Continuing Education

India’s US$40b education market is experiencing a surge in investment. Capital, both local and international, and innovative legal structures are changing the face of this once-staid sector

The liberalization of India’s industrial policy in 1991 was the catalyst for a wave of investment in IT and infrastructure projects. Rapid economic growth followed, sparking a surge in demand for skilled and educated workers. This, combined with the failure of the public system to provide high quality education and the growing willingness of the burgeoning middle class to spend money on schooling, has transformed India’s education sector into an attractive and fast-emerging opportunity for foreign investment.

Despite being fraught with regulatory restrictions, private investors are flocking to play a part in the “education revolution”. A recent report by CLSA (Asia-Pacific Markets) estimated that the private education market is worth around US$40 billion. The K-12 segment alone, which includes students from kindergarten to the age of 17, is thought to be worth more than US$20 billion. The market for private colleges (engineering, medical, business, etc.) is valued at US$7 billion while tutoring accounts for a further US$5 billion.

Other areas such as test preparation, pre-schooling and vocational training are worth US$1-2 billion each. Textbooks and stationery, educational CD-ROMs, multimedia content, child skill enhancement, e-learning, teacher training and finishing schools for the IT and the BPO sectors are some of the other significant sectors for foreign investment in education.

Opportunity beckons

The Indian government allocated about US$8.6 billion to education for the current financial year. But considering the significant divide between the minority of students who graduate with a good education and the vast majority who struggle to receive basic elementary schooling, or are deprived of it altogether, private participation is seen as the only way of narrowing the gap. Indeed, it is estimated that the scope for private participation is almost five times the amount spent on education by the government.

CLSA estimates that the total size of India’s private education market could reach US$70 billion by 2012, with an 11% increase in the volume and penetration of education and training being offered.
The K-12 segment is the most attractive for private investors. Delhi Public School operates approximately 107 schools, DAV has around 667, Amity University runs several more and Educomp Solutions plans to open 150 K-12 institutions over the next four years. Coaching and tutoring K-12 students outside school is also big business with around 40% of urban children in grades 9-12 using external tuition facilities.

Opening the doors

Private initiatives in the education sector started in the mid-90s with public-private partnerships set up to provide information and communications technology (ICT) in schools. Under this scheme, various state governments outsourced the supply, installation and maintenance of IT hardware and software, as well as teacher training and IT education, in government or government-aided schools. The central government has been funding this initiative, which follows the build-own-operate-transfer (BOOT) model, under the Sarva Shiksha Abhiyaan and ICT Schools programmes. Private companies such as Educomp Solutions, Everonn Systems, and NIIT were among the first to enter the ICT market, which is expected to be worth around US$1 billion by 2012.

Recently, the central government invited private participation in over 1,000 of its industrial training institutes and offered academic and financial autonomy to private players. Companies such as Tata, Larsen & Toubro, Educomp and Wipro have shown keen interest in participating in this initiative.

Regulatory roadblocks

Education in India is regulated at both central and state government levels. As a result, regulations often differ from state to state. K-12 education is governed by the respective State School Education Act and the Central Board of Secondary Education (CBSE) Rules and Regulations concerning affiliation and/or the rules of any other affiliating body. Under current regulations, only not-for-profit trusts and societies registered under Societies Registration Act, 1860, and companies registered under section 25 of the Companies Act, 1956, qualify to be affiliated with the CBSE and to operate private schools.

While the K-12 segment accounts for the lion’s share of India’s educational market, weaving through the complex regulatory roadmap to qualify for affiliation poses serious difficulties for investors. The CBSE requires privately-funded schools to be non-proprietary entities without any vested control held by an individual or members of a family. In addition, a school seeking affiliation is expected to have a managing committee controlled by a trust, which should approve budgets, tuition fees and annual charges. Any income accrued cannot be transferred to the trust or school management committee and voluntary donations for gaining school admission are not permitted.
Schools and higher education institutions set up by the trust are entitled to exemptions from income tax, subject to compliance with section 11 of the Income Tax Act, 1961. In order to qualify for tax exemptions, the trust needs to ensure that its predominant activity is to serve the charitable purpose of promoting education as opposed to the pursuit of profit.

