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EDUCATION AND TRAINING For updated information, please visit www.ibef.org September 2018 Table of Content Executive Summary……………….……......3 Advantage India………………....….….…. 4 Market Overview ……………….……..…....6 Recent trends and strategies…….….…….13 Growth Drivers and opportunities…..……..18 Policies and initiatives………….……..….. 22 Key industry organizations...……........….. 26 Useful Information……….….……….....….. 28 EXECUTIVE SUMMARY Education Industry in India1 (US$ billion) Higher Education Sector in India (US$ billion) CAGR 9.88 % 102.0 40 100.0 101.1 35 35.03 98.0 30 96.0 25 94.0 20 92.0 15 91.7 15 90.0 10 88.0 5 86.0 0 FY18 FY19E 2016 2025 E . With approximately 28.1 per cent of India’s population* in the age group of 0-14 years, educational sector in India provides great growth opportunity. Education sector in India is estimated at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in FY19. The country has become the second largest market for e-learning after the US. The sector is expected to reach US$ 1.96 billion by 2021 with around 9.5 million users. Government target of Gross Enrolment Ratio (GER) of 30 per cent for higher education by 2020 to drive investments. Notes: E – expected, *as of 2015-16 Source: UGC, 1 India Ratings and Research FY19 Outlook, KPMG – Online education in India, ASER 2016, FICCI HES 2016 Education and 3 For updated information, please visit www.ibef.org Training Education and training ADVANTAGE INDIA ADVANTAGE INDIA . Huge demand supply gap with an . Between April 2000 and June 2018, inflow additional requirement of 200,000 schools, of US$ 1.75 billion has been witnessed as 35,000 colleges, 700 universities and 40 Foreign Direct Investment (FDI) in million seats in the vocational training education sector. centres. An estimated investment of US$ 200 billion needed by Government to achieve its target of 30 per cent GER for the higher education segment by 2020. ADVANTAGE INDIA . Largest population in the world of about . 100 per cent FDI (automatic route) is ~500 million in the age bracket of 5-24 allowed in the Indian education sector years. To liberalise the sector, the government . Large English Speaking population. India has taken initiatives such as the National was ranked 27 out of 80 countries in Accreditation Regulatory Authority Bill for English Proficiency Index 2017. Higher Educational and the Foreign . Increasing internet penetration to help Educational Institutions Bill. education delivery. As of December 2017, . Revitalising Infrastructure and Systems in Education (RISE) by internet penetration in urban and rural 2022 was announced in Union Budget 2018-19 with an outlay of areas was 64.84 per cent and 20.26 per Rs 1 lakh crore (US$ 15.44 billion) for four years. cent, respectively. Note: GER stands for Gross Enrolment Ratio, NEP – National Education Policy, HRD – Human Resource Development Source: Ministry of HRD, Technopak, Department of Commerce Government of India . DIPP Education and 5 For updated information, please visit www.ibef.org Training Education and training MARKET OVERVIEW EVOLUTION OF THE INDIAN EDUCATION SECTOR . In 1992, the National Policy on Education-1986 was revised. In 1995 the National Programme of Nutritional Support to . In 2012 the amendment of the Indian Institute of Technology Primary Education (NP-NPSE) was launched as a sponsored Act, 1961 took place which envisages inclusion of 8 new IITs scheme by the Centre . In 2014, Indian Institutes of Information Technology Bill, . In 1995, National Council of Rural Institutes (NCRI), an 2014 was passed by both the houses of the parliament. The autonomous body was established for the promotion of rural bill aims to bring 4 information technology institutes1 under higher education the control of a single authority 2016 Onwards 1960-1990 1990-2000 2000-2010 2010-2014 . A new education policy is being drafted to ensure . In 1964, the Kothari Commission was . RMSA was launched in March 2009 with the objective to quality education in India from 2020-40. The draft appointed to make a detailed survey of all enhance access to secondary education policy is expected after October 2018. the education branches in India and advice . In 2009 Saakshar Bharat, a centrally sponsored scheme . The National Testing Agency was approved by the government on policies for the development was launched with focus on women and other Cabinet in November 2017 to conduct all high stake of education at all stages and in all its disadvantaged groups in rural areas of low literacy aspects. college entrance exams in India. The RTE, became operative in 2010 according to which . In June 