Skip to main content

The Political Economy of Education in India

  • Chapter
  • First Online:
Education and Development in India

Abstract

The chapter presents a critical review of educational developments in India in the overall framework of educational policies, plans and programmes and discusses rather somewhat inexplicable divergences between policies, plans and their translation into action. As an illustration, a few major financial policies in education are discussed. Concentration on financial aspects does not mean that problems of Indian education lie squarely in finances and can be satisfactorily resolved, if financial solvency is attained. But “educational finance is probably the most controversial issue in the economics of education.” After presenting a critical review of the achievements and failures of the education system in India, it analyses a few financial dimensions relating to Indian education. In the context of growing financial squeezes, one may hope that private sector may play an important role in easing the financial problems in education particularly in a mixed economy like India. Besides analysing the nature and contribution of private sector to educational development in the country, it outlines a pragmatic policy in financing education that may enhance the contribution of private sector to public schooling on the one hand, and on the other hand may make the system less regressive.

Published as Working paper (Special Studies) No. 24, Comparative Education Center, State University of New York at Buffalo (in collaboration with the University of Virginia), 1990. © Center for Comparative and Global Education, State University of New York at Buffalo.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 129.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 179.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • AIU (Association of Indian Universities). 1978. University Finances—A Statistical Profile. New Delhi: Association of Indian Universities (AIU).

    Google Scholar 

  • Adiseshiah, Malcolm S. 1985. Some Thoughts on the Seventh Five Year Plan 1985–90. New Delhi: Dialogue Publications.

    Google Scholar 

  • Altbach, Phillip G. 1982. Higher Education in the Third World: Themes and Variations. Singapore: Maruzen Asia for the Regional Institute of Higher Education and Development.

    Google Scholar 

  • Armitage, J., and R.H. Sabot. 1987. Efficiency and Equity Implications of Subsidies of Secondary Education in Kenya. In The Theory of Taxation for Developing Countries, ed. David Newberry and Nicholas Stern, 589–614. New York: Oxford.

    Google Scholar 

  • Azad, J.L. 1984. Government Support for Higher Education and Research. New Delhi: Concept.

    Google Scholar 

  • Basu, Aparna. 1982. Essays in the History of Education. New Delhi: Concept.

    Google Scholar 

  • Bhagwati, Jagdish. 1973. Education, Class Structure and Income Equality. World Development 1 (5): 21–36.

    Article  Google Scholar 

  • Bhatia, C.M., and V.K. Seth. 1975. Hierarchy in the System of Schools: Political Economy of Education. Sociological Bulletin 24 (1): 13–28.

    Article  Google Scholar 

  • Blaug, Mark. 1975. The Economics of Education in English Classical Political Economy: A Re-examination. In Essays on Adam Smith, ed. Andrew S. Skinner and Thomas Wilson, 568–599. Oxford: Clarendon Press.

    Google Scholar 

  • Blaug, M., P.R.G. Layard, and M. Woddhall. 1969. The Causes of Graduate Unemployment in India. London: Allen Lane the Penguin.

    Google Scholar 

  • Bordia, Anil. 1985. Return to the Roots: An Alternative Policy frame for Primary Education. Paper presented in the J.P. Naik Seminar on Alternatives in Education, Indian Institute of Education, Pune.

    Google Scholar 

  • Bowles, Samuel. 1972. Schooling and Inequality from Generation to Generation. Journal of Political Economy 80 (3, Part II: Supplement): S219–251.

    Google Scholar 

  • Bowman, Mary J. 1966. The Human Investment Revolution in Economic Thought. Sociology of Education 39 (2): 111–137.

    Article  Google Scholar 

  • CABE: Central Board of Education. 1944. Post-war Educational Development in India. New Delhi: Central Board of Education (CABE).

    Google Scholar 

  • Carnoy, Martin. 1974. Education as Cultural Imperialism. New York: David McKay.

    Google Scholar 

  • Chakravarty, Sukhamoy. 1987. Development Planning: The Indian Experience. Oxford: Clarendon Press.

    Google Scholar 

  • Chaudhri, D.P. 1979. Education, Innovation and Agricultural Development. London: Croom Helm.

    Google Scholar 

  • Chitnis, Suma. 1987. Education and Social Stratification: An Illustration from a Metropolitan City. In Education and the Process of Change, ed. R. Ghosh and M. Zachariah, 80–100. New Delhi: Sage.

    Google Scholar 

  • Chitnis, S., and C. Suvannathat. 1984. Schooling for the Children of the Urban Poor. In Basic Needs and the Urban Poor: The Provision of Communal Services, ed. P.J. Richards and A.M. Thomson, 189–213. London: Croom Helm.