Alternative paths

Alternative routes do exist for investors seeking to avoid the web of regulatory barriers that constrain their involvement. Sectors such as pre-schools, private coaching and tutoring, teacher training, the development and provision of multimedia content, educational software development, skill enhancement, IT training and e-learning are prime sectors in which investors can allocate their funds. These areas are attractive because while they relate closely to the profitable K-12 segment, they are largely unregulated. As such, they make attractive propositions for private investors interested in taking advantage of the burgeoning demand for quality education. Companies such as Educomp Solutions, Career Launcher, NIIT, Aptech, and Magic Software, are market leaders in these fields. Educomp recently acquired a large number of educational institutes and service providers across India. It has also formed joint ventures with leading higher education groups, including Raffles Education Singapore, for the establishment of higher education institutions and universities in India and China. Furthermore, it has entered into a multi-million dollar collaboration with Ansal Properties and Infrastructure to set up educational institutions and schools across the country and closed an US$8.5 million deal to acquire Eurokids International, a private provider of pre-school educational services in India. Gaja Capital India, an education-centric fund, has completed the funding of three education services companies in India. NIIT and Aptech, meanwhile, are engaged in the IT training business.

Core Projects and Technology is also focusing heavily on India and is likely to bid to takeover, upgrade and run public schools for specified periods on a public-private partnership basis.

Higher hurdles

While state governments are largely responsible for providing K-12 education in India, the central government is accountable for major policy decisions relating to higher education. It provides grants to the University Grants Commission (UGC) and establishes central universities in the country. The UGC coordinates, determines and maintains standards and the release of grants. Upon the UGC’s recommendation, the central government declares the status of an educational institution, which once authorized, is entitled to award degrees.

State governments are responsible for the establishment of state universities and colleges and has the power to approve the establishment of private universities through State Acts. All private universities are expected to conform to the UGC guidelines to ensure that certain minimum standards are maintained.

Amity University in Uttar Pradesh is one of the private universities to open its doors. It was approved by the Uttar Pradesh state legislature on 12 January 2005 under section 2(f) of the University Grants Commission Act.

Not-for-profit and anti-commercialization concepts dominate higher education fee structures. To prevent commercialization and profit-making, institutions are prohibited from claiming returns on investments. This, however, does not pose a hurdle for universities interested in mobilizing resources to replace and upgrade their assets and services. A fixation of fees is required in accordance with the guidelines prescribed by the UGC and other concerned statutory bodies. For this purpose, the UGC may request the relevant information from the private university concerned, as prescribed in the UGC (Returns of Information by Universities) Rules, 1979.

In line with the policy on Fee Fixation in Private Unaided Educational Institutions Imparting Higher and Technical Education, two types of fees are required: tuition fees and development fees. Tuition fees are intended to recover the actual cost of imparting education without becoming a source of profit for the owner of the institution. While earning returns on investment would not be permissible, development fees may provide an element of partial capital cost recovery to the management, serving as a resource for upkeep and replacement.

Legal precedents

In order to be awarded university status by the UGC, institutions must comply with the objectives set forth in the Model Constitution of the Memorandum of Association/Rules, and ensure that no portion of the income accrued is transferred as profit to previous or existing members of the institution. Payments to individuals or service providers in return for any service rendered to the institute are, however, not regulated.

In this context recent court judgments on private universities are relevant. The Supreme Court, in Unnikrishnan JP v State of Andhra Pradesh, introduced a scheme regulating the admission and levy of fees in private unaided educational institutions, particularly those offering professional education. The ruling was later notified in the fee policy.

