India’s education sector offers a great opportunity with approximately 29 per cent of India’s population being between the age group of 0-14 years. The schooling segment in India is anticipated to be around US$ 144 billion by 2020 from an estimated US$ 95.8 billion in 2015. India’s higher education segment is the largest in the world, and is expected to increase to US$ 37.8 billion by 2020. The education industry in India is estimated to reach US$ 144 billion by 2020 from US$ 97.8 billion in 2016.
India has one of the largest networks of higher education institutions in the world with 833 universities and 42,047 colleges. A total of 35.7 million people were enrolled in higher education institutes in 2016-17. Gross Enrolment Ratio (GER) in higher education reached 25.2 per cent in 2016-17. The private education sector which was valued at an estimated US$ 96 billion in 2015 and is estimated to reach US$ 133 billion by 2020.
The Central Government plans to disburse US$ 1 billion to states for introducing skill development initiatives. In November 2016, Ministry of Skill Development and Entrepreneurship launched Pradhan Mantri YUVA Yojana, at a cost of US$ 74.68 million for providing entrepreneurship education and training to students in the country. In October 2017, in order to boost the Skill India mission, two new schemes, SANKALP and STRIVE were launched with an outlay of Rs 6,655 crore (US$ 1.02 billion). Revitalising Infrastructure and Systems in Education (RISE) by 2022 was announced in union budget 2018-19 with an outlay of Rs 1 lakh crore (US$ 15.44 billion) for four years.
The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in the education sector through the automatic route since 2002.The sector has received cumulative FDI worth US$ 1.67 billion up to December 2017. The Government of India is working on the final draft of the New Education Policy to address the changing dynamics in the education industry of the country as per the requirement of the population. The draft of the New Education Policy is expected by March 2018.
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