Please take a look at 
SHAILAJA FENNELL's article below in The Business Line.  (The author is Lecturer in Development Studies and Fellow of Jesus College at the University of Cambridge.) 
 India's poor educational outcomes should not come as a shock — it has  not yet been able to ensure that 6 per cent of the national budget is  spent on education. Achieving high enrolment levels is clearly not  enough.
   
 India's poor performance in the ACER PISA tests released earlier this  month, where Shanghai came out at the top and India was placed second  from the bottom (just above Kyrgyzstan), has provoked a barrage of  questions: Why is the education system failing India, at a time when the  potential of positive returns from its demographic bulge and the  growing proportion of its people in their twenties and thirties should  be contributing an additional injection to growth? 
 The poor educational outcomes should not come as a shock, given that  India has not yet been able to ensure that 6 per cent of the national  budget is spent on education. This, despite it being recommended decades  ago, by the Kothari Commission Report in 1964. While the new Right to  Education Act has provided the legal basis to ensure that all children  can access school, there is still a long way to go before enrolment in  schools itself becomes an automatic assurance of quality education.  Programmes such as Mid-day Meal are important in increasing enrolment  and retention, but will not be able to overcome the very low level of  financial resources and difficult teaching environments encountered in  most schools. 
 Uneven terrain 
 Any meaningful answer needs to be based on an understanding of the  increasingly uneven terrain in the provision of education across India.  There are obvious implications of the current pattern of educational  provision. These relate to the very unequal access to educational  resources with per child investment being significantly different  between elite and government schools, the evidence of considerably  better quality of schooling in urban than in rural areas, and policies  of encouraging new private providers into the education sector not  supported by adequate regulation. 
 The poor performance seems particularly difficult to understand, in the  light of successful initiatives to improve the quality of schooling by  State education departments such as those in Tamil Nadu and Himachal  Pradesh, and even private players such as the Azim Premji Foundation.  While it is important to reflect on continued weaknesses in the delivery  of education, there needs to also be programmes to address the  financial and social difficulties faced by children from poor families  in paying and staying on in the schooling system. 
 Research conducted on the educational outcomes of the poor in four  countries (Ghana, India, Kenya and Pakistan), between 2005 and 2010,  shows that only children from better-off socio-economic households are  able to successfully navigate through to complete secondary schooling. 
 Those households most likely to experience educational risk — dropping  out of the educational cycle without completing secondary school — are  the poorest in the community. 
 The introduction of private providers to create competition in the local  educational sphere does not seem to have reduced this divergence. While  the new private schools have seen increased enrolment, as children from  better-off households choose them over the government schools, the  poorest households are unable to avail of this opportunity and continue  to fall off the educational ladder. They do not regard education as a  potential contributor to improving employment opportunities; instead,  they are resigned to poor educational and employment outcomes. 
 Chinese initiative 
 The only solace to be gained from undertaking a detailed analysis of  current educational provisions is that all developing countries have had  to face these challenges in recent decades. Take China, where rural  households in the poorer provinces have been particularly prone to  educational risk. A longitudinal study conducted in Gansu (one of the  country's poorest provinces), over 2000-2009, indicates that rural  households regarded the poor educational outcome of their children to be  due to their severe financial constraints, which also prevented them  from buying educational aids. Also, their own low educational attainment  could not support learning at home. 
 The disparities in the Chinese educational system were becoming evident  in the late 1990s, with large intra-provincial differences between urban  and rural educational outcomes. The response by the federal authorities  in China was to implement a system of sponsorship for children from  poor households from 2004, to cover costs of textbooks, board and  lodging. The scheme is still under way and its objective is to ensure  coverage of all poor rural children by 2012. 
 The financial outlay provided by the federal government is to be  applauded, but the initiative has yet to reduce the wide gap in the  quality of teaching and attitudes of teachers in urban and rural areas.  Furthermore, youth from poor households in interior provinces, who have  successfully completed secondary education and entered tertiary  education by taking personal loans, are now faced with very poor  prospects of employment. They find it difficult to compete with youth  from better-off provinces, and stand no chance against the well-off and  far better-taught youth coming out of Shanghai schools. 
 Linkage with job market 
 If the intention is to improve the provision and quality of Indian  education to ensure that the youth bulge can really provide a boost to  economic growth, it is important to address the weaknesses in the  educational sector. The state then clearly needs to ‘put money where its  mouth is', whether this is through public or private funds. That would  be the beginning of a more equal and higher quality provision of  education, which should be followed by measures to improve educational  quality. The provision of education at primary and secondary level using  locally relevant curriculum and delivered using innovative teaching  methods should become the norm in every State's education policy. 
 Last, and certainly not least, it must be understood that having  national enrolment levels close to 96 per cent in India today is not  enough. It is worth remembering that in the early 1990s, the Kyrgyz  Republic had enrolment rates of 100 per cent. But in the difficult  economic period that followed, it fell below 90 per cent. The collapse  of employment opportunities was a major reason for the disillusionment  of Kyrgyz youth with the possible gains from completing the educational  cycle. If the youth currently in schools in India today — particularly  those in the poorer states and in difficult rural environments — are to  contribute to making a better tomorrow, one must have better linkages  between educational and labour market outcomes in the near future.