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Education and Training

December, 2011

Training & Education in India- Brief Introduction

India’s education sector is pegged at roughly around US$ 85 billion, more than half of which is funded privately.

According to the report ‘Emerging Opportunities for Private and Foreign Participants in Higher Education’ released by research firm PricewaterhouseCoopers (PwC), the education sector in India is one of the major attractors for investments as the entire education system is undergoing a revamp. The Indian education sector, entailing three major goals of expansion, inclusion and quality, is poised to be recognised as one of the best globally. The report further states that the Government of India aims to achieve 21 per cent of gross enrolment ratio (GER) by the end of the Twelfth five year plan (2012-2017).

Training & Education – Major Investments and Key Developments

  • Globally diversified education solutions provider Educomp Solutions Ltd has recently launched digital class transformation system (CTS) in Gujarat wherein it has digitalised instruction and assessment materials and applications to perk-up a child's educational experience. The company is also planning to open 100 more schools in Gujarat by end of March 2012.
  • As a part of its ‘university connect’ initiative, IBM India is collaborating efforts with IIT Guwahati for research on solutions for the differently-abled, wherein the company will contribute for project that would focus on people who face hearing and speech problems. The project would develop software-based solutions that will be able to evaluate the sound pronounced by the user, compare it with the target sound, and provide appropriate feedback.
  • The Ministry of Commerce, Industry and Textiles would launch four new National Institutes of Design (NIDs) - in Assam, Andhra Pradesh, Madhya Pradesh and Haryana - to meet the growing need for industrial designers, especially at the regional level. The new NIDs are expected to become operational by 2016. To support it further, the Twelfth Five-Year plan is anticipated to encourage the process of commercialising indigenous designs from regions and make them commercially viable.
  • US-based Apollo Group Inc will enter strategic alliance with HT Media to foray into Indian education market. Apollo, through its subsidiary Apollo Global, will operate 50:50 joint venture (JV) with the newspaper publisher and offer business-related programs targeting the corporate space along with some online courses. The venture, targeting traditional students and working adults, would be launched in 2013.
  • With growing demand for management education in India, business schools or rather B-Schools are vying for international accreditation to improve their brands and teaching methods, enhance exchange programmes and increase international relations. Indian B-schools are seeking three kinds of global accreditations—the British-promoted Association of MBAs (AMBA), the European Quality Improvement System (EQUIS) and the American AACSB (Association to Advance Collegiate Schools of Business).

Recently, the Indian School of Business (ISB), Hyderabad, became the first South Asian B-school to get AACSB accreditation.

Foreign direct investment (FDI) inflows in the education sector during the period April 2000 to September 2011 stood at US$ 448.97 million, according to the Department of Industrial Policy and Promotion (DIPP).

Government Initiatives

The United Nations Children's Fund (UNICEF) and Ministry for Human Resources development (MHRD) have drafted a 'National vision for Girls' Education in India - Roadmap to 2015' in order to implement a comprehensive approach towards girls’ education. The Vision Document, which states the framework of the program, envisages a one-year community mobilisation campaign on right to education, higher and better investment for girls' education, bracing-up the system for effective service delivery and child friendly schools. The document also endorses convergence and partnership for overall well being of girls in areas of education, health, nutrition, hygiene and protection.

India and Australia are increasingly improving their bi-lateral ties especially in the field of education. Geoffrey Conaghan, Victorian Government's Commissioner to India, has recently inaugurated a specially-designed vocational training program, for selected ITI teachers in Maharashtra. Moreover, Government of Maharashtrahas inked an agreement with Government of Australia to launch diploma courses in aircraft maintenance and automotive technology in a joint collaboration.

Furthermore, the Union Cabinet has given its nod for the merger of two Government schemes - National Mission on Education through Information and Communication Technology (NMEICT) and National Knowledge Network (NKN). The meeting, chaired by the Prime Minister, Dr Manmohan Singh, has set a target to enable e-learning in 25,000 colleges and 2,000 polytechnics. Of these, 18,000 colleges had received approval by the Cabinet Committee on Economic Affairs in 2009.

Emergence of Sports Education

Sports education is increasingly becoming a serious business in India. The US$ 38 billion sports education and management industry is being viewed as a great investment opportunity by entrepreneurs.

For instance, Reliance Industries, which formed a JV with IMG Worldwide in 2010 to launch IMG Reliance, intends to enhance, promote and manage sports and entertainment in India. Following this tie-up, IMG Reliance signed a 15-year agreement with the All India Football Federation through the Basketball Federation of India and acquired commercial rights relating to football in the country. The company also formed alliance with the All India Tennis Association and Professional Golf Tour of India to develop Indian tennis and golfing talent.

Entities like Edu Sports, Kooh Sports, Sports Education Development India, Cricket India Academy, Leap Start, Tenvic and India Khelo are all selling the concept of sports education to schools. Bengaluru-based Edu sports, that provides end-to-end sports education solution to K-12 schools, expects a million enrolments during 2012-15.

Even Corporate sponsorships in sports marketing are on a high; they are growing at about 12 per cent annually and industry experts anticipate that the pace would go up to 15 per cent in 2012.

Road Ahead

India plans to enhance its formally skilled workforce through vocational education and training from the current 12 per cent to 25 per cent by 2017, thereby adding about 70 million people in the next five years. Hence, the higher education segment is expected to undergo intense changes and activities in terms of foreign partnerships and foreign players entering the market in the coming years, with Indian players rejuvenating and improvising their methodology, technology and course content to match the competition.

Consulting firm Technopak is very positive about the growth of the sector in its study named ‘A Report Card on India’s Education Sector’ which estimates private education sector alone to grow to US$ 70 billion by 2013 and US$ 115 billion by 2018.

Exchange Rate Used: INR 1 = US$ 0.0186 as on December 14, 2011

References: Press Releases, Media Reports, Technopak Report, PWC Report, Department of Industrial Policy and Promotion document