Education & Training

INTRODUCTION

India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector. 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 increasing awareness, private Indian players are collaborating with international brands to provide an international standard of education. Private investments in the Indian education sector have increased substantially over the past two decades. The demand for specialised degrees is also picking up with more and more students opting for specific industry-focused qualifications. Higher education institutes in India are focusing on creating online programmes due to the increasing demand from consumers.

With cutting-edge technologies such as AI, ML, IoT and blockchain, India's education sector will redefine itself in the years to come. It has also embraced the Education 4.0 revolution, which promotes inclusive learning and increased employability. The government has implemented policies like the NEP, which will be fully implemented over the course of this decade starting from 2021-22, and will have a strong focus on high-quality vocational education.

MARKET SIZE

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.

India has over 250 million school-going students, more than any other country. India had 38.5 million students enrolled in higher education in 2019-20, with 19.6 million male and 18.9 million female students.

According to UNESCO’s ‘State of the Education Report for India 2021’, the Pupil Teacher Ratio (PTR) at senior secondary schools was 47:1, as against 26:1 of the overall school system.

The number of colleges in India stood at 43,796 in FY21. As of November 25, 2022, the number of universities in India stood at 1,072. In 2022-23, there are 8,902 total AICTE approved institutes in India. Out of these 8,902 institutes, there are 3,577 undergraduate, 4,786 postgraduate and 3,957 diploma institutes.

INVESTMENTS/ RECENT DEVELOPMENTS

From April 2000-March 2023, Foreign Direct Investment (FDI) equity inflow in the education sector stood at US$ 9.2 billion, according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

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

The Union Budget 2023 set aside Rs. 1.12 lakh crore (US$ 13.5 billion) for education – the highest ever and an increase of around 8.2% than what was pegged in 2022-23.
In November 2022, the Indira Gandhi National Open University (IGNOU) launched an online MA programme in Sustainability Science.
Under the revised curriculum as per the provisions of the National Education Policy (NEP) 2020, students of BA-LLB (five-year integrated law course) of Allahabad University (AU) will be taught about disaster management.
A total of 100 Indian institutions have been qualified for the Times Higher Education World University Rankings 2023, up from 63 in 2020.
As per the QS World University Rankings 2023, India is home to 41 out of almost 1,500 top global institutions in the world, with the Indian Institute of Science in Bengaluru being the highest-ranked institution in the country at rank 155.
In October 2022, Byju’s raised US$ 250 million from its existing investors, including Qatar Investment Authority (QIA).
In September 2022, UnfoldU Group, India’s leading online education player, announced plans to enter the space of Metaverse education.
In August 2022, Edtech startup Sunstone, which offers higher education programmes, raised US$ 35 million in funding, with participation from Alteria Capital and WestBridge Capital.
In August 2022, Bharti AXA Life announced a partnership with Great Learning, a leading global edtech company, to curate and develop a Post Graduate Program in life insurance sales.
Nine Indian institutes - the Indian Institute of Science (IISc) in Bengaluru and eight Indian Institutes of Technology (IITs) - were among the top 500 universities in the QS World University Rankings 2023.
Indian edtech startups have received total investment of US$ 3.94 billion across 155 deals in FY22.
In June 2022, Pfizer India and the Americares India Foundation launched the OPEN AMR – an online education platform for nurses to learn anti-microbial resistance.
In June 2022, edtech platform PhysicsWallah became India’s 101st unicorn by raising US$ 100 million in a Series-A funding round from WestBridge Capital and GSV Ventures, valuing the company at US$ 1.1 billion.
In June 2022, edtech unicorn UpGrad raised US$ 225 million in a funding round that included Lupa Systems LLC and US testing and assessment provider Educational Testing Service, valuing the company at US$ 2.25 billion.
In June 2022, Amazon India launched the second edition of Machine Learning (ML) Summer School, with the aim to provide students the opportunity to learn important ML technologies from Amazon scientists, making them ready for careers in science.
India has 89 universities in Times Higher Education Emerging Economies University Rankings 2022, behind Russia with 100 and China with 97.
In February 2022, the AICTE - backed by AWS Academy and EduSkills - launched a two-month virtual internship program in AI for 5,000 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, 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, Teachmint was valued at US$ 500 million after a US$ 78 million funding round.
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.

ROAD AHEAD

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

Combine training methods that involve online learning and games, and it is expected to grow by 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.

INTRODUCTION

MARKET SIZE

INVESTMENTS/ RECENT DEVELOPMENTS

ROAD AHEAD

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