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Government Funding Trends in Higher Education: IITs vs IIMs and IISERs

The Ministry of Education has revealed significant trends in funding for higher education institutions in India. While IITs and central universities have seen increased financial support, IIMs and IISERs face budget cuts. Enrollment figures show a rise in student participation, particularly among SC, ST, and OBC categories. The government is also implementing measures to enhance access for socially disadvantaged students. This article delves into the statistics and implications of these funding trends, highlighting the government's commitment to improving higher education access and infrastructure.
By Ambika Singh Aug 6, 2026, 18:12 IST

Overview of Funding in Higher Education



The Ministry of Education has reported to the Lok Sabha that while financial support for IITs and central universities has seen an uptick, budget allocations for IIMs and IISERs have unfortunately declined. Below are the detailed statistics concerning higher education.


Government Initiatives for Student Access

To enhance access to premier higher education institutions for students, particularly those from socially disadvantaged backgrounds, the central government is implementing various initiatives. The Ministry of Education has indicated a rise in student enrollment across IITs, IIMs, IISERs, and central universities, although funding trends tell a different story.


Current Enrollment Figures in Central Universities

In a written statement to the Lok Sabha, Dr. Sukanta Majumdar, Minister of State for Education, revealed that as per AISHE 2023-24, around 795,000 students are currently enrolled in central universities. This figure includes approximately 411,000 male and 384,000 female students. Additionally, there are about 149,000 students in IITs, around 23,000 in IIMs, and roughly 11,600 in IISERs.


Growth in Student Participation from Various Categories

The Ministry has noted an increase in enrollment from SC, ST, and OBC categories over the past decade. The percentage of SC students in these institutions rose from 11% in 2014-15 to 13% in 2023-24. Similarly, the share of ST students increased from 4% to 5%, while OBC representation grew from 14% to 20%. The government aims to ensure equal opportunities in higher education for all societal segments, as outlined in the NEP 2020. Since 2014, 16 new IIITs, 8 central universities, 8 IIMs, 7 IITs, 2 IISERs, 1 NIT, and 12 AIIMS have been established.


Funding Boost for IITs

The government has approved ₹11,828.79 crore in the 2025-26 budget for enhancing research parks and academic facilities across five new IITs, which will accommodate approximately 6,500 additional students. Furthermore, the 2026-27 budget includes plans for developing five university townships and constructing a girls' hostel in every district to support female students in STEM fields.


Analysis of Funding Trends

An examination of funding allocations shows a steady increase for IITs, reaching ₹11,381.21 crore in 2025-26, while central universities received about ₹16,730 crore. In contrast, funding for IIMs decreased from ₹319.40 crore in 2024-25 to ₹278.65 crore in 2025-26, a drop of approximately ₹40.75 crore. Similarly, IISERs saw a reduction from ₹1,459.30 crore to ₹1,328.54 crore, amounting to a decrease of about ₹130.76 crore. Although the reduction in budget for IIMs and IISERs was acknowledged in a written response to the Lok Sabha, no specific reasons were provided for this decline.


Reservation Policies and Support Initiatives

The Ministry has confirmed that reservation quotas of 15%, 7.5%, and 27% are in place for SC, ST, and OBC categories, respectively, in central educational institutions. Additionally, initiatives are underway to integrate students from economically disadvantaged and socially backward communities into higher education through scholarships, fee waivers, and other support programs.


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