    Google Scholar 

  • Citizens for Democracy. 1978. Education for Our People. Bombay: Allied.

    Google Scholar 

  • Cohn, Elchanan. 1979. Economics of Education. Rev. ed. Oxford: Pergamon.

    Google Scholar 

  • Coombs, Philip H. 1968. The World Educational Crisis: A Systems Analysis. New York: Oxford University Press.

    Google Scholar 

  • Coombs, P.H. 1985. The World Crisis in Education: The View from the Eighties. New York: Oxford University Press.

    Google Scholar 

  • Dasgupta, Asim K. 1979. Income Distribution, Education and Capital Accumulation (670–619). Washington, DC: The World Bank (draft/mimeo).

    Google Scholar 

  • Desai, Uday. 1986. Colonial Legacy, Illiteracy and Education in India. Education and Society 3 (1): 52–61.

    Google Scholar 

  • Desai, U. 1987. Political Economy of Education in India: Colonial Legacy and Neo-Colonial Policies. Journal of International and Comparative Education 2 (4): 7–46.

    Google Scholar 

  • Dharampal. 1983. The Beautiful Tree: Indigenous Indian Education in the Eighteenth Century. Delhi: Biblia Impex.

    Google Scholar 

  • Dholakia, B.H. 1974. The Sources of Economic Growth in lndia. Baroda: Good Companions.

    Google Scholar 

  • Dutta, R.C. 1985. Schooling, Experience and Earnings: An Empirical Analysis. Margin 17 (2): 60–73.

    Google Scholar 

  • Education Commission. 1966. Education and Development: Report of the Education Commission 1964–66. New Delhi: Ministry of Education.

    Google Scholar 

  • Foster, Philip. 1982. The Educational Policies of Post Colonial States. In Education and Development, ed. Lascelles Anderson and Douglas M. Windham, 3–25. Lexington, MA: Lexington Books.

    Google Scholar 

  • Government of Andhra Pradesh. 1987. The Institute of Professional Studies: Report of the Committee on Establishing an Institute for Professional Education Along with an Auxiliary Industrial Complex. Hyderabad: Government of Andhra Pradesh.

    Google Scholar 

  • Government of India. 1968. National Policy on Education 1968. New Delhi: Government of India, Ministry of Education.

    Google Scholar 

  • Government of India. 1979a. National Policy on Education (Draft) 1979. New Delhi: Ministry of Education.

    Google Scholar 

  • Government of India. 1979b. Draft Sixth Five Year Plan 1978–83 (Revised). New Delhi: Government of India, Planning Commission.

    Google Scholar 

  • Government of India. 1980. Sixth Five Year Plan 1980–85. New Delhi: Planning Commission.

    Google Scholar 

  • Government of India. 1985. Challenge of Education: A Policy Perspective. New Delhi: Government of India, Ministry of Education.

    Google Scholar 

  • Government of India. 1986. National Policy on Education 1986. New Delhi: Government of India, Ministry of Human Resource Development.

    Google Scholar 

  • Handa, M.L. 1972. Toward a Rational Educational Policy. Toronto: Ontario Institute for Studies in Education.

    Google Scholar 

  • Hanushek, Erick A. 1986. The Economics of Schooling: Production Efficiency in Public Schools. Journal of Economic Literature 24 (3): 1141–1177.

    Google Scholar 

  • Heyneman, Stephen P. 1980. Investment in Indian Education: Uneconomic? World Development 8 (2): 145–163.

    Article  Google Scholar 

  • James, Estelle. 1986. Differences in the Role of Private Educational Sector in Modern and Developing Countries. In International Conference on Economics of Education: Tackling New Policy Issues. Dijon: Institut de Recherchesur I’Economie de I’Education (IREDU).

    Google Scholar 

  • Jamison, Dean T., and Lawrence J. Lau. 1982. Farmer Education and Farm Efficiency. Baltimore: John Hopkins for World Bank.

    Google Scholar 

  • Kelly, Gail P., and Philip G. Altbach. 1978. Introduction. In Education and Colonialism, ed. Philip G. Altbach and G.P. Kelly, 1–49. New York: Longman.

    Google Scholar 

  • Kothari, V.N. 1966. Factor Cost of Education in India. Indian Economic Journal 13 (5): 631–646.

    Google Scholar 

  • Kothari, V.N. 1986. Private Unaided Engineering and Medical Colleges: Consequences of Misguided Policy. Economic and Political Weekly 21 (14): 593–596.

