
the academic expertise of foreign institute
The Institute of Technology and

Management (ITM) has tied up with
the UK-based University of Warwick
Institute of Technology
University of Warwick to offer the first year of Warwick’s and Management,
bachelors and masters degree Gurgaon
programs in Electronic Engineering
and Electronic & Communication
Engineering at ITM
Students enrolled for the degree can complete their first year in India and the remaining two years
(in case of bachelors degree) or three years (in case of masters degree) at the University of Warwick
The collaboration is unique as the University of Warwick is responsible for a

majority of academic aspects
Role of University of Warwick Role of ITM
• Selection of Faculty • Assists University of Warwick in recruitment

• Approval of Syllabi and selection of students
• Development of curriculum
• Prescription of lectures
• Examination arrangements
• Assessment
• Moderation/Determination of examination
results
Sources: UKIERI: Foreign Education Providers in India 2008, The Tribune

Collaboration
with industry

Promoting collaborations with the industry
will yield several benefits to the higher
education system
Improving quality • Collaborations with industry helps improve quality and the value proposition of
institutes by providing a industry orientation to courses and curriculum
• Collaborations will also help improve the quality of research
Improving • Allows institutes to develop more relevant curriculum to make graduates

employability of industry–ready
graduates
Catering to • Industry players also have the opportunity to collaborate with higher education
the manpower institutes to meet their needs of manpower requirements
requirements

Educational groups have been collaborating
with leading Indian companies through various
partnership models
The university and industry can establish interface at varying levels with different
degrees
1 5
Customized professional Research

training & certification
Academia-Industry
collaboration
models
Continuing Design of 4
2
education curriculum
Industry
internships

Customized professional training & certification
Professional training provides an incentivized

framework within which the employer as well as the
education provider stand to gain
HEI’s conduct customized programmes for a company to train and provide

its employees with certification in specialized domains.
Customized professional training and certification
Benefit to industry 1 Benefit to to institute

Cost-effective training Customized Predictable cash flows
“Job-ready” entry level candidates professional Source of diversification
training and
Geographical spread Better capacity utilization
certification
Case study (ICICI Manipal Academy ) Case study (Accenture & XLRI HR Academy)
The Academy provides fully residential The Academy offers a 24-month programme for
programmes to train selected probationary 34 university graduates who have joined
officers of the ICICI Bank Accenture as trainees in the HR department
ICICI handles the admissions while Manipal The graduates will be employed with Accenture
University invests in infrastructure and as they undergo the programme conducted
charges a fee per student jointly by Accenture and XLRI, with courses
ICICI provides students with a monthly stipend developed jointly by the two organizations
during classroom training and internship On successful completion of the programme,
trainees will receive the Accenture and XLRI
Certification in Human Capital Management
Sources: Accenture India: Website

Continuing Education
With industry demanding ever increasing level

of skills in employees the need for continuing
education has been increasing
HEI’s conducts programs, specifically for working professionals, like

Executive Education and Management Development Programs that are
sponsored by the employer
Continuing education

Attraction/Retention tool Continuing Predictable cash flows
Skill enhancement for key education Branding tool
employees identified for growth Effective capacity utilization
Case study (BITS Pilani and Bharat Forge) Case study (MDI and Maruti Suzuki India)
As a means of providing continuing education MDI entered into a partnership with Maruti
for employed professionals, Bharat Forge has Suzuki India (MSI) for training its executives.
collaborated with BITS Pilani to offer its
employees a three year customized work Under the agreement, MDI would undertake
integrated learning BS Manufacturing competency development programmes for
Engineering degree program different levels of executives at Maruti. On the
other hand, MSI would identify the requirements
of executives and participate in final placements
for employing students graduating in various
programmes at MDI
Sources: BITS–Pilani: Website; MDI: Website

Industry internships
Industry internships gives students an opportunity

to complement their academic study with
meaningful industry experience
An approved and monitored work experience is provided in a company that

is related to an academic field of study and meets specific learning goals.
Industry internships

