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Nayyar also attacked the University Grants Commission (UGC) during her speech at the BG Deshmukh Memorial Lecture 2025 in New Delhi, claiming that it has deprived institutions of their autonomy and enforced “one-size-fits-all” rules that inhibit variety and quality.

Jawaharlal Nehru University Emeritus Professor of Economics Deepak Nayyar stated on Wednesday that political meddling, inadequate finance, and a lack of autonomy are the main causes of the crisis in India’s higher education system.

Nayyar also attacked the University Grants Commission (UGC) during her speech at the BG Deshmukh Memorial Lecture 2025 in New Delhi, claiming that it has deprived institutions of their autonomy and enforced “one-size-fits-all” rules that inhibit variety and quality.

Only a select few who perform well on the Class 12 exams are granted admission to public universities. The majority rely on costly, subpar private institutions. And an increasing percentage now just travel overseas,” he said, adding that in 2023 alone, Indian students spent around $27 billion abroad, which is about the same as India’s foreign exchange profits from tourism.

Only a select few who perform well on the Class 12 exams are granted admission to public universities. The majority rely on costly, subpar private institutions. And an increasing percentage now just travel overseas,” he said, adding that in 2023 alone, Indian students spent around $27 billion abroad, which is about the same as India’s foreign exchange profits from tourism.

“The lack of Nobel laureates from our colleges is no coincidence. And the way we’re going, I don’t think they ever will in the next 25 years,” he remarked.

Without top-notch research and education, Nayyar contended, India runs the risk of becoming trapped in the “middle-income trap” that has befallen several Asian and Latin American economies. He stated that unless higher education is changed, “India has the potential to achieve upper-middle-income status by 2035, but reaching high-income status by 2047 is nearly negligible.”

If universities are to regain their role in nation-building, Nayyar emphasized the urgent need to restore autonomy, promote academic freedom, and reform governance systems.

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