Economic Survey Reveals Challenges in Secondary School Distribution

The Economic Survey highlights the uneven distribution of secondary schools, school dropout reasons, and calls for internationalising higher education.

Gopi

•January 30, 2026•5 mins read

Building a stronger India through better schooling access.

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1. Uneven School Distribution & Low Secondary Enrolment

India’s progress in expanding school access remains uneven, especially at the secondary level. The Economic Survey 2025-26 highlights that while primary and upper-primary coverage has expanded, access to secondary schooling remains highly skewed. This weakens the National Education Policy (NEP) 2020’s target of raising Expected Years of Schooling (EYS) from 13 to 15 years.

The report notes that only 17% of rural schools and 38% of urban schools provide secondary education, creating structural bottlenecks in student retention. This misalignment between schooling infrastructure and NEP’s 5+3+3+4 structure restricts transition beyond Grade VIII, especially in rural regions.

Large numbers of adolescents continue to drop out in the 14–18 age group, driven by economic pressures and domestic responsibilities. The survey underlines that adolescents—nearly 2 crore—form the largest out-of-school cohort, heightening long-term risks for human capital formation.

If access to secondary schooling remains uneven, India risks entrenching early-age dropouts, weakening EYS targets, and limiting the labour force’s ability to meet future economic demands.

Key Data (Economic Survey 2025-26):

Rural schools offering secondary education: 17%
Urban schools offering secondary education: 38%
Secondary-age NER: 52.2%
Adolescents (14–18) out of school: ~2 crore

2. Economic Pressures & Gendered Causes of Dropout

The survey emphasises that dropout patterns at the secondary level are increasingly shaped by socio-economic compulsions. The need to supplement household income is the single largest reason, accounting for 44% of adolescent dropouts, disproportionately affecting boys. For girls, 55% cite domestic and care responsibilities, reflecting persistent gendered social norms.

These patterns create a structural divide in secondary retention, where vulnerable groups face layered disadvantages. The lack of protective policies for adolescent learners—such as conditional cash transfers, targeted skilling, and flexible schooling—further aggravates early exits.

Schooling discontinuity at this age not only reduces cumulative learning years but also weakens access to vocational training, higher education, and formal employment.

Ignoring these drivers of dropout risks perpetuating intergenerational poverty, shrinking female labour-force participation, and widening rural–urban divides in human capital.

Causes of Dropout:

44%: Need to supplement family income
67% boys: Cite income-related reasons
55% girls: Cite domestic/care responsibilities

3. Weak Vocational Integration & Skilling Gaps

The survey stresses an urgent need to integrate vocational education into secondary schooling. Despite high demand for skilled youth, institutional skilling remains negligible among adolescents aged 14–18. According to PLFS 2023-24, 91.94% of adolescents received no formal skilling, and only 0.97% received institutional training.

Among those trained, over 52.9% are concentrated in IT/ITeS, signalling both strong demand for digital skills and limited diversification across high-growth sectors such as manufacturing, green technologies, logistics, and healthcare.

The absence of embedded vocational pathways within the school system increases dropout risks, especially when students perceive weak economic returns from continued schooling.

Without early vocational exposure, adolescents remain outside the skilling ecosystem, constraining productivity and weakening India’s demographic dividend.

Skilling Data (PLFS 2023-24):

Institutional skilling among adolescents: 0.97%
No skilling received: 91.94%
Formal trainees in IT/ITeS: 52.9%

4. Learning Outcomes, Inclusivity, and Student Well-being

The PARAKH 2024 Grade III assessment shows signs of post-COVID recovery, yet foundational learning remains fragile. The survey points out low accommodation for children with special needs—only 35% of schools are inclusive—and low teacher preparedness, with only 38% having trained teachers.

Emotional well-being indicators remain worrying. Only 55% of students feel motivated to attend school and “less than half” report feeling emotionally safe. These indicators highlight systemic weaknesses in school climate, social inclusion, and mental health support.

