SBI Research proposes higher education reforms: Explained, from NTA’s statutory status to Article 21 amendment

SBI Research has proposed a series of changes to India's higher education system, including examining whether Article 21 of the Constitution can be amended to support a right to free and fair educational opportunity.

The recommendations are part of a broader set of proposals in its latest report covering student rights, examination governance, higher education funding, faculty vacancies, vocational training and the functioning of examination agencies.

The report also proposed giving statutory status to the National Testing Agency (NTA), which currently functions as a society registered under the Societies Registration Act. It suggested that the agency instead be established through an Act of Parliament, with clearer legal responsibilities, permanent expertise and mechanisms for independent review.

SBI Research also referred to China's Gaokao examination while examining ways India could strengthen the management of large-scale examinations. The report suggested that lessons from the examination could be considered in areas such as logistics, implementation and scale.

The recommendations come as India's higher education system has expanded substantially, with growth in the number of institutions, student enrollment and teaching staff.

However, the report also highlighted gaps in government spending, vacant teaching positions, vocational training and differences in affordability and outcomes across institutions.

Right to free and fair educational opportunity

The proposed change to Article 21 is aimed at providing stronger protection to students against barriers that can affect access to educational opportunities.

SBI Research said the proposed right should protect students from fraud, discrimination and unreasonable barriers. It specifically explained that the term "free" in the proposed right should not simply refer to cost, but should encompass freedom from these forms of unfair treatment.

"We propose whether Article 21 of Indian constitution can be amended to support a right to free and fair educational opportunity. “Free” should mean freedom from fraud, discrimination and unreasonable barriers,” the report said.

The report linked the proposal to the wider need for stronger safeguards for students and greater accountability within the education system.

It also suggested that any such constitutional change should cover extensive reforms in examinations conducted by state public service commissions, which the report said have experienced recurring failures.

SBI Research draws comparison with Public Service Commissions

In putting forward its proposal on Article 21, SBI Research referred to the constitutional framework governing Public Service Commissions.

The report noted that Articles 315 and 320 created independent Public Service Commissions and entrusted them with conducting examinations because access to public office was considered too consequential to be left to everyday executive convenience.

SBI Research used this constitutional framework as an institutional reference while proposing changes related to educational opportunity and examination systems.

The report's recommendations therefore extend beyond higher education institutions themselves and include examination systems that determine access to educational and public-sector opportunities.

NTA statutory status proposed

Another major recommendation concerns the legal and organizational structure of the National Testing Agency.

SBI Research proposed replacing the NTA's current structure as a society registered under the Societies Registration Act with a statutory body established through an Act of Parliament.

The report said the NTA had conducted more than 240 examinations for over 5.4 crore candidates by July 2024. It argued that statutory status could provide the agency with clearer legal responsibilities, permanent expertise and greater institutional capacity.

The report also called for mechanisms for independent review as part of a stronger examination framework.

It proposed additional safeguards covering question-paper custody, independent review, candidate appeals and public accountability.

According to the report, strengthening these areas would form part of a broader effort to improve examination governance and institutional credibility.

Lessons from China's Gaokao

The report also examined China's Gaokao as a possible reference point for India's large-scale examination systems.

SBI Research noted that more than 12 million candidates appear for the Gaokao and suggested that India could study its approach to logistics, implementation and the management of examinations at a very large scale.

The recommendation focuses on operational lessons rather than suggesting that India's examination system should simply replicate the Chinese model.

SBI Research said practices relating to the organization and implementation of large examinations could offer useful lessons as India manages examinations involving millions of candidates.

Higher education expands across institutions and enrollment

The report highlighted the expansion of India's higher education infrastructure over the decade ending in 2024.

According to SBI Research, India had 1,289 universities, 48,246 colleges and 15,221 standalone institutes in FY24. The report said this represented an average growth of 47% over FY14.

Student enrollment also crossed 4.5 crore in FY24, with boys and girls accounting for almost equal shares of total enrollment. The report said enrollment of girls had expanded by 47% over FY14.

It also highlighted the participation of students from Scheduled Castes, Scheduled Tribes and Other Backward Classes, with SC, ST and OBC enrollment reported at 62%.

Girls outnumbered boys in the Science stream, according to the report.

Enrollment in Ph.D. programs stood at 3.4 lakh in FY24, with women accounting for almost half of the total. The report said 43.7% of Ph.D. students were enrolled in Engineering and Science.

The number of teachers also increased during the period. SBI Research said total teachers stood at 17.32 lakh in FY24, representing a 27% increase over FY14. Female teachers accounted for 45% of the total, while the share of SC, ST and OBC teachers stood at 55%.

The report put India's pupil-teacher ratio for regular-mode higher education at 23. It compared this with leading institutions in the United States and Europe, where ratios often range from 25:1 to 30:1 depending on the program of study.

Expansion of IITs, IIMs and NITs

The report also examined the growth and performance of institutions such as the Indian Institutes of Technology, Indian Institutes of Management and National Institutes of Technology.

According to SBI Research, the combined number of IITs, IIMs and NITs increased from 59 in FY14 to 76 in FY26. This included the addition of seven IITs, nine IIMs and one NIIT, as stated in the report.

The combined student population of IITs and NITs stood at approximately 2.44 lakh in FY24, compared with around 1.62 lakh in FY18, representing 27% growth.

Enrollment across all programs at IIMs also increased. The report said the total number of students in all IIMs rose from 9,298 in academic year FY18 to 18,243 in FY24, almost doubling during the period.

Women’s participation in management education also increased. Among 14 IIMs for which information was available, the share of women students in postgraduate programs rose from 26.3% in FY18 to 37.7% in FY24.

