Education of a nation is one of the foremost requirements for its development. India’s advantage of having a large population of youth presents a huge opportunity to the players in the education sector as well as scope to the government for development of this sector and consequently, the country.
Several factors such as growing income levels and favourable foreign policies have attracted many foreign players into the Indian education market. The Government of India has also taken several initiatives to provide quality education to the youth in the country.
A Deloitte study has recognised the Indian education sector as a 'sunrise sector' for investments. This is because this sector offers huge potential to investors in the regulated as well as non-regulated markets. The vast diversity in ethnicities coupled with varying demographics has prompted different players to invest in the sector.
The education market in India, which is presently worth around Rs 5.9 trillion (US$ 92.98 billion), is poised for some major growth in the years to come, as by 2020, India will have the world's largest tertiary-age population, and second largest graduate talent pipeline globally. Presently, higher education contributes 59.7 per cent of the market size, school education 38.1 per cent, pre-school segment 1.6 per cent, and technology and multi-media the remaining 0.6 per cent. The higher education sector in India is poised for an average growth of 18 per cent per year till 2020.
The education sector in India has earned global recognition from several quarters. For instance, the Mumbai University has featured in the world top 10 list for institutes with billionaire alumni and is ranked ninth, according to a report by Wealth-X and UBS.
Due to the growth advantages, this sector has also received number of investments from several foreign organisations. In the period from April 2000—September, 2014, the education sector in India has attracted FDI equity to the tune of US$ 964.03 million, according to the Department of Industrial Policies and Promotion (DIPP).
The education and training sector in India has witnessed some major investments and developments in the recent past. Some of them are:
The Government of India is all set to roll out a new educational policy by year 2015, according to Ms Smriti Irani, Union Minister of Human resource Development (HRD), Government of India.
Some of the other major initiatives taken by the Indian government in the recent past are:
Higher education in India is undergoing a huge change since last decade. There are over 600 million people in India, under 25 years’ old, potential candidates who would continue education, given the right kind of opportunity and convenience.
The Government of India has taken several steps including opening of IIT’s and IIM’s in new locations as well as allocating educational grants for research scholars in most government institutions. Furthermore, with online modes of education being used by several educational organisations, the higher education sector in India is set for some major changes and developments in the years to come.
Exchange rate used INR 1= 0.0157 as on December 23, 2014
References: Ministry of Finance, Press Information Bureau (PIB), Media Report, Ministry of Education, Department of Industrial Policy & Promotion (DIPP)