India spends 4.1% of GDP on education, behind Brazil and less than half of South Africa, and the slice of the government’s own budget going to it keeps shrinking. Meanwhile Bristol opened a Mumbai campus as the fifth foreign university to land here, Karnataka is pushing AI into classrooms from Class 6, Tamil Nadu cut the land a private university needs to own, and ₹100 crore is set to head into a single Bengaluru business school.

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Funding & Acquisitions

• Bengaluru’s Mesa School of Business is raising about ₹100 crore in a Series A, built as ₹84 crore of equity and ₹16 crore of venture debt, with the round yet to close. Co-founder Varun Limaye is looking to sell about 2.9% of his personal stake for roughly ₹3 crore, picked up by existing investors wanting a bigger share of the company. Mesa raised ₹34 crore in seed funding in April 2023 led by Elevation Capital, and revenue and enrolments have grown about 2.5 times over the past year, according to people familiar with the company.

Partnerships & Strategic Initiatives

• The University of Bristol has opened its Mumbai Enterprise Campus in Powai, opposite IIT Bombay, making it the fifth foreign university with a working campus in India, after Deakin, Wollongong, Southampton and UNSW Sydney. It is Bristol’s first campus anywhere outside the UK, starting with finance and data science, alongside a research and teaching partnership with IIT Bombay. Four students joined under a University of Bristol and Government of Maharashtra scholarship, which covers full tuition and carries internships at the Chief Minister’s Office.

• Bodhan AI, a non-profit incubated at IIT Madras, has released four open-weight AI models for Indian languages covering speech recognition, text to speech, translation and optical character recognition. They were built with AI4Bharat on NVIDIA’s NeMo framework and released free for edtech firms, startups and researchers to fine-tune for their own use. The argument behind it is that Indian developers should not have to pay for English-first proprietary systems to build regional language tools.

Policy & Government

National

• The Supreme Court has agreed to hear a plea for a national policy on the welfare of private school teachers, issuing notice to the Centre, every state and union territory, and the National Council for Teacher Education. The petition wants a welfare board covering pensions, provident fund and gratuity, and says 37.3 lakh teachers work in recognised private unaided schools with no uniform safety net. Justices Vikram Nath and Sandeep Mehta listed it for hearing after four weeks.

Regional

• Karnataka has notified draft rules reserving 15% of government seats in professional courses for rural students, split into two categories of 7.5% each. One covers students who studied Classes 1 to 10 in rural government schools, the other any rural school regardless of who runs it. That split matters because 1,610 of the 2,246 rural quota seats awarded over the past three years went to students from private schools, helped by residential private schools that have almost all come up in rural areas. Chief Minister D.K. Shivakumar had promised 7.5% for rural government-school students in his Independence Day address, and the draft widens that to 15%, open to objections for 15 days.

• Karnataka will also put AI lessons into schools from Class 6 through two programmes, AI Akshara Abhiyana and Coding Gurukula, and plans a government-sponsored AI university in Bengaluru built with industry involvement. The state has begun filling 72,000 government vacancies, with notifications expected over the next six months. Curriculum design and teacher preparation will decide how much of the school AI push reaches a government classroom.

• Tamil Nadu has passed an amendment cutting how much land a private university needs to own, down to 12 acres inside Greater Chennai, 18 acres in other corporations and councils, and 25 acres elsewhere in the state, with the permanent endowment fund reduced to ₹25 crore. Higher Education Minister P. Viswanathan said the point is to bring in new world-class institutions, not to let existing colleges upgrade themselves into universities. Andhra Pradesh made a similar move in August, cutting its own floor from 50 acres to 10 in the main urban corridors.

• Gujarat has passed a Bill bringing government-aided private secondary and higher secondary schools under its 1972 Education Act, with the state to set qualifications and selection rules for principals, teachers, special educators and non-teaching staff. The penalties move sharply. Illegally appointing a teacher or principal at an aided school goes from a ₹1,000 fine to as much as ₹10 lakh, closing a school without six months’ notice to the board now costs ₹20 lakh, and running a school without registration can mean two years in prison and a ₹15 lakh fine.

• Karnataka is considering opening its state-level teacher awards to private school staff, School Education Minister Madhu Bangarappa said at a private schools federation event in Attibele. Private schools have also asked the state to shift school timings around Bengaluru’s traffic and to let them buy government textbooks, both still under consideration.

Financial Reports & Market Trends

• India spends less on education than the biggest BRICS spenders, at 4.1% of GDP against Brazil’s 4.9% and South Africa’s 10.5%, though it sits marginally above China’s 4.02% and Russia’s 3.5%, according to the BRICS Joint Statistical Publication 2026. That figure has not moved since 2015, while education’s share of total public spending has slipped 1.5 percentage points to 14.2% on UNESCO’s 2026 SDG 4 scoreboard. India still clears UNESCO’s minimum benchmark for GDP share, but sits below the threshold for how much of its own budget should go to education.

• Education is taking a bigger bite of the household budget. It took 6% of urban household spending in 2025, up from 4.3% in 2000, while the rural share rose from 1.9% to 3.2%, according to the BRICS Joint Statistical Publication 2026.

• State board students are now the largest group chasing an overseas degree, at 56% of aspirants against 40% from CBSE, many of them the first in their family to apply abroad, according to upGrad’s Transnational Education Report 2026, drawn from 53,800 students counselled between January 2025 and June 2026. Nearly 60% came from tier II and tier III cities. Germany is now the preferred destination for 48% of them, well ahead of the United States at 20%, and seven in ten plan to spend under ₹30 lakh.

• A study across India, Kenya, Nepal, the Philippines and Uganda found that one weekly 20-minute phone call, paired with text messages, produced large gains in basic maths for primary school children while schools were closed. The programme cost $11 per child, and the number of students who could solve division problems jumped 92%. The researchers put it among the most cost-effective education interventions ever measured, and the approach is now moving into Karnataka classrooms to cover monsoon closures.

• Textbook publisher S Chand is licensing its content to train AI models, a business worth around ₹32 crore last year that it wants above ₹40 crore in FY27 after growing more than 60%. The 87-year-old company posted FY26 revenue of ₹798.7 crore, up 11%, and closed the year net debt free. Its own digital learning platform tells the other half of the story, with usage down to barely 2-3% of enrolled users while roughly 80% of the business now comes from K-8, where it says physical textbooks have held up.

Opinions

• Fewer than 7% of male graduates land a permanent salaried job within a year of finishing. The comfortable explanation is that educated young people can afford to hold out for something better, and John J Kennedy takes that argument apart using what actually happens to them while they wait. He also has a pointed answer on what universities should be funded on instead. Worth reading before you blame the curriculum.

• Can India get rich before it gets stuck? Thomas Piketty says it can, but only with heavy spending on education, health and infrastructure, and he is blunt about where the world’s attention has gone instead. What he calls the current obsession with AI, and what he thinks the real geopolitical battleground of the future is, will irritate a fair number of people in Bengaluru. A short read for anyone who assumes the technology conversation and the development conversation are the same one.

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