Strengthening Teaching-Learning and Results for States (STARS) Scheme,2021 for Education Reform in India Explained

Policy Update
Bhavya

Introduction

STARS is a program to support reform to improve the quality and governance of school education in six states, namely, Himachal Pradesh, Rajasthan, Madhya Pradesh, Maharashtra, Odisha, and Kerala. It became effective on 23rd February 2021 for a period of five years, ending in the financial year 2024-25. The total project cost is Rs. 5718 crore, with a loan from the World Bank of Rs. 3700 crore.

It is a centrally sponsored scheme under the Department of School Education and Literacy, Ministry of Education. The objective of the scheme is to improve education outcomes and school-to-work transition strategies for improved labour market outcomes, which is aligned with the objective of the National Education Policy 2020 of Quality-Based Learning Outcomes. The Program is carved out of Samagra Shiksha. 

Background

The COVID-19 pandemic profoundly disrupted global education, displacing more than 1.3 billion students worldwide. In India alone, over 247 million students were affected. As education plays a crucial role in reducing poverty and fostering economic growth, this disruption presents both a challenge and an opportunity.

India has a long-standing commitment to educational reform. Earlier schemes like the Sarva Shiksha Abhiyan (SSA) and Rashtriya Madhyamik Shiksha Abhiyan (RMSA) were merged into the Samagra Shiksha program to provide holistic school education support. These policies aimed to enhance access, equity, and quality in education.

The education sector in India is substantially decentralized. On top is the policy-making body of the central government, the Ministry of Human Resource Development (MHRD). At the bottom, the states have the autonomy to undertake reforms according to their state context. 

In the last decade, school enrollment and attendance have significantly increased. As of 2016-17, the elementary gross enrolment ratio (GER) was almost 93.6 percent, while the secondary GER stood at 79.4 percent, up from 58 percent in 2009-10 (World Bank, 2020).

India has achieved gender parity in primary school enrollment. However, secondary school completion rates remain higher for boys than for girls, contributing to a decline in the Female Labor Force Participation (FLFP) rate, which fell to 23.3% in 2017-18. This means that over three out of four Indian women above the age of 15 are neither employed nor actively seeking employment.

Meanwhile, national concern around learning outcomes has grown. India’s participation in the 2009 Program for International Student Assessment (PISA), where it ranked 72nd out of 73 countries, highlighted the urgency of systemic reform.

The MHRD Performance Grading Index (PGI) shows persistent deficiencies in school retention and completion, learning outcomes, and education sector governance, with deep inter- and intra-state variations in all areas. These deficiencies are linked to a limited focus on Early Childhood Education (and foundational learning in general); teacher shortages in key geographic locations and subject areas; and overall weaknesses in teacher preparation and accountability. 

Furthermore, the quality of education varies across and within different types of schools in India. While globally, schools with better funding and wealthier student populations tend to perform better, India presents unique exceptions. However, the World Bank data reveal that certain government school networks, such as Navodaya Vidyalaya (NV) and Kendriya Vidyalaya (KV), achieve better outcomes than other schools with similar funding and income profiles. NVs and KVs have a pass percentage (senior secondary school leaving examination) of 99.7 percent as compared to the national average of 98.8 percent. A closer look reveals that it is due to decentralised academic planning, annual inspections, mandatory training, monetary incentives for teachers, and strategic partnership with non-state actors. 

In light of these challenges and learnings, the Strengthening Teaching Learning And Results For States (STARS) initiative was conceptualized. It draws from the 2017-18 PGI results to identify diverse states for intervention. Kerala, Himachal Pradesh, and Rajasthan—referred to as ‘Lighthouse States’—have already shown positive reform outcomes. Madhya Pradesh, Maharashtra, and Odisha, termed ‘Learning States,’ are still developing their reform strategies.

Functioning

To achieve its goals, STARS leverages best practices in pedagogy, learning assessments, and governance mechanisms. It aims to improve learning outcomes, increase school completion rates, and enhance the service delivery of education systems.

The targeted beneficiaries of the scheme are children from the age of 3 to 18 years (pre-school to class XII), teachers, and educational institutions. Around 250 million students in 1.5 million schools and over 10 million teachers will benefit from the program.

The STARS Program has two result areas: a national component that supports efforts to improve overall monitoring and measurement activities in the Indian school education system and a state component with five sub-components. The program offers flexibility to the six states to choose from among and within a set of five sub-components depending on their state-specific context, reform agenda, and needs.

National-level Interventions: 

1. Strengthen the Ministry of Education’s data systems to track student retention, transition, and completion.
2. Improve Performance Grading Index (PGI) scores by rewarding states through State Incentive Grants (SIG).
3. Enhance learning assessment systems.
4. Set up PARAKH, a National Assessment Center, to:
   1. Share best practices across states
   2. Use platforms like Shagun and DIKSHA
   3. Organize workshops and state visits
5. CERC (Contingency Emergency Response Component) to respond quickly to education disruptions like natural disasters or pandemics by enabling remote learning and flexible funding.

State-level Intervention:

1. Strengthen Early Childhood Education and Foundational Literacy/Numeracy
2. Improve student assessments
3. Enhance teacher training and school leadership
4. Promote decentralized governance and efficient service delivery
5. Mainstream vocational education, career guidance, internships, and support for out-of-school children

One of the most pressing challenges in vocational education today is the mismatch between school curricula and local employment opportunities. The World Bank’s Jobs at Your Doorstep report (2024), which analyzes vocational education across six states under the STARS programme, highlights this gap and calls for a realignment of school-based vocational training with district-level economic activity.

