In a landmark education reform initiative, Odisha has made education free from kindergarten to postgraduate in all government institutions. Announcing the decision as part of two years of BJP government, Chief Minister Mohan Charan Majhi said the move will benefit all students of Odisha, especially those from the economic backward classes and girls.
The state government’s decision comes at a time when rising educational costs continue to push thousands of students, particularly from rural and economically weaker families, out of the learning system. By lifting this financial burden, Odisha is not merely subsidising education; it is investing in human capital, social equity and long-term economic growth.
Odisha’s initiative signals an understanding that access to quality education should not depend on a family’s income. Here’s why this is a significant decision…
Open Doors to Opportunity
For many families in rural Odisha, the cost of education extends far beyond tuition fees. Expenses on books, uniforms, examinations and transportation often force students to abandon their studies, with girls being disproportionately affected. Free education is not merely a welfare measure; it is one of the most effective investments in social mobility and economic empowerment.
Improve Gross Enrolment and Retention
While Odisha has made notable progress in expanding access to education, retaining students beyond school remains a challenge. According to the latest All India Survey on Higher Education (AISHE), Odisha’s Gross Enrolment Ratio (GER) in higher education stands at around 22-23 per cent, below the national average of 28.4 per cent. This means nearly three out of every four young people in the 18-23 age group are still outside the higher education system.
Financial constraints remain one of the biggest reasons students, especially those from rural and low-income families, discontinue their studies after Class XII. By making education free, Odisha can improve both enrolment and retention rates, helping more students transition from school to college. The policy also aligns with the goals of the National Education Policy (NEP) 2020, which seeks to raise India’s higher education GER to 50 per cent by 2035. A higher enrolment rate will not only create a more educated workforce but also strengthen Odisha’s capacity to attract investments in knowledge-driven industries.
Empower Women Through Education
The biggest beneficiaries of free education are often young women. Evidence from across the world shows that educated women are more likely to participate in the workforce, have better health outcomes and invest more in the education of their children.
Odisha has already witnessed the transformative impact of schemes aimed at women’s empowerment. Making education financially accessible can further bridge gender gaps, particularly in higher education and professional courses.
When a girl remains in school or college, society benefits far beyond the classroom. Maternal mortality declines, child nutrition improves and family incomes rise.
Build a Skilled Workforce
The future economy will increasingly depend on knowledge-intensive sectors such as information technology, artificial intelligence, advanced manufacturing, renewable energy and semiconductors.
Odisha is actively positioning itself as an industrial destination through investments in electronics, green energy, steel, chemicals and semiconductor-related industries. However, infrastructure alone cannot sustain industrial growth. Industries require a steady supply of skilled workers, engineers, researchers and managers.
Free education expands the talent pipeline by ensuring that financial hardship does not prevent capable students from pursuing higher studies. Over time, this can help create a workforce aligned with the state’s industrial ambitions.
Strengthen Social Equity
Education remains one of the most powerful tools for social mobility. Scheduled Tribes, Scheduled Castes and other marginalised communities often face multiple barriers to educational access.
Odisha has a substantial tribal population residing in remote regions. Free education can help reduce disparities by encouraging greater participation from these communities. The policy can complement existing initiatives such as hostels, scholarships and digital learning programmes.
An inclusive education system contributes to social cohesion and reduces long-term inequalities.
According to global development research, every rupee invested in education generates multiple times its value through higher productivity, better health outcomes and increased tax revenues. States with better educational indicators generally attract more industries, create more jobs and achieve higher per capita incomes.
In the long run, the economic returns from an educated population far exceed the immediate fiscal expenditure.
But then, the state must simultaneously invest in teacher training, digital infrastructure, research facilities, laboratories, libraries and industry-linked skill programmes. Learning outcomes, rather than enrolment numbers alone, should remain the key benchmark of success.
