Private universities: The contemporary marketing of higher education has turned it into a competitive market where every new university promises to be global, future-ready, industry-integrated, interdisciplinary, innovation-driven, and student-centric. If all universities claim uniqueness, then the concept of uniqueness loses its significance. This raises a deeper question: What truly constitutes a good university? Unfortunately, this critical inquiry is often overlooked in public discourse, which remains too focused on inputs rather than outcomes. Institutions tout their campuses, rankings, partnerships, exchange programs, and placement packages as indicators of success—visible metrics that reveal little about the actual value they provide in education.
Indian higher education is experiencing a significant transformation. According to the latest All India Survey on Higher Education (AISHE), India boasts 1,420 universities, of which 538 are private institutions. Over the past decade, private universities have surged by approximately 149%, far outpacing the growth of public colleges. Enrolment in higher education has skyrocketed to over 45 million students, with the Gross Enrolment Ratio (GER) climbing from 23.7% in 2014–15 to 30% in 2023–24. Today, nearly 70% of India’s colleges operate within the private sector.
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This expansion undoubtedly increases access to higher education, but achieving India’s goal of a 50% GER by 2035—set forth in the National Education Policy (NEP) 2020—will require substantial private sector involvement. The private sector has contributed capital, infrastructure, program diversity, and institutional capacity that the public system alone could not provide. However, the pressing policy question now shifts from whether private universities are expanding to whether these institutions are improving in quality.
Private universities and knowledge creation
Ultimately, a university should be evaluated not by what it displays but by what it creates. Historically, great universities have excelled in three areas: the creation of knowledge, the transmission of knowledge, and the cultivation of human capability. These criteria remain the most credible measures of quality. The foremost test for any substantive academic institution is its ability to create knowledge.
A university’s legitimacy is founded not on its infrastructure but on its intellectual contributions. Metrics such as doctoral training, citation impact, patents, policy effectiveness and scholarly prestige are the currencies of academic excellence. Universities that fail to significantly contribute to knowledge production may provide valuable education but cannot be considered true universities in the broadest sense.
This challenge is particularly pronounced in India, where private universities often compete primarily on employability rather than scholarship. While there is nothing inherently wrong with prioritising employability—students and families rightly expect a return on their educational investment—if graduate employment becomes the ultimate institutional goal, universities risk becoming advanced training centres rather than institutions of higher learning.
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This brings us to the second, often misunderstood indicator of quality: placement statistics. While frequently cited, these metrics are among the least intellectually rigorous measures of university performance. They may provide a snapshot of labour market entry but reveal little about long-term professional trajectories.
The critical question is not whether graduates secure jobs six months after graduation, but whether, two decades later, they maintain a presence in professional networks. This distinction is essential, especially as the labour market undergoes transformative changes. Numerous international studies, including those by the World Economic Forum, consistently highlight analytical thinking, complex problem-solving, adaptability, resilience, creativity, and technological literacy as essential future skills. These are higher-order capacities, not simply skills that can be developed through curriculum updates; they flourish in intellectually stimulating environments. A university that provides narrow training will leave its students ill-prepared for the jobs of tomorrow.
University rankings cannot buy credibility
The third criterion for measuring institutional quality is long-term credibility. Many early-stage universities focus heavily on visibility, rankings, infrastructure, and enrolment numbers. However, the institutions that endure for generations are those that gradually build reputational capital through academic integrity, quality faculty, rigorous standards, and consistent intellectual output.
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In higher education, reputation differs significantly from that in most industries; it cannot be bought or accelerated indefinitely. It is earned over decades through demonstrable trustworthiness. This presents both a challenge and an opportunity for India’s emerging private universities. Sustainable differentiation will arise from a deeper understanding of their target market rather than through marketing claims in an increasingly competitive market.
Success will depend on investing in quality faculty, producing meaningful research, upholding intellectual freedom, nurturing proud alumni, and creating social impact. Institutions that lay such foundations will retain legitimacy long after contemporary educational trends have faded.
Higher education must create public value
A fourth, often overlooked standard is public value. Universities are not merely generators of labour for the economy; they are civic institutions. Their contributions should extend beyond graduate employability to encompass regional development, social mobility, policy engagement, innovation ecosystems, and solutions to public challenges. The most impactful universities build societal capabilities rather than merely individual qualifications.
India faces a paradox: while it has largely succeeded in expanding access to higher education, it has yet to tackle the challenge of excellence. The future of higher education will not be defined by institutions with expansive campuses, flashy marketing, or extensive international partnerships. Instead, it will be shaped by universities that can demonstrate—through concrete evidence rather than slogans—their capacity to generate knowledge, cultivate adaptable individuals who contribute to society, and maintain academic credibility.
India stands at a crucial juncture. The next decade will determine whether private universities evolve into viable intellectual institutions or remain merely educational businesses. While investment is essential for growth, excellence demands something rarer: patience, scholarship, integrity and time.
Debdulal Thakur is Professor, Department of Economics, Alliance University, Bengaluru.