Student projects in line with Provides industry-orientation
company requirements Industry
Helps placement activities
internships
Access to potential job candidates
Case Study (BITS Pilani Practice School )

The Practice School is a unique feature of the Integrated First Degree and Higher Degree programmes at BITS Pilani. It is a
seven and half months, structured and evaluative internship where students work on real time projects.
The Practice School programme has two components:
Practice School-I: Two months internship offered during the second year of the degree
Practice School-II: Five and a half months internship offered during the final year of the degree.
Practice School is different from the traditional internship since a resident faculty member is stationed at the industry site
to monitor and evaluate the work of the students. At the end of each Practice School course students are awarded grades
based on their total performance and these grades are directly incorporated in the students’ degree transcript.
Students are also offered stipends along with the housing and other facilities during the internship. BITS Pilani has a tie-up
with a large number of companies for the Practice School Programme such as Morgan Stanley, HSBC, Credit Suisse etc.
Every year over 1400 students at BITS Pilani undergo this internship and on successful completion of the programme,
students receive a degree which carries the tag ‘With Practice School’. In the past, a large number of these students have
been offered Pre Placement Offers (PPOs) during the internship.
The relevance and popularity of Practice School is evident from the fact that till date nearly 15,000 students have
participated in this programme.
Sources: Interviews; BITS Pilani: Website

Design of curriculum
As HEIs face greater challenges in producing

industry ready talent, design of curriculum by
industry experts is a rising trend
Industries demand a closer alignment of university learning curriculum to

real work tasks to better meet the needs of organizations and learners
Design of curriculum

Goodwill Makes curriculum relevant
Design of
Entry-level candidates educated Helps create new
curriculum
in specific areas not covered by courses/programs
generic programs
Case Study (Zensar Technologies and UOW, Case Study (IGNOU and Accenture)
Australia)
Indira Gandhi National Open University (IGNOU)
Zensar Technologies has collaborated with has launched a diploma programme in business
Australia’s University of Wollongong (UOW) for process outsourcing (BPO) in association with
course design Accenture
The course is based on the use of UOWs ICT IGNOU has worked closely with Accenture to
degrees that will be supplemented with develop the course and its deployment strategy.
Zensar’s proprietary curriculum so that Students who successfully complete the
graduates will be project ready to work at the programme and pass all term-end examinations
Zensar centre when they complete their will be eligible to apply for employment with
degrees Accenture and other BPO companies
Sources: Zensar Technologies: Website, IGNOU: Website

Research
There is a continuous convergence of interests

between industry and academicians in the area
of research
Companies sponsor fresh research talent in universities in terms of tuitions

and/or stipend or finance a research project of a student
Research

Provides access to cutting edge research Aligns institute with industry needs
that can lead to competitive advantages Research Provides ability to attract top faculty
Academia brings long-term focus to R&D and students
Institutes are single point source to tap Source of revenue
multi-disciplinary knowledge Relationships that can be leveraged
Cost benefits for other needs (e.g. placement)
Sponsored research Joint R&D

Companies sponsor fresh research talent in Joint IP creation; Sponsored laboratories with
universities in terms of tuitions and/or stipend academic and industry researchers; Funded
or finance a research project/final thesis of a Centres of Excellence
student
Case Study (BITS Pilani and HP Labs India) Case Study (IIT Kanpur and TCS)
BITS, Pilani and HP Labs India jointly offer a TCS and IIT Kanpur entered into a collaboration
unique PhD fellowship for research in Informa- for a post-graduate course on 'Storage Comput-
tion and Communication Technologies (ICT) ing Architecture'. The partnership covers joint
research projects that are relevant to address the
This fellowship was instituted to attract technology and business needs of the booming
candidates of exceptional abilities for research global storage industry, including TCS customers
in selected areas. It offers candidates an in this space
opportunity to work in the highest academic
standards with HP Labs. The collaboration also included setting up of a
storage computing laboratory at IIT Kanpur
Sources: HP Labs: Website; TCS: Website