Subsequently, in the case of Prof Yashpal and Anr v State of Chattisgarh and Ors in 2005, the Supreme Court assailed the Chattisgarh government’s legislation and amendments which had been abused by many private universities. It was contended that the state government, simply by issuing notifications in the Gazette, had been establishing universities in an indiscriminate and mechanical manner without taking into account the availability of any infrastructure, teaching facilities or financial resources. Further, it was found that the legislation (Chhattisgarh Niji Kshetra Vishwavidyalaya (Sthapana Aur Viniyaman) Adhiniyam, 2002) had been enacted in a manner which had completely abolished any kind of UGC control over private universities.

The Supreme Court concluded that parliament was responsible for ensuring the maintenance and uniformity of higher education institutions in order to uphold the UGC’s authority. Following the judgment, only those private universities that satisfied the UGC’s norms were able to continue operating in Chattisgarh.

Professional institutions

Professional and technical education in India is regulated by professional councils such as the All India Council for Technical Education (AICTE). Established under the AICTE Act, 1987, AICTE gives recognition to courses, promotes professional institutions, provides grants to undergraduate programmes, and ensures the coordinated and integrated development of technical education and the maintenance of standards. The AICTE has recently exerted pressure on unrecognized private technical and management institutes to seek its approval or face closure.

A single bench decision of the Delhi High Court in Chartered Financial Analysis Institute and Anr v AICTE illustrates the far-reaching implications this kind of pressure can have on all institutions operating independently of the AICTE. The court found that the Chartered Financial Analyst Institute, a US-based organization, was engaged in imparting technical education and that its charter, though not described as a degree or diploma, was nevertheless descriptive of the candidate attaining an academic standard, entitling him to pursue further courses, and achieve better prospects of employment in the investment banking profession. The AICTE argued that the Chartered Financial Analyst Institute fell within the ambit of its regulation and was therefore obliged to submit to the jurisdiction of the regulatory body. The Delhi High Court upheld the AICTE’s view that the Chartered Financial Analyst Institute did qualify as an institution imparting technical education..

This judgment may have emboldened the AICTE to proceed against a number of other establishments that are on its list of unapproved institutions. It holds particular significance since despite not granting degrees and diplomas, the Chartered Financial Analyst Institute was still deemed by the court to be covered under the description of a “technical institute”.

Enthusiasm grows for foreign participation

While regulators such as the AICTE continue to exercise influence in the Indian education system, the sector is expected to witness a surge in foreign investment and perhaps a reduction in the number of regulatory roadblocks as a result of the central government’s enthusiasm for overseas investors. Foreign direct investment in higher education could help reduce government expenditure and there is a general consensus that education as a whole should be opened for domestic and foreign private participation.

The entry of foreign educational institutions into India will be covered by the new Foreign Education Providers (Regulation for Entry and Operation) Bill. The bill seeks to regulate the entry and operation of foreign education providers, as well as limit the commercialization of higher education. Foreign education providers would be given the status of “deemed universities” allowing them to grant admissions and award degrees, diplomas or certificates.

Operationally, the bill proposes to bring foreign education providers under the administrative umbrella of the UGC, which would eventually regulate the admissions process and fee structures. Since these foreign institutions will have to be incorporated under central or state laws, they will also be subject to the government’s policies of reservations. The bill is pending approval from the Indian Parliament but it is unclear if it will be taken by the present government for a vote prior to the general elections in 2009.

Innovative structures unlock profitability

The regulatory restraints on running profitable businesses in the K-12 and higher education sectors have driven Indian lawyers to devise innovative structures that enable private investors to earn returns on their investments. These typically involve the establishment of separate companies to provide a range of services (operations, technology, catering, security, transport, etc.) to the educational institution. The service companies enter into long term contracts with the trust operating the institution. Payments made by the trust to the service companies must be comparative and proportionate to the services rendered by such companies. Furthermore, in order to qualify for tax exemptions, the expenses paid by the trust to the service companies must not exceed what may reasonably be paid for such services under arm’s length relationships.
Despite the regulatory constraints, the Indian education sector is on a path of exponential growth. A growing number of private companies are undertaking creatively structured projects in the education business and the level of investor confidence is demonstrated by the recent spate of M&A activity that has taken place.

