Why Education?
India is the third largest higher education system, after China and the US. The education sector is expected to reach $225 billion by FY25. The country has 51,805 colleges and 1,315 universities. India has 8,902 AICTE- institutes in India, with 3,577 undergraduate, 4,786 postgraduate and 3,957 diploma institutes.
The finance minister proposed the entry of foreign universities and institutions to establish operations in the Gujarat International Financial Tec-City International Financial Service Center (GIFT IFSC).
India is the second largest market for E-learning after the US. The edtech industry in the country stands at $700 million- $800 million and is expected to reach $30 billion by 2031. The coountry had over 250 million school-going students, and 43.3 million students (22.6 million male and 20.7 million female) enrolled in higher education in 2021-22. Additionally, the online education market is expected to grow at a CAGR of 20%, reaching $2.3 billion during 2021-2025.
Indian government launched the National Education Policy (NEP), in 2020, to boost enrolment in school and higher education, including vocational education, by enhancing access and improving education quality. The policy caters to underserved areas and communities. Additionally, the government targets to enroll half a million international students by 2047, under the Study in India initiative.
The Digital India Program and Skill India Program, promote digital literacy and enhance job-relevant skills in collaboration with the private sector, respectively. Platforms such as, SWAYAM are offering courses are aiding in skill development and career progression.
The Union Budget 2024-25 allocated $8.8 billion to the Department of School Education and Literacy, and $5.7 billion to the Department of Higher Education. A sum of $4.5 billion was allocated towards the Samagra Shiksha Scheme.
High Population
India has the largest global population of people aged 5-24 years, with 580 million people- presenting a significant opportunity for industry expansion.
Increasing FDI
The country attracted $9.6 billion of FDI from April 2000 to September 2024. 100% FDI (automatic route) is allowed in the education sector. The National Accreditation Regulatory Authority Bill and Foreign Educational Institutions Bill supports higher education and FDI in the country.
Increasing Investments
In June 2022, PhysicsWallah secured a Series-A funding of $100 million from WestBridge Capital and GSV Ventures.
Increasing Demand for Quality and Specialized Education
Growing demand for quality education and the introduction of Industry 4.0 skills, is contributing to the market growth in the region.
