Impact of Globalization

Impact of Globalization, both theoretically and practically, can be observed in different economic, social, cultural, political, finance, and technological dimensions of the world. Globalization brought about a new world order and is gradually reaching new heights, integrating all the fields to form a cohesive network. The Impact of Globalization has crossed the economy to influence all phases of human life challenging their national and individual particularities. Globalization impact has touched all political, cultural, economic, and ideological dimensions. With the onset of the western democratic system the Impact of Globalization on politics is visible. In economic globalization the impact ranges from production, consumption, commercial exchange, and distribution. In the cultural domain, globalization had its impact on the imagination, idealism, theories, thought process, and practices of humankind. However, the Impact of Globalization had the best possible results on the Information and Communication system. This globalization of information is observed with the globalized telecommunications and information technologies operating in today's world. For instance, the satellite TV channels, cellular phones, broadband, Internet, and so forth. All these have successfully transformed the world into a global village. The globalization of information is also proved from the usage of the most popular language, English, in the Internet. Moreover, there is the diminished use of paper with the spread of the new globalized information technology. Today, at present only few international news agencies dominate the total information system, such as, the Associated Press and the United Press of USA, Reuters of Great Britain, and Agence France Presse of France. Another Impact of Globalization is in the field of Science, with the introduction of new fresh attempts in scientific research and capabilities of invention. In this, the nations like the United States of America, the European Union, and Japan have reached heights. This globalization of science leads to the fusion of scientific data and rules to form a uniform network of database. The Impact of the Globalization of economy, politics, information, and technology, results in the globalization of culture. The present day TV channels, movies and advertisements are open to all parts of the world imparting modern education. This again transforms the values, ethics, religion, and thought processes of the mankind as a whole. The best outcome of the globalized culture is the evaluation and improvement in the status of women. Another significant change is the demand for equal rights by the emerging "third gender" in today's world. According to them against global human right system, there should be division of humankind into three genders along with the males and females. The Impact of Globalization on culture is also observed in the discussions held at the World Intellectual Property Organization, in which the Americans requested the original bearer of all types of intellectual items, like books, songs, scripts, to give up their copyrights for large private groups. However, this was countered by the European Union countries and on the other hand accepted by Great Britain. Again, France, one of the European countries, got engaged in a movement for the grant of cultural exclusiveness in the fields of audio-visual and cinematic production.

RESPONDING TO GLOBALIZATION: INDIA’S ANSWER

4^th Ramanbhai Patel Memorial Lecture on Excellence in Education

by Dr. C. Rangarajan

Chairman

Economic Advisory Council to the Prime Minister

New Delhi

February 25, 2006
Ahmedabad

RESPONDING TO GLOBALIZATION: INDIA’S ANSWER

I deem it a great honour to be invited to deliver the 4^th Ramanbhai Patel Memorial Lecture on Excellence in Education. Shri Ramanbhai Patel was a true entrepreneur. He came to business from education and set up an indigenous pharmaceutical company, which later became one of the largest manufacturers of drugs and pharmaceuticals. He was deeply interested in the promotion of education and contributed liberally towards this cause. I am indeed happy that the Ahmedabad Management Association has instituted a lecture series to commemorate his memory.

Ahmedabad Management Association is perhaps the most active management association in our country. It has become the forum for a discussion of variety of issues relating to industrial growth and business education. Its programmes and seminars have come to be recognized as being the most useful and well organised. May I take this occasion to congratulate the Ahmedabad Management Association on the excellent work it has been doing. It is a matter of great pleasure for me to be in Ahmedabad and to meet familiar faces.

Globalization has become an expression of common usage. While to some, it represents a brave new world with no barriers, for some others, it spells doom and destruction. It is, therefore, necessary to have a clear understanding of what globalization means and what it stands for, if we have to deal with a phenomenon that is willy-nilly gathering momentum.

Globalization and its Meaning

Broadly speaking, the term ‘globalization’ means integration of economies and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people. Cross border integration can have several dimensions – cultural, social, political and economic. In fact, some people fear cultural and social integration even more than economic integration. The fear of “cultural hegemony” haunts many. Limiting ourselves to economic integration, one can see this happen through the three channels of (a) trade in goods and services, (b) movement of capital and (c) flow of finance. Besides, there is also the channel through movement of people.

Historical Development

Globalization has been a historical process with ebbs and flows. During the Pre-World War I period of 1870 to 1914, there was rapid integration of the economies in terms of trade flows, movement of capital and migration of people. The growth of globalization was mainly led by the technological forces in the fields of transport and communication. There were less barriers to flow of trade and people across the geographical boundaries. Indeed there were no passports and visa requirements and very few non-tariff barriers and restrictions on fund flows. The pace of globalization, however, decelerated between the First and the Second World War. The inter-war period witnessed the erection of various barriers to restrict free movement of goods and services. Most economies thought that they could thrive better under high protective walls. After World War II, all the leading countries resolved not to repeat the mistakes they had committed previously by opting for isolation. Although after 1945, there was a drive to increased integration, it took a long time to reach the Pre-World War I level. In terms of percentage of exports and imports to total output, the US could reach the pre-World War level of 11 per cent only around 1970. Most of the developing countries which gained Independence from the colonial rule in the immediate Post-World War II period followed an import substitution industrialization regime. The Soviet bloc countries were also shielded from the process of global economic integration. However, times have changed. In the last two decades, the process of globalization has proceeded with greater vigour. The former Soviet bloc countries are getting integrated with the global economy. More and more developing countries are turning towards outward oriented policy of growth. Yet, studies point out that trade and capital markets are no more globalized today than they were at the end of the 19^th century. Nevertheless, there are more concerns about globalization now than before because of the nature and speed of transformation. What is striking in the current episode is not only the rapid pace but also the enormous impact of new information technologies on market integration, efficiency and industrial organization. Globalization of financial markets has far outpaced the integration of product markets.

Gains from Globalization

The gains from globalization can be analyzed in the context of the three types of channels of economic globalization identified earlier.

Trade in Goods and Services

According to the standard theory, international trade leads to allocation of resources that is consistent with comparative advantage. This results in specialization which enhances productivity. It is accepted that international trade, in general, is beneficial and that restrictive trade practices impede growth. That is the reason why many of the emerging economies, which originally depended on a growth model of import substitution, have moved over to a policy of outward orientation. However, in relation to trade in goods and services, there is one major concern. Emerging economies will reap the benefits of international trade only if they reach the full potential of their resource availability. This will probably require time. That is why international trade agreements make exceptions by allowing longer time to developing economies in terms of reduction in tariff and non-tariff barriers. “Special and differentiated treatment”, as it is very often called has become an accepted principle.

Movement of Capital

Capital flows across countries have played an important role in enhancing the production base. This was very much true in 19^th and 20^th centuries. Capital mobility enables the total savings of the world to be distributed among countries which have the highest investment potential. Under these circumstances, one country’s growth is not constrained by its own domestic savings. The inflow of foreign capital has played a significant role in the development in the recent period of the East Asian countries. The current account deficit of some of these countries had exceeded 5 per cent of the GDP in most of the period when growth was rapid. Capital flows can take either the form of foreign direct investment or portfolio investment. For developing countries the preferred alternative is foreign direct investment. Portfolio investment does not directly lead to expansion of productive capacity. It may do so, however, at one step removed. Portfolio investment can be volatile particularly in times of loss of confidence. That is why countries want to put restrictions on portfolio investment. However, in an open system such restrictions cannot work easily.

Financial Flows

The rapid development of the capital market has been one of the important features of the current process of globalization. While the growth in capital and foreign exchange markets have facilitated the transfer of resources across borders, the gross turnover in foreign exchange markets has been extremely large. It is estimated that the gross turnover is around $ 1.5 trillion per day worldwide (Frankel, 2000). This is of the order of hundred times greater than the volume of trade in goods and services. Currency trade has become an end in itself. The expansion in foreign exchange markets and capital markets is a necessary pre-requisite for international transfer of capital. However, the volatility in the foreign exchange market and the ease with which funds can be withdrawn from countries have created often times panic situations. The most recent example of this was the East Asian crisis. Contagion of financial crises is a worrying phenomenon. When one country faces a crisis, it affects others. It is not as if financial crises are solely caused by foreign exchange traders. What the financial markets tend to do is to exaggerate weaknesses. Herd instinct is not uncommon in financial markets. When an economy becomes more open to capital and financial flows, there is even greater compulsion to ensure that factors relating to macro-economic stability are not ignored. This is a lesson all developing countries have to learn from East Asian crisis. As one commentator aptly said “The trigger was sentiment, but vulnerability was due to fundamentals”.

Concerns and Fears

On the impact of globalization, there are two major concerns. These may be described as even fears. Under each major concern there are many related anxieties. The first major concern is that globalization leads to a more iniquitous distribution of income among countries and within countries. The second fear is that globalization leads to loss of national sovereignty and that countries are finding it increasingly difficult to follow independent domestic policies. These two issues have to be addressed both theoretically and empirically.