2017, Government of India announced that it every child has a right to elementary education would replace the University Grants Commission with Higher Education Commission of India. Notes: RTE - Right of Children to Free and Compulsory Education, RMSA- Rashtriya Msdhyamik Shiksha Abhiyan, NIT-National Institute of Technology, IISER- Indian Institutes of Science Education and Research, 1 IIIT-Allahabad, IIIT-Gwalior, IIIT Design and Manufacturing Jabalpur, and IIIT Design and Manufacturing Kancheepuram Education and 7 For updated information, please visit www.ibef.org Training EDUCATION LANDSCAPE IN INDIA Indian Education System Public sector Private sector Formal setup Non formal setup Schools Schools Pre-schools Central Govt. funded Higher education Coaching classes institutions institutions State Govt. funded Multimedia schools institutions Higher education Vocational training institutions centers Education material suppliers Source: Grant Thornton Education and 8 For updated information, please visit www.ibef.org Training SCHOOL EDUCATION Schools In India (‘000) School Enrolment In India 2016-17 (million) 1600.0 200.0 180.0 1400.0 189.9 160.0 1200.0 1467.7 1449.1 1448.7 1445.8 1431.7 140.0 1000.0 120.0 800.0 100.0 600.0 80.0 400.0 60.0 228.9 236.8 244.7 252.2 260.2 200.0 40.0 38.8 20.0 0.0 24.7 2012-13 2013-14 2014-15 2015-16 2016-17 0.0 Elementary Secondary Higher Secondary Elementary Secondary (Grade 1-8) (Grade 9-10) (Grade 11-12) . As of 2016-17, India had 1,467,680 elementary schools with 7,606,638 classrooms and 260,155 secondary schools with 1,423,494 classrooms. Pupil Teacher Ratio (PTR) for elementary and secondary education in the country was 1:23 in 2016-17. 73.1 per cent of the elementary schools were government schools. At elementary level, Gross Enrolment Ratio was 93.5 per cent in 2016-17 and at secondary level it was 79.3 per cent. Source: Unified District Information System for Education (U-DISE) Education and 9 For updated information, please visit www.ibef.org Training HIGHER EDUCATION…(1/3) Number of Colleges in India Number of Universities in India CAGR 8.31 % 45,000 1,000 40,000 900 800 35,000 903 864 40,026 700 39,071 799 30,000 39,050 38,498 760 36,634 35,525 723 34,852 600 25,000 32,974 667 642 20,000 500 621 400 15,000 300 10,000 200 5,000 100 - 0 2014-15 2010-11 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 2014-15 2010-11 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 . Number of colleges in India reached 39,050 in 2017-18, up from 32,974 in 2010-11. Number of universities in the country has also increased at a fast pace from 621 in 2010-11 to 903 universities in 2017-18. Government’s initiatives to increase awareness among all sections of the society has played a major role in promoting higher education among the youth. Total number of agricultural universities in the country increased from 35 in 1999 to 75 in 2017. Source: UGC, PWC, AISHE 2016-17 Education and 10 For updated information, please visit www.ibef.org Training HIGHER EDUCATION…(2/3) YearStudent-wise Enrolment growth of in students Higher Educationenrolment (million)(million) YearGross-wise Enrolment growth of Ratio students in Higher enrolment Education (million) (%) 25.0 30.0 25.0 20.0 26.3 26.0 25.4 25.4 20.0 25.3 24.5 19.2 23.9 19.0 23.5 18.6 23.2 18.5 22.7 22.1 17.5 17.4 22.0 20.8 15.0 16.6 16.7 15.0 20.1 16.2 15.7 16.0 19.4 14.8 17.9 13.0 13.5 10.0 10.0 5.0 5.0 0.0 0.0 2014-15 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2010-11 Male Female Male Female . India has the world’s largest higher education system and it ranks second in terms of student enrolment in higher education. India had 36.64 million students enrolled in higher education in 2017-18. Gross Enrolment Ratio in higher education reached 25.8 per cent in 2017-18. Online higher education may prove to be a good alternative and is expected to grow at 41 per cent CAGR between 2016-2021. Government is targeting Gross Enrolment Ratio (GER) of 30 per cent for higher education by 2020. Source: UGC, AISHE 2017-18; US Department of Education Education and 11 For updated information, please visit www.ibef.org Training HIGHER EDUCATION…(3/3) University Mix (2011-12) University Mix (2017-18) Central Central 3.74% Deemed University - 6.13% Deemed University - 5.10% 1.13% Government 6.77% Government 1.77% 9.07% Deemed University - Deemed University - Government Aided Government Aided 39.80% 12.74% Deemed University - Private 46.13% Deemed University - Private 11.45% Institute of National Importance 9.52% Institute of National Importance 29.71% State Private University 16.94% State Private University State Public University State Public University .