Collaboration
with
Government

Public–private partnerships (PPPs) leverage on
competitive advantages of both parties to improve
access and quality
By collaborating together in the form of Public Private Partnerships (PPPs),

both the Government and private players can address the challenges they
face, and contribute towards the growth of the higher education sector
Supplement public • The gap in funding can be bridged by supplementing public expenditure with
funding private sector financing
Improved efficiency • Resource sharing and the use of latest technologies in design, development
and operations, will lead to a more cost–effective and efficient higher
education system
Accountability and • Public–private partnerships can help to ensure institutional autonomy by

autonomy minimizing political and bureaucratic interferences. Further, through a clear
division of roles and responsibilities, autonomy can be ensured
Sources: Indian Higher Education Envisioning the Future, Pawan Agarwal

Various business models can be deployed
by private players to collaborate with the
Government
Under PPP models, the Government remains accountable for service, quality,
price and cost–effectiveness, while private players assume responsibility for the
design, finance, building and operation of facilities – with risk and revenue sharing
among participants.
Business Models
Basic infrastructure model Outsourcing model
Invests in infrastructure Invests in infrastructure

Private Private
Institute Runs operations and Institute
sector sector
maintenance
Runs
operations and
maintenance
Government Government
Makes annual payments to Pays the private sector for
the private sector specified services
Equity/hybrid model Reverse outsourcing model
Runs operations and

Invests in infrastructure maintenance
Private Private
Institute Institute
sector Runs operations and sector
maintenance
Invests in Invests in
infrastructure infrastructure
Government Government
Sources: FICCI Higher Education Summit 2009, Indian Higher Education Envisioning the Future, Pawan Agarwal

There are various forms of collaborations that can
be explored by private players and the Government
The forms of PPPs that can be explored in the higher education sector are
as follows:
1 Service delivery initiatives 2 Infrastructure PPPs
Public private partnerships for infrastructure can be

Private players can be engaged by public colleges/ broadly for the following:
universities for:
• Private finance initiatives, including finance,
• Management of college/universities construction and maintenance of core and
• Delivery of education non-core educational assets
• Before and after college care • Private leasing of public college/ tertiary -
institution facilities
• Provision of information/testing services
• Equipment and maintenance of IT laboratories
• Private sector review
• Management of non-core functions
3 Strategic Partnerships 4 Demand side finance initiatives
Public and private players can collaborate on for several To ensure equity and broaden access to include all
initiatives including: sections of the population, the public sector may
• Research PPPs undertake cross-subsidisation through the provision
of the following:
• Curriculum development
• Publicly financed vouchers and scholarships
• Quality assurance
• Publicly provided student loans
• Adopt-a-college initiatives
• Subsidies for private institutions
• On-job-training/internships
• Public/private tertiary institution affiliations
• Social marketing
Sources: Public–Private Partnerships in Education – ADB November 2006

Service Delivery Initiatives
Service delivery initiatives can help improve

the management and quality of education
imparted
Under this form, a more efficient partner provides management support to the
other partner to improve the quality of education service delivery. The service
provider may be engaged temporarily through a management service contract,
on a commission–fee basis or a particular service may be fully outsourced, as
required.
Service delivery initiatives enable public institutes to procure services that
may not be available to them, while focusing on areas where they demand a
competitive advantage.
Illustrative partnerships
Delivery of education
Sikkim Manipal University is an innovative PPP between the Government of Sikkim and the Manipal Education
and Medical Group (MEMG), where the Government provided the land and hospital for the institute and the
Manipal group is responsible for the delivery of education. Representatives from the Government form the senior
management of the university.
Provision of information/testing services

Prometric carries out the computerized Common Admission Test (CAT), the selection test for admissions to
the Indian Institute of Management. Meritrac and Everonn have been chosen as the delivery partners for the
current year.
Other service delivery arrangements

• Management of colleges/universities
• Before and after college care
• Private sector review
• Management of non–core functions
Sources: Business Standard: Website