    Google Scholar 

  • Kothari, V.N., and P.R. Panchamukhi. 1980. Economics of Education: A Trend Report. In Survey of Research in Economics: Volume Six: Infrastructure, ed. D.T. Lakdawala, 169–238. New Delhi: Allied.

    Google Scholar 

  • Kostecki, Michel. 1988. School Between the State and the Market. Compare 18 (1): 3–9.

    Article  Google Scholar 

  • Kumar, Krishna. 1987. Reproduction or Change? Education and Elites in India. In Education and the Process of Change, ed. R. Ghosh and M. Zachariah, 27–41. New Delhi: Sage.

    Google Scholar 

  • Kurrien, John. 1983. Elementary Education in India: Myth, Reality, Alternative. New Delhi: Vikas.

    Google Scholar 

  • Laska, John A. 1968. Planning and Educational Development in India. New York: Teachers College Press.

    Google Scholar 

  • Lindsey, J.K. 1978. Primary Education in Bombay: Introduction to a Social Study. Evaluation in Education: International Progress 2 (1): 1–104.

    Google Scholar 

  • Mann, Prem S., and Bhushan L. Kapoor. 1988. Earnings Differentials Between Public, Private and Joint Sectors in Punjab (India). Journal of Development Studies 25 (1): 97–111.

    Article  Google Scholar 

  • Mathur, Ashok. 1987. Why Growth Rates Differ Within India: An Alternative Approach. Journal of Development Studies 23 (2): 167–199.

    Article  Google Scholar 

  • Mohan, Dinesh. 1986. National Policy on Education: A Non-negotiable Promissory Note. Economic and Political Weekly 21 (21): 907–908.

    Google Scholar 

  • Myrdal, Gunnar. 1968. Asian Drama: An Inquiry into the Poverty of Nations, vol. III. New York: Twentieth Century Fund.

    Google Scholar 

  • Myrdal, G. 1970. The Challenge of World Poverty: A World Anti-poverty Program in Outline. New York: Pantheon Books.

    Google Scholar 

  • Misra, Anand. 1962. Educational Finance in India. Bombay: Asia.

    Google Scholar 

  • Naik, J.P. 1965. Educational Planning in India. New Delhi: Allied.

    Google Scholar 

  • Naik, J.P. 1967. The Role and Problems of Private Enterprise in Education. In The Christian College and National Development, 123–135. Madras: Christian Literature Society.

    Google Scholar 

  • Naik, J.P. 1979. Educational Development in India During the Next Twenty Years: 1981–2000. IIE Bulletin 3 (1982): 12–20.

    Google Scholar 

  • Naik, J.P. 1982. Education Commission and After. New Delhi: Allied.

    Google Scholar 

  • Naik, J.P., and Syed Nurullah. 1945. A Students’ History of Education in India 1800–1973, 6th ed., 1974. New Delhi: Macmillan.

    Google Scholar 

  • Nair, R. Gopinathan, and D. Ajit. 1984. Parallel Colleges in Kerala: Enrolment, Costs and Employment. Economic and Political Weekly 19 (42–43): 1840–1847.

    Google Scholar 

  • Nalla-Goundan, A.M. 1967. Investment in Education in India. Journal of Human Resources 2 (3): 347–358.

    Google Scholar 

  • NCERT. 1982. Fourth All-India Educational Survey. New Delhi: National Council of Educational Research and Training.

    Google Scholar 

  • Panchamukhi, P.R. 1982. Education and Employment: Problems and Prospects in the International Order. In Education and the New International Order, ed. J. Veera Raghavan, 50–64. New Delhi: Concept.

    Google Scholar 

  • Palkhiwala, N.A. 1984. We the People. Bombay: Strand Book Stall.

    Google Scholar 

  • Prakash, Brahm, Yash Aggarwal, N.V. Varghese, and L.S. Ganesh. 1988. Planning Education for the Future: Developments, Issues, and Choices. Occasional Paper No. 16. National Institute of Educational Planning and Administration, New Delhi.

    Google Scholar 

  • Psacharopoulos, George. 1973. Returns to Education: An International Comparison. Amsterdam: Elsevier.

    Google Scholar 

  • Psacharopoulos, G. 1977. The Perverse Effects of Public Subsidization of Education or How Equitable is Free Education? Comparative Education Review 21 (1): 69–90.

    Article  Google Scholar 

  • Psacharopoulos, G. 1987a. Public Versus Private Schools in Developing Countries: Evidence from Colombia and Tanzania. International Journal of Educational Development 7 (1): 59–67.

