Education Financing in India
India is an important educational centre in the global education industry due to the large opportunity size offered by large population and favourable demographics. India has more than 1.4 million schools and more than 35,000 higher education institutes. India has one of the largest higher education systems in the world and there is still a lot of potential for further development in the education system and its many components to develop India as a strong and developed nation. Till date, there has been only limited ï¬nancial innovation in the education arena to meet the changing demand of growth in this sector.This paper has incorporated the study of recent education status and financing of education in India and various initiatives which have been taken by Indian Govt recently to promote education development and universalization of education in India. Private sector has been encouraged to contribute in the development of education sector in India by bringing innovation in developing new education techniques such as E-learning and M-learning and boosting the growth of vocational education , higher education, technical education, distance and online education market.This paper has also focussed on the study of various innovative sources of financing which have been used by the Government in collaboration with private sector to boost the growth in education sector like imposition of education cess over all central taxes, micro credit facility including allocation of education soft loans or provide credit guarantee for the education loan, development in education venture funds, initiatives to promote FDI, financing through Public Private Partnerships, micro donations from industrial sector as a part of their CSR activities to name a few.Â
