The Power of Public-Private Partnerships, ETEducation
By Faizal E Kottikollon
India has the world’s largest youth population, with about 65% – around 900 million – under the age of 35. In FY2022, the government’s expenditure on education stood at just 4.12% of GDP, far lower than the 4.8% average among high-income countries. In comparison, countries like South Africa invest as much as 6.55% of their GDP in education. For India to unlock the full potential of its young demographic and advance successfully toward the vision of Viksit Bharat, it must raise public spending on education to at least this level by FY2048.
At the same time, private education in India has been expanding significantly. The last decade has seen private school enrolment rise from 21% to 46% and private educational institutions now account for over 31% of schools nationwide. However, this growth is uneven; in cities like Delhi and Chandigarh, over half of all schools are private, while in states such as Bihar and Jharkhand the proportion remains below 15%. This imbalance has created a stark divide. Private schools offer modern classrooms, digital smart board and better infrastructure, whereas public schools remain underfunded and struggle to keep pace with the private school standards.
While public funding alone cannot be expected to shoulder the responsibility of educating millions of young Indians, leaving classrooms to pure market forces would increase inequality. India must strike a balance between public purpose and private capability. This is where public-private partnerships (PPP) in education become essential. For such collaborations to succeed, it is necessary to design with innovation, accountability and empathy at their core.
Parents are moving their children to schools that they believe offer better opportunities. In Rajasthan, for example, private schools enrolment has recently surpassed government schools, despite being fewer in number. Parents look for better infrastructure and perceived superior teaching quality. However, when families in lower and middle-income segments are compelled to pay for quality basic schooling, it signals a crisis of confidence in the public promise of education. Well-designed public-private partnerships (PPPs) can help rebuild trust by bringing quality and innovation into government schools, instead of shifting students away from the public system.
Over the years, the outcome of PPPs in education have shown that shared responsibility can propel educational development. With proper structure and design, the partnerships can expand infrastructure, modernise curricula, integrate technology and strengthen teacher training. This also helps keep education systems aligned with contemporary economic and societal needs. Studies indicate that “whole school” PPP models, with private partners managing or adopting government schools, can be particularly effective, especially in urban areas with under-utilised public-school facilities. However, to scale these models in a sustainable manner they must be supported by well-defined contracts, sufficient financial reimbursement and robust oversight mechanisms.PPPs must have a clear set of outcomes including improved learning, greater equity and dignity for every child. Performance standards and evaluation methods should be transparent. Private partners should be selected through open, competitive processes based on their track record, governance standards and community credibility, not only financial bids. Information on funding flows, student learning outcomes and independent audits should be available in the public domain. Such transparency helps tackle the misconception that PPPs are a form of backdoor privatisation and instead demonstrates that they are an extension of the public system, strengthened by private expertise.
A PPP must evolve from a transaction to a shared mission, one that is rooted in community ownership. The Nadakkavu model in Kozhikode, Kerala where a 120-year-old government girls’ school was reimagined under the PRISM framework, showed how design and innovation can revitalise the public education system, and thus inspiring transformation across 1000 schools in Kerala. The Nadakkavu model was extended from Kerala to Jammu and Kashmir through a public-private partnership at the Government Girls Higher Secondary School in Kothibagh, Srinagar. The objective was never to just construct a new block but to co-create a school that the community could proudly claim as its own.
Balancing profit with purpose is a sensitive but essential dimension of PPPs. Private partners must be able to receive reasonable, transparent returns while ensuring that education remains inclusive. Surpluses must be reinvested into quality improvements, scholarships and scaling impact. Philanthropic institutions can play a bridging role, absorbing early risks and demonstrating effective models that commercial capital can later adopt, all within clear ethical boundaries.
India is on the right track with the National Education Policy 2020 framing private participation in the language of public good and philanthropy. The policy recognises education as a public service and calls for substantial investment in a robust public system, supported by philanthropic, private and community engagement.
Public-private partnerships can ensure that a child in a government school in a small town or a remote village should not have to migrate to a big city or a private campus to experience world class learning environments. With the right design, governance and intent, PPPs can bridge this gap. The next decade of Indian education will be defined by our success in scaling such models, transforming every public school into a space where innovation, equity and excellence meet.
Faizal E Kottikollon is the Founder & Chairman of KEF Holdings and Co-Founder of the Faizal & Shabana Foundation.
DISCLAIMER: The views expressed are solely of the author and ETEDUCATION does not necessarily subscribe to it. ETEDUCATION will not be responsible for any damage caused to any person or organisation directly or indirectly.
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