    Article  Google Scholar 

  • Psacharopoulos, G. 1987b. Economic Development and Investment—The Role of the Work Force. Journal of Educational Planning and Administration 1 (3–4): 65–75.

    Google Scholar 

  • Psacharopoulos, G., and Maureen Woodhall. 1985. Education for Development: An Analysis of Investment Choices. New York: Oxford University Press.

    Google Scholar 

  • Raza, Moonis. 1985. Education in India 1781–1985: An Overview. In ‘Introduction’ to Kuldip Kaur, Education in India (1781–1985): Policies, Planning and Implementation, 1–19. Chandigarh: Centre for Research in Rural and Industrial Development.

    Google Scholar 

  • Raza, M., Y.P. Aggarwal, and M. Hasan. 1984. Higher Education in India: A Survey. Technical Reports, National Commission on Teachers (Higher Education). New Delhi: National Institute of Educational Planning and Administration (mimeo).

    Google Scholar 

  • Rudolph, Susanne H., and Lloyd I. Rudolph. 1972. Education and Politics in India. New Delhi: Oxford.

    Google Scholar 

  • Rudolph, L.I., and S.H. Rudolph. 1987. In Pursuit of Lakshmi: The Political Economy of the Indian State. Chicago: The University of Chicago Press.

    Google Scholar 

  • Schultz, Theodore W. 1961. Investment in Human Capital. American Economic Review 51 (1): 1–17.

    Google Scholar 

  • Schultz, T.W. 1989. Investing in People: Schooling in Low Income Countries. Economics of Education Review 8 (3) (June): 219–223.

    Article  Google Scholar 

  • Sen, Amartya K. 1970. Crisis in Indian Education. Lai Bahadur Shastry Memorial Lectures. Hyderabad: Administrative Staff College of India.

    Google Scholar 

  • Shah, K.R. 1987. An Ex-post Analysis of Resource Allocation to Education in India. Journal of Educational Planning and Administration 1 (3–4): 33–64.

    Google Scholar 

  • Shatrugna, M. 1988. Privatising Higher Education. Economic and Political Weekly 23 (5): 2624–2626.

    Google Scholar 

  • Shortlidge, Richard L., Jr. 1976. Is Human Capital an Important Determinant of Earnings in Small Manufacturing and Retail Firms in India? Occasional Paper No. 85. Cornell University, Department of Agricultural Economics, Technological Change in Agriculture Project.

    Google Scholar 

  • Sidhu, Surjit S. 1974. The Productive Value of Education in Agricultural Development. Paper No. 48, Makerere University, Kampala.

    Google Scholar 

  • Singh, R.P. 1972. The Indian Public School. New Delhi: Sterling.

    Google Scholar 

  • Subbarao, K. (1987). Some Aspects of Access to Education in India. Workshop on Poverty in India, Oxford University.

    Google Scholar 

  • Sukhatme, S.P., and I. Mahadevan. 1988. Brain Drain and the IIT Graduates. Economic and Political Weekly 23 (25): 1285–1293.

    Google Scholar 

  • Tawney, R.H. 1964. The Radical Tradition. London: George Allen & Unwin.

    Google Scholar 

  • Tilak, Jandhyala B.G. 1979. Schooling, Experience and Earnings. Margin 11 (4): 82–88.

    Google Scholar 

  • Tilak, J.B.G. 1980a. Investment in Education in India. Eastern Economist (Annual Number): 85–113.

    Google Scholar 

  • Tilak, J.B.G. 1980b. Allocation of Resources for Education in India. Eastern Economist 75 (9): 530–542.

    Google Scholar 

  • Tilak, J.B.G. 1983. On Allocating Plan Resources for Education in India. Margin 16 (1): 93–102.

    Google Scholar 

  • Tilak, J.B.G. 1984. Education and Agricultural Development in India: A Review. Indian Economic Almanac 9: 11–17.

    Google Scholar 

  • Tilak, J.B.G. 1985. A Note on Resources for Education in India. In National Seminar on Financing of Education. Madras: Madras Institute of Development Studies (mimeo).

    Google Scholar 

  • Tilak, J.B.G. 1986. Political Economy of Investment in Education in South Asia: A Reply. International Journal of Educational Development 6 (3): 209–214.

    Article  Google Scholar 

  • Tilak, J.B.G. 1987a. Economics of Inequality in Education. New Delhi: Sage.

    Google Scholar 

  • Tilak, J.B.G. 1987b. Educational Finances in India. Occasional Paper No. 12. New Delhi: National Institute of Educational Planning and Administration.

