There is a growing number of reports indicating that numerous international and private schools in China are shutting down or consolidating as a result of stricter regulations, a slowing economy, and a decrease in the number of foreign students. In 2020, more than 180,000 private educational institutions in China enrolled a total of 55.6 million students, accounting for over a third of all educational institutions in the country.

The Niti Aayog report emphasizes that in several Indian states, more than 50% of primary schools have fewer than 60 students enrolled.

Sub-scale schools face various challenges, such as teaching multiple grades in a single classroom, limited community participation, inadequate infrastructure, and teachers taking on administrative duties in the absence of headmasters or principals.

The report suggests that merging schools is an effective way to deal with low enrollments, and it points to the successful implementation of this strategy in SATH-E states as evidence. In spite of concerns about potential risks, independent studies have shown that mergers can lead to positive results and enhanced learning outcomes when carried out with strict adherence to procedure.

The report recommends that states implement comprehensive K-12 schools based on the National Education Policy's guidance for creating extensive school complexes.