Finshots Daily Why does India spend less on education?
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Aug 5, 2025 The discussion highlights India's struggle to meet the target of spending 6% of GDP on education. It examines the National Education Policy and the pandemic's impact on reforms. The podcast delves into regional disparities in education funding and the cyclical relationship between educational investment and workforce skills. It advocates for increased government revenue to boost funding, drawing lessons from successful economies that prioritize education.
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NEP 2020 School Structure Reform
- India's National Education Policy 2020 revamped the school system to a new 5+3+3+4 format.
- It aims to include early childhood education and make schooling more skill and play-based for better brain development.
India's Education Spending Gap
- Despite aiming for 6% GDP spending on education, India has remained stuck between 4-4.6% for over a decade.
- Unlike mature systems like China and Japan, India’s huge youth population demands higher public investment in education.
Comparing Education Spending Context
- Countries like China and Japan have aging populations with shrinking school-age groups, unlike India’s youthful demographic.
- These countries also complement public spending with significant private education investment not reflected in official public data.