The argument that globalization leads to inequality is based on the premise that since globalization emphasizes efficiency, gains will accrue to countries which are favourably endowed with natural and human resources. Advanced countries have had a head start over the other countries by at least three centuries. The technological base of these countries is not only wide but highly sophisticated. While trade benefits all countries, greater gains accrue to the industrially advanced countries. This is the reason why even in the present trade agreements, a case has been built up for special and differential treatment in relation to developing countries. By and large, this treatment provides for longer transition periods in relation to adjustment. However, there are two changes with respect to international trade which may work to the advantage of the developing countries. First, for a variety of reasons, the industrially advanced countries are vacating certain areas of production. These can be filled in by developing countries. A good example of this is what the East Asian countries did in the 1970s and 1980s. Second, international trade is no longer determined by the distribution of natural resources. With the advent of information technology, the role of human resources has emerged as more important. Specialized human skills will become the determining factor in the coming decades. Productive activities are becoming “knowledge intensive” rather than “resource intensive”. While there is a divide between developing and the advanced countries even in this area – some people call it the digital divide - it is a gap which can be bridged. A globalized economy with increased specialization can lead to improved productivity and faster growth. What will be required is a balancing mechanism to ensure that the handicaps of the developing countries are overcome.

Apart from the possible iniquitous distribution of income among countries, it has also been argued that globalization leads to widening income gaps within the countries as well. This can happen both in the developed and developing economies. The argument is the same as was advanced in relation to iniquitous distribution among countries. Globalization may benefit even within a country those who have the skills and the technology. The higher growth rate achieved by an economy can be at the expense of declining incomes of people who may be rendered redundant. In this context, it has to be noted that while globalization may accelerate the process of technology substitution in developing economies, these countries even without globalization will face the problem associated with moving from lower to higher technology. If the growth rate of the economy accelerates sufficiently, then part of the resources can be diverted by the state to modernize and re-equip people who may be affected by the process of technology up gradation.

The second concern relates to the loss of autonomy in the pursuit of economic policies. In a highly integrated world economy, it is true that one country cannot pursue policies which are not in consonance with the worldwide trends. Capital and technology are fluid and they will move where the benefits are greater. As the nations come together whether it be in the political, social or economic arena, some sacrifice of sovereignty is inevitable. The constraints of a globalised economic system on the pursuit of domestic policies have to be recognised. However, it need not result in the abdication of domestic objectives.

Another fear associated with globalization is insecurity and volatility. When countries are inter-related strongly, a small spark can start a large conflagration. Panic and fear spread fast. The downside to globalization essentially emphasizes the need to create countervailing forces in the form of institutions and policies at the international level. Global governance cannot be pushed to the periphery, as integration gathers speed.

Empirical evidence on the impact of globalization on inequality is not very clear. The share in aggregate world exports and in world output of the developing countries has been increasing. In aggregate world exports, the share of developing countries increased from 20.6 per cent in 1988-90 to 29.9 per cent in 2000. Similarly the share in aggregate world output of developing countries has increased from 17.9 per cent in 1988-90 to 40.4 per cent in 2000. The growth rate of the developing countries both in terms of GDP and per capita GDP has been higher than those of the industrial countries. These growth rates have been in fact higher in the 1990s than in the 1980s. All these data do not indicate that the developing countries as a group have suffered in the process of globalization. In fact, there have been substantial gains. But within developing countries, Africa has not done well and some of the South Asian countries have done better only in the 1990s. While the growth rate in per capita income of the developing countries in the 1990s is nearly two times higher than that of industrialized countries, in absolute terms the gap in per capita income has widened. As for income distribution within the countries, it is difficult to judge whether globalization is the primary factor responsible for any deterioration in the distribution of income. We have had considerable controversies in our country on what happened to the poverty ratio in the second half of 1990s. Most analysts even for India would agree that the poverty ratio has declined in the 1990s. Differences may exist as to what rate at which this has fallen. Nevertheless, whether it is in India or any other country, it is very difficult to trace the changes in the distribution of income within the countries directly to globalization.

India’s Stance

What should be India’s attitude in this environment of growing globalization? At the outset it must be mentioned that opting out of globalization is not a viable choice. There are at present 149 members in the World Trade Organisation (WTO). Some 25 countries are waiting to join the WTO. China has recently been admitted as a member. What is needed is to evolve an appropriate framework to wrest maximum benefits out of international trade and investment. This framework should include (a) making explicit the list of demands that India would like to make on the multilateral trade system, and (b) steps that India should take to realize the full potential from globalization.

Demands on the Trading System

Without being exhaustive, the demands of the developing countries on the multilateral trading system should include (1) establishing symmetry as between the movement of capital and natural persons, (2) delinking environmental standards and labour related considerations from trade negotiations, (3) zero tariffs in industrialized countries on labour intensive exports of developing countries, (4) adequate protection to genetic or biological material and traditional knowledge of developing countries, (5) prohibition of
unilateral trade action and extra territorial application of national laws and regulations, and (6) effective restraint on industrialized countries in initiating anti-dumping and countervailing action against exports from developing countries.

The purpose of the new trading system must be to ensure “free and fair” trade among countries. The emphasis so far has been on “free” rather than “fair” trade. It is in this context that the rich industrially advanced countries have an obligation. They have often indulged in “double speak”. While requiring developing countries to dismantle barriers and join the main stream of international trade, they have been raising significant tariff and non-tariff barriers on trade from developing countries. Very often, this has been the consequence of heavy lobbying in the advanced countries to protect ‘labour’. Although average tariffs in the United States, Canada, European Union and Japan – the so called Quad countries – range from only 4.3 per cent in Japan to 8.3 per cent in Canada, their tariff and trade barriers remain much higher on many products exported by developing countries. Major agricultural food products such as meat, sugar and dairy products attract tariff rates exceeding 100 per cent. Fruits and vegetables such as bananas are hit with a 180 per cent tariff by the European Union, once they exceed quotas. The tariffs collected by the US on $ 2 billion worth of imports from Bangladesh are higher than those imposed on imports worth $ 30 billion from France. In fact, these trade barriers impose a serious burden on the developing countries. It is important that if the rich countries want a trading system that is truly fair, they should come forward to reduce the trade barriers and subsidies that prevent the products of developing countries from reaching their markets. Otherwise the pleas of these countries for a competitive system will sound hollow.

To some extent, conflicts among countries on trade matters are endemic. Until recently, agriculture was a major bone of contention between U.S. and E.U. countries. Frictions are also bound to arise among developing countries as well. When import tariffs on edible oil were increased in India, the most severe protest came from Malaysia which was a major exporter of Palm Oil. Entrepreneurs in India complain of cheaper imports from China. In the export of rice, a major competitor of India is Thailand. If development is accepted as the major objective of trade as the Doha declaration proclaimed, it should be possible to work out a trading arrangement that is beneficial to all countries.

There have been protracted negotiations at WTO in reforming the trade system. Admittedly, the tariff and non-tariff barriers are coming down. However, there are apprehensions that the concerns of developing countries are not being addressed adequately. Looked at from this angle, the recent Hong Kong Ministerial is a modest success. Despite reservations, we must acknowledge that it is a step forward. Domestic support to agriculture by developed countries constitutes a major stumbling block to third world trade expansion. However, India’s stand in relation to agriculture has been `defensive’. We are not a major player in the world agricultural market. The impact of what has been accepted in relation to Non-Agricultural Market Access and services will vary from country to country. Despite some contrarian opinion, the gain to India from services can be significant. However, the Hong Kong Ministerial is only a broad statement of intentions. Much will depend upon how these ideas are translated into concrete actions.

Actions by India

The second set of measures that should form part of the action plan must relate to strengthening India’s position in international trade. India has many strengths, which several developing countries lack. In that sense, India is different and is in a stronger position to gain from international trade and investment. India’s rise to the top of the IT industry in the world is a reflection of the abundance of skilled manpower in our country. It is, therefore, in India’s interest to ensure that there is a greater freedom of movement of skilled manpower. At the same time, we should attempt to take all efforts to ensure that we continue to remain a frontline country in the area of skilled manpower. India can attract greater foreign investment, if we can accelerate our growth with stability. Stability, in this context, means reasonable balance on the fiscal and external accounts. We must maintain a competitive environment domestically so that we can take full advantage of wider market access. We must make good use of the extended time given to developing countries to dismantle trade barriers. Wherever legislations are required to protect sectors like agriculture, they need to be enacted quickly. In fact, we had taken a long time to pass the Protection of Plant Varieties and Farmers’ Rights Act. We must also be active in ensuring that our firms make effective use of the new patent rights. South Korea has been able to file in recent years as many as 5000 patent applications in the United States whereas in 1986, the country filed only 162. China has also been very active in this area. We need a truly active agency in India to encourage Indian firms to file patent applications. In effect, we must build the complementary institutions necessary for maximizing the benefits from international trade and investment.

Changes in the foreign trade and foreign investment policies have altered the environment in which Indian industries have to operate. The path of transition is, no doubt, difficult. A greater integration of the Indian economy with the rest of the world is unavoidable. It is important that Indian industry be forward looking and get organized to compete with the rest of the world at levels of tariff comparable to those of other developing countries. Obviously, the Indian Government should be alert to ensure that Indian industries are not the victims of unfair trade practices. The safeguards available in the WTO agreement must be fully utilized to protect the interests of Indian industries.

Indian industry has a right to demand that the macro economic policy environment should be conducive to rapid economic growth. The configuration of policy decisions in the recent period has been attempting to do that. It is, however, time for Indian industrial units to recognize that the challenges of the new century demand greater action at the enterprise level. They have to learn to swim in the tempestuous waters of competition and away from the protected waters of the swimming pools. India is no longer a country producing goods and services for the domestic market alone. Indian firms are becoming and have to become global players. At the minimum, they must be able to meet global competition. The search for identifying new competitive advantages must begin earnestly. India’s ascendancy in Information Technology (IT) is only partly by design. However, it must be said to the credit of policy makers that once the potential in this area was discovered, the policy environment became strongly industry friendly.

