Four EdTech regulations that are good for India

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Mohan Kannegal

During COVID-19, the EdTech sector has boomed, and given the societal impact of EdTech, the government intends to regulate the sector. It has called for consultations to formulate regulation, and we recommend that regulations be framed in a way that addresses the key challenges in Indian education.

The first challenge is that the quality varies widely. It produces world-beating students like Sundar Pichai. It also creates the heart-rending tale of 12.5 million youngsters applying for just 35,000 railway jobs. The paradox is that the railways are overwhelmed by applications, while private sector recruitment managers are struggling to hire. Several reports (ASER, employability reports) show us that we have serious learning outcome deficiencies in our schools and colleges.

The second challenge is that education requires more capital. The governments spend too little on education. A visit to any public school or college demonstrates this. This is not because the government lacks intent, but because it lacks financial resources; India has one of the lowest tax-to-GDP ratios in the world. This is why education needs private capital.

EdTech regulation must enable investment of private capital into education. There are successful models of private capital transforming industries such as telecom, airports, airlines, banks, insurance, etc.

The third challenge is that India has artificial barriers for online education. Some people who have privileged access to high-quality campus education object to online education. But most people realise that it is the only way to providing high-quality education to all Indians.

Think of the person who wants a degree, so she can earn the respect of her children, but is embarrassed to go to college late in life. Or the travelling salesperson who is in a different town every day. Online education serves these people in a way classroom education cannot. EdTech regulation must enable online education.

Here are four recommendations pertaining EdTech:

Regulation To Serve Education Of Working Professionals

EdTech companies that focus on online education and industry linkages are best suited to serve education of working professionals — such as students pursuing degree/diplomas years after joining the workforce. However, the current education regulation is drafted to address students who pursue college straight after school.

We recommend that new regulation be developed specifically for education of working professionals. For instance, regulation should allow specialised curriculum and shorter duration which is appropriate for working professionals. Further, the committees creating the new regulation should include HR leaders from industry who can provide insight into current skill shortages.

Regulation Addressing Marketing Practices By Edtech Companies

EdTech companies must be checked from paying enrolment-linked sales incentives to education sales advisers. This practice has led to many problems. When sales advisers are thus incentivised, it creates a poor work-culture, and it leads to mis-selling. We must encourage a model where sales advisers focus on student outcomes rather than their own sales incentives.

One may argue that many industries offer sales incentives, so why not education. This is because the cost of a wrong sale in education is much higher than in many other sectors. As a reference, in the United States, sales incentives are disallowed for most university programmes.

There should be a regulation that prevents false-advertising claims. For instance, if a programme advertises a job-guarantee, it must also provide historical data of job placements.

Regulation Of Student Loans At EdTech Companies

The entire practice of EdTech companies offering student loans be stopped. Education programme sales should be de-coupled from student loans. Currently, some EdTech companies bundle an education programme with a student loan. This causes ethical, and regulatory issues.

Regulation That Is Fair To Online Education

Students should be allowed to decide on the model of education that is best for them. In a country where land, infrastructure and faculty are in short supply and commuting is difficult, we should encourage online education.

Let us recognise that India has the golden opportunity of becoming the talent supply powerhouse to the world. We have a large young population while other countries have declining populations. We must create a flexible education ecosystem that helps every Indian realise this opportunity.

Mohan Kannegal is CEO – India & APAC (Consumer), Eruditus/EMERITUS. Views are personal, and do not represent the stand of this publication.