Sustainable Development of the Higher Education Sector in India for Catalyzing Services-Driven Growth

In a knowledge-intensive world driven by information technology, primary education is a must but the importance of higher education cannot be ignored. This current era of globalization has offered immense opportunities. But people must have the necessary knowledge, skills, capacities and capabilities to seize those opportunities. Herein lays the role of education and especially higher education in building up and improving human capital. Since the economic growth of India in recent years is driven primarily by services sector and within services sector by IT and ITES the sustainable development of higher education is not an option but imperative. In this light, the paper raises the following questions: Where does India’s higher education stand today? What are the challenges confronting this sector? And what are proposed reform measures in this sector? The paper concludes that there is a serious mismatch between demand and supply in higher education sector. It is imperative therefore to enhance Indian talent pool by reforming higher education system to maximize the potential of IT and ITES on the one hand and to catalyze the country’s growth driven by services sector on the other. The expansion of the higher education sector and improvement in its quality can assist India in avoiding the unemployability of graduates on the one hand and the phenomenon of ‘missing teachers’ on the other. In addition it can ensure inclusive growth by making higher education accessible and affordable. India’s Eleventh Five Year Plan is aiming at enhancing public spending, encouraging private initiatives and initiating long major institutional and policy reforms to bring about positive changes in India’s education system. The outcomes will depend upon political commitment and good governance.