Quality of Education in India – Systemic need to create differentiation among institutes
» Indian Demographic Dividend: age advantage & increasing house-hold income
Advantage: Among East Asia & China
of Education: India Vs other emerging economies
need to create differentiation among the various educational institutes to
ensure uniform standards
Demographic dividend of India, as reflected in expected
improvement in household incomes is driven by favorable age demographics over
the next 15-25 years. More and more people are expected to enter the working
age bracket during the period.
The opportunity comes with a responsibility; On one
hand, investment is required to generate employment opportunities and on the
other skill deficit has to be met aggressively to enable the people of the
country to suitably benefit from such opportunities. Availability of human
resource has a direct bearing on the investment proposition in any sector thus
investment in education becomes a pre-requisite to generating investment in any
other sectors of the economy.
Entrepreneurs have realized this and hence Indian economy is
witnessing significant proliferation of the educational institutes at each
level. These educational institutes are supposed to aim to not only bridge the
potential deficit of skills but also the current gap in the quality of
education being imparted by the existing institutes. However, needless to say,
that the performance of the institutes towards meeting their objectives, has
ONICRA believes that there is systemic need to create
differentiation amongst the various educational institutes on the basis of
pragmatic benchmarks on various parameters, which would include but not be
constrained to the parameters defined by the various accreditation bodies.
Indian Demographic Dividend: age advantage & increasing
single most argument, used for justifying high growth prospects of Indian
economy and the key sectors within, is the argument of demographic dividend.
The demographic dividend, as reflected in expected improvement in household
incomes is driven by favorable age demographics over the next 15-25 years.
More and more people are expected to enter the working age bracket during the
period. If the working age population is employed productively this can fuel
the growth story of India Inc.
The age structure of a population can have a large effect on
economic growth, especially when it shifts as a result of baby booms and
busts and their echo effects.
The baby boom is not caused by an increase in births, but rather
by the sharply reduced rates of infant and child mortality that are
characteristic of the beginning of a demographic transition, mainly due to
increased access to vaccines, antibiotics, safe water, and sanitation. This
type of baby boom starts with higher survival rates and abates when fertility subsequently
declines as couples recognize that fewer births are needed to reach their
targets for surviving children, and as those targets are moderated.
Competitive Advantage: Among East Asia & China
Baby booms are very consequential economically, because the
presence of more children requires that there be more resources for food,
clothing, housing, medical care, and schooling.
Those resources must be
diverted from other uses such as building factories, establishing
infrastructure, and investing in research and development. This diversion of
resources to current consumption can temporarily slow the process of economic
growth. Of course, babies born in such a boom will invariably reach working
ages within a period of 15-25 years. When this happens, the productive capacity
of the economy expands on a per capita basis and a demographic dividend may be
within reach. India currently is experiencing such a transition on the same
lines and thus the increase in per-capita income with increasing population is
highly favourable. Among the East Asian nations and even in comparison with the
neighbour country like China; India stands a better chance of sustained
economic development capitalizing on the demographic dividend in a long run.
Population available in the working age bracket alone will not
translate to income generation and hence higher economic growth. On the one hand, investment is required to generate employment
opportunities and on the other skill deficit has to be met aggressively to
enable the people of the country to suitably benefit from such opportunities.
Availability of human resource has a direct bearing on the investment
proposition in any sector thus investment in education becomes a pre-requisite
to generating investment in any other sectors of the economy.
Quality of Education
the two most important principals that attempt to define quality of education
system are the ability of the system to help learners’ cognitive development and
the second emphasizes on the success of the system in promoting values and
attitudes of responsible citizenship and in nurturing creative and emotional
development. However with increasing competitiveness and industrialization in
modern times another aspect has emerged and in a way dominated all others, is
the ability of the education system to produce industry ready individuals. From
an economic perspective the last aspect is the key to sustainable development
specially in case of emerging economies.
Source: ASSOCHAM Eco Pulse (AEP) Study “Comparative Study of
Emerging Economies on Quality of Education’
data clearly shows while Russia is the forerunner in the overall quality of
education, India have been lagging behind at the 6th spot among the
seven largest emerging economies. The analysis revels that the quality of
primary education in India is at the lowest level among emerging nations.
The problem is not just about availability of seats at the
primary, secondary and higher education level the issue really is the quality
of education imparted by these institutes. Quality
in education (in schools or other forms of organized learning) facilitating the
acquisition of knowledge, skills and attitudes that have intrinsic value and
also help in addressing important human goals is missing. Additionally the gap between the education / skill level of a student coming
out of an institute and the requirement of the industry is huge. Educational
institutes will have to produce industry ready candidates. This will not only
increase the attractiveness and opportunity for the institutes but also
decrease the huge cost of training provided by the companies eventually
enhancing the business viability in the country.
Systemic need to create differentiation among the various educational institutes to
ensure uniform standards
ONICRA believes that there is systemic need to create differentiation amongst the various educational institutes on the basis of pragmatic benchmarks on various parameters, which would include but not be constrained to the parameters defined by the various accreditation bodies. The differentiation will help students choose the institutes providing better learning experience. The institutions on the other hand will be able to identify and improve the weaker aspects by benchmarking and adoption of best practices. From the regulators point of view the exercise must act as a monitoring and control tool minimizing the information asymmetry and thus increasing transparency in the system.
The framework to be used for the purpose has to keep in mind that the core stakeholder is today’s student and tomorrow’s prospective skill base. All the parameters used in the grading framework should carry the orientation of evaluation keeping in mind the end- objective of imparting the right skills to the students. A broad framework for the purpose must access the following areas.
This is a broad framework and some areas are highly contextual and applicable only in higher education institutes. Thus the evaluators must be professionals who understand the thumb rules, best practices & the industry specific requirements and adopt the model accordingly as per the requirement.
For Further Queries, Kindly Contact:
ONICRA Credit Rating Agency of India Ltd.
Corporate Office: Onicra Credit Rating Agency of India Limited
Vatika City Point, M.G. Road,
Gurgaon (H.R.) 122002
URL : www.onicra.com
» Population Dynamics in India and Implications for Economic
Growth – Working paper series – Harvard School of Public Health
» ASSOCHAM Eco Pulse (AEP) Study “Comparative Study of Emerging
Economies on Quality of Education’.
» FA Global monitoring Report 2005