1. Social Infrastructure of INDIA - EDUCATION Business Model for Indian Citizens & NRI’s to participate PAN - IIT meet 24 th & 25 th of December, 2004. New Delhi, India. Chief Guest – His Excellency, President of India Dr. A. P. J. Abdul Kalam By Krishan Khanna, Chairman & Founder of i Watch www.wakeupcall.org

2. Transforming Education ………….…..The Challenge 1 600 million are NOT literate (based on the 3R’s) 600 million are NOT literate (based on the 3R’s) 300 million unemployed/employable age, 18 to 50 (our estimate) 300 million unemployed/employable age, 18 to 50 (our estimate) 46 million registered with employment offices (GOI) 46 million registered with employment offices (GOI) 29 million born every year (GOI) 29 million born every year (GOI) 742 million or 71% below the age of 35 years (GOI) 742 million or 71% below the age of 35 years (GOI) 290 million below poverty line @ Rs. 10/day (GOI) 290 million below poverty line @ Rs. 10/day (GOI) 490 million below poverty line @ US$ 1/day (WB) (our estimate) 490 million below poverty line @ US$ 1/day (WB) (our estimate) 700 million below poverty line @ US$ 2/day (WB) (our estimate) 700 million below poverty line @ US$ 2/day (WB) (our estimate) Per capita US$ 525 per person per year, US$1.44/day (GOI) Per capita US$ 525 per person per year, US$1.44/day (GOI)

3. Transforming Education ……………...The Challenge 2 Drop-out rate kindergarten to 10+2, is 94% 6% go for Higher & Technical education in 15,000 colleges 70% of all graduates are Arts Graduates 30% in Engineering, Medical, I.T., Software, Management, Commerce, Science, Law & special subjects About 3% of the Youth receive Relevant Education Balance 97% - how to address their aspirations?

4. Transforming Education ………….…..The Challenge 3 Rs. 78,000 cr. or US$18 billion/yr spent on education 10% by Central Govt. and 90% by State Governments. 4% of GDP spent on education – not enough – more required 9% of GDP or additional US$25 billion required per year Educational Cess may mobilize additional US$1.5 billion / yr Central & State Govts. are in deficit by 11% of GDP Private participation from citizens & NRI’s is a solution Relevant & World Class Education in Primary, Secondary, Vocational, Higher & Technical required

5. Transforming Education ………Role of Government 1 Facilitator and not a Controller Like in Business & Industry remove License Raj All subsidies from higher education to be diverted to primary & secondary education Allow education to be recognized as an Enterprise Allow tax breaks in investment in Education till 2025 Recognize that education business is US$ 2500 billion per year. And is 5 times bigger than I.T. and software which is US$ 530 billion per year

6. Transforming Education ………Role of Government 2 Only 1% of new jobs go to Government, 2% to private ‘organized’ sector and 97% to ‘unorganized’ sector Relevance of Vocational Education & Training, where 95% of the population is given an opportunity to learn skills / trades / competence in 3000 areas. This is missing in INDIA! Can get engineers, but not international quality plumbers, masons, etc Education & Training is a big employment generator Capitation Fees will be resolved by decontrol & deregulation Fee Structure for 15,000 colleges cannot be decided by a group of Supreme Court Judges, but only by free & competitive market forces

7. Transforming Education …….…..Actions to be taken Promote 100% literacy Decontrol & deregulate education as was Industry in 1991 Allow private participation in education with minimum of 25% free education for the SC/ST and Below Poverty Line population 100% Enterprise Skills Education in schools, Class 9 th to 12 th 95% of population for Vocational Education & Training Link-up Industry-Enterprise-Learning-Research – on a dynamic basis Make India as the world’s best and largest ‘Educational Hub’. Primary to Higher & Technical Education World Class Education will propel INDIA as a SUPERPOWER

8. krishan@vsnl.com krishan@vsnl.com www.wakeupcall.org krishan@vsnl.com Thank You