Over a wide spectrum of activities, India’s advantage, actual and that which can be realized in a short span of time must be drawn up. Of course, in a number of cases, it will require building plants on a global scale. But, this need not necessarily be so in all cases. In fact the advent of IT is modifying the industrial structure. The revolution in telecommunications and IT is simultaneously creating a huge single market economy, while making the parts smaller and more powerful. What we need today is a road map for the Indian industry. It must delineate the path different industries must take to achieve productivity and efficiency levels comparable to the best in the world.

Globalization, in a fundamental sense, is not a new phenomenon. Its roots extend farther and deeper than the visible part of the plant. It is as old as history, starting with the great migrations of people across the great landmasses. Only recent developments in computer and communication technologies have accelerated the process of integration, with geographic distances becoming less of a factor. Is this 'end of geography' a boon or a bane? Borders have become porous and the sky is open. With modern technologies which do not recognize geography, it is not possible to hold back ideas either in the political, economic or cultural spheres. Each country must prepare itself to meet the new challenges so that it is not being bypassed by this huge wave of technological and institutional changes.

Nothing is an unmixed blessing. Globalization in its present form though spurred by far reaching technological changes is not a pure technological phenomenon. It has many dimensions including ideological. To deal with this phenomenon, we must understand the gains and losses, the benefits as well as dangers. To be forewarned, as the saying goes, is to be forearmed. But we should not throw the baby with bath water. We should also resist the temptation to blame globalization for all our failures. Most often, as the poet said, the fault is in ourselves.

Risks of an open economy are well known. We must not, nevertheless, miss the opportunities that the global system can offer. As an eminent critic put it, the world cannot marginalize India. But India, if it chooses, can marginalize itself. We must guard ourselves against this danger. More than many other developing countries, India is in a position to wrest significant gains from globalization. However, we must voice our concerns and in cooperation with other developing countries modify the international trading arrangements to take care of the special needs of such countries. At the same time, we must identify and strengthen our comparative advantages. It is this two-fold approach which will enable us to meet the challenges of globalization which may be the defining characteristic of the new millennium.

The key to India’s growth lies in improving productivity and efficiency. This has to permeate all walks of our life. Contrary to the general impression, the natural resources of our country are not large. India accounts for 16.7 per cent of world’s population whereas it has only 2.0 per cent of world’s land area. While China’s population is 30 per cent higher than that of India’s, it has a land area which is three times that of India. In fact, from the point of view of long-range sustainability, the need for greater efficiency in the management of natural resources like land, water and minerals has become urgent. In a capital-scarce economy like ours, efficient utilization of our capacity becomes even more critical. For all of these things to happen, we need well-trained and highly skilled people. In the world of today, competition in any field is competition in knowledge. That is why we need to build institutions of excellence. I am, therefore, happy that the Ahmedabad Management Association, besides other functions, is also focusing on excellence in education. Increased productivity flowing from improved skills is the real answer to globalisation.

Old Photographs from In di an History

The daughter of an Indian maharajah seated on a panther she shot, sometime during 1920s.

A British man gets a pedicure from an Indian servant .

The Grand Trunk Road , built by Sher Shah Suri, was the main trade route from Calcutta to Kabul .

A group of Dancing or nautch girls began performing with their elaborate costumes and jewelry .

A rare view of the President's palace and the Parliament building in New Delhi .

Women gather at a party in Mumbai ( Bombay ) in 1910 .

A group from Vaishnava, a sect founded by a Hindu mystic. His followers are called Gosvami-maharajahs

An aerial view of Jama Masjid mosque in Delhi , built between 1650 and 1658 .

The Imperial Airways 'Hanno' Hadley Page passenger airplane carries the England to India air mail, stopping in Sharjah to refuel .

See what the India was at 1835...... Forward it to all Indian

எடுகாடின் போழ்சி

Overview
Annual Report 2004-05
2
Planning
The National Policy on Education, 1986, as modified
in 1992 envisages the improvement and expansion
of education in all sectors, elimination of disparities in
access and laying greater stress on improvement in the
quality and relevance of education at all levels,
including technical and professional education. It also
emphasises that education must play a positive and
interventionist role in correcting social and regional
imbalance, empowering women and in securing a
rightful place for the disadvantaged and the Minorities.
The nation is firmly committed to providing Education
for All, the priority areas being free and compulsory
primary education, covering children with special needs,
eradication of illiteracy, vocationalisation, education for
women’s equality, and special focus on the education of
SCs/STs and the Minorities.
The Central Advisory Board of Education (CABE), the
highest advisory body to advise the Central and State
governments in the field of education, was established
in 1920 and dissolved in 1923 as a measure of economy.
It was revived in 1935 and the tenure of the last
constituted Central Advisory Board of Education
(CABE) expired in March 1994. Despite the fact that
in the past important decisions had been taken on the
advice of CABE and it had provided a forum for
widespread consultation and examination of issues
relating to educational and cultural development,
CABE was unfortunately not reconstituted after the
expiry of its extended tenure in March 1994.
Considering that CABE has a particularly important role
to play at the present juncture in view of the significant
socio-economic and socio-cultural developments taking
place in the country, and that the Central and State
Governments, educationists and people representing all
interests should increase their interaction and evolve a
participative process of decision-making in education,
CABE has since been reconstituted by the Government
in July 2004. The Board consists of nominated members
representing various interests in addition to
representatives of the Government of India, State
Governments and UT administrations, elected members
from the Lok Sabha and the Rajya Sabha, etc. The first
meeting of the reconstituted CABE was held on August
10-11, 2004, and seven CABE Committees have been
set up on the subjects of:
i) Free and Compulsory Education Bill and other
issues related to Elementary Education
ii) Girls Education and the Common School System
iii) Universalisation of Secondary Education
iv) Autonomy of Higher Education Institutions
v) Integration of Culture Education in the School
Curriculum
vi) Regulatory Mechanism for Text Books and Parallel
Text Books Taught in Schools Outside the
Government system
vii) Financing of Higher and Technical Education
A meeting of the Education Ministers of all States/UTs
dealing with school education was held on October 28,
2004, at Vigyan Bhawan under the chairmanship of the
Minister of Human Resource Development.
In order to facilitate donations, including smaller
amounts, both from India and abroad, for implementing
projects/programmes connected with the education
sector, the Government had constituted the “Bharat
Shiksha Kosh” to receive donations/contributions/
endowments, from individuals and corporates, Central
and State Governments, non-resident Indians and
people of Indian origin for various activities across all
sectors of education.
An Ordinance was promulgated on November 11, 2004,
to enable setting up of a National Commission for
Minority Educational Institutions to advise the Central
Government or any State Government on any question
regarding the education of Minorities, to look into
complaints regarding violation of the rights of the
Minorities, to establish and administer educational
institutions of their choice and to permit a Minority
educational institution to seek direct affiliation with a
scheduled Central University. The Commission has
started functioning with a Chairman and two Members.
Overview
Annual Report 2004-05
3
It is expected that the Commission will give a greater
focus to the issue of Minority education as also make
the implementation of the constitutional provisions in
these regard more effective. The Commission will also
decide disputes regarding affiliation that may arise
between a university and Minority education
institutions. The National Commission for Minority
Educational Institutions Act, 2004 (No. 2 of 2005) to
replace the ordinance has since been enacted.
The National Institute of Educational Planning and
Administration (NIEPA) is an autonomous body under
the Department of Secondary and Higher Education,
which undertakes, promotes and coordinates research
in educational planning and administration to provide
training and consultancy services in the field of
education.
An Area Officer Scheme was introduced in the
Department in 1999 as a mechanism for regular and
effective review, monitoring and coordination of various
Central and Centrally Sponsored Schemes. In its present
form, an officer of the rank of Director and above has
been assigned the responsibility of a particular State/UT.
The national annual educational statistics brought out
by the Ministry of Human Resource Development are
collected from institutions ranging from pre-primary to
higher level, numbering over 10 lakh, through mailed
questionnaires in collaboration with the State
Education Departments. There is a scheme to
strengthen the machinery for collection of educational
statistics at State/field levels also.
In pursuance of the Government’s policy, the
Department of Secondary and Higher Education has
been able to incur the prescribed level of expenditure,
i.e.10 per cent of its budget for the North-East Region,
during the last five financial years, under its various
schemes and through its institutions in the NE Region.
The Department of Elementary Education and Literacy
is also striving to increase its expenditure in the NE
Region.
A High-Level Group under the Chairmanship of Union
Minister of Human Resource Development and
comprising Chief Ministers and Education Ministers of
the North Eastern States was set up on November 19,
2004, for considering specific issues relating to all sectors
of education and women and child development.
Major programmes of the Department viz., DPEP, SSA,
Lok Jumbish, Shiksha Karmi, Education Guarantee
Scheme and Alternative and Innovative Education
(EGS&AIE), and National Programme of Nutritional
Support to Primary Education (NPNSPE) accord
priority to areas of concentration of Scheduled Castes
and Scheduled Tribes. Some other schemes are also
being implemented for the upliftment of SCs, STs and
girl students.
Special focus districts have been identified on a cross
matching basis, consisting of areas of Minority
concentration blocks/tehsils, ITDP blocks, Schedule V
and Schedule VI areas, and districts with SC female
literacy less than 10 per cent. In pursuance of the
Government’s National Common Minimum
Programme, new institutions like polytechnics, Kendriya
Vidyalayas and Navodaya Vidyalayas are proposed to be
set up in selected locations in these districts.
India is among the founding members of UNESCO, a
constituent body of the United Nations, which came
into existence in 1946. Building the “Defences of Peace
in the Minds of Men” is the primary goal of UNESCO,
for which education is its main tool. India has been
playing an active role in promoting UNESCO’s ideals
and objectives.
Auroville, founded by the ‘Mother’, a disciple of Sri
Aurobindo, in 1968, is an international cultural
township designed to bring together the values of
different cultures with integrated living standards which
correspond to man’s physical and spiritual needs.
The International Cooperation Cell has been entrusted
to formulate independent Educational Exchange
Programmes (EEP) with various countries. While EEPs
with China, Israel, Guyana, Mongolia, Armenia,
Hungary, Myanmar, Tanzania, Syria and Australia have
been signed, proposals for EEPs with various other
countries are under consideration.
Overview
Annual Report 2004-05
4
Elementary Education
Policy Perspective
The National Policy on Education, 1986, as modified
in 1992, emphasises three aspects in relation to
Elementary Education, viz.,

