AICTE funding cut by 61% in two years

Government support for the All India Council for Technical Education (AICTE) has dropped significantly over the past two years, raising concerns about the impact on student aid and institutional development.

Despite the central government's push for large-scale reforms in higher education, the grant-in-aid to AICTE fell from ₹420 crore in 2022-23 to ₹137.5 crore in 2024-25, marking a sharp 61% cut.

In a written reply to the Rajya Sabha on Aug 20, Minister of State for Education Dr Sukanta Majumdar revealed that funding for student scholarships, a key component of AICTE’s quality enhancement efforts, has also taken a hit.

Scholarship expenditure decreased from ₹387.13 crore in 2021-22 to ₹284.32 crore in 2023-24, a drop of nearly 18%.

Although the allocation rose slightly to ₹309.47 crore in 2024-25, it still remains below previous levels.

The data was shared in response to a parliamentary question by MP Dr M Thambidurai. It comes at a time when the government is actively promoting initiatives aligned with the National Education Policy (NEP) 2020, including high-investment schemes such as the ₹50,000 crore Anusandhan National Research Foundation (ANRF) to drive research and innovation and the ₹6,000 crore One Nation One Subscription (ONOS) program aimed at providing journal access to over 6,300 institutions from 2025 to 2027.

Majumdar also referenced the World Class Institutions scheme, under which 12 universities have been granted the status of Institutes of Eminence (IoEs).

These include public institutions like IIT Bombay, IIT Delhi, IIT Madras, IIT Kharagpur, IISc Bengaluru, Banaras Hindu University, University of Delhi, and University of Hyderabad, along with private institutions such as BITS Pilani, Manipal Academy of Higher Education, OP Jindal Global University, and Shiv Nadar University.

Public institutions under the scheme have received nearly ₹6,200 crore in funding.

A new initiative called the MERITE scheme is set to launch between 2025-26 and 2029-30, with an outlay of ₹4,200 crore, targeting improvements in governance, quality, and equity across 275 technical institutions, including 175 engineering colleges and 100 polytechnics.

Additionally, the government has cleared the establishment of Centers of Excellence in Artificial Intelligence across sectors like health, sustainable cities, and agriculture, with ₹990 crore allocated through 2027-28.

The 2025-26 budget also includes ₹500 crore for an AI center focused on education.

Since 2014, the government has expanded its higher education infrastructure by setting up 16 Indian Institutes of Information Technology (IIITs), 8 Indian Institutes of Management (IIMs), 8 Central Universities, 7 Indian Institutes of Technology (IITs), 2 Indian Institutes of Science Education and Research (IISERs), and 1 National Institute of Technology (NIT).

While these moves indicate a strategic effort to boost global competitiveness, the steep cuts in AICTE funding and scholarship support may pose challenges to technical education at the grassroots level.