The New Education Policy (NEP) sets itself a grandiose objective of increasing public spending on education, from the current 3.5% of GDP to 6% of GDP. While this would be the best possible move, it may not be practical for a country like India.
In fact, the policy draft also acknowledges the importance of investing in public institutions. The policy acknowledges that “Education, in Indian context, should be considered a public good and there is a need for greater public investment in the sector” and goes on to aim for a 6% of GDP spending on education.
As a country, we can either wait for the 6% to happen or start giving out fiscal incentives so as to reduce the cost of education. Budgetary allocation is extremely difficult, especially at a time when the spends seem to be reducing in real terms.
Source: The Huffington Post