In the last few decades, India has experienced several shifts in the policies pertaining to the financing of higher education. These shifts include a move from public financing to keep pace with the expansion requirements of the sector; the strengthening of market forces in higher education both through privatisation of public institutions and operation of private institutions; and a move from the financing of institutions to the financing of students. The Centre for Policy Research in Higher Education (CPRHE) has initiated major research activities to understand how the recent changes have affected the financing of higher education in India and how the higher education institutions cope with and respond to these changes. India Higher Education Report 2018, the fourth volume in the series, presents this study to provide a comprehensive analysis of financing of higher education in India. This book investigates the changing dynamics and related key issues including state–market dynamics, university–industry linkages, foreign aid, institutional strategies to overcome shortages in funding, issues with self-financing courses, educational loans and fee reimbursement schemes, expansion and financing of private higher education.
Chapter 2: State–Market Dynamics in Higher Education Financing
State–Market Dynamics in Higher Education Financing
Exploring new ways of financing higher education continues to be a major issue in higher education policymaking world. Perennial fiscal constraint coupled with the imperative of overcoming poor governance of the public-funded higher education institutions (HEIs) have led to a move in favour of private sector financing as well as reforming the mode of funding HEIs. Policy changes to facilitate this transition are bringing about changes in the state market dynamics in financing of higher education in India. The proposed changes are supposed to achieve efficiency in the use of resources in the delivery of education and conduct of research with the primary intention to achieve excellence. ...