Universal Access and Enrolment,

Universal Retention of Children up to 14 Years of
Age, and

Substantial Improvement in the Quality of
Education to Enable All Children to Achieve
Essential Levels of Learning.
The Policy also emphasises that education must play a
positive and interventionist role in correcting social and
regional imbalance, empowering women and in securing
a rightful place for the disadvantaged and the
Minorities.
The nation is firmly committed to providing Education
for All, the priority areas being free and compulsory
elementary education, covering children with special
needs, eradication of illiteracy, education for women’s
equality and special focus on the education of SCs/STs
and Minorities.
Progress of Elementary Education
Gross Enrolment Ratio (GER), which indicates the
number of children actually enrolled in elementary
schools as a proportion of child population in the 6-14
years age group, has increased progressively since 1950-
51, rising from 32.1 in that year to 82.5 in 2002-03. The
rate of increase in GER of girls has been higher than that
of boys, as a result of which gender gap in enrolment is
declining (See Table 1.1.)
Dropout Rate at the Primary level (Classes I-V) declined
from 39 per cent in 2001-02 to 34.9 per cent in 2002-
03, i.e. by 4.1 percentage points.
Major Schemes
Allocation for Elementary Education for the Tenth Five-
Year Plan period (2002-07) is Rs. 28,750 crore, which
is 75 per cent higher than the allocation for the Ninth
Plan. Major Schemes of the Department of Elementary
Education and Literacy during the Tenth Plan are:

Sarva Shiksha Abhiyan (SSA), including:

National Programme for Education of Girls at
Elementary Level (NPEGEL), and

Education Guarantee Scheme and Alternative
and Innovative Education (EGS & AIE)

District Primary Education Programme (DPEP)

National Programme of Nutritional Support to
Primary Education (NP-NSPE) [commonly known
as the Mid-Day Meal Scheme]

Teacher Education

Kasturba Gandhi Balika Vidyalaya (KGBV)

Mahila Samakhya
Sarva Shiksha Abhiyan (SSA)
The main vehicle at present for providing elementary
education to all children is a comprehensive programme
called Sarva Siksha Abhiyan (SSA), which was
launched in 2001-02. SSA has been built upon the
Table 1.1 – Gross Enrolment Ratio (GER) over the years
Year Primary Upper Primary Elementary
(I-V) (VI-VIII) (I-VIII)
Boys Girls Total Boys Girls Total Boys Girls Total
1950-51 60.6 24.8 42.6 20.6 4.6 12.7 46.4 17.7 32.1
2002-03* 97.5 93.1 95.4 65.3 56.2 61.0 85.4 79.3 82.5
Source: Selected Educational Statistics 2002-03, Ministry of HRD, *Provisional
Overview
Annual Report 2004-05
5
experience of several primary education programmes
that preceded it, including the District Primary
Education Programme (DPEP), Shiksha Karmi Project
(SKP) and the Lok Jumbish Project (LJP). It is a
partnership programme between the Central and State
Governments, which seeks to improve the performance
of the school system through a community-owned
approach, with specific focus on the provision of quality
education. SSA is a time-bound mission, with the
objectives of ensuring Universalisation of Elementary
Education and bridging of gender and social gaps by the
year 2010. States have established independent
implementation societies for SSA under the
chairmanship of their respective Chief Ministers/
Education Ministers.
During 2004-05, the Department of Elementary
Education and Literacy has considered and approved
District Plans of 598 districts in 34 States/UTs. (Goa is
the only State which is yet to avail of SSA). Allocation
of Central funds for elementary education has been
enhanced significantly and an additional amount of Rs.
2,000 crore beyond the original budget estimate of Rs.
3,057.00 crore has been provided for Sarva Shiksha
Abhiyan during 2004-05. Of the Budget Estimates for
2004-05, 99 per cent had been released up to December
2004. States are participating enthusiastically in the
programme.
National Programme for Education of Girls at
Elementary Level (NPEGEL) is an important
component of SSA and it provides additional support
for girls’ education in educationally backward blocks by
way of girl-child friendly schools, stationery, uniforms,
etc., for elementary education of under privileged/
disadvantaged girls. In the Tenth Five-Year Plan, an
amount of Rs. 1,064.80 crore has been earmarked for
this programme. During 2004-05, Rs. 654.42 crore has
been approved for implementation of NPEGEL.
Another important component of SSA is the
Education Guarantee Scheme and Alternative and
Innovative Education (EGS & AIE), which is specially
designed to provide children in school-less habitations
and out-of-school children access to elementary
education. The scheme supports flexible strategies for
out-of-school children through bridge courses,
residential camps, drop-in centres, summer camps,
remedial coaching, etc. During 2004-05, this
component helped provide elementary education to
85.67 lakh children. The number of out-of-school
children, as reported by States/UTs, has declined from
320 lakh in 2001 to 81 lakh in September 2004.
The Government had notified a decision to set up a
National Mission for SSA way back in January 2001,
but the Mission could not be constituted for nearly four
years. Now, the Governing Council and Executive
Committee of the National Mission have been
constituted under the Chairmanship of the Prime
Minister and the Minister of HRD, respectively, through
Notifications dt. December 3, 2004, and January 19,
2005, (Annexure-I). This will greatly facilitate the
effective implementation of SSA.
District Primary Education Programme
(DPEP)
DPEP was launched as a Centrally Sponsored Scheme
in 1994 in 42 districts of seven states, with the aim of
providing access to primary education for all children,
reducing primary dropout rates to less than 10 per cent,
increasing learning achievements of primary school
students by at least 25 per cent and reducing gender and
Major indicators of the cumulative
progress achieved under SSA

66,147 elementary schools opened

17,454 new elementary school buildings
and 33,777 additional classrooms
constructed

