In News:

The Parliamentary Standing Committee on Education, Women, Children, Youth and Sports has recommended increasing public expenditure on education to 6% of GDP, reiterating the target envisaged under the National Education Policy (NEP) 2020. The recommendation was made in its 381st Action Taken Report while reviewing grants for the Department of Higher Education for 2025–26.

Background

The Committee assessed the progress made towards the objectives of NEP 2020 and observed that public investment in education remains below the desired level. It emphasized that sustained financial commitment is essential to achieve reforms in higher education, improve enrolment, strengthen research and innovation, and build a globally competitive education system.

Key Findings

The Committee noted that NEP 2020 envisages increasing public expenditure on education to 6% of GDP, whereas India's expenditure stood at only 4.12% of GDP in 2021–22, indicating a significant gap between policy goals and actual spending.

It also observed that the Budget Estimate (BE) for Higher Education in 2025–26 registered only a modest increase over the previous year. To adequately address inflation and support the expansion of educational infrastructure, the Committee recommended an annual budget increase of 8–10%.

Another concern highlighted was the slow growth in the Gross Enrolment Ratio (GER) between 2018 and 2023 for both male and female students. According to the Committee, greater public investment is necessary to achieve the NEP target of 50% GER in higher education by 2035.

The report further pointed out that countries such as Bhutan (7.47% of GDP) and Maldives (4.67% of GDP) allocate a larger share of their GDP to education than India, underscoring the need for enhanced public investment.

Significance

Increasing investment in education is critical for improving learning outcomes, expanding access to higher education, strengthening research and innovation, and developing a skilled workforce. Adequate funding will facilitate the implementation of key NEP 2020 reforms, including multidisciplinary education, digital learning, institutional transformation, and expansion of higher education opportunities. Enhanced educational investment also contributes to higher productivity, improved employability, and long-term inclusive economic growth.

Way Forward

Achieving the 6% of GDP target requires sustained fiscal commitment by both the Union and State Governments. Greater emphasis should be placed on improving educational infrastructure, faculty recruitment, research funding, digital inclusion, and equitable access, while ensuring efficient utilization of financial resources to realize the objectives of NEP 2020.