India witnesses massive higher education growth but battles teacher shortages and low funding

India's higher education sector has grown rapidly over the past decade, driven by a sharp rise in institutions, student numbers, and female participation, according to a report by SBI Research. The number of universities reached 1,289 in financial year 2024, while colleges and standalone institutions rose to 48,246 and 15,221 respectively, marking an average growth of 47% from financial year 2014.

Enrolment and Placements

Total student enrolment crossed 4.5 crore in financial year 2024, with male and female students holding almost equal shares. Female enrolment grew 47% compared to a decade ago, and women outnumbered men in science programmes. The combined share of Scheduled Castes, Scheduled Tribes, and Other Backward Classes reached 62% among students. Enrolment at premier institutions also surged, with combined student numbers at IITs and NITs reaching about 2.44 lakh, while IIM enrolment nearly doubled to 18,243. Placements rose across these institutes, with overall placement rates hitting 93%, and median salaries across IIMs, IITs, and NITs jumping 105% compared to financial year 2016.

Structural Challenges

Despite this progress, the report highlighted several structural hurdles. The share of budget spending on higher education has stayed near 1% of total expenditure for nearly twenty years, dropping from 1.6% in financial year 2018, prompting a recommendation to raise it to 1.5%. Teacher shortages remain severe, with about 34% of positions vacant, and professor-level vacancies touching 54%. States also show wide gaps in the student-teacher ratio, ranging from 14 in Tamil Nadu, Kerala, and Goa to 57 in Bihar. Vocational training penetration remains low at 30.7% for people aged 15 to 29, and private university fees remain much higher than public options.

Context

SBI Research is the research arm of the State Bank of India, which regularly publishes macroeconomic and sectoral studies on the Indian economy. Higher education trends directly influence the nation's workforce readiness, skilled labour availability, and long-term economic productivity.