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  Home > Education Policy > Deregulation of Higher Education
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Recent Newspaper reports state that our Hon. HRD Minister is not so happy with the IIT's,

I wish to state the following:-
  1. The population of India went up by 500 million, [from 500 million to about 1060 million] people during the last 53 years, from 1951 till 2004, while the number of IIT'ians went up from 0 to 1,30,000. Presently 66% reside in India and about 33% outside of India.
  2. That the entrance to IIT's is restricted to hardly 1% to 1.5% of the number of people who sit for the entrance exams.
  3. While in other Ivy league schools, around the world, the figure of acceptance, is about 10% of the number of people applied. [eg. - Narayana Murthy's (of Infosys) son could NOT get into IIT but got into Carnegie Melon !]
  4. Why doesn't the govt of India, deregulate higher education so that more IIT-Like and IIM- Like Institutions can come up?
  5. The same to apply for ALL types of education above the 10th or High School.
  6. High Capitation fees is due to shortage and regulation. It can NEVER be solved by legislation and controls. ONLY deregulation and freedom can allow 'Market Forces' to regulate such matters.
  7. Our Politicians have understood this a long time ago, since, for example, nearly 95% of all engineering and medical colleges in the state of Maharastra are owned by Politicians and their families!
  8. When a child is 'Brought Up' by the parents, it does NOT give the parents the right to continue to regulate and control the children for the rest of their lives! At some point of time they have to let the 'Child' fly on its own wings. So also with the IIT's and IIM's, while we salute, bow in reverence and respect our elders and forefathers, it does not mean that we the IIT's and IIM's should not be allowed to cut our own paths in the turbulent future world! NO child is responsible for his/her BIRTH!
  9. The UGC, University Grants Commission's, annual budget is about Rs 3000 Cr.
  10. The amount spent by nearly 1,90,000 to 2,00,000 Indian students studying abroad is nearly Rs. 45,000 Cr per year. This does not include what is spent by the parents and family once the children are outside India!
  11. The 6,00,000 Indian students appearing for the IIT's and IIM's and some of the top BIZ schools in India spend, on an average Rs. 25,000 to Rs. 1,00,000 per candidate for 'preparing for the entrance exams, one to two years in advance. At an average of Rs. 50,000 per person, this comes to about Rs 3000 Cr per year or equal to the UGC budget per year!
  12. India imports about 800,000 kgs of GOLD per year , this comes to about Rs 50,000 Cr
  13. So there is enough money within India for good things!
  14. Easy loans, at low interest are available to students of IIT's /IIM's etc. Some thing which they can pay back in a year or so!
  15. In USA and other countries, students take nearly 3 to 6 years to pay back their loans for education!
  16. While we debate and discuss, China is planning to set-up 100 IIT - Like Institutions, as per the info available to us by the CEO of McKinsey, also an IIT'ian
  17. The past policies of the political parties in India have taken the country's fiscal situation to a critical level, fiscal deficit of about 11% of GDP, which amounts to about Rs 2,60,000 cr.! All the State Governments in India as well as the Central Government, are broke, Kaput or Kar-Ka!
  18. Even after 56 years of 'Freedom' nearly 50 to 60 % of our population, about 500 to 600 million people, are ILLITERATE! The first step to Human development is Literacy. In China most of the youth below 35 years of age are 100% literate. [ For advantages due to Human Development, please see pages 15 to 21 of our 32 page booklet]
  19. If Colleges of Higher and Technical education, could charge market or near market rates, competition will come in, investment will come in, freedom will improve Quality. Poor students, say 10% to 25% of the total could also get FREE education, from such institutions.
  20. The present Government spend on education is hardly 2.5% to 3 % of GDP. At least for the next 15 to 20 years till we reach 100% literacy, let us increase this to say 8% to 10% of GDP. ONLY private investment, with Tax-breaks, can solve this GAP.
  21. And finally, while we shout from the roof tops about I.T and software[ aboutUS$530 billion per year World Wide, our share is about 1.5%], something which we as Indians are VERY proud-of and rightly-so should be, let us NOT forget that Education & Training, as a business and enterprise is about 500% bigger, about US$2500 billion per year.
  22. In India, the drop-out rate between Class 1st to Class 12th is about 94%, [about 27 million people per year] shouldn't we be looking into these massive social & HUMAN DEVELOPMENT problem of India, rather than worrying what the fees should be for any particular college or institution.
  23. As good, effective and efficient 'managers' we need to concentrate and solve the 'A' category problems within the country and not get into X,Y & Z areas.
  24. Why can't we make India an educational HUB for the world? We should plan for say 10% of the 'Education Slice' in say 10 to 15 years time. This would amount to about US$250 billion per year of BIZ or about 50% of the present GDP of India!
  25. Why should we allow, USA, Canada, UK, Dubai, Hong Kong, Singapore, Malaysia, Australia and other countries of Asia, take away billions of dollars worth of 'Educational Business' from us? ONLY deregulation will help.
  26. Education is one of the Biggest 'Employment Generators' nearly as good and important as 'Travel & Tourism'
  27. Why should our respected teachers and professors continue to live and serve on the whims and fancy of politicians and on doles? Why can't we get not only good teachers but the BEST?
  28. It is the moral duty of each one of us, since the blood of many a poor has gone in educating us and making us what we are today, to take part in NATION BUILDING. What better offering can we make to the 70% of Indians who are less than 35years of age and the future generations of Indians, than try to put India on the education MAP of this Planet?
The above are, ONLY some of the facts. Kindly circulate to PAN- IIT and PAN- IIM's ASAP. We need to build up a strong movement about 100% de-regulation of education in India

Krishan Khanna
IIT - Kgp - B. Tech - 1961

(Krishan Khanna is the Chairman & Founder of the not-for-profit organization - i Watch. Please see www.wakeupcall.org [our 32 page booklet is hosted on this site] and www.india-watch.com

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