Viksit Bharat Shiksha Adhishthan (VBSA) Bill 2025 – Provisions, Significance & Challenges – Explained Pointwise

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The Viksit Bharat Shiksha Adhishthan Bill, 2025, which seeks to overhaul the regulation of higher education in India, was referred to the Joint Parliamentary Committee (JPC) earlier this week for deliberation after its introduction in the Lok Sabha. The Bill aims to create a single apex body that replaces UGC, AICTE & NCTE, and aligns the system with NEP 2020.
The Bill will apply to HEIs, including Institutions of National Importance (INIs), such as IITs, IIMs, NITs, IISERs, Central & State Universities , as well as Deemed-to-be-Universities. However, the Bill will not apply to medical, legal, pharmaceutical, dental & veterinary institutions.

VBSA Bill
Source: Students Islamic Organisation of India
Table of Content
What are some of the important provisions of the VBSA Bill?
What is the significance of the VBSA Bill?
What are some of the criticisms of the VBSA Bill?

What are some of the important provisions of the VBSA Bill?

Establishment of VBSA
  • The Bill establishes Viksit Bharat Shiksha Adhishthan (VBSA) as the overarching commission with three vertical councils: Regulatory Council (licensing/entry/oversight), Accreditation Council (quality grading), and Standards Council (academic benchmarks and frameworks).
  • It repeals UGC Act, AICTE Act and NCTE Act, transferring their powers/assets/liabilities to VBSA; excludes medicine (NMC), law (Bar Council) and architecture (COA).
  • The VBSA’s Regulatory Council grants permission to establish/operate Higher Educational Institutions (HEIs) based on minimum eligibility (land, funds, faculty, infrastructure) via a single-window process.
  • VBSA can withhold/release grants and recommend funding cuts for non-compliant HEIs; enables performance-linked financing.
Graded AutonomyIt introduces graded autonomy, where institutions with high performance scores are granted full freedom over curriculum, fees, and international collaborations without prior government approval, whereas the poor performers face intervention or closure.
National Academic Credit BankThe Bill mandates a digital inventory for all student credits that will allow:

  • Multiple Entry/Exit: Students can leave a degree program after one year (earning a Certificate), two years (Diploma), or three/four years (Degree), with their credits stored in the NACB for up to seven years.
  • Cross-Disciplinary Transfer: Allowing students to transfer credits between STEM & liberal arts disciplines seamlessly.
Mandatory ‘Industry-Academia’ InterfaceThe Bill introduces legal requirement for industry participation:

  • HEIs are empowered to hire industry experts as full-time faculty without requiring a PhD, provided they have a 15+ years of professional experience.
  • Every undergraduate degree must include a mandatory 6 month internship or apprenticeship to qualify for the final degree.
Internationalization of Education

To fulfill the “Viksit Bharat” goal, the Bill focuses on global positioning:

  • Foreign Campus Provision: Streamlined legal framework for top 500 global universities to open campuses in India.

  • Indian Global Outreach: Provisions for Indian IITs and IIMs to set up “Offshore Centres of Excellence” with simplified repatriated funding rules.

Technology & AI Integration 
  • National Educational Technology Forum (NETF): A dedicated cell within the VBSA to provide AI-driven personalized learning tools to government schools.

  • Swayam Plus Expansion: Recognition of high-quality OER (Open Educational Resources) as equivalent to formal classroom credits for up to 40% of any course.

Language & Cultural Integration 
  • Multilingual Pedagogy: Mandates that all technical and medical textbooks be made available in the 22 scheduled languages of India using AI-translation services.

  • IKS Inclusion: A requirement for all HEIs to dedicate at least 5% of their curriculum to “Indian Knowledge Systems” (IKS), covering ancient Indian contributions to science, logic, and ethics.

Funding & Shiksha Kosh
  • Viksit Bharat Education Bond: Provision for the government to issue tax-free bonds to private citizens and NRIs to fund school infrastructure.

  • Performance-Linked Funding: Moving away from block grants to a model where 30% of government funding is tied to specific outcomes like graduate employability and research citations.

What is the significance of the VBSA Bill?

  1. Employability of Graduates: For years, the Indian Higher Education System has been criticized for producing unemployable graduates. The VBSA Bill is significant because it legally mandates shift towards competency-based education:
    1. Skill-Centricity: By making internships a degree requirement, it forces the academic system to align with the real-time needs of the global labor market.

