Shobha Mishra Ghosh I Senior Director Federation of Indian Chambers of Commerce and Industry (FICCI)

shobha.mishra@ficci.com

The Evolving face of Private Higher Education in India

International Seminar “Innovative approaches to education in the private higher

education sector”

Agenda

About FICCI Education in India: Historical Perspective Evolution of Higher Education in India Private Higher Education Forms of Presence: Focus on Expansion Growth Trajectory: Focus on Excellence Opportunities for Private sector FICCIs vision for Higher Education 2030

About FICCI 1. Established in 1927 by Mahatma Gandhi - India’s apex Industry chamber

2. Catalyst of change and the first port of call for Indian as well as the international

business community

3. Impacted the liberalization and globalization of the Indian economy since the 1990s

4. Plays a leading role in policy debates that are at the forefront of social, economic and

political change

Dr. Manmohan Singh, Hon’ble PM

of India inaugurating the FICCI AGM Hon’ble President, of India, Mr. Pranab

Mukherjee addressing FICCI

About FICCI

• Represent over 2,50,000 Companies and over 335 Chambers and Associations

• Regional Councils in Mumbai & Kolkata

• FICCI’s footprints overseas include offices in USA, UK, France, Italy, Japan, Singapore and China

• 9 Allied Bodies

We Influence

We Analyze We Listen

We Connect

Education in India- Historical Perspective India has a long history of organized education.

The Gurukul system of education

Up to the 17th century

Higher Education at Nalanda, Takshila,

Ujjain, & Vikramshila Universities.

Education under British

Rule

was widespread in the

18th century, with a school

for every temple, mosque or

village in most regions of the

country.

After independence, education became

the responsibility of the states.

Indian Economy Liberalized

1991

2001

State Private Universities route opened up GATS Paves way for foreign universities

1995

UGC notifies Deemed-to-be Universities

2006

2008

India achieves peak growth rate National Knowledge Commission established Industry & HEIs lobby for reforms

2012

XIIth Plan Period commences Focus on

Merit-based student financing Internationalization of education Enabling a research environment High quality faculty Improved technology for education delivery Employ-ability

Evolution of Higher Education in India

700 universities 33,023 plus colleges Universities grew at CAGR of 5.3% 31 million enrollment with a GER of 22.5%

Global Meltdown hits India Expansion of Public/Private and PPP No. of Bills initiated

5.8%

9.6%

6.8%

1.4%

7.3%

5%

20 IIITs, 200 Community Colleges & 300 Polytechnics to be set up in PPP mode

Demand-Supply Gap

Total investment required by 2020 (est.)

Private investment required (est.)

$15900 Cr

$8250 Cr

Investment deficit

India’s National Knowledge Commission estimates the country needs 1,500 universities compared to the current 700: creation of 800 new universities and 35,000 colleges by 2020. The Government intends to achieve enrollment of 35.9 million students in higher education institutions, with a GER of 25.2% The public spending is low in spite of the 10 fold increase in the XIth plan with $356 billion (INR 2.2 trillion) deficit for planned expansion of higher education as estimated by the planning commission

Growth of Private Higher Education

Government Private

2007 2012

11,239

16,768 18,145

29,662

Government Private

2007 2012

6.3

8.9

7.5

12.8

Enrollment in private institutions has increased at a CAGR of 11% over the last five years, as compared to 7% in government institutions

Between 2007 and 2012, the number of private institutions grew faster than the number of government institutions

Growth in Higher Education Institutions Growth in enrollments in millions

Source: FICCI-E&Y Report: Higher education in India: Vision 2030

Growth of Private Higher Education..Contd

42.6%

61.8% 63.9%

32.9%

54.2% 58.9%

Share of Institutes Share of enrolments

2001 2007 2012

The share of the unaided private sector has increased significantly since 2001 in terms of the number of institutions and enrollment

Mode of Entry For Private Sector

Establishing and growing in Indian higher education: key options for private players

Forms of Presence Courses Modes of growth Value addition and

communication

• Universities • Colleges • Services

• General Courses • Professional

Courses

• Opening new campuses

• Distance Education

Collaborations Marketing & brand building

Mode of Entry: Private Sector- Continued…

Forms of Presence

Universities

Colleges

Services

State Private University

Deemed University

Affiliated College

AICTE approved Diploma granting Institution

Study Centre & Online Education

Form of Presence - Continued…

Form of Presence

University &University level Institutions

Colleges Diploma granting Institutions

Central 152

State 316

Private 191

Central 669

State 13024

Private 19930

Central Nil

State 3207

Private 9541

Private institutions lead in terms of number of institutions and student enrollment

