Cover: Building the Links Between Funding and Quality in Higher Education

Building the Links Between Funding and Quality in Higher Education

India's Challenge

Published Jul 23, 2013

by Lindsay Daugherty, Trey Miller, Rafiq Dossani, Megan Clifford


Download eBook for Free

Full Document

FormatFile SizeNotes
PDF file 0.4 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Summary Only

FormatFile SizeNotes
PDF file 0.2 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 Format Price
Add to Cart Paperback72 pages $19.95

Research Questions

  1. What inefficiencies and sources of conflict currently exist within India's system of higher education?
  2. How are policies that link higher education funding and quality used internationally, and how might they be adopted to improve higher education in India?

India has joined a worldwide trend in which nations are seeking to improve the quality of their higher education systems by giving greater autonomy and accountability to lower levels of government (e.g., states) and to the higher education institutions themselves. India's 12th Five-Year Plan, released in December 2012, suggests a range of reforms to higher education to change the role of the national government from "command and control" to "steer and evaluate." One approach that has proven effective in other countries is explicitly linking funding to well-defined quality measures and quality assurance processes. While India's 12th Five-Year Plan discusses the importance of quality improvement and funding, it does not discuss how quality and funding can be linked to support quality improvement under a "steer and evaluate" approach to governance. In this report, the authors review India's and other countries' efforts to reform their higher education systems and suggest seven policy actions that the Indian national government and other stakeholders can take to improve higher education by linking funding to quality.

Key Findings

India's 12th Five-Year Plan Offers a Unique Opportunity to Improve Quality

  • Higher education institutions in India have a quality issue, as evidenced by a lack of presence on world ranking measures and low employment rates of graduates.
  • It is challenging to improve quality under India's current higher education system, because the roles of various higher education stakeholders overlap substantially, and their agendas and the means by which they implement them often conflict.
  • The call in India's 12th Five-Year Plan for a shift from "command and control" to "steer and evaluate" will require policies to support this decentralized governance.
  • Three aspects of India's higher education system make it particularly suitable for adopting policies that link quality and funding: the large size of its higher education system, which may require unique policies to reign in quality across all institutions; the recent increases in India's higher education investment; and the consensus among stakeholders that reforms are needed.

Lessons Learned from International Approaches Linking Funding and Quality

  • Countries that want to link quality and funding must find good measures of quality and apply these measures across all institutions.
  • Careful planning and strategic implementation over time is necessary to implement policies linking quality and funding.
  • Capacity-building is likely to be necessary, including building data systems and providing additional funding to those responsible for linking quality and funding.
  • Stakeholder roles are likely to shift under these types of systems, with a larger role for institutions, students, and families.


  • Continue the process of developing and implementing a robust accreditation system for Indian institutions.
  • Develop, implement, and publicize a quantitative data system to measure quality of higher education institutions and institute policies for continuous improvement over time.
  • Gradually phase in methods to link funding to quality measures.
  • Continue efforts to develop and implement a student financial aid system and gradually tie eligibility to accreditation and quality measures.
  • Continue efforts to expand funding available for competitive grants to individual researchers.
  • Develop a system to provide competitive grants to states, institutions, and departments to spur innovation and achieve specific national and state goals.
  • Provide funding to states and institutions to build capacity for self-governance in the new "steer and evaluate" model.

Research conducted by

This research was funded jointly by RAND's RAND Center for Asia Pacific Policy (CAPP) and RAND Education and was supported in part by the generosity of RAND's donors and by the fees earned on client-funded research.

This report is part of the RAND research report series. RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. All RAND reports undergo rigorous peer review to ensure high standards for research quality and objectivity.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.