The high GDP growth rates of India relative to the rest of the world should normally lead to higher demand for higher education. During the late 2000s, there was a lot of talk of how low GER's may impede growth; however today we are in a situation where there is huge under-utilised capacity in the higher education sector despite decent macro-economic growth. The premium and top decile institutes continue to get large number of admission applications. Students in these institutes generally get jobs commensurate to the cost of education and these institutes manage to command a premium compared. That is par. Top 10% institutes all over the world find it easy to get students. The problem is that, while in other countries only the bottom quartile has student intake problems; in India, for more than 90% of the higher education institutes there is a shortage of applications and seats go vacant. This despite the fact that India'...