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Education Sector in India
India is the second largest market for E-learning after the US. The sector is expected to reach US$ 1.96 billion by 2021 with around 9.5 million users.

Education & Training Industry in India

    Last updated on May, 7 2021

Indian Education Sector in India Industry Report  (Size: 542.68 KB ) (February, 2021)

Introduction

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 in the education system.

With ~26.31% of India’s population in the age group of 0-14 years, India’s education sector provides numerous opportunities for growth.

Market Size

India has the world’s largest population of about 500 million in the age bracket of 5-24 years, which provides a great opportunity for the education sector. The education sector in India was estimated at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in FY19.

Number of colleges in India reached 39,931 in FY19. Number of universities in India reached 967 in FY21 (as of December 2020). India had 37.4 million students enrolled in higher education in FY19. Gross Enrolment Ratio in higher education reached 26.3% in FY19.

In 2020-21, there were 9,700 total AICTE approved institutes. Of the total, there were 4,100 undergraduate, 4,951 postgraduate and 4,514 diploma courses in AICTE approved institutes. According to the National Institutional Ranking Framework, 7 positions were bagged by prominent Indian Institutes of Technology out of the top 10 institution rankings in 2020.

The country has become the second largest market for E-learning after the US. The sector is expected to reach US$ 1.96 billion by 2021 with around 9.5 million users. In India, the online education market is forecast to reach ~US$ 8.6 billion by 2026.

 

Investments/ Recent Developments

From April 2000 to September 2020, Foreign Direct Investment (FDI) equity inflows stood at US$ 3,849.20 million according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

The education and training sector in India witnessed some major investments and developments in the recent past. Some of them are:

  • In January 2021, troops of the Indo-Tibetan Border Police (ITBP) launched an internet tools-based learning centre for school-going children in a Naxal violence-affected district of Chhattisgarh.
  • In December 2020, Samsung India announced to offer 150 fresh scholarships to Jawahar Navodaya Vidyalaya students starting a full-term course in an Indian Institute of Technology (IIT) or a National Institute of Technology (NIT) for academic year 2020-21, under the 5th edition of its Star Scholar programme.
  • In December 2020, Gamma Skills Automation Training introduced a unique robotics & automation career launch programme for engineers, an ‘Industry 4.0 Hands-on Skill Learning Centre’ located at IMT Manesar, Gurgaon in Haryana.
  • In December 2020, Hyundai Motor India Foundation, the CSR arm of Hyundai Motor India, announced its skill development initiative ‘SAKSHAM’ to boost employment opportunities in diverse sectors.
  • In December 2020, the 'IGnITE’ programme to encourage high-quality training and technical education was initiated by Siemens, BMZ and MSDE. 'IGnITE' aims at developing highly trained technicians with an emphasis on getting them ready for the industry and future, based on the German Dual Vocational Educational Training (DVET) model. By 2024, this programme aims to upskill ~40,000 employees.
  • In December 2020, to build a stronger research ecosystem, the IIT Alumni Council will launch the ‘India Empowerment Fund’ to invest up to Rs. 50,000 crore (US$ 6.80 billion) over the next 10 years.

Government Initiatives

Some of the other major initiatives taken by the Government are:

  • According to Union Budget 2021-22, the government allocated Rs. 54,873.66 crore (US$ 7.53 billion) for Department of School Education and Literacy, compared with Rs. 59,845 crore (US$ 8.56 billion) in Union Budget 2020-21.
  • The government allocated an expenditure budget of Rs. 38,350.65 crore (US$ 5.28 billion) for higher education and Rs. 54,873 crore (US$ 7.56 billion) for school education and literacy. The government also allocated Rs. 3,000 crore (US$ 413.12 million) under Rashtriya Uchchatar Shiksha Abhiyan (RUSA).
  • Under the Union Budget 2021-22, the government has placed major emphasis on strengthening the country’s digital infrastructure for education by setting up the National Digital Educational Architecture (NDEAR).
  • In January 2021, in order to mitigate the impact of challenges created due to COVID-19 pandemic, the Ministry of Education issued guidelines for identification, admission and continued education of migrant children.
  • On January 15, 2021, the third phase of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was launched in 600 districts with 300+ skill courses. Spearheaded by the Ministry of Skill Development and Entrepreneurship, the third phase will focus on new-age and COVID-related skills. PMKVY 3.0 aims to train eight lakh candidates.
  • In December 2020, the Ministry of Skill Development and Entrepreneurship, in collaboration with the Tata Indian Institute of Skills, launched two short-term courses in factory automation.

Road Ahead

In 2030, it is estimated that India’s higher education will:

  • combine training methods that involve online learning and games, and is expected to grow 38% in the next 2-4 years
  • adopt transformative and innovative approaches in Higher education
  • have an augmented Gross Enrolment Ratio (GER) of 50%
  • reduce state-wise, gender based and social disparity in GER to 5%
  • emerge as the single largest provider of global talent with one in four graduates in the world being a product of the Indian higher education system
  • be among the top five countries in the world in terms of research output with an annual R&D spend of US$ 140 billion
  • have more than 20 universities among the global top 200 universities

Various Government initiatives are being adopted to boost the growth of distance education market besides focusing on new education techniques, such as E-learning and M-learning.

Education sector has seen a host of reform and improved financial outlays in recent years that could possibly transform the country into a knowledge haven. With human resource increasingly gaining significance in the overall development of the country, development of education infrastructure is expected to remain the key focus in the current decade. In this scenario, infrastructure investment in the education sector is likely to see a considerable increase in the current decade

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 being used by several educational organisations, the higher education sector in India is set for major change and development in the years to come.

Note: Conversion rate used for January 2020 is Rs. 1 = US$ 0.0137

References: Media Reports, Press Releases, Press Information Bureau, RNCOS Report, Department for Promotion of Industry and Internal Trade (DPIIT), Union Budget 2021-22

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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