With more domestic players emerging, the education sector is likely to witness consolidation, but at the same time, increasing foreign participation will drive competition and raise standards. Liberalization will continue to intensify as the government struggles to remedy its poor public education system and provide quality institutions to educate India’s masses.

Value Education is the much debated and discussed subject in the plethora of education in India. Of course it is true that the main purpose of any education will go with Value orientation. More concentration on Value education has been given at the primary and secondary level of school education than in higher education in India. Values could be effectively imparted to the young minds rather than to the matured ones. It may be the important reason for this prime importance given at the school level. There are so many modules designed with the help of agencies like NCERT and others for effectively imparting the value education to the school students. In this context, many innovative educational practices are being identified by the experts. Good number of experiments and studies are being conducted in the recent days on the effectiveness of teaching value education at school level. Some schools have very innovative and radical course designs to impart the values.

Effective teaching practices in imparting value education ranges from story telling, exhibitions, skits, one act play and group discussions to various other formats. New methods have been evolved by educationists to create an effective learning sphere. The usage of electronic gadgets also gains importance in the teaching-learning practices of value education. But at the higher education level, due to various reasons, the importance given to value education is not as much as it is given at the school level. The curriculum and the teaching methods also could be subjected to scrutiny. It is true that colleges are meant for a kind of specialization in some field of education. But in the Indian social context, the youth require direction and counseling at this stage. They have been exposed to various challenges at this stage which demands the intervention of educationists for his/her betterment. His/her character building also strengthens at this juncture. Students’ perception on various life factors and events are getting shaped at this stage. On the whole they evolve their own philosophy of life. Their sensitivity and knowledge are getting direction at this stage. Hence, an effective value orientation becomes inevitable to the students of colleges. Keeping this requirement in mind, States like Tamilnadu introduced a compulsory paper/course on value education to undergraduate students of all colleges in the State under the choice based credit system. Though this kind of effort is made with the good intention of imparting values to the youth, many limitations in bringing out the expected outcome could be identified.

The problem mainly begins with the definition of values. Defining the term ‘value’ poses a challenge to all scholars. The term value is loaded with varieties of meaning. Each meaning reflects its own philosophical position. Generally the term value is spontaneously associated with religious values. It is believed by many Indians that values are nothing but the religious and spiritual guiding principles of life. Hence, it is supposed that the path is already been laid for the life journey. But in the context of modernity and modernism there rises a fundamental question of whether value education is required at all in a modern state. There are those who argue that modern life is based on science and technology, and both are value neutral. They view that the values are bugbear held out by people living in the past, glued to outdated religious principles that have no relevance to the 21st century. At this point, there is also another group of modernist who propagate the necessity of value education at learning centres in order to safe guard the democratic state and its values. The values they wish to cultivate are modern secular values such as honesty, respect to other, equality, collectivity, democracy, respecting the human rights, sharing equal space in the public sphere and so on. These values are considered as the products of enlightenment period. Hence, four positions could be arrived at on the basis of the above understanding. The are:
1. There are religious values which are very much essential for every one and must be included in the curriculum.
2. The religious values should not find place in the educational system. They may operate at the private sphere.
3. There are non-religious secular values and they must find space in the education.
4. There is no need for teaching value education in the academics because they cannot be cultivated through formal learning and such value cultivation will make the individual biased.

In consequence to these positions, following questions arouse.
1. Whether value education should find place in the educational system?
2. If it is required, then what sort of values should be given preference in the curriculum?
3. What is the importance to be given to the religious values which are primarily developed on the basis of scriptures?
4. Can modern values alone are sufficient enough or is there any possibility of blending the values of modernity with religious values?
5. If religious values are to be given importance in the curriculum, which religion will find prime place? If there are contradictory propagation on a single virtue by two religions, then how are they to be handled?
6. Similarly religions differ on the practices also. Right from eating patterns, dress mode, marriage systems, war tactics, killing, punishments to various other aspects, religions differ on their outlook. In this situation, what sort of perceptions need to be taught?

