Billion Dreams in Crisis: Reality of Indian Students
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MARCH 2025
The Indian education system is at a crossroads. While the government flaunts ambitious reforms, concerns persist about the credibility of students, the quality of education, and the overall effectiveness of policy implementation.
With Parliament actively debating these issues, it is crucial to assess whether India’s education policies are truly serving the aspirations of a nation striving to be a developed economy by 2047.
The Scale of the Challenge
India’s education landscape is vast, comprising approximately 25 crore students, with 4 crore in higher education. Despite improvements, dropout rates remain alarmingly high.
Over the past two years, 54 lakh students have dropped out of school.
States such as Rajasthan and Uttar Pradesh report dropout numbers as high as 900,000 and 750,000, respectively.
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Over the past two years, 54 lakh students have dropped out of school
Even Gujarat, often cited as a model for development, has 130,000 dropouts. In contrast, Delhi, where education is free and of high quality, reports only 7,000 dropouts. It is case study, that education policy makers must take into their consideration.
The issue is not just about access but also affordability. The education budget has seen continued cuts, increasingly shifting costs onto individuals.
While Indian policy makers want to ape the American education system which operates on a similar model, the economic and social situations in the two countries are drastically different.
India’s per capita income stands at only $2,500, compared to the U.S. at $15,000. The average urban household in India earns around ₹7,000 per month, while rural incomes hover around ₹4,000.
Yet, higher education costs are rising steeply, threatening accessibility for many aspiring students.
Exam Scandals and Governance Failures
One of the most glaring issues plaguing the education system is the epidemic of exam paper leaks.
In the past decade, nearly 70 such leaks have affected approximately 1.7 crore students.
The inability to ensure the integrity of examinations has eroded trust in the system, forcing some students into career paths they never intended.
Some leave studies demotivated, some pass the age while other decide to move on to a less suitable alternative. It is a case of generation lost.
Instead of addressing this issue systematically, the government has outsourced exam administration to private firms—many of which have a history of mismanagement.
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...nearly 70 such leaks have affected approximately 1.7 crore students
For instance, a company blacklisted for recruitment failures in Uttar Pradesh was later tasked with conducting exams in Bihar.
In stark contrast, Finland’s education system, ranked among the best in the world, maintains 100% transparency in examinations, with no reported cases of paper leaks.
Their rigorous teacher training programs ensure that students are evaluated fairly and effectively, avoiding systemic corruption in testing.
Budget Cuts and Policy Inconsistencies
The government’s financial commitments to education paint an inconsistent picture.
In the 2023-24 budget, the scholarship fund for the PM Uchchatar Shiksha Protsahan scheme, which supports SC, ST, and OBC students, was initially set at ₹980 crore.
The following year, it was increased fifteenfold, only to be later revised downward by 35%.
Similar reductions were seen in the PM’s Rising India Scholarship and crucial schemes like Samagra Shiksha and the Midday Meal Scheme.
These erratic budgetary decisions suggest that funds are often announced for publicity but remain largely unutilized.
The Midday Meal Scheme—a crucial initiative benefiting millions of underprivileged children—has faced a funding cut of ₹2,000 crore.
Such reductions directly impact nutritional security for students, ultimately affecting attendance and learning outcomes.
The Decline of Public Education
A troubling trend in recent years has been the systematic decline of government-funded schools.
Over the past decade, 90,000 government schools have been shut down, while private school licenses have increased exponentially.
In Madhya Pradesh alone, 30,000 government schools have closed, while 50,000 private school licenses have been issued.
This raises serious concerns about the commercialization of education, particularly given allegations that many private institutions are owned by politically connected business groups.
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In Madhya Pradesh alone, 30,000 government schools have closed, while 50,000 private school licenses have been issued
In comparison, Germany’s education model follows a dual-system approach, balancing free public education with strong vocational training programs.
Nearly 50% of German students pursue tuition-free vocational education, making them job-ready by the time they graduate.
India, on the other hand, has failed to implement a robust vocational education system, leaving millions unemployable despite having degrees.
Higher Education and the Privatization Push
The autonomy of institutions like IITs and IIMs—once considered the pride of Indian education—is being steadily eroded.
The creation of the Higher Education Financing Authority (HEFA), which will gradually replace direct government grants with a loan-based model, has increased financial burdens on universities.
HEFA funds state-of-the-art research labs and other infrastructure projects through a 10–year loan.
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...government aims to increase medical seats by 75,000 nearly 50% of faculty positions remain vacant
As a result, student fees will rise sharply, dissuading many from pursuing higher education.
Moreover, the imposition of an 18% GST on government universities and even basic educational materials like books and stationery further strains affordability.
Medical education is also under strain. While the government aims to increase medical seats by 75,000 nearly 50% of faculty positions remain vacant.
Even AIIMS, India’s most prestigious medical institute, has over 2,100 unfilled positions, raising concerns about the quality of medical training.
Research, Employment, and the Brain Drain Crisis
Although research publications in India have increased by 75% over the last decade, their real impact remains questionable.
There should be a government data to evaluate the number of citations these research publications have received. It will provide validation to the quality of research.
Of the 82,000 patents filed in India, only 45% have been granted, and just 9,000 belong to Indian researchers, indicating that much of the country’s innovation is driven by foreign interests.
Meanwhile, despite a rise in PhD enrollments (now at 250,000), nearly 11 lakh students have left India for higher education abroad in the 2024 itself.
The outflow of $80 billions of dollars due to remittance suggests that India’s higher education institutions are failing to meet student aspirations.
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... nearly 11 lakh students have left India for higher education abroad in the 2024 itself
In contrast, China, which once struggled with a similar brain drain issue, has invested heavily in research by increasing higher education funding by 300% in the last 20 years. Today,
Chinese universities like Tsinghua University are ranked among the top 20 globally, successfully retaining domestic talent.
While official unemployment figures from the Periodic Labour Force Survey stand at 3.2%, youth unemployment remains at 10%, and graduate unemployment at 13%.
Even elite institutions like IITs struggle with full placements, forcing many graduates to settle for jobs far below their qualifications.
The Way Forward
Despite the statistics and policy rhetoric, the ground reality of Indian education remains concerning.
The quality of teaching, fairness in examinations, institutional vacancies, the push for privatization, and shrinking budget allocations all demand urgent attention.
If India aspires to be a global leader by 2047, it must rethink its approach to education.
The Finnish model of teacher training, the German approach to vocational education, and China’s investment in research and higher education offer valuable lessons.
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If India aspires to be a global leader by 2047, it must rethink its approach to education
Implementing such reforms is essential to ensure that Indian students are not just degree-holders but truly world-class professionals capable of competing in the global knowledge economy.
A nation that aspires to global leadership cannot afford to compromise on education.
Without meaningful reform, India risks losing an entire generation of young talent, especially when the country is demographically young—a setback that the country simply cannot afford to lose this once in a life-time opportunity.
The crisis of billion dreams must be averted immediately with equally massive effort.
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