Sustainable Financial Models for Higher Education in India: A Strategic Management Approach

Abstract

India’s higher education system faces growing fiscal challenges as it strives to balance quality, access, and sustainability in a rapidly expanding and competitive landscape. This study investigates the financial sustainability of Indian higher education institutions (HEIs) through a strategic management approach, integrating quantitative analysis with institutional data from 40 diverse HEIs. Using descriptive statistics, correlation matrices, and regression models, the research identifies critical dependencies on government grants and tuition fees, as well as the underutilization of private funding and digital financial tools. Significant relationships were observed between financial inputs—such as digital investment and ERP implementation—and institutional outcomes like perceived sustainability and academic performance. The findings underscore the importance of aligning financial planning with long-term institutional strategy and the urgent need for adopting data-driven decision-making supported by information systems. The research adds value to academic knowledge by developing a financial sustainability framework that suits Indian higher education institutions through innovative approaches and digital transformation and diversified funding sources. The proposed framework provides implications for policymakers and university leaders and financial planners who want to enhance financial governance in higher education. Future research requires both empirical tests and wider coverage of a broader testing sample.