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Education Sector in India

October, 2014

India's higher education segment is the largest in the world with approximately 20 million students and 36,000 institutions. Also, the higher education sector is expected to increase to US$ 37.8 billion by 2020. The schooling segment in India is anticipated to be around US$ 144 million by 2020 from US$ 44 million in 2011.

India has one of the largest networks of higher education institutions in the world with 574 universities and 35,539 colleges. It is also the third largest in terms of education enrollment with over 20 million enrollments per year. The private education sector which was valued at US$ 50 billion in 2008 is estimated to reach US$ 115 billion by 2015.

The Government of India has planned to provide enhanced access to higher education by creating two million additional seats for each age group, in the 12th Five-Year Plan. The government has also allowed 100 per cent foreign direct investment (FDI) in the education sector through the automatic route since 2002.

With tutoring in the schooling segment expected to grow from US$ 8 billion in 2011 to US$ 26 billion in 2020, there lies a large and fast growing market for coaching and tutoring services imparted through innovative means, mainly the Internet. With the aid of liberal FDI policies, there is a lot of potential for setting up campuses of foreign universities in India.

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