    2. The Professor of Practice: This breaks the academic “ivory tower” by allowing industry veterans to teach, ensuring that classroom theory is grounded in current industrial reality.

  2. Reversing ‘Brain Drain’ to ‘Brain Gain’: The Bill addresses the massive outflow of Indian students & capital to foreign universities:
    1. International Hub: By allowing top global universities to set up their campus in India, it democratizes access to “world-class” education for students who cannot afford to travel abroad.

    2. Global Portability: The National Academic Credit Bank makes Indian credits globally recognizable, facilitating easier exchange and high-level research collaborations.

  3. Structural Economic Transformation: The Bill acts as an economic instrument rather than just a social one:
    1. Demographic Dividend: With India having the world’s largest youth population, the Bill provides the legal framework to convert this population into a skilled workforce before the “aging window” begins in the 2040s.

    2. Performance-Linked Funding: By tying government grants to research and employability, it introduces a “competitive federalism” in education, forcing institutions to innovate or face budget cuts.

  4. Rural-Urban Divide: The VBSA Bill is significant in its attempt to bridge:
    1. Linguistic Liberation: By mandating technical education in local languages, it ensures that a student’s mastery of English is no longer a barrier to becoming an engineer or a doctor.

    2. AI-Democratization: The use of the NETF (National Educational Technology Forum) aims to provide rural students with the same quality of AI-driven tutoring as their urban counterparts.

  5. Single Higher Education Regulator: It operationalises NEP’s “single regulator” idea by replacing fragmented bodies (UGC, AICTE, NCTE) with VBSA, enabling a “light but tight” framework that cuts red tape while enforcing quality and outcomes.

What are some of the criticisms of the VBSA Bill?

  1. Erosion of Federalism: Education is a Concurrent list subject, however, the VBSA Bill erodes the State autonomy by:
    1. Centralization of Power: The Bill creates a “super-regulator” (VBSA) that overrides state-level education boards. This centralizes decision-making in Centre, potentially ignoring the unique linguistic and cultural needs of diverse states.

    2. State Financial Burden: The Bill mandates expensive technological upgrades and infrastructure changes, but many state governments argue the Centre has not provided a clear roadmap for funding these requirements at the state university level.

  2. Commercialization of Higher Education: By allowing foreign universities to repatriate the profit & by encouraging ‘Professors of Practice’ role from the Corporate world, the VBSA Bill is criticized for promoting privatization of knowledge:
    1. Research vs. Profit: There is concern that research will shift only toward “profitable” science and technology, neglecting the Humanities and Social Sciences, which are essential for a healthy democracy but often yield lower immediate commercial returns.

    2. Job Security for Faculty: The push for contractual and industry-based hiring (Professors of Practice) is seen by some academic unions as an attempt to undermine the permanent tenure system and traditional academic research.

  3. Threats to Academic Freedom: The Bill introduces rigorous ‘National Standards’ for curriculum & performance:
    1. Ideological Homogenization: A centralized curriculum could be used to push a specific ideological narrative, limiting the scope for critical thinking and dissent in university spaces.

    2. Surveillance through Data: The mandatory “Academic Bank of Credits” and digital IDs are viewed by privacy advocates as tools for the state to track the intellectual trajectory and political leanings of students throughout their careers.

  4. Digital Divide: The VBSA Bill leans heavily on AI-driven learning & digital credits:
    1. Infrastructure Gaps: In rural India, where internet penetration is inconsistent and electricity is not always reliable, a heavy reliance on digital education could further marginalize underprivileged students.

    2. Cost of Implementation: The move toward “market-linked” education and the entry of foreign universities raise fears of a “two-tier” system: high-quality, expensive private/foreign education for the elite, and underfunded, struggling public institutions for the masses.

  5. Practicality of “Apprenticeship Mandate”:
    1. While the Bill mandates internships for all degrees, skeptics question the capacity of Indian industry to absorb millions of students every year.

    2. Most of India’s businesses are micro-enterprises that do not have the administrative capacity to manage structured internship programs, potentially leading to “fake” certificates and a “paper-only” compliance culture.

  6. Funding De-linkage: Removing grant-disbursal powers from VBSA and placing them directly under the Ministry of Education risks arbitrary, politically influenced funding, turning public universities into compliance tools rather than autonomous institutions.
  7. Inequalities due to Graded Autonomy: Graded autonomy sounds progressive but could widen inequalities, favouring elite central institutions while marginalising rural/minority-serving ones through performance-linked funding and accreditation pressures.
Read More: The Indian Express
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