Growth of Private Higher Education

1995

28

CAGR 44%

2001 2005 2007

165

2012 2010

82

14 2 1

State Private Universities witnessed an annual growth of 44% since 1995

142

2013

Several private higher education Institutions have been established recently with the support of the corporate sector. These include Shiv Nadar University (2011) Azim Premji University (2011) GD Goenka University (2013) O.P. Jindal Global University (2009)

Mode of Entry: Private Sector- Continued…

Course Option

General courses

Professional courses

Conventional professional courses

Vocation- based professional courses

Mode of Entry: Private Sector- Continued…

Modes of growth

Opening new campuses

Distance Education

Sikkim Manipal University Symbiosis Centre for distance learning IMT distance & open learning

Value addition and communication

Mode of Entry: Private Sector- Continued…

Collaborations

Marketing & brand building

Collaboration with Industry

Collaboration with Academia

Need to Move towards Excellence

58 % of India’s youth witness some form of skill deprivation; Source:(India Labor Report 2012)

More than 60% of employers were not satisfied by

the quality of graduate passing out the engineering colleges (FICCI-World Bank employer satisfaction Survey 2009)

25% of Engineers found unemployable by the industry (NASSCOM)

Going Forward…

India in 2030

India is likely to be the third largest economy

with a GDP size of $15 trillion by 2030

Amongst the youngest nation in the world-

median age of India’s 1.5 billion will be mere

32

Largest contributor to global workforce

One in every four graduates in the world will

be a product of the India higher education

system

Roadmap for moving towards Excellence

…A 21st century model for higher education that is of high quality, yet

equitable and affordable and makes India a role-model for a higher

education system that is not just the best in the world but the best for the

world…..

Higher Education Architecture

Higher Education Foundation

7. Funding 6. Governance/Leadership

1. Curricu

la &pedagogy

2. Faculty

3. Researc

h

4. Partner

ships

5. Infrastructure

1. Curricula & Pedagogy

Opportunities for Private Sector

Introduce multi-disciplinary, liberal arts, industry oriented,

entrepreneurship and skill based courses

Introduce new pedagogical techniques: blended learning,

flipped classroom, experiential learning using Massive

Open Online Courses (MOOCs)

Introduce courses in social sciences, entrepreneurship &

community development

2. Faculty

Attract & retain high quality faculty by incentivising and

rewarding mechanism

Industry professionals & foreign faculty to act as visiting

faculty/mentors/member of board of studies etc.

Faculty development and exchange programs with top

end institutions

Provide Learner centric,

experiential & life-long learning

approach

Provide access to

quality faculty from

Universities & Industry

Opportunities for Private Sector…Continued

3. Research

Develop research parks & incubation centers in

universities

Mobilise endowment sponsored research

Develop industry and academia collaborations to

promote applied research

Promote industry driven

academic & applied

research & development

4. Partnerships

Strengthen

partnerships with public and foreign universities/

HEIs & industry

Forge tie-ups between HEIs & Training providers to

launch employment oriented modules

Tie-ups with International accreditation agencies

Tie-ups for research & development

23 23

FICCI-NKFH: “Hub-&-Spoke” Framework

Opportunities for Private Sector…Continued

5. Infrastructure

Creating

World class infrastructure

High quality & state of the art campus development to

match global standards

Set up virtual classrooms to widen reach/access

Leverage the MOOCs model – access high quality

content/courses at low cost

6. Governance/Leadership

Facilitating transparent Regulatory

environment &

Accountable HEIs/Univs

Fast track implementation of mandatory

accreditation by setting up accreditation/rating

agencies

Introduce corporate best practices in governance of

universities by bringing in transparent processes and

disclosure norms

Opportunities for Private Sector..Continued

7. Funding

Modes of

new Funding

Competitive research funding & grants from public

sources

Start up funding from PE/VCs

Individual & Corporate Endowments

Alumni Funding

FICCI Vision for Higher Education 2030

The country has emerged to be a global magnet for aspiring learners, and a role model for high-quality affordable educational system

Single largest provider of global talent,

with one in four graduates in the world

being a product of the Indian system

23 Indian universities among the global top

200

Regional hub for higher

education 6 Indian Intellectuals have been awarded

Nobel prize

The Country has

augmented its GER to

50%

Gracias por su amable atención “Thank you for your kind Attention"

Visit us at

www.ficci.com

www.ficci-hes.com / www.ficci-nkfh.com Contact us at:

education@ficci.com

Sources:

FICCI-EY Reports 2011, 12 & 13 and

Planning Commission Reports