According to an industry chamber study, the size of the education sector is expected to double to US$ 50 billion by 2015 with the rise in government expenditure along with an increase in middle-class income, according to the study. According to the report, the size of the education sector currently is pegged at US$ 25 billion, with higher education market estimated at US$ 15 billion. The government is planning to spend about five per cent of gross domestic product (GDP) in the next five years on education, as per the study.
The education sector in India is witnessing growth in private equity (PE) investment, according to HDFC. The company plans to foray into the sector, which according to Keki Mistry, Vice Chairman and Chief Executive Officer, HDFC, has touched US$ 190 million in 2010.
The education sector is also witnessing increase in hiring activities as per the employment indices of online job portals Naukri.com and Monster India. In the month of June 2010, the indices for Monster India and Naukri.com went up by 9 per cent and 10 per cent, respectively.
India was ranked number 4 on the list of the top 10 preferred destinations for B-school aspirants, according to the findings of a survey conducted by the Graduate Management Admission Council (GMAC).
Further, according to a worldwide survey of 'Universal Business Schools with major international influence,' conducted by French consulting firm SMBG amongst deans of 1000 business schools, the Indian Institute of Management Bangalore (IIM-B) has been ranked 24th while IIM-Ahmedabad ranked 55th.
Technical Education in India
Taking a step further, the government has approved the intended investment of US$ 519 million to initiate the second phase of the Technical Education Quality Improvement Programme (TEQIP).
Of the total project expenditure of US$ 519 million in the second phase, the World Bank will contribute US$ 298 million, the Centre's contribution according to 11th Five-Year Plan is US$ 106.8 million, while the states and private unaided institutions will invest US$ 110.7 million and US$ 3.42 million, respectively. The project will be open for competition and participation by all the engineering institutions approved by the AICTE.
The TEQIP scheme has been on since 2003, with World Bank's assistance. The scheme was envisaged as a long-term programme of about 10-12 years, to be implemented in three phases for transformation of the technical education system. The first phase of TEQIP ended on March 31, 2009, covering 127 institutions in 13 states.
The Orissa government has signed memoranda of understanding (MoUs) with eight mega industries for setting up quality Industrial Training Centres (ITCs) in the state in the first phase.
The Industries Association of Uttarakhand (IAU), an organisation of micro, small and medium enterprises (MSMEs), will soon sign a memorandum of understanding (MoU) with the University of Petroleum and Energy Studies. Under the MoU, IAU will organise workshops and conferences, and provide inputs from experts for curriculum development.
Mr Kapil Sibal, Union Minister for Human Resource Development has announced government's plans to launch a scheme, which would bring in information, communication and technology (ICT) into elementary education. The scheme which is likely to be on the lines of the ICT scheme for higher education, would focus on the development of e-contents which would be used by students at primary and upper-primary classes for learning purposes.
The Minister has recently unveiled a US$ 35 low-cost computer in an attempt to revolutionise classroom education across the country. The device allows students to write and store text, browse the Internet and view videos, among other regular features.
Educomp Solutions has announced an agreement with China Distance Education Holdings Ltd (CDEL), a provider of online education in China, granting the latter exclusive rights to licence and distribute Educomp's products in China (excluding Hong Kong, Macau and Taiwan).