Parliamentary Panel Flags Gap in Education Funding, Says NEP’s 6% GDP Goal Still Out of Reach

A Parliamentary Standing Committee has expressed concern over India’s spending on higher education, noting that the target of allocating 6% of the country’s Gross Domestic Product (GDP) to education, as envisioned under the National Education Policy (NEP) 2020, remains unfulfilled.

In its latest observations, the panel stressed that stronger financial support is essential for achieving the reforms proposed under the NEP and for improving the quality and accessibility of higher education across the country. The committee highlighted that inadequate funding could slow down efforts aimed at strengthening universities, promoting research, and enhancing infrastructure.

According to data examined by the committee, overall public expenditure on education continues to remain below the 6% benchmark recommended by the NEP. Experts and policymakers have long argued that greater investment is necessary to improve learning outcomes, expand digital education, and increase opportunities for students from economically weaker sections.

The panel also underlined the importance of coordinated efforts between the Centre and the States to ensure effective implementation of education reforms. It called for sustained financial commitments to support academic institutions and encourage innovation and skill development.

Several education analysts have pointed out that while allocations for the education sector have increased over the years, expenditure as a percentage of GDP has not yet reached the level envisaged under the policy framework. They believe that additional resources will be crucial for transforming India’s higher education ecosystem and meeting long-term development goals.

The National Education Policy 2020 had recommended raising public expenditure on education to around 6% of GDP, a target that has historically remained difficult to achieve. The Parliamentary Committee’s observations are expected to renew discussions on increasing investments in the sector to support India’s ambitions of becoming a global knowledge hub.

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