CII report flags India’s ‘underinvestment’ in education, looks at global models—Sweden to China

New Delhi: A recent comparative study of school education systems across eight countries highlights India’s “significant underinvestment” in education. The report shows that India’s education spending has stagnated between 2.7% and 2.9% of the GDP over the past six years, with no growth, and calls for raising this allocation to 6% of GDP to meet global standards. 

The study, titled ‘Comparative Study of School Education Systems: India, Australia, China, Indonesia, Sweden, Thailand, UK, and USA’, was released last week by the Confederation of Indian Industry (CII). It provides a detailed analysis of the education systems in these eight countries, spanning both developed and emerging economies. 

The report reveals distinctive patterns in education spending across different countries from 2018 to 2023. It highlights that India’s allocation remained stagnant from 2.7-2.9 percent of GDP, while developed nations, such as Sweden (6.7-6.9 percent) and the UK (5.3-5.6 percent), as well as developing countries, such as Indonesia (3.7-4.3 percent) and Thailand (4.0-4.3 percent), allocated higher shares of their GDP to education.

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“While Australia recorded an 8% increase, and China a modest 2.4% growth, India’s spending showed no percentage growth over six years. Indonesia and Sweden saw marginal changes, with Indonesia declining 2.8% and Sweden returning to its baseline. India’s low allocation underscores an urgent need to elevate spending to at least 6% of GDP,” the report stated. 

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“India’s education spending trajectory reveals a critical imperative for strategic national investment. The consistent 2.7-2.9% GDP allocation represents a significant underinvestment compared to global benchmarks, particularly among developed economies spending 5-7% of GDP on education,” it added. 

Employing a strategic sampling approach, the study relies on secondary data gathered from a variety of reliable sources, including government reports, international organisations such as the Organisation for Economic Cooperation and Development (OECD) and the United Nations Educational, Scientific and Cultural Organisation (UNESCO), and academic publications. 

By comparing key areas, such as educational structure, funding, curriculum, equity, and vocational training, the study identifies trends, best practices, and areas where India can learn from other nations.

An official from the Confederation of Indian Industry (CII), speaking on condition of anonymity, told ThePrint that since the announcement of the National Education Policy (NEP) in 2020, the central government has rolled out a series of new initiatives and policies, aimed at reforming the education sector. The official explained, “NEP 2020 is a transformative policy, particularly in terms of holistic learning and fostering the overall growth of children during their school years.”

The official said that a key focus was to assess where India’s school education system stands in comparison to other countries. “We aimed to select countries from diverse economic backgrounds and evaluate various parameters to get a comprehensive view. Based on this analysis, we have developed several recommendations to ensure the effective implementation of NEP 2020 recommendations such as vocational education and digital education,” the official added.

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Lower secondary enrollment; rural-urban inequalities

The study highlights that while most nations achieve near-universal primary education enrolment, with slight variations at the secondary level, India shows slightly lower secondary enrolment compared to developed nations, pointing to potential areas for educational expansion.

It stated that Gross Enrollment Ratio (GER) analysis reveals a nuanced educational participation landscape in India. The high primary enrolment of 103.4% suggests strong access to initial education, while the secondary enrolment of 79.6% indicates a significant transition challenge. In contrast, secondary enrolment in other countries is higher, including the UK (100%), Sweden (100%), the USA (98%), China (92%), Australia (90%), Indonesia (82%), and Thailand (80%).

“This gap reflects the complex socioeconomic dynamics influencing educational continuation. The data points to inherent systemic differences between primary and secondary educational participation, potentially linked to economic, social, and structural factors unique to India’s educational ecosystem,” it states.

The report further highlights that education systems globally face unique challenges. India struggles with regional disparities, gender gaps, and inadequate rural access, compounded by infrastructure deficits and a lack of 21st-century skills. High dropout rates further hinder equitable learning. 

