Economic Survey 2026 proposes NIRF-like school ranking, PISA-type Class 10 test, more composite schools
Economic Survey Highlights for Education: Ranking framework for schools on the lines of existing National Institutional Ranking Framework (NIRF), a regulated mode of external evaluation and introduction of PISA-like assessment at the end of Class 10 are among the proposals made in the Economic Survey 2025-26 tabled in parliament on Thursday.
In order to address the problem of dropout among students, the survey calls for policy interventions “to expand composite and integrated schools, upgrading schools up to Class 12 and strengthening open schooling”.
“In the education space, progress in school and higher education has been at the back of enhanced quality and access through community engagement, effective assessments, improved accountability, and stronger alignment between education and skill requirements.
However, variations in quality, regional differences, and socio-economic factors continue to influence the equitable distribution of essential services. Both sectors also face digital divides and infrastructural gaps, and require investment and policy reforms for equitable development,” the survey states.
Economic Survey PDF: PISA-like Class 10 exam
Under the topic titled Institutionalised Systemic Assessments, the survey points out the shortcomings with the assessment like National Assessment Survey (NAS) and Annual Status of Education Report (ASER) 2024.
“Large-scale assessments such as the NAS 2021 show that schools predominantly rely on internal and board examinations that assess content recall rather than generate diagnostic insights.ASER findings highlight gains in learning outcomes but also point towards learning gaps variation across states, school types and rural-urban contexts. The ASER and NAS findings suggest a deeper structural issue: school-based assessments are primarily designed for certification and promotion, and are not able to generate diagnostic evidence necessary to identify learning gaps and inform corrective action,” the survey stated.
Citing examples of The National Assessment of Educational Progress in the US and The National Assessment Programme - Literacy and Numeracy in Australia, the document states that in these assessments schools receive detailed analyses that allow teachers to act on the evidence directly.
“The common factor is that assessment data is treated as a tool for course-correction instead of remaining a scoreboard. The findings help update learning standards, teaching materials, and professional development, and serve as feedback for practitioners to identify where students struggle and which concepts require more focus,” stated the survey.
It proposes that for India, the assessment survey being conducted can be used to unpack the reasons behind the scores and understand errors.
“Further, a complementary initiative could be the introduction of a Programme for International Student Assessment (PISA)-like assessment at the end of Grade X,” the survey adds.
PISA measures 15-year-olds’ ability to use reading, mathematics and science knowledge and skills to meet real-life challenges. It is created by the Organisation for Economic Co-operation and Development (OECD). The 10th cycle of the PISA 2029 will be conducted soon, states the official website.
Economic Survey 2025-26: NIRF-like ranking for schools
Stating that heavy reliance solely on internal compliance and self-reporting of schools could be inadequate, the survey proposes “independent evaluation as both credible and non-intrusive”.
It quotes the example of The Knowledge and Human Development Authority in Dubai, wherein schools are inspected by third party agencies.
“...To ensure consistent benchmarking and improvement, each school is assessed by the same agency for several years. Inspections cover learning outcomes, pedagogy, governance, inclusion, and wellbeing, with reports shared with the regulator and schools. These reports are often made public, influencing parental choice, driving school competition, and improving overall quality gains,” the report added.
Stating how NIRF has improved competitions among higher educational institutions, the survey proposes applying “similar benchmarking at schools”.
“India can also require sharing summary findings of such assessments with schools and regulators, creating a feedback loop for quality enhancement,” the survey added.
Further it also quotes the NITI Aayog’s School Education Quality Index 2019 which has highlighted wide disparities in governance and learning outcomes across states.
“Noting that without independently verified monitoring, accountability, and comparability remain weak. In this context, a regulated model of external evaluation of schools through accredited third party agencies can address the accountability gap without adding bureaucratic burden,” the survey added.
It suggests the external evaluation can be undertaken by empanelling independent agencies and requiring each school to partner with them for a minimum two to three-year period.
“...It would allow for credible benchmarking, continuity in assessment and longitudinal tracking to support meaningful school improvement. Where benchmarking diversity is desirable, schools may voluntarily engage a second agency in parallel. A pilot programme in schools affiliated with the CBSE could be considered to develop a benchmarking system. Based on the template developed, states may be encouraged to use it with required adaptations, with the voluntary participation of private schools. Such benchmarking would form a basis for improved comparability between public and private schools, also,” it added.
India Economic Survey: Composite schools
Dropout rate in school enrolment from the foundational and preparatory levels to the middle and to secondary levels in rural areas, whereas in urban areas, enrolment rises from the middle to the secondary level. Grade-wise enrolment trends further highlight the decline at the secondary stage, the survey proposes on expanding “composite schools”.
“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 XII, and strengthening open schooling are vital for improving retention and optimising resources,” the survey added.
It suggests establishing composite schools to ensure smooth transitions from pre-primary to higher secondary education.
It also talks about the need to improve infrastructure, improve teacher skills through strengthened DIETs (District Institute of Education & Training), and SCERTs (State Council of Educational Research and Training), and involving parents and communities in governance.
It cites examples of campaigns run by states such as, ‘Chaduvula Panduga’ in Andhra Pradesh (launched during 1999–2002) and ‘Alokar Jatra’ in Assam (launched in 2002) and ‘Aao School Chalein’ initiative in Haryana to illustrate how large-scale community mobilisation can improve access and enrolment and create local databases on children's educational status.
Quoting the PARAKH survey which had stated that only 55% of students feel motivated to attend school, and less than half feel emotionally safe, it proposes the urgent need for integration of “Social-Emotional Learning (SEL), peer support systems, and robust child protection policies”.
Economic Survey of India: Skilling in secondary school
Quoting the PLFS 2023-24 data, the survey states that most out-of-school children in India are aged 14-18, the typical secondary education age.
“The single largest reason for adolescent dropout is the need to supplement household income, accounting for 44% of dropouts, particularly among boys (67.32%). For girls, domestic and care responsibilities remain a major constraint, affecting over 55% of those who leave school,” it adds.
In order to address this the survey adds that “integrating school-based vocational and skills education” is an urgent priority.
“Embedding structured skilling pathways in secondary schools can make education more relevant, provide early exposure to employable competencies, and transform schools into hubs of lifelong learning. The PLFS 2023-24 highlights the limited coverage of training, with only 0.97 per cent of 14-18-year-olds having received institutional skilling while nearly 92 per cent have none.Vocational education integration from Grades VI-XII may include practical exposure and industry visits to enhance career awareness,” it added.
It highlights the need to align school education and national skilling priorities in order to build a productive workforce.