Report findings underline that the private school sector educates nearly 50% of India’s school-going children and the need to focus on improving their learning outcomes
Chennai, July 24, 2020 – Central Square Foundation, a non-profit organisation that works towards ensuring quality school education, and Omidyar Network India, an investment firm focussed on social impact, released the first-of-its-kind report today on the state of the private school sector in India. The report highlights the need to improve learning outcomes in private schools which educate nearly half of India’s school-going children.
The report is a comprehensive analysis of existing research and evidence on the sector. It suggests reforms to streamline the operations of private schools with a focus on improving student learning. It aims to be a ready reckoner for policymakers, academicians, researchers, philanthropists and educationists amongst other stakeholders associated with the sector.
About 70% children in urban centres and a quarter from rural households attend private schools. Over 50% students in 16 Indian states are enrolled in private schools. The increased enrollment can be attributed to the rising demand by aspirational parents. A large number of parents — about 70% — pay less than Rs. 1000 per month as school fees. The report finds that 73% of parents with children in private schools believe these schools provide a better learning environment. However, student performance in private schools is only marginally better than government schools after adjusting for disadvantages in student backgrounds. About 35% of rural private school students in Grade 5 are unable to read a basic Grade 2-level paragraph.
The report finds that parents lack the means to make informed decisions while choosing schools based on learning performance. Board Examinations, among the only few reliable and standardised metrics to assess learning, are held in the last few years of schooling making it difficult for parents to judge the quality of schools during the early years of education. Moreover, nearly 60% of the private schools across India do not go up to a Board Examination grade.
Amitabh Kant, CEO of NITI Aayog, released the report at a digital event and said, “An educated and literate India is not possible without the private sector working towards our nation building. We must pay attention to getting it right. We need to bring reforms using access, equity and quality as guiding factors. More importantly, we need to shift the focus from monitoring of inputs to monitoring of outcomes. Quality education has been this government’s priority and NITI Aayog is drafting a model regulatory act in consultation with all stakeholders. We believe we will see fruitful results based on the references and results underlined in this report.”
Highlighting the fact that private schooling is not popular among the elite alone, Mr Ashish Dhawan, the Founder-Chairman of CSF, emphasised that many families from underprivileged households send their children to private schools as well. “Today the private school sector in India is the third-largest school system in the world. These numbers are mainly made up of parents from low- and middle-income backgrounds who believe their children will have better learning outcomes in private schools. It’s critical now to institute a system that will give parents assessment-based information based on key stage examinations at Grades 3, 5, and 8, as the NEP suggests. They can use this information to compare school quality and pick the best school for their child.”
And speaking about the creating a demand for quality education among parents, Roopa Kudva, Managing Director, Omidyar Network India, said, “We need to empower parents to make informed decisions based on learning quality when choosing a school. In the absence of meaningful information on how schools perform on learning, parents tend to give weightage to tangible parameters like school infrastructure or English as the medium of instruction. Philanthropy capital can play a vital role in setting the ground in three main areas: greater awareness building, increased transparency from the schools themselves and improving the quality of engagement between parents and the schools.”
About the Report Launch
Mohandas Pai, Chairman, Manipal Global Education delivered a special address and spoke about the need for bold reforms to improve the quality of education and help India’s children acquire 21st Century skills for gainful employment. Other key speakers included Baijayant Panda, National Vice President & spokesperson of BJP; and Gurcharan Das, author and former CEO of Procter & Gamble India.
The release of the report was followed by two panel discussions. The first session on ‘Never waste a crisis: re-engineering the private school sector post Covid-19’ witnessed Baijayant Panda; Gurcharan Das; Arun Bharat Ram, Chairman, SRF Limited; and Geeta Gandhi Kingdon, Chair of Education Economics and International Development at the Institute of Education discuss how learning can be incentivised for private schools. The session was moderated by Ashish Dhawan.
