Union Budget 2025: India Must Allocate 6% of GDP to Education, Says Dr. Viswanathan, VIT

Dr. G. Viswanathan on Higher Education Challenges and Expectations from Union Budget 2025

Dr. G. Viswanathan, Founder and Chancellor of Vellore Institute of Technology (VIT), discussed the pressing challenges in India's higher education sector and his expectations from the upcoming Union Budget 2025, in an exclusive conversation with Shiksha.com.

Q: We hear a lot about increasing GDP spend on research. What is your perspective on the role of the private sector in research funding?

Dr. Viswanathan: There should be healthy competition between the private and public sectors in increasing research funding. However, the real issue lies in the lack of funding. Both the Union and state governments need to increase public expenditure on education, particularly on research, to enable India to compete with advanced countries. Currently, we lag in research funding, publications, and patents. To address this, we need to allocate more resources and encourage more people to pursue research.

Q: The National Education Policy (NEP) has been in discussion for almost four years. How do you view its implementation so far?

Dr. Viswanathan: Some universities have partially adopted NEP, while others have implemented it fully. However, the major recommendations remain unaddressed.

For instance, the NEP recommended establishing the Higher Education Commission of India (HECI), which would replace all other regulatory bodies. This has not been implemented. Another significant recommendation is to eliminate the affiliating system, a relic of the British era, which exists only in India, Pakistan, and Bangladesh.

Additionally, NEP proposed consolidating the existing seven or eight types of higher education institutions into three categories: research universities, research-computing universities, and autonomous colleges awarding degrees. This, too, has seen no progress. I urge the government to prioritize these major reforms.

Q: Why do you think these reforms are not being implemented? Is it due to education being on the Concurrent List?

Dr. Viswanathan: I supported the shift of education from the State List to the Concurrent List in 1976, believing it would result in greater expenditure from both the Union and state governments. Unfortunately, neither wants to spend on education; instead, they impose taxes on educational institutions.

For instance, we pay 18% GST on construction and 28% on certain purchases. These taxes raise the cost of education and, consequently, fees. This is counterproductive. Educational institutions should be exempt from taxes to reduce costs and increase accessibility. Our gross enrollment ratio (GER) in higher education is only 27-28%. We aim to reach 50% by 2035, but this requires significant public investment.

Q: Rising education costs, even in public universities, are a concern. How do you see this affecting GER?

Dr. Viswanathan: The rising cost of education is a serious issue. Stakeholders need to identify factors contributing to higher costs and explore ways to reduce them. A collaborative effort between the government and private institutions can make education more affordable.

Q: VIT has a significant number of international students. How do you plan to increase this number?

Dr. Viswanathan: Currently, VIT hosts about 1,500 international students. We aim to increase this by offering scholarships to students from economically weaker countries and building partnerships with institutions abroad. With these efforts, we are confident of achieving this goal within the next two to three years.

Q: The Union Budget 2025 is around the corner. What would you suggest to the government?

Dr. Viswanathan: Governments have consistently underinvested in education. Since the Radhakrishnan Commission, the recommendation has been to allocate 6% of GDP to education. However, we are stuck at less than 3%. India ranks 155th out of 190 countries in public expenditure on education.

At VIT, we try to bridge this gap at the grassroots level. Through the Universal Higher Education Trust, we have provided scholarships to 10,000 students over the past decade, two-thirds of whom are girls and first-generation learners.

We need a nationwide movement where capable individuals contribute to the education of underprivileged students. For instance, VIT staff donate one day’s salary annually, amounting to ₹94 lakhs this year. Initiatives like these can make a significant difference if adopted widely.

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