3,10,506 additional teachers appointed

About 6.15 crore girls and children
belonging to SCs and STs studying in
elementary schools, given free textbooks,
in 2004-05.
Overview
Annual Report 2004-05
6
social gaps to less than 5 per cent. At its peak, the
programme was being implemented in 272 districts of
18 States and it is now continuing in 129 districts of nine
States. It has been funded jointly by the World Bank,
European Commission (EC), UK Department of
International Development (DFID), Government of
Netherlands and UNICEF. The total external assistance
tied up for DPEP is Rs. 6,938 crore approximately.
Mid-Day Meal
The National Programme of Nutritional Support to
Primary Education (NP-NSPE), popularly known as the
Mid-Day Meal (MDM) Scheme, was launched on
August 15, 1995, with the objective of giving a boost to
Universalisation of Primary Education through
improvements in the nutritional status of students in
primary classes of Government, local body and
Government-aided schools. The programme was
extended to children studying in EGS and other
alternative learning centres in October 2002. Central
support was provided by way of supply of free foodgrains
through the Food Corporation of India @ 100 gm per
child per school day where cooked meals were served,
and @ 3 kg per student per month where foodgrains
were distributed.
Though all States were expected to move rapidly
towards provision of cooked meals under the
programme, many States were facing difficulty in
providing cooked meals to children due to financial
constraints. To overcome this problem and in pursuance
of policy pronouncements made in the President’s
Address to Parliament in June 2004 and Finance
Minister’s Budget Speech 2004-05, the scheme has been
revised with effect from September 2004. Under the
revised Scheme, the Central Government is providing
assistance to the States to meet the cooking cost also
@ Re. 1 per child, per school day. Over and above the
Budget provision of Rs. 1,675 crore for the scheme for
2004-05, a sum of Rs. 1,232 crore has been provided
through the First Supplementary Estimates of 2004-05
as Additional Central Assistance to States to meet
cooking costs. The programme is benefiting about 11
crore primary school children in the country.
A National-level Steering-cum-Monitoring Committee
(NSMC) has been constituted to oversee management
Overview
Annual Report 2004-05
7
Legislation on Free and Compulsory
Education
The Constitution (86th Amendment) Act, 2002,
notified on December 13, 2002, seeks, inter alia, to insert
a new Article 21-A (“Right to Education”) in Part – III
[“Fundamental Rights”] of the Constitution. Article 21-
A states that “The State shall provide free and
compulsory education to all children of the age of six
to fourteen years in such manner as the State may,
by law, determine”. Pursuant to the above, a draft Bill
entitled “Free and Compulsory Education Bill, 2004”
was prepared and views of the State Governments were
sought on it in January 2004.
The subject of the draft Bill was also discussed in the
first meeting of the reconstituted Central Advisory
Board of Education (CABE) held in August 2004. As
decided in that meeting, a Committee of CABE was
constituted to consider the matter of the draft
legislation, under the Chairmanship of Shri. Kapil Sibal,
Minister of State for Science and Technology and Ocean
Development, vide Order dated September 8, 2004, and
has been asked to give its recommendations within six
months.
Education Cess
An Education Cess @ 2 per cent on direct and indirect
Central taxes has been imposed through Finance (No.2)
Act, 2004, “so as to fulfil the commitment of the
government to provide and finance universalised
quality basic education”. The cess is expected to yield
about Rs. 4,000-5,000 crore per annum. Proceeds of the
cess will be used for implementation of programmes
related to Universal Elementary Education like Sarva
Shiksha Abhiyan and Mid-Day Meal.
Education For All (EFA)
At a conference of the World Education Forum held in
Dakar, Senegal, in April 2004, representatives of 164
countries, including India, adopted the Dakar
Framework for Action on Education for All. The
Framework identified six goals, which included, inter
alia,
and monitoring of the programme at the national level,
and State Governments have been requested to
constitute similar committees at State, district and block
levels to ensure smooth implementation of the
programme with good quality.
Teacher Education
The Centrally Sponsored Scheme of Teacher Education
was launched in 1987-88 to create an institutional
infrastructure to provide academic and technical
resource support for continuous education and training
of school teachers. While District Institutes of
Education and Training (DIETs) set up under the
Scheme provide academic resource support to formal
and non-formal elementary school teachers, Colleges of
Teacher Education (CTEs) and Institutes of Advanced
Study in Education (IASEs) have been given the
responsibility of organising pre-service and in-service
training of secondary school teachers. IASEs are also
expected to conduct programmes for the preparation of
elementary school teacher educators.
The Scheme has been revised for the Tenth Plan and
guidelines of the revised Scheme were issued to States
in January 2004, with emphasis on operationalising
sanctioned DIETs, CTEs and IASEs in an optimum
manner, and on improving the quality of teacher
training programmes in them. Since the inception of the
Scheme in 1987-88, a total of 550 DIETs/DRCs and 131
CTEs/IASEs have been sanctioned/approved up to
December 2004.
Kasturba Gandhi Balika Vidyalaya
(KGBV)
The KGBV Scheme was launched in August 2004, with
the aim of setting up 750 residential schools at
elementary level for girls belonging predominantly to
SCs, STs, OBCs and Minorities in Educationally
Backward Blocks (EBBs), where female literacy was
below the national average and gender gap in literacy
was more than the national average. A total of 662
KGBVs have been approved during 2004-05 involving
an amount of Rs. 137.85 crore.
Overview
Annual Report 2004-05
8

Progressive Expansion of Early Childhood Care and
Education,

Universalisation of Elementary Education by 2015,

50 per cent improvement in adult literacy levels by
2015,

Elimination of Gender Disparities by 2005, and
Achievement of Gender Equality in Education by
2015, and

Improvement in the Quality of Education.
Value of EFA Developed Index (EDI), developed by
UNESCO, has improved in the case of India from 0.658
in 2003 to 0.696 in 2004.
Fourth meeting of the High-Level Group constituted by
UNESCO to monitor progress towards EFA took place
in Brasilia in November 2004, in which the Indian
delegation was led by Shri. M.A.A. Fatmi, Minister of
State for HRD.
Educational Statistics
In order to strengthen the Educational Management
Information System (EMIS) for the Elementary stage,
NIEPA, in collaboration with Government of India and
UNICEF, has developed a computerised system called
District Information System on Education (DISE),
which now covers 461 districts in 18 States/UTs. NIEPA
brings out detailed volumes based on analysis of DISE
data, by way of (i) District Report Cards, and (ii) Statewise
Analytical Report. DISE will cover the entire
country in the near future.
Adult Education
A socially conscious and literate society has a vital role
to play in a democracy. Eradication of illiteracy has been
one of the major national concerns of the Government
of India since Independence. The need for a literate
population was recognised as a crucial input for nation
building. Due to a number of significant programmes
taken up since Independence to eradicate illiteracy
among adults, for the first time the absolute number of
literates outnumbered the number of illiterates in the
Census 2001. However, gender disparity and regional
disparity in literacy still continue to persist.
Growth in Literacy
The literacy rate in 2001 has been recorded at 64.8 per
cent as against 52.21 per cent in 1991. The 12.59
percentage points increase in the literacy rate during the
period is the highest increase in any decade. There has
been significant decline in absolute number of nonliterates
from 328.88 million in 1991 to 304 million in
2001. This has also been accompanied by a narrowing
of the gap in male-female literacy rate from 24.84 per
cent in 1991 to 21.6 per cent in 2001 as female literacy
recorded an increase of 14.41 percentage points i.e. from
39.29 per cent to 53.7 per cent as compared to male
literacy which recorded an increase of 11.17 percentage
points i.e. from 64.13 per cent to 75.30 per cent. Besides,
urban-rural literacy differential has also decreased
during the period. All States have registered an increase
in literacy rates and 60 per cent male literacy has been
achieved without exception. Inter-State and within
State disparities still continue, although the gap
between the educationally advanced and backward
states has been narrowing over the years.
Mahila Samakhya
The Mahila Samakhya programme was designed
to mobilise and organise marginalised rural
women for education, by creating an environment
for learning. The programme was launched in
1989 as a 100 per cent Dutch-assisted project
and subsequently extended to some States with
funding under the District Primary Education
Programme. The Mahila Samakhya is being
funded by the Government of India from the year
2003-04, and currently covers more than
14,000 villages spread over 60 districts in nine
States – Andhra Pradesh, Assam, Bihar, Gujarat,
Jharkhand, Karnataka, Kerala, Uttar Pradesh and
Uttaranchal.
Overview
Annual Report 2004-05
9
National Literacy Mission
National Literacy Mission (NLM) was set up in May
1988, following an objective assessment of the strengths
and weaknesses of the earlier programmes, and to accord
a new sense of urgency, seriousness and emphasis with
fixed goals, clear time frame and age specific target
groups. Emphasis was laid not on mere enrolment of
learners but on attainment of certain predetermined
norms and parameters of literacy, numeracy,
functionality and awareness along with
institutionalisation of Post Literacy and Continuing
Education in a big way.
The goal of National Literacy Mission is to attain a
sustainable threshold level of 75 per cent by 2007 by
imparting functional literacy to non-literates in the age
group of 15-35 years, which is the productive and
reproductive age group and constitutes a major segment
of the work force. Besides this age group, persons outside
this age limit are not excluded from the programme;
particularly children in the age group of 9-14 years who
are also dropouts. Apart from predetermined levels of
reading, writing and numeracy with comprehension,
functional literacy includes imbibing values of national
integration, conservation of environment, women’s
equality, observance of small family norms, etc. Literacy,
as enunciated in NLM is not an end in itself but has to
be an active and potent instrument of change ensuring
achievement of these social objectives and creation of
a learning society. The acquisition of functional literacy
results in empowerment and a definite improvement in
the quality of life.
The revised parameters and enhanced norms of
financial assistance of the schemes under National
Literacy Mission have also been extended for
implementation during the Tenth Plan. The main
features of the revised schemes include an integrated
approach to literacy, amalgamating all features of
literacy and post literacy phases. Zilla Saksharata
Samities (District Literacy Societies) will continue to
oversee and run literacy programmes with freedom to
synergise their strengths with those of local youth clubs,
Mahila Mandals, voluntary agencies, Panchayati Raj
institutions, small-scale industries, cooperative
NLM Achievements

The literacy rate in 2001 has
been recorded at 64.8 per
cent as against 52.21 per cent
in 1991. The 12.59
percentage points increase in the literacy rate
during the period is the highest increase in
any decade.

118.50 million persons made literate as on
31 March 2004.

Rate of growth in literacy is more in rural areas
than in urban areas.

The gap in male-female literacy rate has
decreased from 24.84 per cent in 1991 to
21.60 per cent in 2001.

Female literacy increased by 14.41 per cent
i.e. from 39.29 per cent to 53.7 per cent
whereas male literacy increased by 11.17 per
cent i.e. from 64.13 per cent to 75.30 per
cent during the last decade.

Gender equity and women’s empowerment is
also visible as about 60 per cent of participants
and beneficiaries are women.

The population in 7+ age group increased by
171.6 millions while 203.6 million additional
persons became literate during 1991-2001.

All the States and union territories without
exception have shown increase in literacy rates
during 1991-2001.

In all states and union territories, the male
literacy rate is now over 60 per cent. Kerala
continues to have the highest literacy rate of
90.92 per cent and Bihar has the lowest
literacy rate of 47.53 per cent.

Significant decline in absolute number of nonliterates
from 328.88 million in 1991 to 304
million in 2001.

