22-05-2014, 03:44 PM
Message from the Education Sector Team
Message from the Education.pdf (Size: 309.08 KB / Downloads: 143)
Industry Growth & Size
The Indian Education sector is characterized by a unique
set of attributes:-
• Huge market size both in terms of number of students
and annual revenues
• A potential growth rate of 16% is expected over the
next 5 years
• Significant activity in terms of new foreign entrants
and participation is expected to be witnessed in the
years ahead
• Accreditation is still not mandatory, however, reforms
are in the pipeline to address this issue
The Indian education space is evolving, which has led
to the emergence of new niche sectors like vocational
training, finishing schools, child-skill enhancement
and e-learning among others. Growth is driven by the
increasing propensity of the middle class to spend on
education and more aggressive initiatives by private
entrepreneurs.
Higher Education in India: Current State of Play
India possesses a highly developed higher education
system, which offers the facility of education and
training in almost all aspects of human creativity
and intellectual endeavors like: arts and humanities;
natural, mathematical and social sciences; engineering;
medicine; dentistry; agriculture; education; law;
commerce and management; music and performing
arts; national and foreign languages; culture;
Size of Indian Higher Education Sector
The population of India has begun to appreciate
the value of education in a global economy and has
demonstrated an increased willingness to pay for quality
education and more students are now opting for higher
education after school.
India has the third largest higher education system in
the world in terms of enrolments, after China and the
US. The number of students enrolled in the universities
and colleges (formal system) has been reported to
be 16 mn in academic year 2010-11*. This does not
include enrolment in higher education offered through
ODL. India is acknowledged to have the largest higher
education systems in the world in terms of number of
institutes. The university and higher education system
comprises 610 universities and in addition, there are
33,023 colleges. An estimated $13bn is spent outside
the country. Higher education is the second largest
opportunity in the Indian education sector.
Recent trends in the Higher Education sector
Over the past few decades, the global economy
has shifted from being manufacturing-centric to a
knowledge-driven one and as countries move up the
ladder of development, the contributions of hi-tech
manufacturing and high value-added services to the
GDP increases. Success in leveraging knowledge and
innovation is only possible with a sound infrastructure
of higher education. A successful education policy forms
the foundation of all fields of national development
including political, social, economic, technical, scientific,
and environmental. Thus, the higher the quality of
university education in a country, the more prosperous
and competitive are the people.
Choice of Entity
Formal education in India is considered as a “not for
profit” activity by the Government and the courts.
Therefore, the choice of entity for setting up a formal
education institution has been limited by law to Society,
Trust and Section 25 Company. All of these entities
operating in formal education sector are restricted under
law to declare dividends/income to the promoters/
beneficiary. It is important to point out that Planning
Commission in its approach paper to the 12th Five Year
Plan had suggested re-examining of the “not for profit”
tag in formal education to attract investment from the
private sector.