Besides these questions, another billion dollar question would be raised on the methodology of effectively imparting those values. Then again as it is mentioned earlier, the school education can very well include this education easily because the system itself is advantageous for it to accommodate. But at the college level, the system finds it very difficult to work out. So this study could analyse the theoretical problems relating to the identification of values to be included in the curriculum at the one side and the problem of effective designing of the curriculum and imparting those values on the other side.

II

The necessity for imparting values to the students of all levels has been felt by everyone. The world today is facing unprecedented socio-political and economic challenges. Problems of life are becoming increasingly intense and complex. Traditional values are decentered. ‘An environment of strife pervades all countries and broken homes have become common. An insatiable hunger for money and power, leads most of people to tension and absence of peace of mind and all kinds of physical and mental ailments have become common place” 1. In the present day context of frequent and often violent social upheavals, we have to look at the problem of restlessness of the youth, their frustration born out of futility of their search for meaning of life and the purpose for which they are living, often leading to evil and wickedness. This calls for a new approach to, and a new vision of education. It is obviously felt that the present educational system promotes rat race and keep the student community in a sense of insecurity. Educational institutions have become the pressure cookers building pressures in the minds of youth. Also a loft sided educational pattern which insists on instrumental and technical rationality for the successful life in terms of gaining money and power has invaded the educational system of India. The person who is deemed to be unfit for this survival race becomes disqualified and ineligible to live in this market economy based life. The spate of industrialization and economic growth in developed nations has brought about a perceptible change in this scenario. And developing countries including India are feeling the ripple effects of this development. Values earlier considered essential by all societies have been eroded and have given way to unethical practices around the globe. Where honesty and integrity were loved and appreciated, greed, corruption and red tapism have come in, bringing in their wake, unethical responses which have pervaded all walks of life and are thwarting efforts of a few enlightened individuals to promote value based society.2 Hence, implementation of well structured education is the only solution available with all states. With growing divisive forces, narrow parochialism, separatist tendencies on the one hand and considerable fall in moral, social, ethical and national values both in personal and public life on the other, the need for promoting effective programmes of value orientation in education has assumed great urgency. Development of human values through education is now routinely seen as a task of national importance. Value education though supposes to be the part and parcel of the regular education, due to the market influences, it could not be so. Hence, it has become an inevitable need to include an exclusive curriculum for value education at all levels.

Now the next question would be about the nature of value education. What sort of values should be given preference in the curriculum is the prime problem in the introduction of value education. This problem surfaces because we can find varieties of values prescribed on the basis of various scriptures and theories. Sometimes they are contradictory to each other. This issue has been thoroughly discussed earlier. But the solution to the problem of the nature of value education is primarily dependent on the social conditions that prevail in the state. There need not be an imported value educational pattern to be prescribed in India. The burning social issues would demand the required value education. Though India is considered to be the land of divinity and wisdom, the modern value system throws challenges to the ancient value pattern. Right from the Gurkula pattern to the varna ashrama values, all values are under scrutiny by modern rationality. Hence, the relevance of the golden values prescribed by the then society is questionable in the present situation. On the other hand, the so called modern values which have been listed earlier also subjected to criticism by philosophers like post modernists. They question the very nature of the rationality of the enlightenment period. Because critics of modernity strongly declare that the modern rationality is the reason for the deterioration of human concern in the world and they paved the way for inhuman killing and escalation of values. The reason of the modernism is considered as the root of power politics which leads to inhuman behaviour of the power system, according to them. Hence the modern values like democracy, civil rights, environmental ethics, professional ethics, discipline and all such values are found useless in bringing harmony in the society. The values like discipline, tolerance, peace bears the negative connotation in this context. Hence, what sort of modern values are to be included in the curriculum is a challenge thrown towards the educationists. At one side the fanatic and fundamentalist features of religious values and on the other side the modern values based on the market economy and other factors are to be excluded and a well balanced curriculum with genuine worthy values suitable to the society has to be identified and included in the educational system. In this context, it becomes obvious that there cannot be any universal pattern of values to be prescribed in the system. When a suitable blend of religious and modern values is to be done, the designing of such course demands an unbiased, scrupulous, intelligent approach on the part of the academician who designs such course. Thus the spiritual values of sensitizing the youth for happy world and rational values for a just world are very much required. Religious values can be taken but not with the label of any particular religion, democratic values are to be included but not with its dogmatic inhuman approach. Thus there need a perfect blend of both. This is the real challenge thrown to the Indian academicians.

