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. As of May 17, 2021, number of universities in India reached 981. India had 37.4 million students enrolled in higher education in FY19. In FY20, Gross Enrolment Ratio in higher education in India was 27.1%.
According to KPMG, India has also become the second largest market for E-learning after the US. The sector is expected to reach US$ 1.96 billion by 2021, with about 9.6 million users from US$ 247 million and around 1.6 users in 2016.
Investments/ Recent Developments
From April 2000 to March 2021, Foreign Direct Investment (FDI) equity inflows stood at US$ 4,495.19 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:
- Following Beijing’s constraints on the education business in July 2021, India might become a hotbed for Edtech entrepreneurs and the next investment hotspot in this sector, and unicorn businesses may have an advantage in attracting money from international investors.
- Unacademy, an Indian online learning company, raised US$ 440 million in a fresh funding round in August 2021.
- In 2021, Vah Vah!, a vocational training platform offering makeup and beauty courses, has raised US$1.85 million in a seed round led by Sequoia India’s Surge accelerator.
- DigitalEd and Binary Semantics have announced the formation of ‘DigitalEd India,’ a joint venture that will bring the best-in-class digital learning to India in 2021.
- In June 2021, Amazon India launched Machine Learning Summer School to help students learn new skills.
- Domestic service providers have formed JV with foreign players. For example, GMR Aviation Academy and UAE-based Emirates Group Security will jointly offer various aviation and security courses in India.
- In May 2021, the Institute of Health & Management (IHM), Australia, announced its plan to offer scholarships worth Rs. 10 crore (US$ 1.3 million) to nurses in India to recognise their commitment and dedication amid the COVID-19 pandemic. The scholarship will be offered to those nurses undertaking the ‘Gateway to global nursing programme’.
- In May 2021, the BITS School of Management (BITSoM) joined forces with London Business School (LBS). This partnership will focus on three segments—student engagement programme, LBS faculty teaching at BITSoM and developing joint executive programme in the space of women leadership.
- In May 2021, Virohan a healthcare ed-tech start-up, which provides vocational training for paramedics, raised US$ 3 million in the Series A funding from Rebright Partners.
- As per the Union Budget 2021-22, under the NISHTHA training programme around 5.6 million teachers are to be trained in 2020-21.
- In April 2021, Education India—India’s academic partner and a start-up in the field of education—is set to invest Rs. 20 crore (US$ 2.4 million) in School Acquisition Module. The company is planning to have more than 200 schools on lease Module until 2023.
- On April 1, 2021, Union Education Minister launched the ‘MyNEP2020’ Platform of the NCTE Web Portal. The platform seeks to invite suggestions/inputs/memberships from stakeholders for preparing drafts for development of the National Professional Standards for Teachers (NPST) and the National Mission for Mentoring Program Membership (NMM). The ‘MyNEP2020’ platform will be operational from April 1, 2021 to May 15, 2021.
- 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