Infrastructure PPPs
Infrastructure PPPs can help bridge the gap in

capacity and funding faced by the Government
Under this arrangement, the private sector player is engaged on a long–term

contract by the public sector for the provision of services, which are generally
delivered through a special purpose vehicle (SPV).
• Private finance initiatives is one arrangement that involves the construction
of infrastructure and assets through private funding. Such arrangements have
the essentials in place to ensure that the quality of infrastructure and building
facilities meet minimum quality standards.
• Private leasing may involve leasing of public premises for retail operations,
catering etc.
Private finance initiatives

• Out of the 1000 polytechnics proposed to be set up by the Government by 2011–12, 400 polytechnics will
be set up through private funding, while 300 will be set up with partial funding of INR3 crore per polytechnic
from the Government, with the remainder coming in from private sources.
• The Planning Commission plans on setting up 2,50,000 vocational schools in the next five years through
PPPs
• The Government has proposed to set up twenty new Indian Institutes of Information Technologies (IIITs) with
partial funding from private sources, under the PPP mode
Private leasing
Numerous food and beverage players, bookstores and retail outlets operate out of several campuses.
Other infrastructure PPPs

Other infrastructure PPPs may include maintenance of and provision of equipment for IT laboratories and
development of hostels etc.
Sources: Indiaedunews: Website

Strategic Partnerships
Strategic partnerships can be explored to

leverage on key strengths of each player
Strategic partnerships refer to alliances between public and private players

to combine their respective strengths and capabilities through a contractual
relationship.
Alliances offer the opportunity for players to focus on areas where they enjoy a
competitive advantage while leveraging on the assets or expertise of the other
party in the arrangement.
Research PPPs
Science parks are set–up by public–private players to support research. The Gujarat Industrial Development
Corporation, Government of Gujarat has partnered with EMPI Vittal Centre to launch the Gujarat Vittal Innovation
City with the objective to create India’s first planned Innovation Zone by integrating industry and academia with
R&D, incubation and community.
Partnerships can also be formed with the objective of providing funding for research wherein private players
provide funds for research of new products, or for applied research, while public agencies provide funds for basic
or applied research to private universities. The proposed Indo–German Science and Technology Centre (IGSTC) is
an example of such an arrangement where the centre shall provide resources and facilitate industry participation in
joint research and development projects.
Curriculum development
Sahyog Foundation, a non–profit organization funded by a group of non–resident Indians, has received a grant from
the Orissa State Government to set up two medical colleges and in Keonjhar in Orissa. The foundation is working
out a tie–up with Harvard University for curriculum development, student and faculty exchange programs between
the two institutes
Adopt–a–college initiatives
Under the Government’s plan to upgrade 1397 ITI’s into centers of excellence, ~ 200 companies, including
prominent names such as Videocon, Suzlon, Taj Group, Hindustan Unilever, Tata Chemicals, Hindalco, Educomp
Solutions, Hyundai Motors, India Cements and Ispat Industries adopted ~ 300 ITIs in the country
Public/private tertiary institute affiliations

The Andhra Pradesh Government has set up a number of institutes in collaboration with prominent institutes. For
example, the International Institute of Information Technology has been established by IBM, Motorola, Signal Tree,
Oracle and Satyam, Indian School of Business with The Wharton School, the Kellogg School of Management and
London School of Business and the Master of Science in IT Programme (MSIT) in collaboration with the Carnegie
Mellon University
Other collaborative arrangements

• Provision of on–the–job training/internships • University–owned companies that produce products
• Private sector involvement in quality assurance for the private sector
• Partnerships for delivery of programs • Publishing and knowledge networks for the
production and distribution of knowledge products
Sources: PPP in India: Website; Rediff: Website

Demand Side Finance Initiatives
Demand–side finance initiatives can be provided

by the Government to ensure equity
Demand–side finance initiatives refer to financial support offered directly to

the recipient of education. The purpose behind offering support to students
vis–à–vis colleges is to empower the student to choose the course, medium or
institution of education.
Demand–side finance initiatives are generally offered by the Government in the
form of subsidies, scholarships and student vouchers to ensure that all sections
of society are able to benefit from the education programs offered by the
private sector.
Publicly financed vouchers and scholarships

