India’s ICT spending still behind

The allocation for education in Budget 2008-2009, amounts to 0.8% of the Gross Domestic Product (GDP) (including the contribution by the states, this goes up to 3.57% of GDP) and by the end of the eleventh five-year Plan, it is expected to increase to 6% of the GDP (this would include contribution by the states).

Meanwhile, as far as enrolment in higher education is concerned, the gross enrolment ratio (GER) in higher education is expected to increase to 15% by the end of the XIth Plan, from the current GER of 10%, according to a senior government official. The government will also establish 16 central varsities in the hitherto uncovered states. Despite this, the overall allocation for the higher education sector is only 0.37% of GDP according to Ernst & Young-EDGE 2008 report on 'Globalising higher education in India,' whereas Brazil spends 0.91% of its GDP, Russia —0.62% and China, 0.50% of its GDP on higher education. Developed countries such as Australia spends 1.19% of its GDP on education, Canada (1.88%), the UK (1.07%) and the US (1.41%) — therefore, these countries spend on an average 1.39% of their GDP on higher education.

Education has been seen as a means of earning revenue in many developed countries including the US. For example, education is one of US' top export industries and fetches the country, annually, USD14.5 billion in revenue. So, it is natural that for greater economic benefit, the US would invest in education like other developed countries.

In India, according to a recent HRD ministry document, the target for the XIth Plan is to achieve 80% literacy rate while at the same time, reducing the gender gap in literacy to 10%. According to a senior government official, the aim is to increase allocation to education to 6% of the GDP by the end of the XIth Plan. The Ernst & Young report states that percentage of GDP allotted to education in India, is way below the 'planned 6%' of GDP as stated under the National Policy of Education in 1968. It stresses that India requires to 'substantially increase public funding on higher education and/or look at boosting private funding in higher education'.