Placements in the premier Indian Institutes of Technology (IITs) saw an “unusual decline” between 2021-22 and 2023-24, noted a report by the Parliamentary Standing Committee on Education, Women, Children, Youth and Sports tabled in the Lok Sabha on March 26.
The Committee, chaired by Congress MP Digvijaya Singh, observed a similar trend in India’s Indian Institutes of Information Technology (IIITs) and National Institutes of Technology (NITs). Data also shows “a decline in the average financial package secured by each student placed between 2022-23 and 2023-24,” the Committee said. It suggested that the Department of Higher Education take steps to enhance employability.
The Committee also noted that India’s spending on education remains below the recommended 6% of GDP (gross domestic product), while countries like Bhutan and Maldives spend a higher percentage of their GDP on education than India in 2022.
It also took “serious note” of the non-release of Samagra Shiksha Abhiyan funds to states that haven’t agreed to implement the PM Shri scheme, including Tamil Nadu, Kerala, and West Bengal. Withholding SSA funds to states for not signing MoUs for separate schemes like PM SHRI is “not justifiable,” the Committee said.
In the 364th report on Demands for Grants 2025-26 of the Department of Higher Education, the Parliamentary Committee shared placement rates in the 23 IITs from 2020 to 2024 from the Ministry of Education.
Comparing placement figures for the BTech programmes from 2021-22 and 2023-24 shows that the overall placement dropped from 90% to 80%.
All IITs saw a decline in placement rates during this period including the highest-ranking ones, except IIT (BHU), Varanasi.
The Committee noted that while there could be various reasons for this decline such as “students opting for higher education or pursuing start-up ventures,” and that placements depend on market trends, it suggested that the Department of Higher Education “ find out ways and take measures to enhance employability accordingly.”
Education funds
In the 363rd report on Demands for Grants 2025-26 of the Department of Higher Education, the Parliamentary Committee noted that the National Education Policy 2020 endorses spending on education by the Union and state governments to reach 6% of GDP.
It noted that the absolute budget allocations for education have gone up by almost 21% in three years, from around Rs 93,000 crore (2021-22) to over Rs 1 lakh crore (2023-24).
However, in 2021-22, the total expenditure on education including all Union Ministries, states, and Union Territories stands at 4.12% of GDP, the report said.
When compared with other SAARC (South Asian Association for Regional Cooperation) countries, Bhutan and Maldives are spending 7.47% and 4.67% of their GDP respectively in 2022, as against India’s 4.12%, the report noted.
The report also alluded to the ongoing tension between states such as Tamil Nadu and the Union government over pending funds withheld by the Union government, on the condition that these states adopt the NEP and the PM SHRI Schools scheme.
“The Committee has taken serious note of the non-release of SSA funds to certain states which have not signed MoUs for implementation of PM Shri scheme. The total funds pending under this scheme to the states is considerable, with over Rs 1,000 crore to West Bengal, Rs 859.63 crore to Kerala, and Rs 2,152 crore to Tamil Nadu,” the report said.
The Committee also observed that states like Kerala, Tamil Nadu and West Bengal have “demonstrated strong educational outcomes with a Gross Enrollment Ratio (GER), significantly above the national average.”
“However, underfunding and delays in transfer of SSA funds have constrained further advancements in their school infrastructure, teacher training, and student support. These states have been compelled to use their own funds to pay salaries to teachers and resource personnel due to delays in the release of central allocations. The withholding of funds is severely impacting teachers’ salaries, RTE reimbursements, and transportation for students in remote areas,” the Committee said.
It recommended the “immediate release” of pending SSA funds to states like Kerala and Tamil, and a re-evaluation of SSA funding allocations to ensure that no state is “placed in disadvantageous positions for not accepting NEP 2020 or PM SHRI Scheme.”