Weak foundational learning and poor emotional safety together limit long-term retention and learning continuity, especially for disadvantaged groups.

Neglecting inclusivity and well-being weakens foundational competencies, deepens learning gaps, and can undermine future workforce quality.

Key Indicators:

Schools accommodating CWSN: 35%
Schools with trained teachers: 38%
Students feeling motivated: 55%
Students feeling emotionally safe: < 50%

5. Higher Education Expansion & Regulatory Overhaul

The Economic Survey notes significant expansion in higher education institutions since 2014-15. The number of medical colleges rose from 387 to 819, and universities recorded a 76% increase. However, 81% of enrolments occur in State institutions, indicating the need to strengthen State capacity and quality assurance.

The Viksit Bharat Shiksha Adhishthan Bill, 2025 aims to move towards NEP’s vision of a “light but tight” framework by creating a single regulatory commission, subsuming UGC, AICTE, and NCTE. This seeks to ensure uniform standards, reduce fragmentation, and increase institutional autonomy.

Expansion alone is insufficient without governance reforms; therefore, the survey stresses building research ecosystems, enhancing teacher training, and improving quality benchmarks across State HEIs.

Without cohesive regulation and institutional strengthening, mere numerical expansion will not translate into quality human capital.

Expansion Data:

Medical colleges: 387 → 819
Universities: +76%
State institutions share of enrolments: 81%

6. Internationalisation of Higher Education

The survey places major emphasis on global engagement to position India as an education hub. Citing the NITI Aayog report (Dec 2025), it outlines the need for programme diversification—summer schools, semester-abroad modules—and bilateral initiatives to promote reciprocal student mobility.

Enhancing campus experience through housing, health services, visa support, and post-study internships is seen as essential for attracting foreign students. The establishment of international IIT campuses (Zanzibar, Abu Dhabi) represents an initial step towards India’s global academic presence.

Regulation simplification—especially faster visas, streamlined approvals, and integrated student services—is crucial for seamless internationalisation.

Failure to internationalise risks India losing talent to global competitors and missing an opportunity to project soft power through higher education.

Measures Suggested:

Programme diversification (summer schools, semester abroad)
Reciprocal mobility agreements
Better housing, health, counselling, insurance, visa services
Post-study internships and faster visa processes
Stronger campus experience for international students

Conclusion

The Economic Survey 2025-26 presents a comprehensive picture of India’s education challenges across schooling and higher education. While enrolments and infrastructure have expanded significantly, uneven secondary access, economic dropout pressures, weak vocational integration, and regulatory fragmentation persist. Addressing these gaps through targeted support, inclusive learning ecosystems, and globally aligned higher education reforms will be essential for achieving NEP 2020 goals and strengthening India’s long-term human capital base.

Quick Q&A

Everything you need to know

The Economic Survey 2025-26 identifies multiple challenges in achieving the NEP 2020 goal of increasing expected years of schooling (EYS) from 13 to 15 years. Key challenges include:

Uneven distribution of schools, with only 17% of rural schools and 38% of urban schools providing secondary education
High dropout rates among adolescents aged 14–18, mainly due to the need to supplement household income (44% of cases) and domestic or care responsibilities, particularly for girls (55%)
Low secondary school enrolment, with age-specific net enrolment at just 52.2%
Limited access to formal skills and vocational education, as only 0.97% of adolescents aged 14–18 received institutional training

These structural and socio-economic factors hinder the conversion of India’s demographic potential into high-quality human capital, highlighting the need for targeted interventions in school retention, skill development, and infrastructure expansion.

Secondary education retention is critical for developing employable skills and human capital. The Economic Survey 2025-26 highlights that nearly two crore adolescents aged 14–18 were out of school, which has long-term implications for economic productivity and social development. Key concerns include:

Economic pressures force adolescents, especially boys, to enter the workforce prematurely, limiting their skill acquisition
Domestic and care responsibilities disproportionately affect girls, perpetuating gender gaps in education
Low secondary retention restricts access to higher education, vocational training, and skill-building opportunities essential for a modern economy

Addressing retention requires comprehensive policy solutions, including conditional cash transfers, scholarship schemes, school infrastructure expansion, and integration of vocational education to make secondary education both feasible and valuable for students and families.