The second session on ‘The need for reforms in the private school sector: Voices from the ground’ saw a very engaging discussion on the impediments in running and scaling private schools between Prabhat Jain, Co-Founder, Pathways World Schools & Pathways Early Years; Kulbhushan Sharma, President of NISA, and President, Federation of Private Schools Association, Haryana; Bhuvana Anand, Director, Research at Centre for Civil Society; and Vikas Jhunjhunwala, Founder & CEO of Sunshine Schools. Dilip Thakore, Co-founder and Managing Editor of EducationWorld moderated the session.
State of the Sector Report on Private Schools in India: About the Report
The report highlights the importance of private schools in educating India’s children. It provides details on the size of the sector, deep-dives into the challenges and outlines potential reforms to ensure improved learning outcomes for students. Specifically, the report stresses on two key challenges that need to be addressed urgently:
Under-regulation of learning outcomes
73% of parents believe their children will receive a quality education and have better learning outcomes in private schools. However, in the absence of a standard metric to measure learning outcomes, it may be hard for them to judge how much their children are learning in school in absolute terms, or how good their school actually is in comparison to other schools in their neighbourhood that charge similar fees. Grade 10 and 12 board exam pass percentages, sometimes used as a school learning marker, do not cover 60% of India’s private schools which end at Grades 5 or 8. Subsequently, parents tend to choose schools based on proxies for learning like “English medium” or the “School Infrastructure”.
The information gap that exists for parents also means that schools are less likely to invest in learning-focused, invisible improvements like teacher training and quality, and more likely to spend on things that are observable by parents but may not lead to much improvement in learning – like computer labs, or marketing that proclaims English medium instruction.
Over-regulation of inputs
The second barrier is the over-regulation of inputs and a lack of policy focus on learning. Input-focused regulations prescribing playgrounds, computer labs, teacher salaries, etc., tend to be contextually unfit for under-resourced low-fee schools which make day-to-day operations difficult for them. Extensive licensing requirements deter quality providers from entering the sector and limits competition. For instance, opening a private school in Delhi calls for 125 documents, and applications move through at least 155 steps within the Directorate of Education. The non-profit nature of the education sector also discourages high-quality providers from entering or scaling up. These regulations have a direct impact on the capacity of private schools to deliver high-quality education.
The report also dives into the five-pillar sectoral reforms that account for the above-mentioned challenges and can help improve learning outcomes:
Create a universal learning indicator to help parents compare learning performance across schools and make informed decisions
Develop a pragmatic accreditation framework that factors in constraints of low fee schools and state capacity to implement while focussing on learning outcomes and child safety
Establish an independent regulatory agency for the private school sector
Review non-profit mandate and existing fee regulations to attract investment and enable easy access to credit for schools
Strengthen RTE Section 12(1)(c) which mandates 25% reservations for underprivileged children to ensure more robust targeting and fee reimbursements
While the report focuses on private schools, many of the regulatory issues raised in the report are also relevant for the public education domain.
About Omidyar Network India
Omidyar Network India (ON India) invests in bold entrepreneurs who help create a meaningful life for every Indian, especially the hundreds of millions of Indians in low-income and lower-middle-income populations, ranging from the poorest among us to the existing middle class. To drive empowerment and social impact at scale, ONI works with entrepreneurs in the private, non-profit, and public sectors, who are tackling India’s hardest and most chronic problems. Omidyar Network India makes equity investments in early stage enterprises and provides grants to non-profits in the areas of Digital Identity, Education, Emerging Tech, Financial Inclusion, Governance & Citizen Engagement, and Property Rights. Omidyar Network India is part of the Omidyar Group, a diverse collection of companies, organisations and initiatives, supported by philanthropists Pam and Pierre Omidyar, founder of eBay.
About Central Square Foundation
Central Square Foundation (CSF) is a non-profit organization working towards ensuring quality school education for all children in India. Since 2012, CSF has partnered with the government, private sector, non-profit organizations, and other ecosystem stakeholders to improve the learning outcomes of children, especially from low-income communities. CSF is driven by its mission to enable the school education system to adopt solutions that are scalable, sustainable, and effective, so that all children get equal access to opportunities needed for leading a better life.