Growth and Financing Dynamics of Higher Education: Evidence from India and Saudi Arabia

Abstract

Higher education financing is crucial for promoting human capital development and economic growth. India and Saudi Arabia, despite their contrasting economic structures, have adopted distinct financing models. India follows a mixed system emphasizing access, affordability, and equity through public–private participation, while Saudi Arabia relies heavily on state funding supported by oil revenues. This study, based on secondary data from national and international sources, compares the trends, structures, and policy mechanisms of higher education financing in both countries. Findings reveal that India’s financing is increasingly diversified through privatization and equity-focused measures, whereas Saudi Arabia’s Vision 2030 seeks to expand private participation and reduce dependence on public expenditure. Both nations have achieved notable progress in enrolment and gender parity, but continue to face challenges related to sustainability, quality, and employability. The study highlights the need for diversified, equitable, and sustainable financing models to strengthen higher education systems.