• Source:JND

Economic Survey 2025-26 On Education: The Economic Survey 2025-26, tabled in Parliament by Union Finance Minister Nirmala Sitharaman on Thursday, January 29, stated that while enrollment has improved considerably at the foundational and preparatory stages, the secondary age-specific net enrollment rate (NER) stands at only 52.2 per cent. It added that this underscores the urgent need to address dropouts after the middle-school level.

The 2025-26 Economic Survey of India begins with a striking paradox regarding the state of Indian education. India now boasts one of the world's largest schooling systems; approximately 247 million students attend 1.47 million schools, taught by over 10 million teachers. In terms of Gross Enrollment Ratio (GER), enrollment has steadily increased at all levels, particularly at the primary and preparatory levels.

The top 5 outcomes of the Economic Survey 2025-26 on education are briefly given below:

1. The Foundational Crisis: Access Without Learning

The survey identifies Early Childhood Care and Education (ECCE) as the weakest link in the Indian school education chain. Despite the inclusion of preschool in formal schooling under the National Education Policy (NEP), participation remains low, with a Gross Enrollment Ratio (GER) of only 41.4 per cent at the foundational level.

While children do enter the system by Grade III, many enter without the necessary foundational literacy and numeracy (FLN) skills. This early "learning poverty" creates a domino effect, making it difficult for students to keep up in later years when the curriculum becomes more challenging.

2. Secondary Leakage: Why Students Drop Out?

A major concern highlighted in the report is the sharp decline in enrollment at the secondary level (Grades IX to XII), where the Gross Enrollment Ratio (GER) drops to 68.5 per cent. The survey links this "missing middle" to the weak learning foundations established in primary school.

The education system plays a critical role in equipping young people for life after school. For children who are out-of-school or are at risk of dropping out, skill-based Education is a vital intervention that helps them acquire practical skills and improve their job prospects.

Most out-of-school children in India are aged 14-18, the typical secondary education age. According to PLFS 2023–24, nearly two crore adolescents aged 14–18 years are out-of-school. The single largest reason for adolescent drop-out is the need to supplement household income, accounting for 44 per cent of drop-outs, particularly among boys (67.32 per cent). For girls, domestic and care responsibilities remain a major constraint, affecting over 55 per cent of those who leave school.

Students who struggle with basic concepts often find the exam-oriented secondary curriculum overwhelming, leading to disengagement and eventual dropout. Achieving the NEP target of 100 per cent secondary enrollment by 2030 will require more than just enrollment drives; it necessitates significant improvements in teacher capacity and student support.

3. Institutional Redesign: From PM-SHRI to Digital IDs

The government is shifting from a "mass scale" approach to "exemplary models" through initiatives like PM-SHRI schools. With over 13,000 schools operational, these institutions serve as hubs for digital classrooms and experiential learning. Simultaneously, APAAR (Automated Permanent Academic Account Registry) IDs are being implemented to create a seamless digital journey for students. By tracking progress across schools, colleges, and vocational training, the state aims to make student mobility a functional reality rather than an administrative hurdle.

4. Higher Education Expansion vs Skills Mismatch:

Higher education has witnessed massive growth, with the number of institutions exceeding 70,000 and enrollment reaching 44 million. However, the survey is clear about the "missing middle" in vocational and technical education. There is a persistent mismatch between what is taught and what the labour market demands, particularly in high-growth sectors like electronics and healthcare. The report advocates for "earn and learn" approaches and industry-linked apprenticeships integrated from secondary school onwards, so that graduates don't enter the workforce with outdated skills.

Also Read: Economic Survey 2026 Suggests Changing Definition Of 'Government Company' To Boost Disinvestment

5. The Challenge of Implementation: Focusing on Quality Over Welfare Spending:

The Economic Survey concludes that education is no longer merely a welfare measure but a test of state delivery. It warns that unconditional cash transfers cannot substitute for sustained investment in teacher training, school infrastructure, and curriculum reform.

The data suggest that long-term growth is linked to productive assets like well-trained teachers and clear skill-to-work pathways, not headline-grabbing short-term expenditures. India has crossed the threshold of access; it now faces the daunting challenge of ensuring relevance and alignment within its vast educational machinery.


Also In News