For the years 2008–09, Government earmarked an expenditure of INR450 million on scholarships in higher
education with an objective of covering 2% of the student population in colleges and universities. The schemes for
higher education are as under:
• The Central Sector Scheme of Scholarship for College and University Students provides financial assistance
to deserving students from low income families pursuing higher education to partially meet their day–to–day
expenses.
• Under the Scheme of Scholarship to students from non–Hindi speaking states for post–matric studies in Hindi,
the Government provides a scholarship ranging from INR300 to INR1000 per month for meritorious students
studying at a post–matric to PhD level with Hindi as one of the subjects.
• The Government also has a scholarship scheme for students with disabilities.
Publicly provided student loans

Under the Central Scheme to provide Interest Subsidy (CSIS), the Government of India provides full interest
subsidy during the moratorium period for deserving students from economically weaker sections of society under
the Educational Loan scheme of the Indian Banks Association, for pursuing technical and professional courses
from recognized institutes in India.
Subsidies for private institutes

Explicit subsidies comprising of direct transfer payments and Implicit subsidies in the form of concessional land
and tax exemptions are provided by the Government to private institutes. Explicit subsidies formed over 40% of
total public expenditure on higher education
Sources: PPP in education, Lessons learned from the Punjab Education Foundation – ADB; Empowering girls around world with an Indian scholarship –
Indiaedunews: Website; MHRD: Website; Public Subsidies in Education in India – Jandhyala B G Tilak

Agenda for the
Government
The regulatory landscape is undergoing a
significant transformation with a number of
new regulations in the pipeline (1/3)
New regulations Current state Proposed change
Foreign Education Institutions No formal framework for foreign Allowing foreign institutes to
Bill, 2010 universities provide degrees independently
The National Accreditation

Mandatory requirement for
Regulatory Authority for Higher Accreditation of institutes /
institutions and courses to be
Educational Institutions Bill, courses not mandatory
accredited
2010
Prohibition of Unfair Practices in

Technical, Medical Educational No comprehensive law to check Comprehensive disclosures and
Institutions and Universities Bill, malpractices in institutes list of malpractices identified
2010
Rising disputes, which are Introduction of dedicated

The Educational Tribunals Bill,
handled by the current legal Tribunals at the State/Central
2010
system leading to delays level to handle Education Disputes

Foreign Education Institutions Bill, 2010

Overview Seeks to regulate the entry and operation of foreign institutions (FEIs) to India
Details • Applies to all FEI’s who offer or propose to offer education services in India
leading to the award of a degree, diploma or certificate program
• Applied to conventional methods of teaching including classroom teaching, but
does not include the distance education format
• Applied to collaborations, partnerships or twinning programs of FEIs with Indian
partners
• The FEI to operate in India must have a track record of at–least 20 years. The FEI
must also seek approval and be notified as a qualified Foreign Education Provider
(FEP)
• FEPs are prohibited from utilizing surplus generated in India for purposes other
than for development of the Indian institutes
The Educational Tribunals Bill, 2010

Overview To set up Educational Tribunals for effective and expeditious adjudication of disputes
in the higher education system
Details • The Bill seeks to set up specialized tribunals at the Centre (National Educational
Tribunal) and the State (State Educational Tribunal) level for adjudicating matters
relating to disputes in educational institutes.
• It covers disputes between teachers and other employees of higher education
institutes and other stakeholders (students, universities, institutes and regulatory
authorities)
Sources: Foreign Education Institutions Bill, 2010, The Educational Tribunals Bill, 2010

The National Accreditation Regulatory Authority for Higher Educational Institutions