The report recommends a more flexible and broad-based approach to trade education, tailored to the needs of local industries. It proposes the establishment of “Skill Hubs” in secondary schools to expand access to skill-based learning. These hubs would not only support hands-on training and technical education but also integrate employability and soft skills, helping students navigate an evolving job market more effectively.

Crucially, the report advocates for decentralized planning that aligns vocational offerings with local industry demand rather than relying on a uniform national curriculum. This shift would ensure that vocational education becomes more relevant, responsive, and regionally grounded.

The Program also integrates national initiatives such as PM e-Vidya, the Foundational Literacy and Numeracy Mission, and the National Curricular Framework for Early Childhood Education, and aligns with the goals of Atmanirbhar Bharat.

Outcomes

• More students are achieving minimum proficiency in Grade 3 language
• Improvement in secondary school completion rates
• Improvement in governance index scores
• Strengthened learning assessment systems
• Cross-state learning partnerships
• Better training for educators and school leaders
• STARS will also assist in India’s participation in PISA

Budgetary Trends

Spending under the STARS project has shown a consistent upward trend, indicating increased government commitment to education reform.

In FY 2023, the allocation was ₹4.73 billion, which rose to ₹6.99 billion in FY 2024. For FY 2025, the budgeted estimate was ₹12.5 billion, but actual spending was lower at ₹8.5 billion. This shortfall suggests potential implementation hurdles such as bureaucratic delays or underutilization of funds by states.

Despite this, the estimated allocation for FY 2026 remains at ₹12.5 billion, reflecting continued prioritization of the program. The overall trend demonstrates long-term investment in improving learning outcomes and governance across participating states.

Emerging Issues 

1. Over-reliance on Private Entities 

Oxfam India wrote a letter to the World Bank, raising strong concerns about the STARS project. They argued that the project relies too heavily on private companies to solve problems within the public education system. Similar efforts in other contexts have failed or caused harm. As Bhatty (2020) argues, the World Bank “has the mistaken understanding that state capability should be built by giving a larger role to non-state actors and by increasing the use of technology. Both these premises are misguided, as they do not contribute to the capability of the state to deliver better education.”

2. Equity and Inclusion Concerns 

The project lacks detailed mechanisms to support students from marginalized groups, such as children with disabilities, migrant children, and those from disadvantaged castes or communities. Over-reliance on digital tools in areas without adequate infrastructure could deepen existing inequalities.

3. The Need for Public Consultation

Several civil society organizations raised concerns about the lack of public consultation before finalizing STARS. Teachers, parents, and local communities were not given adequate platforms to express their concerns. Effective education reform requires grassroots engagement; without it, top-down policies may fail to address ground realities.

Way Forward 

1. Achieve universal access to secondary education, particularly for girls, children of migrant workers, and economically disadvantaged groups.
2. Ensure equitable funding and quality support for all government schools, not just flagship institutions like KVs and NVs.
3. Build public capacity by strengthening teacher training institutions (like DIETs) and local education governance rather than outsourcing responsibilities to private actors.
4. Empower teachers to lead curriculum design, assessment, and pedagogy with greater autonomy.
5. Use digital tools based on open-source technologies to avoid increasing dependence on private tech companies.

References 

1. PIB Delhi. (2020). Cabinet approves Rs. 5718 crore World Bank aided project STARS for Improving School Education. https://dsel.education.gov.in/sites/default/files/PIB1664361.pdf 
2. STARS. (2024). Stars.education.gov.in. https://stars.education.gov.in/aboutstars 
3. Strengthening Teaching Learning and Results for States (STAR) | Department of School Education and Literacy, Ministry of Education, GoI. (2025).  Dsel.education.gov.in. https://dsel.education.gov.in/stars-project 
4. World Bank. (2020). India – Strengthening Teaching-Learning and Results for States Operation (English). Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/789561593309621894 
5. World Bank. (2022). Jobs at Your Doorstep: A Jobs Diagnostics for Young People in Six States (English). Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/099607111222440625 
6. Oxfam India. (2020). Collective concerns about the World Bank-funded Strengthening Teaching Learning and Results for States (STARS) project.  https://www.oxfamindia.org/sites/default/files/2020-06/Collective%20letter%20to%20WB%20on%20STARS%20project.pdf 
7. Haus, K. B. M. (2020). The World Bank’s STARS project needs an overhaul. The Hindu. https://www.thehindu.com/opinion/the-stars-project-needs-an-overhaul/article31947675.ece 
8. PRS Legislative Research. (2025). Expenditure on Strengthening Teachers-Learning and Results for States (STARS) project in India for financial year 2023 and 2024, with estimates until 2026 (in billion Indian rupees) [Graph]. In Statista. Retrieved May 10, 2025, from https://www.statista.com/statistics/1360524/india-budget-expenditure-on-stars-project/#:~:text=Expenditure%20on%20STARS%20project%20in%20India%20FY%202023%2D2026&text=In%20the%20financial%20year%202026,over%2012%20billion%20Indian%20rupees. 

About the Contributor 

Bhavya is a research intern at IMPRI Impact and Policy Research Institute, a third-year undergraduate pursuing a double major in Economics and Sociology at Christ University, Bangalore, Central Campus.

Acknowledgment

The author thanks Aasthaba Jadeja, internship coordinator, for her guidance and support.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organization.

Read more at IMPRI:

Indian Knowledge Systems, 2020: Reviving Ancient Wisdom for Modern Challenges

DigiLocker (2015): India’s Paperless Document Wallet