Need to retain students beyond Class 8: Economic Survey; supports open schooling

There is a need to retain school students beyond Class 8 as the secondary age-specific net enrolment remains low, the Economic Survey 2025-26 said.

According to the survey tabled in Parliament on Thursday (January 29, 2026) by Union Finance Minister Nirmala Sitharaman, while India has improved enrolment at early levels, the secondary age-specific net enrolment rate (NER) remains low at 52.2%.

It said the scenario highlights the need to retain students beyond Class 8.

Read: Economic Survey 2025-26 LIVE

“A key issue is the uneven distribution of schools as 54% of schools offer only foundational-preparatory education, while just 17.1% provide secondary education in rural areas,” it noted.

Urban areas have a higher share of secondary schools (38.1%). This disparity, the document highlighted, limits rural students’ access to higher-level classes, resulting in “transition losses, increased travel time, and higher dropout rates”.

“These structural imbalances are reflected in enrolment patterns, with a drop from the foundational and preparatory levels to the middle and to secondary levels in rural areas,” it pointed out.

In urban areas, though, enrolment rises from the middle to the secondary level. Grade-wise enrolment trends further highlight the decline at the secondary stage.

The Survey also said that India has made notable gains in school enrolment by strengthening infrastructure and teacher capacity, with schemes like Poshan Shakti Nirman and Samagra Shiksha Abhiyan promoting access and equity.

“Further action is required, especially as the focus shifts from enrolment to learning outcomes. Policy interventions to expand composite and integrated schools, upgrading schools up to Class 7, and strengthening open schooling are vital for improving retention and optimising resources,” it said.

Improving infrastructure, teacher skills through strengthened District Institute of Education and Training and State Council of Educational Research and Training, and involving parents and communities in governance can create an inclusive, learner-focused environment, it suggested.

Combining these strategies with curriculum and assessment reforms aligned with the National Education Policy (NEP) and the use of digital platforms such as PM e-Vidya can provide high-quality, equitable education, even in remote areas, it underlined.