Bill, 2010
Overview Accrediting and rating all higher educational institutes in India and establishing a
statutory authority for the said purpose
Details • Mandatory requirement for accreditation of academic quality of every higher

educational institute, programme of study and their infrastructure
• Central and State universities, deemed universities, colleges and even
polytechnics to be covered by the rating agencies
• Establishment of the National Accreditation Regulatory Authority for Higher
Educational Institutions
Prohibition of Unfair Practices in Technical, Medical Educational Institutions and

Universities Bill, 2010
Overview Seeks to prohibit higher education institutes from undertaking unfair practices
Details • Prohibits any payment towards admission fee and other charges other than those
fees declared in the prospectus
• Prohibits accepting any fee without the issue of proper receipt in writing to the
student
• Prohibits capitation fee either directly or indirectly to any other trust owned or
controlled by promoters of the institute
• Makes provision for refund of a certain percentage of the fee deposited, if one
subsequently withdraws from the institute
• Seeks to curb malpractices such as over–pricing of prospectus and barring
misleading or non factual advertisements by institutes etc.
• Proposed imposition of civil and monetary penalties, which may extend up
to INR50 lakh for violation of provisions of this Act or an order made by the
concerned State Education Tribunal
Sources: The Prohibition of Unfair Practices in Technical, Medical Educational Institutions and Universities Bill, 2010, The National Accreditation
Regulatory Authority for Higher Educational Institutions Bill, 2010

Agenda for the Government
Agenda What the Government can do

Encourage private sector • For India to meet its GER targets as well as to increase the quality of higher
investments in the higher education institutes, a quantum increase in funding is required. Attracting interest
education sector from high quality private players is an imperative and the Government needs to
facilitate such investments through a multi–pronged strategy:
• Allowing Section 25 Companies to set up universities and colleges to provide
an alternative structure which supports better governance while preserving the
not–for–profit status of higher education
• Introducing innovative PPP models for high quality private players to set up
new institutes and participate in quality improvement of existing public higher
education institutes
• Providing weighted tax deductions to donations made to all recognized universities
Encourage Diversity in • For healthy development of a higher education system as large as that of India,
the Higher Education which caters to multiple kinds of students, it is imperative to encourage diversity in
system the system
• The Government must actively promote teaching based universities as well as
vocational institutes along with research universities
• At the same time, the regulatory system must also encourage distance education
by allowing all universities to establish distance education norms
• Vocational education should be encouraged by facilitating mobility between
vocational education and mainstream higher education through a system of credit
transfers while also creating a quality accreditation mechanism for vocational
education
Establish National • Shortage of adequately trained faculty is the biggest challenge to the growth of
Mission on Faculty the Higher Education Sector.
Development • The Government must take up faculty development under a National Mission mode
to develop the faculty pool and upskill existing faculty
• The National Mission must encourage teaching as a vocation, provide incentives to
students to take up teaching in both public & private institutes and support their
further education in leading institutes of the world
Strengthen education • The rationalization of fee structures to internationally accepted levels would
financing and facilitate self sustenance of universities and reduce strain on public funding
simultaneously introduce • The creation of a robust financing structure to enable student loan coverage
fee rationalization needs to be a precursor to such fee rationalization
• The Government needs to expedite the steps it is taking to improve student
financing and fee rationalization, ensuring coverage of students across private and
public institutes

Agenda What the Government can do
Bring about greater • The Higher Education sector suffers from archaic governance mechanisms
transparency and and disclosure levels are extremely low, limiting the ability of students to make
disclosure in the system informed choices
• The Government must make it mandatory for all colleges and universities to
furnish standard returns and the same should be published online through a
common web–site. To ensure implementation of the same, strict penalties must be
enforced for non–disclosure / wrong disclosures
Encourage collaborations • Collaborations in the areas of course delivery, student and faculty exchange, joint
with global institutions research as well as joint curriculum development need to be encouraged
• The Government should promote such collaborations by creating enabling
mechanisms such as facilitation of credit transfers
Support development • The availability of good quality digital content is critical to the growth of
of high quality digital technology enabled education which has the potential to rapidly increase GERs
content to facilitate • The Government should incentivize development of such content by reputed
technology enabled institutes while also implementing a strong system of quality control and peer /
education student evaluation of the same.
• A dedicated cell should be established to support translation of the same to local
languages
Ensure regulatory • The proposed regulatory reforms have the potential to bring about
reforms are expedited transformational change to the higher education scenario in the country. Passage
and implementation of the same should be expedited

