The Economic Survey 2025-26, tabled in Parliament by Union Finance Minister Nirmala Sitharaman, has highlighted a major challenge in India’s school education system. The survey noted that while enrolment has improved at primary and middle levels, retention drops sharply after Class 8. The secondary age-specific net enrolment rate (NER) stands at only 52.2%, showing that nearly half of eligible students are not enrolled at the secondary stage.
Secondary School Enrolment Rate Remains Low in Rural India
The survey identified uneven access to secondary schools as one of the biggest reasons for low enrolment beyond Class 8. A large share of schools in India still provide only early-stage education. Key findings from the survey include:
- 54% of schools offer only foundational or preparatory education
- Only 17.1% of rural schools provide secondary education
- Urban areas have a higher share, with 38.1% of schools offering secondary classes
This gap makes it harder for rural students to continue schooling after middle school.
Rural Students Face Higher Dropout Risk After Class 8
The shortage of nearby secondary schools forces many rural students to travel long distances or shift institutions after Class 8. The survey pointed out that this transition often leads to:
- Learning disruptions
- Increased travel burden
- Higher dropout rates
As a result, enrolment declines sharply at the secondary level, especially in rural regions.
Economic Survey Suggests PISA-like Class 10 Exam Reform
The Economic Survey observed that current assessments such as NAS and ASER often focus more on certification and rote learning rather than identifying learning gaps. While some improvement has been seen, wide disparities remain across regions and school types. The survey suggested adopting PISA-like assessments at the Class 10 level, similar to practices in countries like the US and Australia. Such exams can provide detailed feedback to help teachers improve learning outcomes.
Proposal for NIRF-like Ranking System for Schools
Another major recommendation is the introduction of a school benchmarking framework similar to the NIRF rankings used for higher education institutions. The survey cited Dubai’s Knowledge and Human Development Authority model, where third-party inspections evaluate schools on:
- Learning outcomes
- Teaching practices
- Governance
- Inclusion
- Student wellbeing
Public reports help regulators and parents make informed decisions and encourage competition among schools. The survey also referred to NITI Aayog’s School Education Quality Index 2019, which found significant differences across states in governance and learning quality.
Urban Areas Show Better Secondary Enrolment Growth
The survey noted that enrolment trends in urban areas are more positive. Grade-wise data shows enrolment increases as students move from middle to secondary levels in cities. This confirms that the enrolment decline is largely a rural challenge.
Focus Shifts From Enrolment to Learning Outcomes
India has improved school participation through schemes such as Samagra Shiksha Abhiyan and Poshan Shakti Nirman, especially at foundational stages. The Economic Survey stressed the need for further action through:
- Better school infrastructure
- Stronger teacher training via DIETs and SCERTs
- Greater community involvement in governance
- Curriculum and assessment reforms aligned with NEP
- Wider use of digital platforms like PM e-Vidya
The survey underlined that ensuring students stay in school beyond Class 8 is essential for achieving equitable and quality education across India.