On Higher Education

General Studies Paper -2

Context:

The article discusses the status of graduate unemployment in India. It also highlights the structural problems with the Higher Education sector.

What is the status of graduate unemployment in India?

• Unemployment Rate: In 2012, the unemployment rate among graduates was 20%; it has now increased to 34% in 2021. Among postgraduates, it used to be 18% in 2012; it has now doubled to nearly 37%.
• Employability: Some reports state that fewer than half of India’s graduates were employable in 2021.
• Status of Women: India’s female labour force participation is among the lowest in the world.

What are the problems with the education system leading to unemployment?

• The problem with the education system is structural. It includes:
• Deteriorating Quality of Higher Education: The rise in the number of private colleges, industrial training institutes (ITIs) and polytechnic colleges has led to a lowering of quality. The governments and the University Grants Commission did not have the capacity to regulate these colleges.
• Lack of Access to Higher Education: A vast majority of the country’s youth don’t get higher education. Higher education enrolment rates are still about 27% (18-23 year olds).
• Impact of Online Learning: There were learning deficiencies, which affected students’ abilities to acquire knowledge and become employable.

Apart from the above, other issues leading to unemployment includes:

• Lack of Job Creation in the Economy: Unemployment is also because the economy is not creating enough jobs.
• Sector-wise Issues in the Economy: Agriculture has not become high tech, so graduates are not likely to join it. Jobs, such as delivery boys, are not preferred jobs for educated people. In the services sector, the jobs being created require high knowledge.

What are the structural problems with the Higher Education sector?

• Higher education institutions create new knowledge, and it leads to the development of new technologies. This leads to the possibilities of new businesses, innovation, entrepreneurship, and start-ups. However, it is constrained by the following issues:
• Low R&D Expenditure: India’s R&D expenditure is only 0.7% of GDP. In Korea, it is 4%.
• Lack of Participation of the Private Sector in R&D: Globally, the private corporate sector accounts for about 70% of total R&D expenditure. In India, the public sector accounts for some 70% of total R&D expenditure.
• Lack of Research Funding to Universities: A very small proportion of public funding goes towards research within universities in India, unlike other countries.
• Most of it goes towards the Council of Scientific and Industrial Research, Indian Council of Medical Research, etc. This is problematic because these institutions don’t translate their research into usable products/processes.
• Foreign Ownership of Research: Indian researchers are absorbed in MNCs. There are 800 MNCs which have their global research hubs in India. The value of that research goes abroad.
• Equity Issues: There is a larger issue of social equity. Scheduled Castes, Scheduled Tribes, Muslims are underrepresented in higher education.
• Issues with the National Education Policy (NEP): It has not led to substantive change in the education system.
• For instance, there is an emphasis on autonomy of higher education, however imposing the Central University Entrance Test on colleges was against that ideal, leading to confusion.

What should be done?

• Converting Research into Products: Creating institutions that convert patents or research scientific research papers into products and processes.
• Increasing Funding: Universities must be funded more, and private industry will have to play a role in this.
• Vocational Training: Divert students at the end of Class 10 and Class 12 away from higher education towards ITIs and vocational training can increase employability.