Glossary

Glossary
AHA Air Hostess Academy HEI Higher Education institute
AICTE All India Council for Technical Education HM Housekeeping Management
ASI The Administrative Staff College of India ICA Institute of Computer Accountants
BFSI Banking and financial services ICFAI The Institute of Chartered Financial
Analysts of India
BITS Birla Institute of Technology and Science
ICRI Institute of Clinical Research India
CAGR Compound Annual Growth Rate
ICT Information and Communication
Calit2 The California Institute for Technologies
Telecommunications and Information
Technology IGNOU Indira Gandhi National Open University
CIE University of Cambridge International IGSTC Indo–German Science and Technology

Examinations Centre
CSIS Central Scheme to provide Interest IIFT The Indian Institute of Foreign Trade
Subsidy
IIIT Indian Institute of Information Technology
CSO Central Statistics Office
IIM The Indian Institute of Management
DE Distance Education
IIT Indian Institute of Technology
DEC Distance Education Council
ISB The Indian School of Business
FEP Foreign Education Providers
ITI Industrial Training Institute
FHRAI Federation of Hotel & Restaurant
Associations of India ITM Institute of Technology and Management
FICCI Federation of Indian Chambers of JGLS Jindal Global Law School

Commerce and Industry
JHU John Hopkins University
FMS Faculty of Management Studies
JNU Jawaharlal Nehru University
FT Financial Times
LBIIHM Lakshya Bhartee Institute of International
FY Financial year Hotel Management
GCC The Gulf Cooperation Council LC Learning Centers
GDP Gross domestic product MAAC Maya Academy of Advanced Cinematics
GER Gross Enrollment Ratio MDI Management Development Institute
GSM Guest Services Management

MDU Maharishi Dayanand University SCDL Symbiosis Centre for Distance Learning
MHRD Ministry of Human Resource & SEC Socio–Economic Classes

Development
SJTW Shanghai Jiao Tong University
MICA Mudra Institute of Communications
SMU Sikkim Manipal University
MSSM MIT Sloan School of Management
SPJIMR S. P. Jain Institute of Management and
NCHER The National Commission for Higher Research
Education and Research
SPV Special purpose vehicle
NCTE National Council for Teacher Education
SSB Schulich School of Business
NIFT National Institute of Fashion Technology
SUNY The State University of New York
NIIT National Institute for Information
Technology TCIL The Telecommunications Consultants India
Limited
NMIMS Narsee Monjee Institute of Management
Studies THE Times Higher Education
NPTEL National Programme on Technology UG Undergraduate

Enhanced Learning
UGC University Grants Commission
NTU Nottingham Trent University
UKIERI UK–India Education and Research Initiative
OCLD Oberoi Centre of Learning and
UOW University of Wollongong
Development
UPES University of Petroleum and Energy
PG Postgraduate
Studies
PPO Pre Placement Offer
USP Unique Selling Proposition
PPP Public–Private–Partnership
VIT Vellore Institute of Technology
PTU Punjab Technical University
SC Study Centers

Acknowledgements
Dr. Deepak Chandra, Deputy Dean, The Indian School of Business
Dr. M.L. Shrikant, Director, S.P. Jain Institute of Management & Research
Dr. Rajan Saxena, Dean, Narsee Monjee Institute of Management Studies
Malyaj Varmani Head of UKIERI and Scholarships, The British Council
Mr. J.S. Neerav, Vice Chairman, Thapar University
Dr. Rajan Saxena, Dean, Narsee Monjee Institute of Management Studies
Mr. R.P. Agrawal, Chairman of Board of Governors, IIT Delhi
Professor B.N. Jain, Vice Chancellor, BITS Pilani

