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).
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).
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.
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.
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