Economic Survey flags learning outcomes, higher education quality as next big education challenges

Moreover, urban areas have a higher share of secondary schools (38.1 per cent). This disparity limits rural students’ access to higher-level classes, resulting in “transition losses, increased travel time, and higher dropout rates”. “These structural imbalances are reflected in enrolment patterns, with a drop from the foundational and preparatory levels to the middle and to secondary levels in rural areas,” it pointed out.

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While in urban areas, the enrolment rises from the middle to the secondary level. Grade-wise enrolment trends further highlight the decline at the secondary stage.

The survey also highlights that India has made notable gains in school enrolment by strengthening infrastructure and teacher capacity, with schemes like Poshan Shakti Nirman and Samagra Shiksha Abhiyan promoting access and equity.

“Further action is required, especially as the focus shifts from enrolment to learning outcomes. Policy interventions to expand composite and integrated schools, upgrading schools up to Class 7, and strengthening open schooling are vital for improving retention and optimising resources,” it said.

Improving infrastructure, teacher skills through strengthened District Institute of Education and Training and State Council of Educational Research and Training, and involving parents and communities in governance can create an inclusive, learner-focused environment, it suggested.

Combining these strategies with curriculum and assessment reforms aligned with the National Education Policy (NEP) and the use of digital platforms such as PM e-Vidya can provide high-quality, equitable education, even in remote areas, it is underlined.

On higher education, the Survey acknowledges the rapid expansion of institutions and student enrolment over the past decade, but flags concerns around quality, faculty shortages and uneven research capacity. It calls for greater institutional autonomy, stronger academic leadership and deeper integration of research and innovation to make Indian universities globally competitive.

The Survey also highlights the importance of experience-based and skill-oriented learning, noting that traditional classroom-led models often fail to connect theory with application. Greater emphasis on vocational education, internships and industry collaboration is seen as essential to improve employability and align education with labour market needs.

Digital education initiatives are recognised as key enablers of scale and access, particularly in remote and underserved areas. However, the Survey warns that digital tools cannot substitute for strong pedagogy and teacher training, and must be complemented by investments in human capacity.