The Viksit Bharat Shiksha Adhishthan Bill, 2025 seeks to consolidate and modernise higher education governance by replacing fragmented and overlapping regulations. Key mechanisms include:

Subsuming the functions of the University Grants Commission, AICTE, and NCTE into a single overarching regulatory body
Strengthening institutional autonomy for Institutes of National Importance and promoting uniform quality standards
Facilitating the establishment of globally benchmarked institutions to retain domestic talent and attract international students and faculty
Supporting programme diversification such as semester-abroad modules, summer schools, and bilateral student mobility agreements

The Bill aims to create a cohesive, responsive, and internationally competitive higher education ecosystem that aligns with India’s economic and innovation priorities while enhancing global engagement.

Despite substantial expansion of higher education institutions, including 23 IITs, 21 IIMs, 20 AIIMS, and the establishment of two international IIT campuses, GER remains low at 29.5%. The reasons include:

High concentration of students in State-run institutions, which may have limited capacity relative to demand
Socio-economic barriers, such as affordability, opportunity cost of studying, and gendered constraints on mobility
Inadequate outreach and awareness about higher education opportunities in rural and semi-urban regions
Limited alignment of existing programmes with market demand, resulting in low uptake of vocational and skill-oriented courses

This indicates that merely increasing the number of institutions is insufficient; attention must also be given to equitable access, quality of education, and alignment with economic opportunities to boost GER effectively.

Gender disparities in education are a key concern in secondary school retention. According to the Economic Survey 2025-26:

While boys primarily drop out to supplement household income (67%), girls face constraints due to domestic and care responsibilities (55%)
This reflects persistent socio-cultural norms that limit girls’ mobility and participation in higher education
Infrastructure gaps, such as lack of sanitation facilities and trained teachers for special needs, disproportionately affect female students and contribute to early dropout

These examples demonstrate the need for targeted interventions such as scholarships, flexible school hours, residential facilities, and community engagement programmes to ensure equitable access to education and improve overall retention rates for both genders.

Internationalisation of higher education is a strategic policy priority aimed at improving global competitiveness, retaining domestic talent, and attracting international students and faculty. Pros include:

Enhanced quality through exposure to global best practices and research collaboration
Improved employability of graduates due to internationally recognised degrees
Attraction of foreign investment in education and associated services

However, challenges remain:

Unequal access for students from rural or socio-economically disadvantaged backgrounds
High cost of participation in international programmes may reinforce inequalities
Focus on internationalisation should not divert resources from critical domestic issues, such as improving secondary retention and vocational training

In conclusion, internationalisation can boost India’s higher education ecosystem if implemented alongside policies that address equity, access, and domestic capacity building.

The Economic Survey 2025-26 highlights extremely low institutional skilling among adolescents, with 91.94% of those aged 14–18 receiving no formal training. To improve this, India can adopt a multi-pronged approach:

Integrate vocational and skill-based education into secondary schools to make learning practical and economically valuable
Provide sector-specific training beyond IT/ITES, such as in agriculture, manufacturing, healthcare, and renewable energy
Establish public-private partnerships to deliver training programmes and apprenticeships aligned with labour market needs
Offer financial incentives, stipends, or flexible scheduling to reduce opportunity costs for adolescents who might otherwise drop out

Case study: In Kerala, the integration of vocational modules within high school curricula, coupled with stipends for rural adolescents, has led to a noticeable reduction in dropout rates and improved employment readiness, demonstrating the effectiveness of combining education with skill-building interventions. Scaling such approaches nationally can help India meet NEP 2020’s vision for human capital development.

Attribution

Original content sources and authors

Abhinay Lakshman

The Hindu

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