At IITs and NITs, women accounted for around 20% of students in FY24, meaning approximately one in five students was a woman. The report also said women accounted for around one in three students pursuing management education at IIMs.

Placement numbers also increased across these institutions.

According to SBI Research, placements from IIMs increased from approximately 7,500 in FY16 to around 13,700 in FY24. IIT placements rose from about 9,500 to approximately 17,500 during the same period, while NIT placements increased from around 18,000 to about 29,000.

The report said 93% of students were placed.

Median salaries also increased. SBI Research said the median salary across IIMs, IITs and NITs increased by 105% in FY24 compared with FY16. For IIMs, the median salary crossed the ₹40 lakh mark in FY24.

The report also noted that students opting for higher studies at IITs and NIITs were at a record high in FY24, with students pursuing advanced research skills, global career opportunities and specialization in emerging technology fields.

Public spending on higher education

Despite the expansion of India's higher education sector, SBI Research identified government spending as an area requiring further attention.

The report said the share of higher education in total government expenditure has remained around 1% for the past two decades and declined from 1.6% in FY18.

SBI Research proposed increasing the share to 1.5%.

The report linked higher public spending with the need to strengthen infrastructure and support the continued expansion of higher education institutions.

It also highlighted the need to increase research and development expenditure and strengthen links between academia and industry.

Faculty vacancies remain a concern

Faculty availability was another issue identified by the report.

SBI Research said 34% of sanctioned teaching positions across institutions were vacant. The vacancy level was highest at the professor level, where the report placed it at 54%.

The report called for steps to fill vacant positions and said greater attention should also be given to research and development and stronger academia-industry linkages.

It argued that industry should contribute more directly to these efforts rather than only lobbying for policy changes.

The report's recommendations on staffing come despite the increase in the overall number of teachers across India's higher education system. While total teacher numbers reached 17.32 lakh in FY24, the proportion of vacant sanctioned positions remains an issue across centrally funded institutions.

Vocational training needs faster expansion

Vocational education and training was another area highlighted by SBI Research.

The report said 30.7% of Indians aged 15 to 29 had received or were receiving vocational training in 2025, compared with 7.1% in 2018.

Although the proportion has increased significantly, SBI Research called for faster expansion of vocational training and noted that the share remained significantly lower than in developed economies.

The report recommended strengthening vocational education alongside broader higher education reforms so that students have stronger pathways from education to employment and skills development.

State-wise differences in pupil-teacher ratio

SBI Research also pointed to substantial state-level differences in pupil-teacher ratios.

According to the report, Tamil Nadu, Kerala and Goa had a pupil-teacher ratio of 14, while Bihar had a ratio of 57.

The report said these variations need to be addressed as part of efforts to improve higher education outcomes across states.

The differences indicate that national-level averages do not necessarily reflect the staffing situation across individual states.

Affordability and outcomes across institutions

The report also examined differences between private and public universities, particularly in terms of affordability and educational outcomes.

SBI Research said affordability and outcomes differ sharply across private and public universities and called for greater convergence.

According to the report, outcomes at reputed public and private universities do not differ significantly in terms of placements and higher studies, barring some exceptions. However, it said the cost of studying at private universities can be substantially higher.

The report stated that costs at private universities could be as much as six times India's NNI, compared with around 0.4 times NNI in a prime Delhi University college.

SBI Research proposed a more rational fee structure for students who can afford to pay higher fees. It suggested that such resources could be used to strengthen infrastructure at universities such as Delhi University, which the report described as being of prime importance.

The report also suggested that such measures could complement increased government expenditure on higher education.

The broader reform agenda

Taken together, the recommendations cover several parts of India's higher education system, from student rights and examination governance to institutional funding, faculty availability, vocational training and affordability.

The report's recommendations come against a backdrop of significant expansion in the number of institutions and students.

India's higher education system had 1,289 universities, 48,246 colleges and 15,221 standalone institutes in FY24, while enrollment crossed 4.5 crore. Teacher numbers reached 17.32 lakh, and women's participation expanded across several segments.

At the same time, SBI Research identified areas where further policy intervention may be required, including public expenditure, vacant teaching positions, research and development, vocational education and regional differences in staffing.

The report also highlighted the continued expansion of institutions of national importance and increased participation of women and students from SC, ST and OBC communities.

Way forward proposed by SBI Research

For examinations, the report recommended examining lessons from some of the world's largest examination systems, including China's Gaokao, particularly in logistics, implementation and scale.

For the NTA, it proposed an alternative legal and organizational structure under which the agency would become a statutory body through an Act of Parliament instead of continuing as a society under the Societies Act, 1860.

The report said such a change could provide the agency with greater organizational capacity, institutional credibility and expertise.

It also proposed examining an amendment to Article 21 to support a right to free and fair educational opportunity.

The report's definition of "free" focuses on protection from fraud, discrimination and unreasonable barriers rather than simply the absence of financial costs.

SBI Research further suggested that such a constitutional change should extend to extensive reforms in state public service commission examinations, which it said have seen recurring failures.

The report therefore presents reforms across several interconnected areas. It calls for stronger protection for students, changes to the legal structure of the NTA, safeguards for examination processes, increased government spending on higher education, action on faculty vacancies, greater investment in research and development, expansion of vocational training and measures to address differences between states and institutions.

The recommendations also reflect the scale of India's higher education system, which now serves more than 4.5 crore students across tens of thousands of institutions.

As enrollment, institutional capacity and participation continue to expand, SBI Research has identified examination governance, funding, staffing, affordability and access to educational opportunities as areas requiring further policy attention.

For the detailed report, visit the official SBI website.