The world values India's human resource, why don't we?

India has 40-45 million registered unemployed, however many believe the real number is closer to 300 million. A waste when you consider the success of our outsourcing industry, an indication that the world values India's human resource.

There are a number of reasons for this high figure; the main factor is a lack of literacy and skills. China's literacy rate is 93%, India's just 63%.

Low investment

Our total expenditure on education is only 3.3% of GDP. The total amount spent on education in India is R's 910,000 crores (£113.3 billion), of which 85% comes from state government and 15% from central government. R's 7000 crores (£871.2 million) is collected through the education-cess (local form of taxation).

Estimates suggest we need additional annual investment of R's 100,000 crores (£12.4 billion) to have a reasonable quality of primary and secondary education and improve literacy rates.

We need to develop a knowledge society and supply highly skilled manpower to the world. However, it is shocking to know that only 8% of school students enter college. Only when we succeed in increasing enrollment to 20% will we be able to satisfy India's own manpower requirement.

Centers of excellence

India has just 362 universities (China has 900, the USA 3650 and Japan 4000). To reach the level we require we need 1500 universities. Reaching this target is impossible in the current environment; the private sector needs to participate if we are to achieve this aim.

More centers of excellence, following the Indian Institute of Technology and the Indian Institute of Management model are needed. By all the methods possible the drop out rate needs to fall to 10%.

Another problem is related to the quality of graduates leaving university, there is a mismatch between industry requirements and what is being supplied to them, closer coordination between the Human Resource Ministry and the Labour Ministry is required. Other areas needing attention include curriculum reform, teacher recruitment policy, course fee structures and industry research coordination.

Major challenge

Along with inequality in income distribution and bad governance due to corruption, low enrollment in schools, colleges and universities is one of the major challenges that India must overcome.

The education challenge is serious and the treatment has to be effective if India's global ambitions are to be realized.

Further information about Arun K. Mishra can be found on Linkedin.