    Google Scholar 

  • Tilak, J.B.G. 1988a. Costs of Education in India. International Journal of Educational Development 8 (1): 25–42.

    Article  Google Scholar 

  • Tilak, J.B.G. 1988b. University Finances in India: A Review of Problems and Prospects. Higher Education 17 (6): 603–635.

    Article  Google Scholar 

  • Tilak, J.B.G. 1989a. Education and Its Relation to Economic Growth, Poverty and Income Distribution: Past Evidence and Further Analysis. Discussion Paper No. 46, World Bank, Washington, DC.

    Google Scholar 

  • Tilak, J.B.G. 1989b. Trends in Public and Private Finances for Education in India. In World Bank International Conference on Education Finance. Beijing: Mimeo.

    Google Scholar 

  • Tilak, J.B.G. 1992. Education and Unemployment in India. New Education: International Journal of Educational Theory and Practice 14 (1): 45–56.

    Google Scholar 

  • Tilak, J.B.G., and N.V. Varghese. 1983. Resources for Education in India. Occasional Paper No. 2, National Institute of Educational Planning and Administration, New Delhi.

    Google Scholar 

  • Tiiak, J.B.G., and N.V. Varghese. 1985. Discriminatory Pricing in Education. Occasional Paper No. 8, National Institute of Educational Planning and Administration, New Delhi.

    Google Scholar 

  • Tullock, Gordon. 1983. Economics of Income Distribution. Boston: Kluwer-Nijhoff.

    Google Scholar 

  • UGC. 1978. Development of Higher Education in India: A Policy Frame. New Delhi: University Grants Commission.

    Google Scholar 

  • UNESCO-ROEAP. 1984. Diagnostic Studies on Educational Management: Country Studies: India. Bangkok: UNESCO Regional Office for Education in Asia and the Pacific.

    Google Scholar 

  • Varghese, N.V. 1986. Higher Education and Unemployment: Towards a Tentative Hypothesis. In Education and Regional Development, ed. Jandhyala B.G. Tilak, 23–44. New Delhi: Yatan Publications.

    Google Scholar 

  • World Bank. 1986. Financing Education in Developing Countries: An Exploration of Policy Options. Washington, DC: World Bank.

    Google Scholar 

  • Zagoria, Donald S. 1972. A Note on Landlessness, Literacy and Agrarian Communism in India. Archives Europeennes de Sociologie 13: 326–334.

    Article  Google Scholar 

Download references

Acknowledgements

Paper presented in the Seventh World Congress of Comparative Education Societies in the Panel on Assessing the Impacts of Educational Policies of Third World Nations at the University of Montreal, Montreal (July 1998), and also in the 1989 Research Symposium on East Asian Educational Reforms: East Asian Education in Transition (University of Virginia, Charlottesville, VA, (November 1989). Grateful acknowledgments are due to George Psacharopoulos, Theodore W. Schultz, Edward Shills, Philip G. Altbach, Peter Hackett, Uday Desai, Kazum Bacchus and N.V. Varghese for their intellectual help, encouragement, and comments on earlier drafts of the paper. The views expressed here are those of the author alone.

Author information

Authors and Affiliations

Authors

Appendix

Appendix

Bibliographical Information on Sources of Data

A Hand Book of Education and Allied Statistics. (Occasional) New Delhi: Ministry of Human Resource Development, Government of India.

Analysis of Budgeted Expenditure on Education. (Annual) New Delhi: Ministry of Human Resource Development, Department of Education, Planning, Monitoring and Statistics Division, Government of India.

Education in India. (Annual) New Delhi: Ministry of Human Resource Development, Government of India.

National Accounts Statistics. (Annual) New Delhi: Central Statistical Organisation, Department of statistics, Ministry of Planning, Government of India.

Selected Educational Statistics. (Annual) New Delhi: Ministry of Human Resource Development, Department of Education, Planning, Monitoring and Statistics Division, Government of India.

Statistical Abstract of India. (Annual) New Delhi: Central Statistical Organisation, Department of Statistics, Ministry of Planning, Government of India.

Rights and permissions

Reprints and permissions

Copyright information

© 2018 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Tilak, J.B.G. (2018). The Political Economy of Education in India. In: Education and Development in India. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-0250-3_2

Download citation

  • DOI: https://doi.org/10.1007/978-981-13-0250-3_2

  • Published:

  • Publisher Name: Palgrave Macmillan, Singapore

  • Print ISBN: 978-981-13-0249-7

  • Online ISBN: 978-981-13-0250-3

  • eBook Packages: EducationEducation (R0)

Publish with us

Policies and ethics