India must double its current number of universities to 2,500 if it is to achieve the goal of enrolling 50% of its youth in higher education, said NITI Aayog CEO BVR Subrahmanyam. Speaking at the Indian School of Business (ISB) on Friday, Subrahmanyam highlighted the country’s need for substantial educational expansion and innovation to address its demographic and economic aspirations.
Current state of higher education in India
India currently has 1,200 universities and over 4 crore students enrolled in higher education, representing just 29% of the eligible age cohort. Subrahmanyam emphasised that this falls short of the target of 50%, a figure critical to building a competitive and inclusive economy.
“Though one university and two colleges have been opened every week over the past decade, the numbers are insufficient,” he said. “We need to double the colleges and universities in the country. While quality concerns exist, achieving the necessary scale must be prioritised, and perhaps education needs to be delivered differently.”
Digital public infrastructure as a catalyst
Subrahmanyam highlighted India’s remarkable strides in digital public infrastructure as a foundation for educational and economic transformation. He drew comparisons with Estonia, a pioneer in digital identity, noting that India has achieved similar feats at an unparalleled scale.
“India has provided digital identities to 140 crore people and ensured that 120 crore have bank accounts. This architecture makes India the largest laboratory for digital experimentation in the world,” he said.
Unified Payments Interface (UPI) was cited as an example of India’s digital innovation, accounting for nearly half of all global financial transactions in terms of volume. Subrahmanyam observed that India processes 10 billion transactions monthly, demonstrating its capacity to lead in fintech innovation.
Economic growth and inclusivity
Subrahmanyam projected that India would become a $30 trillion economy by 2047, overtaking both the US and China. However, he stressed that economic development must also prioritise inclusivity.
“‘Viksit Bharat’ is not just about prosperity. It’s about being an inclusive nation where a rising tide lifts all boats,” he said.
He also highlighted the progress made in basic infrastructure over the last decade. By the end of 2024, every village is expected to have a drinking water supply. Electrification, housing, and road connectivity have also expanded significantly, along with transformative projects in railways and highways.
Research, innovation, and climate leadership
Research and innovation were identified as vital to India’s aspirations of becoming a modern, developed economy. Subrahmanyam underlined the need to harness technological trends and lead global advancements, particularly in frontier technologies such as artificial intelligence and semiconductors.
“India should set the benchmarks, standards, and certification methods for emerging technologies,” he said. “Since these technologies are nascent, we have an opportunity to lead from the front.”
He also positioned India as a potential leader in climate change solutions. Unlike western economies that require extensive re-engineering for green initiatives, India has the advantage of developing climate-friendly mobility and power systems from scratch.
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The role of NITI Aayog
Subrahmanyam outlined NITI Aayog’s role in shaping India’s future. The policy think tank is tasked with preparing economic visions for cities, transforming agriculture into emerging areas like horticulture and aquaculture, and leveraging technological trends for national benefit.
“NITI Aayog is working to ensure that India becomes a global leader in innovation and technology. By setting global standards, we aim to lead the charge in frontier areas,” he said.
Path forward
India’s journey towards becoming a knowledge-driven economy hinges on its ability to address the dual challenges of scale and quality in education. Subrahmanyam’s call for 2,500 universities underscores the urgent need for structural reforms and innovative delivery mechanisms in higher education.
With its robust digital infrastructure, burgeoning fintech sector, and commitment to inclusivity, India is well-positioned to redefine global benchmarks in development, sustainability, and technological advancement. However, achieving these goals will require sustained investment, policy innovation, and a commitment to equitable growth.
As Subrahmanyam concluded: “India is not just evolving; it is setting the stage for a future where innovation and inclusivity drive progress. The foundation is strong; now we must build the superstructure.”