Team
Ernst & Young team FICCI team
Amitabh Jhingan Shobha Mishra Ghosh

Bharat Gulia Rajesh Pankaj
Chandni Kripalani Sarita Chauhan
Dhruv Gupta
Ankit Gupta

About FICCI
Established in 1927, FICCI is the membership from the private as
largest and oldest apex business well as public sectors, including
organisation in India. Its history SMEs and MNCs, and an indirect
is closely interwoven with India’s membership of over 83,000
struggle for independence and companies from regional
its subsequent emergence as chambers of commerce.
one of the most rapidly growing
FICCI works closely with
economies globally. FICCI plays
the government on policy
a leading role in policy debates
issues, enhancing efficiency,
that are at the forefront of
competitiveness and expanding
social, economic and political
business opportunities for
change. Through its 400
industry through a range of
professionals, FICCI is active
specialised services and global
in 38 sectors of the economy.
linkages. It also provides a
FICCI’s stand on policy issues
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is sought out by think tanks,
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governments and academia.
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Its publications are widely read
countries across the world
for their in–depth research and
carry forward our initiatives in
policy prescriptions. FICCI has
inclusive development, which
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encompass health, education,
countries around the world.
livelihood, governance, skill
A non–government, not–for– development, etc. FICCI serves
profit organisation, FICCI is as the first port of call for Indian
the voice of India’s business industry and the international
and industry. FICCI has direct business community.
Federation of Indian Chambers of Commerce and Industry

Federation House, Tansen Marg
New Delhi–110 001
Tel: +91–11–23738760–70; ext 316, 513
Fax: +91–11–23320714, 23721504
Email: education@ficci.com

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New realities,

New demand and supply realities 13

New possibilities – Diversity 33

2 New realities, new possibilities:

Agenda for the Government 90

About FICCI 102

New realities, new possibilities: 1

2 New realities, new possibilities:

All these factors in conjunction,

New realities, new possibilities: 3

4 New realities, new possibilities:

New category of customers Diversiﬁcation

New realities, new possibilities: 5

6 New realities, new possibilities:

Form of existence Universities and Central Universities 40

Institutions of National Importance 33

Institutions established under State

State Private Universities 53

State Universities 243

Colleges Autonomous colleges

Field of study General UG Grad PG

Sources: MHRD: Annual Report 2009–10

New realities, new possibilities: 7

China USA India Russia Brazil India USA China

Increase in student enrolment in higher education

13.6 • There are ~13.6 million students undergoing

1985–86 1990–91 1995–96 2000–01 2005–06 2008–09

Growth in number of higher education institutions

• Since 1950–51, the number of universities

8 New realities, new possibilities:

Higher education spending in India

Total spends on higher education

New realities, new possibilities: 9

1. Increasing GER 2. Move to a services driven economy

Sources: Netscribes Higher Education Report, 2009

10 New realities, new possibilities:

4. High expenditure on higher education

Routine expenditure (in %) Non-routine expenditure (in %)

Food 51.1 Ceremonies 51.5

Housing 4.7 Others 9.3

New realities, new possibilities: 11

Spends in the higher education segment are expected to increase to

Estimated size of higher education segment (INR crores)

2010 2015 2020

However it requires an investment of INR360,640 crores to create the additional

Investment requirements over the

12 New realities, new possibilities:

There are various demand–side trends shaping

Changes in the composition, characteristics and preferences of students

New demand realties

Increasing demand for Willingness to pay

14 New realities, new possibilities:

Rising GDP and consumer expenditures have led

Gross domestic product (GDP) per capita has been rising

During the period 1981–08, household expenditures

In CAGR terms, this translates to a rise of 2.64%

During the period 1981–08, consumption

New realities, new possibilities: 15

A signiﬁcant part of the incremental demand

Enrollments from the rural population are expected to rise

Rural enrollments in higher education have been

1994 2000 2005 2010 (E) 2015 (F) 2020 (F)

Rural enrollments as a percentage of total enrollments are increasing

Rural enrollments have increased from around one–