The Economic Survey, tabled in Parliament on Thursday, flags a critical challenge facing the education system-retaining students beyond Class 8 and converting near-universal school enrolment into meaningful learning outcomes.
While India now runs one of the world's largest schooling networks, with enrolment levels high at foundational stages, the survey warns that learning outcomes weaken and participation drops sharply at the secondary level. At the same time, it outlines a parallel push to globalise higher education, positioning India as an international study hub through policy reforms aimed at retaining talent and attracting students from abroad.
Presented ahead of the Union Budget, the survey describes education as a core pillar of human capital and central to achieving the goal of Viksit Bharat by 2047. While acknowledging significant gains in access, infrastructure and institutional capacity, it underlines that weak learning levels, especially beyond early schooling, pose a major risk to India's long-term growth trajectory.
Schooling Scale but Learning Lags Behind
India operates one of the world's largest school education systems, with nearly 24.7 crore students enrolled across around 14.7 lakh schools and supported by over one crore teachers. Gross Enrolment Ratio is 90.9 at the primary stage and 90.3 at the upper primary level, reflecting near-universal access at foundational stages.
However, the survey points out a widening gap between enrolment and actual learning. Despite large classrooms and rising participation, learning outcomes remain weak, particularly in foundational literacy and numeracy. Participation in early childhood education remains just over 40 per cent, affecting preparedness for later stages of schooling.
The transition from upper primary to secondary education remains a key stress point. Enrolment drops sharply at the secondary stage, signalling high dropout rates driven by poor learning foundations, economic pressures and limited perceived value of continued schooling.
Model Schools and Tracking Students
To address quality deficits, the survey highlights PM-SHRI schools as model institutions aimed at demonstrating best practices in infrastructure, pedagogy and experiential learning. These schools are intended to serve as benchmarks for improving learning outcomes across the public education system.
The rollout of APAAR IDs has also been flagged as a structural reform. By creating a permanent academic identity for students, the system allows seamless tracking of learning journeys across school, higher education and skilling pathways, reducing friction in transitions and enabling better policy targeting.
Higher Education Expansion and the Quality Question
India's higher education system has expanded rapidly, with the number of institutions rising to over 70,000 and total enrolment crossing 4.4 crore students. The Gross Enrolment Ratio in higher education has continued to inch upward, supported by institutional growth and policy reforms under the NEP.
The survey notes the expansion of premier institutions, with India now home to 23 IITs, 21 IIMs and 20 AIIMS. It also highlights the establishment of international IIT campuses in Zanzibar and Abu Dhabi as symbols of India's growing academic footprint.
Reforms such as flexible entry-exit options, biannual admissions and the National Credit Framework are being adopted by 153 universities, supporting the NEP goal of achieving 50 per cent GER in higher education by 2035. The Academic Bank of Credit now covers 2,660 institutions, with more than 4.6 crore student IDs issued.
Despite these gains, the survey cautions that expansion without quality enhancement risks producing graduates who are inadequately prepared for employment or research. Strengthening faculty capacity, curriculum relevance and research output is identified as a critical priority.
Globalising Indian Higher Education
A major thrust of the Economic Survey is the internationalisation of Indian higher education to retain domestic talent and attract global students. The survey notes that large numbers of Indian students continue to study abroad, leading to rising outward remittances and talent outflows.
To counter this trend, Indian higher education institutions are being encouraged to offer twinning, joint and dual degree programmes with reputed foreign universities. The survey notes that around 15 foreign higher education institutions are expected to establish campuses in India under the liberalised regulatory framework.
The report also highlights the potential of higher education tourism. Short-term and long-term programmes in areas such as yoga, Ayurveda, Indian languages, philosophy and culture are being positioned as attractive offerings for international students, particularly from BRICS and Global South countries.
Vocational Education and Industry Linkages
The survey flags persistent gaps between education and employability, noting that vocational education and skilling pathways remain underdeveloped. It calls for structured skilling pathways at the secondary school level to provide early exposure to employable competencies.
Greater emphasis has been placed on apprenticeships, industry-linked learning and work-integrated education models to bridge the disconnect between classrooms and workplaces. These measures, the survey suggests, are essential to preparing students for a rapidly changing labour market.
Shift from Access to Outcomes
Across school and higher education, the Economic Survey marks a clear shift in policy emphasis from access to outcomes. While enrollment gains are significant, the next phase of reform will hinge on improving learning quality, relevance and global integration.
The survey concludes that achieving the vision of Viksit Bharat by 2047 will depend not just on educating more Indians, but on ensuring that education equips learners with strong foundations, relevant skills and global capabilities.