After the identification of these values, they need to be inculcated not to be informed to the students. Mostly listing the values is done very easily, but imparting them effectively requires genuine spirit and innovative educational practices. In the Vedic period, the gurukula system prevailed in which the student has to thoroughly undergo a pattern life with the guru shishya hierarchy. Whatever the guru declares are the values of life. But in the modern context, which is supposed to be the democratic sphere, a sense of equality and freedom has to prevail the learning situation. Also the values identified cannot be preached on the basis of the religious faiths. So the teacher has to find effective working module to internalize the values in the minds of the youth. The teachers’ understanding about the values prescribed and his/her commitment in imparting them also play a crucial role here. How to sensitize the teacher before carrying the values to the students is also a challenge to the educationists. The value education class room, if it is dealt with full seriousness and sincerity would be very interesting and challenging sphere for students and teachers. At times they need to sail at the same level with the students. The hierarchy may get disappeared. Value education demands a total responsibility from the teachers. They become more accountable. On the other side, a teacher who is committed to a set of values would always like to preach and impose them on the young minds. That extreme should also to be avoided with a balance of mind. Value education cannot be done by just delivering lectures and screening films. It requires a strong interaction between the students and the society. A lot could be experimented at this sphere. For which the supreme value ‘integrity’ is expected from the educator.

It is observed that many modules of teaching values have been designed and tested. Some are seemed to be very effective. In Tamilnadu, especially in aided colleges, with all good intention the government has introduced the value education as a compulsory scheme at the undergraduate level. But each university has its own syllabus for the same. The scrutiny of those syllabi also reveals a lot of variations in conceiving the value education. In some universities, some religion based institutions are given the responsibility of designing and even carrying out the course. Similarly the teachers who have not been exposed to any such type of training in value education are given the responsibility of teaching values. The introduction of value education for all under graduate courses is done at the cost of a core paper of that course. The teachers who have been handling their hardcore subject papers had to meet the shortage of workload due to this programme and to solve this problem, they have been entrusted with the job of teaching value education paper. This is done with the aim of avoiding the workload problem of existing teachers. The most valuable and sensitive part of education has been made like a mechanical dogmatic part. At this juncture, the fate of value education at the college level could be imagined. How to solve this issue is again a challenge to the educationists of Tamilnadu. The same fate could be observed in many other states of India. Hence, two important problems surfaces here, one at the syllabus level and the other at the teaching level. As it is discussed earlier the syllabus could be designed by way of paying attention to all aspects but imparting the same requires not only innovative teaching methods, but also innovative training method of the educators. It is as good as training the driver to drive the car; the teacher needs to be trained in imparting the values. The technical education employs teachers with sound knowledge in the subject, similarly it is essential to have teachers with sound mind and creative teaching skill to teach value education. Value education is definitely not to be dealt with compartmentalization but it should be taken as a part of the whole educational system. As Nietzsche puts it, the society requires masters to create and impart values, not the slaves who accept all the values imposed on them without any critical understanding.

If education fails to impart necessary values to its citizens, it will definitely have a telling effect on the society. All efforts to bring just and peace in the world will become futile if proper value education is not imparted.
Notes:
1. Kireet Joshi, Philosophy of Value Oriented Education Theory and Practice, ICPR