On August 16, 2025, the Vellore Institute of Technology (VIT) campus buzzed with excitement as it celebrated its 40th convocation. The event not only marked a milestone for the 11,563 graduates receiving their degrees, but also reignited an urgent debate over the future of higher education funding in India—an issue that, many argue, sits at the heart of the country’s aspirations to become a developed nation by 2047.
Dr. G Viswanathan, VIT’s founder and chancellor, delivered a pointed message to policymakers during his convocation address. He highlighted a long-standing demand: the central government should double its current education spending from 3% of GDP to 6%. According to Dr. Viswanathan, “In the 2025-26 budget, the central government allocated only 2.5% of its Rs 55 lakh crore budget for education.” For a nation with 4.3 crore students pursuing higher education—and a new education policy aiming to raise this number to 8 crore to achieve a 50% gross enrolment ratio—the stakes could hardly be higher.
Dr. Viswanathan’s call to action is rooted in stark economic realities. As he pointed out, India’s per capita income stands at just $2,900, a far cry from Japan’s $35,000. “Enhancing higher education can bridge this gap. Both central and state governments must increase funding for education,” he insisted, underscoring the link between educational investment and national prosperity.
Tamil Nadu, Dr. Viswanathan noted, leads the country by allocating 21% of its budget to education—a figure that dwarfs the national average. This commitment has helped the state emerge as a beacon for educational reform, but the broader challenge remains: how can India, with its vast and diverse population, scale up these successes nationwide?
The convocation itself was a testament to the transformative power of education. Among the sea of graduates were 2,802 postgraduates and 451 doctoral recipients, with 68 outstanding students earning gold medals for academic excellence. One of the day’s most notable honorees, DGP Sandeep Rai Rathore, director of the Tamil Nadu Police Academy, was awarded a PhD in disaster management—a sign of the growing emphasis on research-driven, real-world problem solving in Indian academia. Supreme Court Justice R Mahadevan, serving as the chief guest, handed out degrees, lending gravitas to the proceedings.
The convocation’s themes echoed broader national conversations about the evolving role of universities in Indian society. According to a report published in the Stanford Social Innovation Review and cited by the New Indian Express, India is making significant progress in digital innovation and financial growth. Yet, persistent challenges—unemployment, inequality, and the rural-urban divide—continue to dog the nation’s development.
One area showing remarkable promise is social entrepreneurship. As the Indian Express reported, social entrepreneurship is gaining traction as a way to connect business success with meaningful social impact. The 2023 GUESSS India Survey revealed a notable shift in student aspirations: 33% of Indian university students are in the early stages of launching their own businesses, while 4.8% already run revenue-generating startups. Although a majority—70%—still plan to seek traditional employment after graduation, this figure drops to around 52% within five years, reflecting a growing appetite for independence and innovation.
Indian students, it turns out, are leading the world in entrepreneurial intent. The GUESSS survey found that they score 4.6 out of 7 on this measure, compared to a global average of 3.7. Nearly two-thirds (63%) receive initial investments or support from their universities, highlighting the critical role that academic institutions play in nurturing the next generation of changemakers.
Social enterprises in India are not just chasing profits—they’re tackling some of the nation’s most pressing challenges. These organizations focus on underserved and neglected communities, addressing root causes of inequality such as access to clean water, quality healthcare, education, and decent livelihoods. The Stanford Social Innovation Review notes that businesses focused on untapped markets can be both financially viable and socially transformative.
There are inspiring examples of this approach in action. At IIM Bangalore, the Saahas Zero Waste initiative has transformed the campus into a model of the circular economy, emphasizing waste segregation, composting, and recycling. In Tamil Nadu, the Gramalaya NGO has made significant strides in improving sanitation and access to clean water, while also developing self-sustaining financing models for toilet construction. These ventures underscore the potential for research-led, interdisciplinary innovation to drive lasting social change.
But for India to truly become what some are calling an “impact nation,” experts argue that universities must move beyond traditional, siloed approaches to education. The Indian Express suggests that private universities, in particular, are uniquely positioned to foster collaboration across disciplines. Imagine a public policy scholar working with an engineer to design a new solution for poverty, with a business expert helping to scale the idea. Such teamwork can unlock the untapped potential of India’s Ph.D.s, turning academic research into practical, scalable solutions for real-world problems.
Despite the growth of India’s start-up ecosystem, truly disruptive innovation remains rare. To change this, universities must encourage research that directly addresses social issues, moving from theory to practice. According to the curator of the Ph.D. VISTA Programme at Alliance University, “To become an ‘impact nation,’ India needs inclusive, non-urban-centred innovation. This means integrating social entrepreneurship into education, policy, and practice.”
The path forward, then, is clear but challenging. Greater investment in education—both from central and state governments—is essential to expand access, improve quality, and empower the next generation of leaders. At the same time, universities must embrace their role as incubators of social innovation, fostering interdisciplinary collaboration and supporting student entrepreneurs who are eager to make a difference.
As the VIT convocation drew to a close, the sense of possibility was palpable. The graduates who crossed the stage—armed with degrees, ambition, and a growing awareness of their power to shape the world—represent both the promise and the challenge of India’s educational future. Whether India can bridge the gap between aspiration and achievement will depend on the choices made today in classrooms, boardrooms, and government offices alike.
For now, the message from Vellore is resounding: invest in education, nurture innovation, and harness the energy of India’s youth. The country’s future may well depend on it.