Out of the total 600 districts in the country,
596 districts have been covered by NLM under
literacy programme.
Overview
Annual Report 2004-05
10
societies, etc. The expansion of the Scheme of
Continuing Education, encompassing removal of
residual illiteracy, individual interest programmes, skill
development, rural libraries, etc., has been given due
priority. State Resource Centres and Jan Shikshan
Sansthans will provide academic and technical resource
support to the Scheme of Continuing Education in their
respective spheres of work. The State Resource Centres
and NGOs continue to be strengthened, with expanded
role of their activities in furthering the objectives of
NLM. Similarly, JSS’ were strengthened to continue
with their activities extending to rural areas also and to
function as Repository of Vocational/Skill development
programmes in the district. Financial and administrative
powers have been delegated to State Literacy Mission
authorities within overall NLM norms. With these
improvements, the Mission will continue to consolidate
the gains of previous years and accelerate the growth
of literacy movement.
The Total Literacy Campaign is the principal strategy
of NLM for eradication of illiteracy. The TLCs have
certain positive features, which make them unique and
distinguish them from other government programmes.
These campaigns are – area-specific, time-bound,
participative, cost-effective and outcome oriented.
These are implemented through Zilla Saksharata
Samities (district level literacy committees) as
independent and autonomous bodies, having due
representation of all sections of society. The campaign
approach to literacy is characterised by large-scale
mobilisation through a multifaceted communication
strategy. The survey undertaken at the grassroots level
also serves as a tool of planning, mobilisation and
environment building. The management information
system in a campaign is based on the twin principles of
participation and correction. Apart from imparting
functional literacy, TLC also disseminates a ‘basket’ of
other socially relevant messages such as enrolment and
retention of children in schools, immunisation,
propagation of small family norms, women’s equality and
empowerment, peace and communal harmony, etc.
These literacy campaigns have generated a demand for
Overview
Annual Report 2004-05
11
primary education, which is reflected in the rapidly
rising enrolment ratio in schools. Consequently, the
number of non-literates entering the 15-35 age group
has been declining. At this stage it is, therefore,
necessary to ensure that neo-literates do not relapse into
illiteracy and also acquire vocational skills.
The basic literacy skills acquired by millions of nonliterates
are at best fragile. There is a greater possibility
of neo-literates regressing into partial or total illiteracy
unless special efforts are continued to consolidate,
sustain and possibly enhance their literacy levels. The
first phase of basic literacy instruction and the second
phase of consolidation, remediation and skill
upgradation are now being treated as one integrated
project, to ensure smooth progression from one stage to
another to achieve continuity, efficiency and
convergence. The National Literacy Mission aims at
ensuring that the Total Literacy Campaigns and the
Post-literacy Programmes successfully move on to
Continuing Education, which provide lifelong learning.
According to the 2001 Census, 45 districts with female
literacy rate below 30 per cent are concentrated in Bihar,
Jharkhand, Uttar Pradesh and Orissa. Special
innovative projects have been taken up to raise the level
of female literacy in these areas. Special efforts have
been made to target female Panchayati Raj functionaries
and make them literate.
Since this problem is most acute in Bihar and Uttar
Pradesh, to begin with, eight low female literacy districts
in UP have been brought under an accelerated
programme of female literacy to cover 25.00 lakh
illiterate women in the 15-35 age group. The project was
implemented through a network of about 97 NGOs and
17.26 lakh learners achieved NLM norms under the
programme. In Bihar, a different model was adopted to
cover 13 low female literacy districts, with the
involvement of Panchayati Raj functionaries, women
volunteer teachers and women Self Help Groups
(SHGs). Of the 24.03 lakh non-literate women
identified, 19.69 lakh women learners were covered in
the first phase of the project. Special projects have also
been launched in 9 districts of Orissa to cover 10.43 lakh
non-literate women with the help of 122 NGOs. The
programme is in the initial stage of implementation.
The special female literacy programme is also being
implemented in five low female literacy districts of
Jharkhand to cover about 5 lakh women illiterates.
Although the Total Literacy Campaigns has taken the
form of a mass movement and spread throughout the
country, in many cases, a number of campaigns have
stagnated due to natural calamities, lack of political will,
etc. Despite the success of the literacy phase, there are
still pockets of residual illiteracy and low female literacy.
As most of the districts have been covered under the
Literacy Programmes, priority will continue to be given
to cover districts having female literacy rate below 30
per cent. Regional disparities, including pockets of
residual illiteracy, and special problems of low literacy
States like UP, Bihar, Rajasthan, Madhya Pradesh,
Andhra Pradesh, J&K, Jharkhand, Chattisgarh along
with North Eastern Region and Sikkim will continue
to be given greater attention.
The Continuing Education Scheme provides a learning
continuum to the efforts of Total Literacy and Post
Literacy Programmes in the country. The main thrust
is on providing further learning opportunities to neoliterates
by setting up Continuing Education Centres
The main thrust of the Continuing
Education Scheme is on providing further
learning opportunities to neo-literates by
setting up of Continuing Education
Centres (CECs), which provide areaspecific,
need-based opportunities for
basic literacy, upgradation of literacy
skills, pursuit of alternative educational
programmes, vocational skills and also
promote social and occupational
development.
Overview
Annual Report 2004-05
12
(CECs), which provide area-specific, need-based
opportunities for basic literacy, upgradation of literacy
skills, pursuit of alternative educational programmes,
vocational skills and also promote social and
occupational development. The scheme also undertakes
a number of important programmes such as –
Equivalency programme facilitating the participants to
acquire or upgrade their vocational skills and take up
income-generating activities; Quality of life
improvement programme to equip learners and the
community with essential knowledge, attitude, values
and skills to raise their standards of living; and
Individual interest promotion programme providing
opportunities for learners to participate and learn about
their individually chosen social, health, physical,
cultural, and artistic interests.
The National Literacy Mission (NLM) fully recognises
the vast potential of NGOs in furthering its objectives
and has taken measures to strengthen its partnership
with NGOs and has assigned them an active
promotional role in the literacy movement. Apart from
imparting literacy, the NGOs provide academic and
technical resource support through experimental and
innovative programmes, and also conduct evaluation
and impact studies; organisation of workshops,
seminars, etc.
The State Resource Centres (SRCs), managed by
NGOs, provide academic and technical resource
support in the form of training material preparation,
extension activities, innovative projects, research
studies and evaluation, etc. At present, there are 26
SRCs.
The objective of the Jan Shikshan Sansthan Scheme is
educational, vocational and occupational development
of the socio-economically backward and educationally
disadvantaged groups of urban/rural population,
particularly neo-literates, semi-literates, SCs, STs,
women and girls, slum dwellers, migrant workers, etc.
At present, there are 157 JSSs in the country and the
number is expected to increase in the future. Jan
Shikshan Sansthans run a number of vocational
programmes with varying duration of different skills. As
on date, more than 250 types of courses and activities
are offered by these institutions. About two lakh persons
are given vocational training annually. Of these, over
75 per cent are women.
The Central Directorate of Adult Education, a
subordinate office, also provides academic and technical
resource support to the National Literacy Mission. It has
been playing an important role in the development of a
network of resource support, particularly production of
prototype teaching/learning materials/media software
and harnessing of all kinds of media for furtherance of
the objectives of NLM. Monitoring of literacy
programmes, programmes conducted by SRCs and JSS
is also an important activity of DAE.
Monitoring and evaluation are essential management
tools for identifying the strengths and weaknesses of a
system. Their significance has been realised and put into
effect by the NLM. Procedures have been designed to
make the objectives of adult education programmes
operationally more realistic. The monitoring not only
provides essential information for financial audit or
programme audit, but also ensures transparency so that
public accountability is achieved through the wider
process of social audit. This information is useful as a
feedback for field functionaries and decision-makers in
policy formulation.
Social Impact
The dramatic social mobilisation generated by the
literacy campaigns has had an enormous impact on
other social sectors, most notably women’s
empowerment, health and population stabilisation
along with environmental awareness. A framework for
effective social action has been provided by the
Panchayati Raj Institutions. Democratic participation
has been enriched by promoting articulation in society,
especially of the underprivileged groups. The campaigns
have served the cause of promoting equity and social
justice in society, and fostering of a scientific temper and
a sense of belonging to India’s great composite culture
and consciousness of unity in diversity.
Present Status
Out of 600 districts in the country, 596 have since been
covered under Adult Education Programmes – 142
Overview
Annual Report 2004-05
13
under Total Literacy Campaigns, 182 under Post
Literacy Programme and 272 under Continuing
Education Programme. There are 26 State Resource
Centres functioning in various States. At present, there
are 157 Jan Shikshan Sansthans in the country and the
number is set to increase in the near future. About
118.50 million persons have been made literate as on
31 March 2004. About 60 per cent of the beneficiaries
are women, while 22 per cent and 12 per cent belong
to Scheduled Castes and Scheduled Tribes, respectively.
Secondary Education
During the year, various schemes were implemented in
the secondary education sector in addition to the
continued support to major institutions such as the
NCERT, NIOS, and CBSE.
There has been a substantial increase in quality and
magnitude of the academic activities of the Central
Board of Secondary Education. During the year, CBSE
introduced a course in Disaster Management in the
school curriculum. A new course in Life Skills
Education was launched in classes VI and VII. It has also
launched a new course in Fashion Studies. In
collaboration with Intel India, CBSE organised the first
science exhibition to evoke the interest of students in
science.
The NIOS organised an international conference on
promotion of Open Schooling in Goa. Countries like Sri
Lanka, New Zealand, Canada and UK participated in
it. During 2004-05, several new courses were introduced
and many video films on vocational education were
completed. The NIOS has also developed audio and
video programmes based on the curriculum in science,
mathematics, etc.
Support to Sarva Shiksha Abhiyan, Vocational
Education, Education of the Disadvantaged groups,
Evolution of text books and examination reforms are
priority areas of NCERT.
Kendriya Vidyalaya (KVs) aim at providing
uninterrupted education to children of Central
Government/Defence employees, who are liable to
frequent transfers. In 933 KVs, 7.50 lakh students have
been enrolled (as on March 31, 2004). KVs have shown
steady improvement in the performance of its students
in board examinations. This is evident from the increase
of pass percentage from 84.69 per cent to 99.44 per cent
for Class X and 88.67 per cent to 92.75 per cent for Class
XII during 1999 to 2004.
Jawahar Navodaya Vidyalayas aim at providing good
quality modern education, including imparting cultural
values, environment awareness and physical education
to talented children in rural areas, irrespective of their
socio-economic conditions. There are now 509 schools
in various States/UTs and 168,545 students were on the
rolls of the NVs as on December 31, 2004. The pass
percentage in Class X and XII in the year 2004 was 91.3
per cent and 87.68 per cent, respectively, when
compared with the pass percentage of 88.50 per cent
and 85.26 per cent in 2003.
The Integrated Education for Disabled Children (IEDC)
scheme, started in 1974, provides 100 per cent funding
to State Governments/UTs and NGOs. The scheme is
proposed to be revised soon. Under the scheme of
Access with Equity, two components - strengthening of
existing scheme of girl’s hostels managed by NGOs and
one-time assistance to reputed NGOs, Trusts, Societies
and State Governments, etc., for setting up Secondary
Schools - are proposed. The scheme is therefore, being
revised. The two schemes of Computer Literacy and
Studies in Schools (CLASS) and Educational
Technology have been merged in order to increase the
effectiveness of the activities. For the Tenth Plan, five
schemes, namely, Environmental Orientation to School
Education, Improvement of Science Education in
School, National Population Education Project,
Promotion of Yoga in School, International Science
Olympiad are being merged into a composite scheme of
Quality Improvement in Schools.
University and Higher Education
The main thrust of activities in the higher education
sector during the year related to the following areas:

Growth of Higher Education System.
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Annual Report 2004-05
14

General Development of Universities and Colleges.

Enhancing Access and Equity.

Promotion of Quality and Excellence.

Programmes for Differently-Abled Persons.

Strengthening of Research.
The University Grants Commission (UGC) came into
existence in 1953, with the objective of coordinating
activities for promotion of higher education in the
country. Most of the objectives enumerated above are
implemented by UGC. The schemes include
accreditation of universities and colleges, promotion of
universities of excellence, promotion of centres of area
studies, establishment of special cells for SCs and STs,
assistance for strengthening infrastructure in science
and technology, setting up of inter-university centres,
participation in seminars and conferences held within
the country and outside, and establishment of computer
centres in universities. The UGC has also allocated
maintenance and development grants to 17 Central
Universities.
The Indira Gandhi National Open University
(IGNOU), established by an Act of Parliament in 1985,
promotes Open University and Distance Education
System in the country. It widened the access of higher
education by providing opportunities to larger segments
of the population. IGNOU has adopted integrated
multimedia instructions strategy. The reach of IGNOU
has increased substantially by the use of Gyan Darshan,
an educational TV channel and Gyan Vani, the FM
radio channels. IGNOU has established a Women’s
Education Unit to develop and conduct programmes
that are socially relevant and employment-oriented.
During the current financial year, deemed-to-beuniversity
status has been conferred upon four institutes
covering a variety of sectors of education like medical,
technical, dental science and management.
Significant contributions have also been made by
research councils like Indian Council of Social Science
Research (ICSSR), Indian Council of Historical
Research (ICHR), Indian Institute of Advanced Studies
(IIAS), Indian Council of Philosophical Research
(ICPR) and National Council of Rural Institutes
Overview
Annual Report 2004-05
15
(NCRI). These research councils, which function
outside the university system, promote research and
creativity in important areas like social science, history,
philosophy and interdisciplinary areas.
Bilateral educational relations have been promoted by
institutes like the United States Educational Foundation
in India (USEFI), Shastri Indo-Canadian Institute
(SICI) and American Institute of Indian Studies by
offering fellowships for research on different subjects.

A conference of State Ministers of Higher and
Technical Education was held on January 10-11,
2005, at Bangalore to discuss admissions and
fixation of tuition fee for professional education
through self-financing private institutions,
regulation of private universities and entry of
foreign universities in India.

A Committee of CABE has been setup under the
chairmanship of Shri Kanti Biswas, Education
Minister, West Bengal to suggest measures for
enhancing the autonomy of higher education
institutions and to institutionalise the regulatory
provisions for promoting autonomy and
accountability of higher educational institutions. A
Committee of CABE has been set up under the
Chairmanship of Prof. Bhalchandra Mungekar,
Member, Planning Commission, on financing of
higher and technical education.

It has been decided to constitute a Committee by
this Ministry under the Chairmanship of Prof. C.
N. R. Rao to examine all relevant issues pertaining
to the entry of foreign universities in India.

Academic institutions in India undertake different
activities in collaboration with foreign educational
institutions and foreign nationals. Ministry of
Human Resource Development has streamlined
the guidelines/instructions on procedures to be
observed by Indian universities for signing of MoUs
with foreign universities. The earlier guidelines
were issued in 2003. Under these guidelines,
Central universities were expected to take
permission of the Ministry of Human Resource
Development, deemed universities had to take
UGC’s permission and State universities had to
take the State Government’s permission. The same
was considered an unnecessary interference in the
autonomy of institutions of higher learning.

The draft ‘Model universities Act’ circulated by the
UGC has been withdrawn. This will remove all
apprehensions among the academic community
about imposition of uniform norms across the
university system.

Selection procedures, which were stalled for the last
few years because of non-appointment of visitor’s
nominee, have now been expedited.

The Government had decided to restore the
Central University status of the University of
Allahabad and conversion of Manipur University
into a Central University.

An additional amount of Rs. 153 crore has been
allocated under NCMP for infrastructural
development in the universities located in
backward as well as in the North-East Region.

