IBEF-印度教育产业分析（12月）（英文）-2018.12-31页_1mb

Summary of the Indian Education and Training Sector

Core Content

The Indian education and training sector is experiencing significant growth and transformation, driven by a combination of demographic factors, government initiatives, technological advancements, and increasing private and foreign investments. The sector is poised to become a major contributor to India's economy, with the potential to reach a value of US$ 144 billion by 2020 from US$ 97.8 billion in 2016.

The country has the world's largest higher education system, with 36.64 million students enrolled in 2017-18. The Gross Enrolment Ratio (GER) in higher education is expected to reach 30% by 2020, which is a key government target. Additionally, India is the second-largest market for e-learning globally, with the sector projected to reach US$ 1.96 billion by 2021.

The K-12 segment is witnessing the adoption of franchise models, the emergence of international schools, and increased use of technology in education. Online learning is growing rapidly, with a CAGR of 41% between 2016 and 2021, and coaching and tutoring services are expected to expand from US$ 8 billion in 2011 to US$ 26 billion in 2020.

The vocational training sector is also gaining momentum, with private equity investments and online platforms expanding the reach of training services. Initiatives like the National Programme on Technology Enhanced Learning (NPTEL) and Reliance Jio's proposal to provide free Wi-Fi to 30 million students are further enhancing access and quality.

Main Points

1. Demographic Advantage

• India has a population of about 500 million in the age group of 5–24 years, making it the largest in the world.
• This demographic trend creates a huge demand for education, with a significant demand-supply gap requiring 200,000 schools, 35,000 colleges, 700 universities, and 40 million seats in vocational training.

2. Market Growth and Trends

• The education sector in India was valued at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in FY19.
• The e-learning sector is projected to grow to US$ 1.96 billion by 2021, with 9.5 million users.
• The K-12 sector is seeing the use of technology, with mobile learning platforms like Byju's gaining popularity, and digital publishing growing at a CAGR of 5.29%.

3. Higher Education Trends

• Specialised degrees are becoming more popular, with a focus on industry-specific qualifications.
• The multi-campus model is being adopted by private institutions to expand into tier 2 and tier 3 cities.
• International collaborations are increasing, with agreements like the India-France academic recognition deal and Microsoft's Education Day 2018 showcasing global engagement.

4. Vocational Training Trends

• Private equity and venture capital firms are showing increased interest in the sector, with 18 M&A deals worth US$ 49 million in 2017.
• Online channels are gaining momentum, and corporate partnerships are helping vocational institutions align with industry needs.
• Unacademy and Embibe are notable examples of online learning platforms receiving significant investment.

5. Government Policies and Initiatives

• The National Education Policy (NEP) aims to improve quality, innovation, and research in the education sector.
• The UGC Online Courses Regulations, 2018 allow online Certificate, Diploma, and Degree Programmes.
• The Skill India Mission seeks to skill 400 million youths by 2022.
• The RISE (Revitalising Infrastructure and Systems in Education) initiative, with a US$ 15.44 billion outlay over four years, is aimed at modernising education infrastructure.
• PMGDISHA (Pradhan Mantri Gramin Digital Saksharta Abhiyan) aims to provide digital literacy to 60 million rural households by 2019.

6. Investments and FDI

• 100% FDI is allowed in the education sector via the automatic route.
• The government is targeting US$ 200 billion in investments by 2020 to achieve a 30% GER in higher education.
• Public Private Partnerships (PPP) are being promoted to leverage private sector investment.
• HEFA (Higher Education Funding Agency) is planning to raise Rs 1 trillion (US$ 15.52 billion) from private investors to improve education infrastructure.

Key Industry Organizations

• University Grants Commission (UGC): Regulates higher education and supports online learning.
• All India Council of Technical Education (AICTE): Oversees technical education and sets standards.
• National Testing Agency (NTA): Manages high-stakes entrance exams.
• Higher Education Commission of India (HECI): Replaced the UGC in 2017.

Opportunities for Investors

• Foreign investors are encouraged through liberalization policies, including the Foreign Educational Institutions Bill.
• There is potential for setting up foreign university campuses in India.
• The government is promoting PPP and tax concessions to attract investment.
• Financial institutions have opportunities in education loans, with outstanding loans reaching Rs 72,839 crore (US$ 11.30 billion) in 2017-18.

Useful Information

• CAGR: Compound Annual Growth Rate
• FDI: Foreign Direct Investment
• FY: Indian Financial Year (April to March)
• GER: Gross Enrolment Ratio
• RTE: Right of Children to Free and Compulsory Education
• RMSA: Rashtriya Madhyamik Shiksha Abhiyan
• UGC: University Grants Commission
• US$: US Dollar
• Exchange Rates (Fiscal Year) and Exchange Rates (Calendar Year) are provided for reference.

Conclusion

India's education sector is rapidly evolving and is expected to grow significantly in the coming years, supported by demographic growth, government policies, and increased private and foreign investment. The focus on quality, innovation, and digital learning is shaping the future of the industry, creating vast opportunities for both domestic and international stakeholders.