Whereas, in China, an academically intense system fosters stress and mental health issues among students. The report also highlights that the UK and USA struggle with financial and socio-economic disparities, affecting resource distribution. Australia and Indonesia face challenges in delivering quality education to remote and marginalised communities, while Sweden deals with immigration-driven diversity and a declining population. Thailand’s progress in access remains uneven, especially in rural areas and among ethnic minorities.

“India must address rural-urban inequalities through targeted investments in infrastructure and teacher deployment. Lessons from global models include reducing stress through balanced curricula (China) and fostering inclusivity for marginalised groups (Australia and Indonesia). Tailored interventions can bridge access and quality gaps effectively,” the report states. 

The report also suggests drawing lessons from successful practices, such as China’s targeted subsidies and teacher incentives, aimed at rural inclusion, alongside boarding school programmes to support remote learners. “India should prioritise disability-inclusive education with clear policies, teacher training, and resource allocation. Establishing a dynamic, need-based funding model, akin to Australia, would ensure that socioeconomic disparities do not hinder learning outcomes,” it states.

Strengthen vocational education and industry connect

The report highlights that globally, vocational education thrives by aligning with industry needs and offering flexible pathways. Countries, such as Sweden and Australia, successfully combine academic learning with apprenticeship opportunities, improving workforce readiness, it states.

It further stresses that in China and Thailand, industry partnerships emphasise the importance of real-world training, and the UK and USA integrate vocational education early in secondary school, ensuring students develop skills alongside academic knowledge.

While India’s vocational education framework, starting from Grade 6, is considered progressive, the study notes it “requires deeper industry alignment and hands-on experience components”.

“Drawing from Sweden’s model, India should expand apprenticeship programs and foster industry-school collaborations. Introducing modular courses, as seen in the UK, can ensure flexibility and allow students to transition between academic and vocational tracks,” it states.

To strengthen vocational education in India, the report suggests partnerships with industries, aligning curricula with market needs, and supporting that with apprenticeship programmes for hands-on training. “Modular courses, as seen in the UK, should enable flexible transitions between academic and vocational tracks. Upskilling vocational teachers through digital platforms like DIKSHA and offering certifications is vital. Technology-driven solutions, including virtual labs and mobile training units, can expand access in remote areas,” it recommends.

“Tailoring programmes to regional industries and conducting labour market analyses will ensure relevance. Robust monitoring systems can track placements and outcomes, driving continuous improvement. These measures will create a skilled workforce and boost employability,” it adds.

NEP 2020 needs robust implementation 

The report highlights that the National Education Policy (NEP) 2020 stands as a transformative framework that seeks to align global best practices with the specific needs of India’s educational landscape. 

While it presents a significant opportunity for systemic reform, the report emphasises that its success will heavily depend on effective implementation, teacher training, and collaboration among all stakeholders. 

As stated in the report, NEP 2020 “presents a unique opportunity to drive systemic transformation”, but acknowledges that “success depends on effective execution, teacher training, and stakeholder collaboration”.

One of the key proposals in the NEP is the elimination of primary-level exams — a move that aligns with global trends toward formative assessments. The report cites comparative data that underscores a growing global consensus — assessments should serve as developmental tools, not just mechanisms for measurement. This evolving philosophy in educational assessment stresses the importance of tracking student progress holistically, moving away from an overreliance on standardised tests and embracing more comprehensive, ongoing evaluation methods.

The NEP 2020 also reflects a strategic reimagining of India’s educational system, closely aligning with global educational trends while simultaneously addressing the country’s unique developmental needs. As the report observes, the policy “represents a strategic reimagining of the educational landscape, closely aligning with global trends while addressing unique national developmental needs.”

To ensure that NEP 2020’s vision is effectively realised, the report advocates for the establishment of dedicated task forces. “Create dedicated task forces at state and national levels to oversee the implementation of NEP 2020 initiatives, ensuring effective integration of technology, vocational skills, and holistic learning,” it recommends.

(Edited by Madhurita Goswami)

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