Shri S. Sathyam, Former Secretary, Government of
India, is enquiring into the circumstances leading
to the current state of affairs in the Gandhian
Institute of Studies (GIS), Varanasi, one of the 27
institutes supported by the Indian Council for
Social Science Research (ICSSR), New Delhi.
Technical Education
The Technical Education system in the country covers
courses and programmes in engineering, technology,
management, architecture, town planning, pharmacy,
applied arts and crafts. The Ministry of Human
Resource Development caters to programmes at
undergraduate, postgraduate and research levels.
The technical education at the Central level comprises
the All India Council for Technical Education (AICTE),
which is the statutory body for proper planning and
coordinated development of the technical education
system; seven Indian Institutes of Technology (IITs)
which are Institutions of National Importance; six
Indian Institutes of Management (IIMs), five deemedto-
be-universities, namely Indian Institute of Science
(IISc), Bangalore, Indian School of Mines (ISM),
Overview
Annual Report 2004-05
16
Dhanbad, School of Planning and Architecture (SPA),
New Delhi, Indian Institute of Information Technology
and Management (IIITM), Gwalior, and Indian
Institute of Information Technology (IIIT), Allahabad;
18 National Institutes of Technology (NITs); other
technical institutes in the Central sector, such as the
National Institute of Foundry and Forge Technology
(NIFFT), Ranchi; the National Institute of Industrial
Engineering (NITIE), Mumbai; Sant Longowal Institute
of Engineering and Technology (SLIET), Longowal;
North Eastern Regional Institute of Science and
Technology (NERIST), Itanagar; 4 National Institute
of Technical Teachers Training and Research
(NITTTRs); and 4 Boards of Apprenticeship Training
(BOATs). Other schemes at the Central level include
Programme for Apprenticeship Training (Scholarships
and Stipends); Assistance to universities for Technical
Education; Community Polytechnics; World Bank
Project for Improvement of Polytechnic Education,
Technical Education Quality Improvement Programme
of Government of India (TEQIP), Polytechnic for
disabled Persons; Payment for Professional and Special
Services; Direct Central Assistance to the Central
Institutions, namely, Research and Development,
Modernisation and Removal of Obsolescence of
Engineering Laboratories and Workshops and Thrust
Areas of Technical Education; Human Resource
Development in Information Technology; Support to
distance and web-based education; National
Programme for Earthquake Engineering Education
(NPEEE), Indian National Digital Library for Science
and Technology (INDEST) Consortium; Asian Institute
of Technology, Bangkok; Expenditure on Foreign
Delegations and Foreign Experts; Technology
Development Missions. There also exists one public
sector undertaking, namely, Educational Consultants
India Ltd. (Ed.CIL) under the Technical Education
system of the Ministry.
To leverage new information and communication
technologies (ICTs) to enhance learning effectiveness
and expand access to high quality education, a National
Programme on Technology Enhanced Learning (NPTEL)
is being implemented. This provides content
support in the form of digital video-based courses/
enrichment programmes to technology channels on a
sustained basis. This also help to create web-based
courses/programmes for enhancing learning
effectiveness in the entire technical education system.
Policy Framework for Promotion of Post-Graduate
Education and Research in Engineering and Technology was
laid down to give special thrust to postgraduate
education and to engineering and technology. Apex
bodies, UGC, AICTE and education institutions have
taken steps towards implementation of strategies laid
down in the policy framework.
To meet the emerging need for quality manpower in IT
and related areas, necessary initiatives have been taken.
Based on the recommendations of a National Task
Force, a National Programme of HRD in IT has been
drawn.
The Government has taken a number of steps by
improving the academic environment in the country. As
part of the Government’s commitment to respect the
autonomy of all technical institutes of learning, in
particular those which have attained excellence, such
The technical education system in the
country covers courses and programmes
in engineering, technology, management,
architecture, town planning, pharmacy,
applied arts and crafts. The Ministry of
Human Resource Development caters to
programmes at undergraduate,
postgraduate and research levels.
Overview
Annual Report 2004-05
17
Institutes, as a measure towards enhancement of their
autonomy, are being empowered to take all relevant
decisions and are being allowed to develop further. A
number of measures have been initiated to strengthen
the autonomy of the institutions like IITs and IIMs,
Indian School of Mines, Sant Longowal Institute of
Engineering and Technology, etc.
It has been decided that all admissions to the
undergraduate programmes in engineering, architecture
and planning in all the National Institutes of Technology
(NITs), Indian Institute of Information technology
(IITs), Allahabad and Gwalior, National Institute of
Forge and Foundry Technology (NIFFT), Ranchi,
School of Planning (SPA), New Delhi, and other
Institutes of Central Government as specified shall be
made through All India Entrance Examination (AIEEE)
conducted by the Central Board of Secondary
Education. All the other deemed and Central
Universities will have the option to participate in the
AIEEE or conduct their own entrance examination and
admit students in a fair and transparent manner. The
State Governments shall continue to hold their own
common entrance tests for admission in institutions
within their States as before. However, States willing to
participate in the AIEEE for all or a part of the total seats
in the State can participate in AIEEE by giving the
option to the CBSE. A similar decision has also been
taken in regard to admissions in MBA/PGDM (or
equivalent) programmes in the country. The All India
Master of Computer Application Test (AIMCAT) has
been dispensed with.
It is proposed to provide enhanced funding to the IITs
for introducing certain new Integrated Programmes with
multi-disciplinary orientation and for strengthening of
the infrastructure. Dual Degree Programmes in
Engineering Physics, with specialisation in Nano
Science, five-year integrated B.Tech. and MBA,
M.Tech. in Financial Engineering are some of the
courses at advanced stages of finalisation. Proposals are
also underway to revive the Block Grant Scheme of
Non-Plan funding to IITs and IIMs. This is intended to
bring about greater autonomy in these institutions and
also to develop a certain degree of resilience in these
institutions. Taking 2003-04 as the base year, it is
proposed to provide matching grants from Non-Plan
grants against net savings. Special grant is also proposed
to be provided under force majeure in order to take care
of the circumstance beyond the control of these
institutions.
The issue of fees to be charged by the Indian Institute
of Managements (IIMs) has been resolved, as also the
provision of freeships for meritorious students. It has
been decided that all students, whose annual gross
family income is Rs. 2 lakh and below, will be eligible
for receiving financial assistance amounting up to full
tuition fee waiver. All the six IIMs have provided Need-
Based Financial Assistance of Rs. 2.34 crore during the
Academic Year 2004-05 to 373 students having parental
income below Rs. 2 lakh per annum. Three Indian
Institutes of Management (IIMs) at Lucknow, Indore
and Kozhikode have been provided with additional
funding for infrastructure development.
Under NCMP, 58 new Polytechnics are being established
in special focus districts at a cost of Rs. 9 crore per
Polytechnic. Also, 185 existing Polytechnics in the
special focus districts will be sanctioned Rs 25 lakh each
Overview
Annual Report 2004-05
18
to strengthen their infrastructural capabilities
(laboratory equipment / machinery). Setting up of new
polytechnics and infrastructural development in
existing polytechnics in identified special focus districts,
comprising areas of concentration of educationally
backward minorities, Schedule V and VI areas, and
areas with SC female literacy of less than 10 per cent,
is expected to lead to increased participation and
enrolment from these sections of society. The
Community Polytechnics Scheme run through 669
existing Polytechnics is being revised to increase its
scope of coverage, expansion, improvement in quality
of training (competency based), skill development of the
trainees, etc.
An Indian Institute of Information Technology, Design
and Manufacturing has been set up at Jabalpur in MP.
The Institute was inaugurated on February 7, 2005. This
institute is expected to meet the ever increasing demand
of information technology professionals in the country.
National Book Trust
The National Book Trust, India is
the premier organisation that caters
to all reading segments of society
by publishing works of fiction and
non-fiction on a variety of subjects
in English, Hindi and other Indian languages,
including books for children and post-literacy
reading material for neo-literates, at moderate
prices.
The activities of the Trust can be divided under
five broad heads:

Publishing,

Promotion of books and reading habits,

Promotion of Indian books abroad,

Assistance to authors and publishers, and

Promotion of children’s literature.
The annual Frankfurt Book Fair and Tokyo
International Book Fair are two premier
international events in which the NBT participates
regularly.
As regards special attention to the North-Eastern
States, action for opening an IIM in the North-Eastern
Region is being taken. A proposal for setting up faculties
of engineering and management in selected institutions
in each State of the N-E Region is being considered.
Also, there is proposal for setting up of Central Institute
of Technology at Kokrajhar in Assam at an estimated
project cost of Rs. 25 crore. The Institute is expected
to start functioning from 2005-06 and will offer diploma
and vocational level courses.
A Committee of CABE has been set up on the subject
of “Financing of Higher and Technical Education” under
the Chairmanship of Prof. Bhalchandra Mungekar,
Member, Planning Commission. It, inter alia, expects to
address the commitment of the Government in the
National Common Minimum Programme that nobody
will be denied professional education because he or she
is poor.
Book Promotion
In order to encourage book promotional activities, the
Government engages NGOs to supplement its effort. A
scheme of ‘Book Promotional Activities and Voluntary
Agencies’ is operated directly by the Ministry. Under the
scheme, the Ministry gives grant-in-aid to voluntary
organisations and associations of publishers and authors
for organising seminars, training courses, workshops and
annual conventions connected with book promotional
activities. Grants are also given to the reputed Voluntary
Organisations for organising the Delhi Book Fair and
National Book Fairs, etc. Care is taken to ensure that
organisations from all over the country are provided
financial assistance. It is the endeavour of the
Government to give special emphasis to organisations
belonging to North-East Region. Grants are released up
to a maximum of 75 per cent of the total expenditure
approved.
National Book Trust
The National Book Trust was set up by the Government
of India in 1957, with the objective of encouraging
production of reading material at moderate price and
fostering book mindedness among people. The NBT
Overview
Annual Report 2004-05
19
provides financial assistance to authors and illustrators
for bringing out reasonably priced textbooks and
reference books for students of all levels and for
publication of books for children and neo-literates. It
also promotes book reading habit all over the country
by (a) providing financial assistance for organising book
fairs, festivals and exhibitions, (b) organising symposia
and workshops, (c) sponsoring celebrations of National
Book Week and (d) setting up of reading clubs in
schools. To promote Indian books and Indian authorship
abroad, it participates in various international book fairs.
The annual Frankfurt Book Fair and Tokyo
International Book Fair are two premier international
events in which the NBT participates regularly.
Copyright Office
The Copyright Office was established in 1958 in
pursuance of Section 9 of the Copyright Act, 1957.
Copyright comes into existence as soon as a work is
created and its acquisition does not require any legal
formality. Though registration is optional, the Copyright
Act, 1957, as amended from time to time, provides for
registration of Copyright of an original literary, dramatic,
musical and artistic works; Cinematograph Films and
Sound Recordings.
In addition, the Copyright Office also registers the
changes in the particulars of Copyright entered in the
registers of Copyright in accordance with Rule 16 of the
Copyright Rules, 1958. Moreover, Copyright Office also
issues certified copies of extracts from the Register of
Copyrights. Inspection of the Register of Copyright is
also open to the interested persons at all reasonable
times.
The Copyright Office has been computerised and all
particulars of works are entered into the computer. The
Copyright Office will be modernised very soon and the
draft plan for this is under preparation.
Overview
Annual Report 2004-05
20
Language
Some of the important programmes that continued
during the year include Promotion and development of
Sanskrit language through different Sanskrit
institutions; development of Hindi and training of Hindi
teachers from non-Hindi States; promotion of all Indian
languages of VIII Schedule by making extensive use of
information technology; appointment of Indian
languages teachers; Area Intensive and Madarsa
Modernisation Programme for educationally backward
minorities; Scholarship Scheme for meritorious children
as well as scholarship for students of non-Hindi States
for study of Hindi; Book and workshops on Intellectual
Property Rights, management of Copyright Act through
educational institutions and other institutions and
strengthening of cultural and human values in
education in schools and non-formal educational
centres with the help of reputed organisations.
All these schemes will be continued in the next financial
year. The scheme for Education in Culture and Human
Values has been strengthened for wider coverage and
the scholarship scheme is being modified to enable
meritorious children to avail of the scholarship.
Similarly, the scheme for development of Sanskrit
language is also being modified and strengthened.
Scholarships
The National Scholarship Scheme and Scheme of
Scholarship at the Secondary Stage for Talented
Children from Rural Areas have been merged into a new
scheme entitled ‘National Merit Scholarship Scheme’
for implementation with revised provisions from the
Tenth Five Year Plan. These schemes and the Scheme
of Scholarship to Students from Non-Hindi Speaking
States for Post-Matric Studies in Hindi are being
implemented through State Governments and UT
administrations.