Planning commission, in the final draft of the 12th Five-Year Plan has suggested allowing higher education institutions to run for profit. The suggestion has been incorporated on the ground that the philanthropy-driven institutions in India do not have the resources to bridge the demand-supply gap in higher education. So not-for-profit status in higher education should be re-examined.

The draft explains that for profit, higher education institutions can be taxed and the revenue generated from it can be used to promote scholarship programme, as is practised in countries like Brazil and China.

But educationists and industry leaders are divided on the proposal to allow insitutions to make profits. Educationts fear this will lead to a situation where higher education will be meant for only those who can buy it.