India holds an important place in the global education industry. India has one of the largest networks of higher education institutions in the world. However, there is still a lot of potential for further development and improvement in the education system.
With almost 27% of India’s population in the age group of 0-14 years, India’s education sector provides numerous opportunities for growth.
The education sector in India was estimated to be worth US$ 117 billion in FY20 and is expected to reach US$ 225 billion by FY25.
Number of colleges in India reached 42,343 in FY20. As of May 17, 2021, the number of universities in India stood at 981.
In 2021-22, as of February 2022, there are 8,997 total AICTE approved institutes in India. Out of these 8,997 institutes, there were 3,627 undergraduate, 4,790 postgraduate and 3,994 diploma institutes.
India had 38.5 million students enrolled in higher education in 2019-20, with 19.6 million male and 18.9 million female students.
In FY20, Gross Enrolment Ratio (GER) in Indian higher education was 27.1%.
According to UNESCO’s ‘State of the Education Report for India 2021’, the Pupil Teacher Ratio (PTR) at senior secondary schools is 47:1 as against 26:1 of the overall school system.
The Indian edtech market size is expected to reach US$ 30 billion by 2031, from US$ 700-800 million in 2021.
The online education market in India is expected to grow by US$ 2.28 billion during 2021-2025, growing at a CAGR of almost 20%. The market grew by 19.02% in India in 2021.
From April 2000-September 2021, Foreign Direct Investment (FDI) equity inflows stood at US$ 6.74 billion according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).
A total of 71 Indian institutions have been qualified for the Times Higher Education World University Rankings 2022, up from 63 in 2020.
As per the QS employability rankings 2022, the Indian Institute of Science (IISc), Bengaluru, six Indian Institutes of Technology (IITs), Delhi University, University of Mumbai, University of Calcutta, OP Jindal Global University, Sonipat and BITS Pilani were among the global top 500 universities.
Indian edtech startups have received total investment of US$ 4.7 billion in 2021, up from US$ 2.2 billion in 2020.
In February 2022, the AICTE - backed by AWS Academy and EduSkills - launched a two-month virtual internship program in AI for 5000 students. The course duration is two months and the students will receive a certificate and a digital badge upon completion.
In February 2022, education-focused fintech firm Propelld raised US$ 35 million from in a series-B funding round from WestBridge Capital, Stellaris Venture Partners, India Quotient and others.
In February 2022, the Tech Mahindra Foundation, the company's CSR arm, has partnered with Amazon Internet Services Private Limited (AISPL) to help underemployed or unemployed people get started in cloud computing. The AWS re/Start programme is a 12-week in-person skills-based training programme that covers foundational AWS Cloud abilities, as well as practical job skills like interviewing and resume writing to assist individuals prepare for entry-level cloud positions.
In October 2021, Byju’s raised Rs. 2,200 crore (US$ 300 million) to increase the company’s valuation from US$ 16.4 billion in 2020 to US$ 18 billion in 2021.
In September 2021, Amazon launched its global computer science education initiative in India. The aim of this initiative is to offer one lakh students the opportunity to study computer science.
In September 2021, online tutoring platform Vedantu achieved unicorn status as the company raised US$ 100 million in a Series-E funding round led by Singapore-based ABC World Asia.
In August 2021, Indian online learning platform Unacademy raised US$ 440 million in a financing round led by Temasek, which valued the six-year old startup at US$ 3.44 billion.
In June 2021, Amazon India launched a Machine Learning Summer School to help students learn new skills.
100% FDI under automatic route is allowed in the Indian education sector.
To liberalise the sector, the Government has taken initiatives such as the National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill.
The government schemes of Revitalising Infrastructure and System in Education (RISE) and Education Quality Upgradation and Inclusion Programme (EQUIP) are helping the government tackle the prominent challenges faced by the education sector.
As per the Union Budget 2022-23, allocation towards the Samagra Shiksha Scheme has increased by around 20.3%, from Rs 31,050.16 crore (US$ 4.16 billion) in FY22 to Rs 37,383.36 crore (US$ 5.01 billion) in FY23.
In February 2022, the central government approved the “New India Literacy Programme” for the period FY 2022-27 to cover all the aspects of adult education to align with National Education Policy 2020 and Budget Announcements 2022-23.
The Cabinet accepted the continuance of the Samagra Shiksha School Education Scheme in 2021 from April 1, 2021, to March 31, 2026.
In October 2021, the NSDC launched the largest 'Impact Bond' in India, with a US$ 14.4 million fund, to help 50,000 youngsters in the country acquire skills necessary for employment.
In September 2021, The National Commission for Women started a country-wide capacity building and personality development programme for women undergraduate and postgraduate students in an effort to make them more independent and job-ready. The commission will partner with central and state institutions to prepare women students for the job market by providing sessions on personal capacity building, professional career skills, digital literacy and effective use of social media.
STEM-based edtech companies are partnering with Niti Aayog and the government to build a STEM ecosystem by establishing Atal Tinkering Labs (ATL) to spread knowledge about STEM, STEAM, AI, ML, AND Robotics for K-12 students.
In September 2021, NITI Aayog announced a collaboration with BYJU’s. In this partnership, students in government schools in 112 ‘aspirational districts’ will have free access to the company's ‘quality learning materials’. BYJU'S will also give free engineering and medical entrance test preparation sessions to 3,000 deserving students in Classes 11 and 12 through Aakash Institute.
The Government of India has taken several steps including opening of IIT’s and IIM’s in new locations as well as allocating educational grant for research scholars in most government institutions. Furthermore, with online mode of education increasingly being used by several educational organisations, the higher education sector in India is set for major change and development in the years to come.
