Privatization of higher/ professional education in India leading to commercialization and commoditization- policy intervention

Abstract

The main purpose of education is to provide an individual with the widestopportunities to develop his or her potentialities to the full. The state isprimarily responsible for ensuring quality education at all levels to all thesections of the society. Historically, private higher education in India was guidedby philanthropy to meet the social demand, albeit arising from the elite section.The transition to mass higher education, mostly catering to middle class,was supported by state investment. Though there has been a great demand forhigher education, the expenditure on education in terms of GDP has remainedstatic at about 3.2% for almost three decades. The Education Committee headedby Pouf. Kothari recommended in 1966 that allocation for education must beabout 6.0% of GDP and the same was reiterated in the National Policy onEducation,1986. However, instead of allocating more funds, subsequent toliberalization of economy in 1991, the government has cut down the funds andexpansion of public institutions was hit badly resulting in increase in demand forprofessional courses. This ultimately gave imputes to privatization of highereducation leading to commercialization of education in India.In view of lack of stated policy on privatization of education, theregulatory mechanism did not take necessary steps to curb the same andultimately, the Supreme Court had to step in to address the issue and directedthe government to take policy decision by way of short and long term measures.While doing so, it was held that charging of capitation fees by the private4professional colleges is wholly illegal and can t be permitted. Also, It was ruledthat a professional college shall be permitted to be established and/oradministered only by a Society registered under Societies Registration Act, by aPublic Trust, religious or charitable , registered under the Trusts Act etc. Inresponse thereto, various state governments have passed law constituting feesregulation committees to tackle the capitation fees issue, but the centralgovernment has failed to declare stringent policy measures on privatization ofeducation by passing a uniform law applicable throughout the country.Accordingly, the problem still persists and the menace of capitation feesis growing unabated. Commercialization of education has restricted the upwardmobility of the depressed sections due to equity and accessibility issues. Further,there is a drastic fall in the standards of education, the interest in Arts,Humanities, Pure sciences and Research activities.It is recommended that the government should reverse their presentstand of abandoning the higher education wholesale to private sector and startestablishing higher educational institutions with public funding. In this regard,government should enhance allocation of funds for education sector @ 6% ofGDP and for higher education @ 2% of GDP. In the case of institutions indulgingin commercialization, the government may consider passing a law by invokingArticle 19(6), which provides the state for putting reasonable restrictions on theright of an individual to open and run educational institutions .Also, the IncometaxAct, 1961should be amended to deny tax exemption in respect ofpersons/institutions found to be indulging in collection of capitation fee.