Industry association FICCI has suggested to the Union Finance Ministry during a pre-budget interaction that higher education institutions should be allowed to invest their surpluses in a wider range of asset classes. FICCI had recently organized a roundtable discussion with various stakeholders from the higher education sector on alternative investment financing strategies in the sector.
According to Rupamanjari Ghosh, Co-chair, FICCI Higher Education Committee, for international institutions drawdowns from endowments contribute significantly to the operating revenue of these institutions, thereby allowing them to undertake quality enhancement initiatives such as scholarships, professorships and research investments. She also mentioned that, with respect to Indian institutions allowing university endowments to invest in alternative investment funds and other asset classes will bring in greater transparency and better governance practices in the system.
The Gross Enrolment Ratio (GER) in India is still only around 26%. The draft National Education Policy (NEP) 2019 aims to achieve an ambitious GER of 50% by 2035, which would mean doubling student enrolment to 7 crore and beyond. With the evolving need for a knowledge economy along with internationalization and massive human capital, the higher education sector in India is set to witness a host of reforms.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content