Higher Education's Role in Reducing Inequality and Boosting India's Economy

VIT Chancellor emphasizes education's crucial role in curbing inequality and enhancing India's economic growth.

Photo by Omkar Ambre

G. Viswanathan, Founder and Chancellor of Vellore Institute of Technology (VIT), stated that providing quality education and increasing college enrollment are key to improving the economy and reducing inequality in India. Speaking at The Hindu Tech Summit 2026, he highlighted that while India has become the fourth-largest economy, inequality has also grown significantly.

He pointed out the need for government policies to ensure education reaches poor families and the middle class. He compared India's per capita income to Japan and Germany, emphasizing the need to increase spending on education and research to compete with developed countries. He also mentioned the National Education Policy's goal to increase the gross enrollment ratio from 28% to 50% in the next 15 years, requiring a doubling of the number of students in colleges and universities.

Raju Vegesna, chairman and managing director of Sify Technologies, spoke about the role of AI, stating that it is an evolution and can help India address transformations and the market.

Key Facts

India has become the fourth-largest economy.

Inequality has grown significantly in India.

Japan's per capita income is 12 times that of India.

Germany's per capita income is 20 times that of India.

In the year 2000, there were only nine billionaires in India; now there are over 300.

UPSC Exam Angles

GS Paper II: Issues relating to development and management of Social Sector/Services relating to Education

GS Paper III: Indian Economy - Issues relating to planning, mobilization of resources, growth, development and employment

Connects to syllabus topics like education policy, inclusive growth, human resource development

Potential question types: Statement-based, analytical, critical evaluation

More Information

Background

The concept of higher education in India has evolved significantly since ancient times, with institutions like Takshashila and Nalanda attracting scholars from across the world. These ancient universities emphasized holistic development and contributed significantly to various fields of knowledge. However, the modern higher education system in India is largely shaped by the British colonial era, with the establishment of universities like Calcutta, Bombay, and Madras in the 19th century. Post-independence, the Indian government recognized the importance of higher education for national development and established the University Grants Commission (UGC) in 1956 to oversee and coordinate higher education institutions. The UGC plays a crucial role in setting standards, allocating funds, and promoting research in universities and colleges. Over the years, various committees and commissions, such as the Kothari Commission (1964-66), have made recommendations to improve the quality and accessibility of higher education in India. The Indian Constitution also addresses education through various provisions. The Article 21A, inserted by the 86th Amendment Act, 2002, makes education a fundamental right for children between 6-14 years. While this article primarily focuses on elementary education, it underscores the importance of education as a basic human right. Furthermore, the Directive Principles of State Policy, particularly Article 41, encourage the state to provide education and public assistance in cases of unemployment, old age, sickness, and disablement.

Latest Developments

The National Education Policy (NEP) 2020 is a significant recent development in India's higher education landscape. It aims to transform the education system by focusing on holistic development, multidisciplinary education, and research and innovation. The policy proposes several reforms, including increasing the Gross Enrolment Ratio (GER) in higher education to 50% by 2035. There is an ongoing debate about the role of private institutions in higher education. While private institutions have contributed significantly to expanding access to education, concerns remain about affordability, quality, and equity. The government is encouraging private institutions to maintain high standards and promote inclusive education. Institutions like VIT are playing a key role in bridging the gap between industry and academia. Looking ahead, the focus is on leveraging technology to improve the quality and reach of higher education. Online learning platforms, virtual labs, and digital resources are becoming increasingly important. The government is also promoting international collaborations and partnerships to enhance research and innovation in higher education. The goal is to make Indian higher education globally competitive and relevant to the needs of the 21st century.

Practice Questions (MCQs)

1. Consider the following statements regarding the National Education Policy (NEP) 2020: 1. It aims to increase the Gross Enrolment Ratio (GER) in higher education to 50% by 2035. 2. It focuses on promoting rote learning and memorization skills. 3. It emphasizes multidisciplinary education and holistic development. Which of the statements given above is/are correct?

A.1 and 2 only
B.1 and 3 only
C.2 and 3 only
D.1, 2 and 3

Show Answer

Answer: B

Statement 1 is CORRECT: The National Education Policy (NEP) 2020 aims to increase the Gross Enrolment Ratio (GER) in higher education to 50% by 2035. Statement 2 is INCORRECT: The NEP 2020 emphasizes conceptual understanding and critical thinking, not rote learning. Statement 3 is CORRECT: The NEP 2020 promotes multidisciplinary education and holistic development of students. Therefore, only statements 1 and 3 are correct.

2. Which of the following statements best describes the role of the University Grants Commission (UGC) in India? A) It is responsible for conducting entrance examinations for all universities. B) It is a statutory body responsible for coordinating, determining, and maintaining standards of higher education. C) It provides financial assistance only to private universities. D) It regulates school education in India.

Show Answer

Answer: B

The University Grants Commission (UGC) is a statutory body established by the Indian government. Its primary role is to coordinate, determine, and maintain standards of higher education in India. It provides recognition to universities, disburses funds, and promotes research and innovation.

3. In the context of India's economic development, what is the significance of increasing the Gross Enrolment Ratio (GER) in higher education, as highlighted by G. Viswanathan? A) It primarily benefits private educational institutions. B) It directly leads to a decrease in government spending on education. C) It is crucial for reducing inequality and boosting the economy by providing quality education to more people. D) It has no impact on India's per capita income.

Show Answer

Answer: C

According to G. Viswanathan, increasing the Gross Enrolment Ratio (GER) in higher education is essential for reducing inequality and boosting India's economy. Providing quality education to a larger segment of the population can lead to a more skilled workforce, increased productivity, and higher per capita income.