Context:

• According to the Periodic Labour Force Survey, the unemployment rate among graduates is higher than in many other developing countries. This situation calls for a discussion about the various  reasons for this problem and few ways to address this problem.

Problems in Higher Education Sector:

• • Limited R&D Investment: India’s  research and development (R&D) expenditure as a proportion of GDP is only 0.7%. 
    • Higher education institutions are essentially knowledge institutions. This knowledge creation function is hindered due limited investments.

• Limited participation of Private Sector: In India, the public sector accounts for some 70% of the total R&D expenditure and the private sector’s contribution is relatively small. Private sector jobs in research are not growing. 

• Concentration of public funding in research institutions like CSIR leading to limited funding for research in higher education institutes.
• Lack of Job Creation: The economy, particularly the manufacturing sector, is not creating enough jobs for educated graduates.
• Inadequate regulation: Massification of higher education led to a decline in quality, with many private universities becoming “exam-giving institutions.” 
  • State governments, the Central government and the University Grants Commission did not have the capacity to regulate them.
• Skill Mismatch: Higher education may not be aligning with the skills required by the job market.
• Online Learning Losses: Pandemic-induced online learning may have negatively impacted student learning and employability.

Solutions 

• Regulation and Funding: Strengthen regulatory bodies to ensure quality standards in both public and private institutions. Increase public funding and promote private investment in higher education to improve infrastructure, faculty training, and resources.
• Curriculum Reform: Revamp curricula to be more relevant to industry needs and equip students with practical skills. Emphasise critical thinking, problem-solving, and communication skills.
• Faculty Development: Invest in ongoing faculty training and development programs to update skills, promote research, and improve teaching methodologies.

• Industry-academia collaboration: Create strong partnerships between universities and industries to co-design courses, conduct joint research, and provide internship opportunities.
• Focus on STEM education: Increase investment in science, technology, engineering, and mathematics (STEM) education to meet the demands of the growing knowledge economy.
• Entrepreneurship and Innovation: Create programs and incubators to foster entrepreneurial spirit and support student startups in translating ideas into viable businesses.

• Focus on Vocational Training: Strengthen vocational training institutes and offer diverse skill-oriented programs to equip students for employment in non-traditional sectors.

• Improve R&D ecosystem: Increase public and private investment in research and development, encourage collaboration between universities and research institutions, and focus on translational research for practical applications.
• Effective policy implementation: Ensure clear and consistent implementation of the National Education Policy (NEP) with adequate funding and resources.

• Multi-stakeholder collaboration: Involve government, educators, employers, students, and civil society in policy formulation and implementation.
• Continuous monitoring and evaluation: Regularly monitor progress, evaluate policy effectiveness, and adapt approaches as needed.

By implementing these solutions, India can create a higher education system that is accessible, relevant, and prepares graduates for success in the globalised world.