Higher education will help earn better per capita income: VIT Chancellor

An increase in educational standards, particularly in higher education, will help earn a better per capita income and drive growth in Gross Domestic Product (GDP), said G. Viswanathan, founder and chancellor of VIT, on Saturday.

Speaking at the scholarship event, which was organised by Universal Higher Education Trust (UHET) of VIT at its campus here, Mr. Viswanathan said that higher education is essential for the prosperity of individual families and the nation as well. It was evident in the developed nations, where achievement of educational excellence preceded their economic dominance. “Despite maintaining a Gross Enrollment Ratio (GER) of 30%-35% by the southern States above the national average of 28%, budgetary allocation for education by the Centre (Union government) is poor,” he said.

The Chancellor said that the New Education Policy 2020 has recommended 6% of GDP on education despite the annual Union budgetary allocation being less than 3% of GDP. In contrast, countries like the USA, France, and Germany invest significantly more on education. For example, developed countries spend between $10,000 and 20,000 per student every year, whereas India spends only about $150 per year, he said.

In terms of per capita income, Mr. Viswanathan said that the per capita income in India is around $2,900 against $36,000 in Japan. The low per capita income in the country is mainly due to economic inequality and the tax system. For example, of the total population of around 145 crore persons, a population of 120 crore persons are classified under the low-income group in the country, he said.

Earlier, Mr. Viswanathan distributed scholarships to around 1,100 students to a tune of ₹1 crore in the presence of Sekar Viswanathan, vice-president, VIT. Operating across Vellore, Tirupattur, Ranipet, and Tiruvannamalai districts, the scholarship initiative has supported 9,858 students with ₹11.86 crore in aid since 2012-13. Women and first generation graduates form the majority of beneficiaries, at 69% and 68% respectively.