The government must focus resources on universalising primary and secondary education and allow the private sector to bring in resources for expanding higher education, under transparent and non-bureaucratic regulation. Making the right to free and compulsory education between the ages of 6 to 14 years a fundamental right and the Sarva Shiksha Abhiyan were important steps to achieve the first objective. Passing the Right of Children to Free and Compulsory Education Bill and launching the Rashtriya Madhyamik Sikhya Abhiyam (which focuses on Class IX and X) in the current budget would provide further impetus to this effort. These are huge and expensive programmes and it is a moot point whether the government will also be able to provide adequate resources for higher education.

The Knowledge Commission has recommended increasing the number of universities from the present approximately 350 to 1,500 and to increase the percentage of 18-24 year olds entering higher education from the present 7 to 15 (half the average of Asia). Setting up a handful of IITs, central universities and other professional colleges are minuscule efforts towards achieving these targets. Clearly, the government cannot do this alone.

Lack of sufficient quality institutions is compelling an increasingly large number of our students to go abroad for higher education, contributing over $ 13 billion to external economies. Why not allow those same institutions to enter India? The government must simplify foreign investment in education. Passing the pending Foreign Universities Bill is a second important step that needs to be taken. To attract domestic investment, including private equity, for-profit institutions in higher education should be permitted so that those who can afford to pay do so - and there are clearly a large number that can. Such a dual model exists in many countries. Across the board State funding should be replaced by targeted scholarship programmes as well as subsidised and flexible student loan schemes for deserving students. A part of the higher education cess could be allocated for this purpose.

... contd.