September 10, 2007
Abstract: Industry analysts predict a phase of significant foreign investments into education, particularly for establishing coaching and tutorial facilities for entrance to technical colleges. Education is clearly a public good and quality education for all should be provided by the government. However, the Indian government has failed to meet the burgeoning demand. The positive contribution of the private sector is therefore welcome. Even so, the government has a role to play in ensuring (a) improved affordability and (b) quality assurance. Grants to students, loans, guarantees to loans made by banks can all ensure affordability for those with low incomes. However, quality assurance is trickier. A requirement for an independent certification mechanism, in the form of a self-regulating organization of the education providers could play this role.
Keywords: education market; coaching; student loans