education industry in india

EDUCATION INDUSTRY IN INDIA

ADVANTAGE INDIA ROBUST DEMAND

Huge demand supply gap with an additional requirement of 200,000 schools

INCREASING INVESTMENTS

Increasing Foreign Direct investment (FDI) in the sector from USD0.04 billion to

USD0.26 billion in FY14


ADVANTAGE INDIA

COMPETITIVE ADVANTAGE

Second largest population in the world of about 500 million in the age bracket of

5–24 years

India having a literacy rate of only 74 percent compared to the world average of 84

percent, presents an opportunity for private players to explore the untapped market


ADVANTAGE INDIA POLICY SUPPORT

100 percent FDI (automatic route) is allowed in the Indian education sector

In the year 2015 government has launched new education policy to

address the changing dynamics in the Education Industry of the

country as per the requirement of the population


EDUCATION LANDSCAPE IN INDIA Indian Education System

Public Sector Private Sector


EDUCATION LANDSCAPE IN INDIA

Public Sector

Schools

Central Govt.

Funded institutions

State Govt. funded

Institutions

Higher Education

Institutions

Private Sector

Formal Setup Non-Formal Setup

Schools

Higher

Education

Institutions

Preschools

Coaching Classes

Multimedia Schools

Vocational training

Centers


KEY FACTS

With 666 universities and 36,671 colleges, India has one of the largest

education infrastructure in the world as on 2013

Third largest in terms of education enrollment with over 21.5 million

enrollments per year

Gross Enrollment Ratio (GER) in higher education increased to 21.1* per cent

in FY 13 from 11.5 per cent in FY 06

Government has a target (GER) of 30 per cent to be achieved by FY 17

Indian literacy rate has reached close to 80 per cent as compared to 74 per

cent in 2011

Note : All Figures are as per the latest data available


KEY FACTS

60.32

75.10

27.40

3.00

Central State Private Open and Distance Learning

12.00

110.40

185.00

52.00

Central State Private Open and Distance Learning

India’s higher education enrollment (in Lacs): 2007 – 17 T (Target)

Source : Census 2011, Ministry of HRD, UGC, AICTE, NCTE, MHRD


OVERVIEW – PUBLIC SECTOR In budget 2016, the government of India allocated USD23.6 billion for the

education sector compared to USD 22.8 billion in the previous budget. This

presents a huge opportunity for the education sector. Of this USD11.3 billion

has been earmarked for general education while USD4.50 billion has been

allocated for Sarva Siksha Abhiyan and USD7.81 billion has been allocated for

the Rashtriya Madhyamik Siksha Abhiyan

Since FY2007-08 , allocation for education has increased over 2-fold*

Elementary education accounts for bulk of the expenditure. In FY2013-14, 52

per cent of the total education budget has been allocated to elementary

education


OVERVIEW – PRIVATE SECTOR

The private education sector was valued at USD95.8 billion in 2015E; and is

estimated to reach USD133 billion in 2020F

The emergence of the unorganized private education sector in India has

opened a door of opportunities for many companies

With increased corporate investments in the sector, the share of private

schools and the total number of schools have increased over the past few

years

Source : Care Research , Note : E – Estimate , F - Forecast


STRONG GROWTH IN THE NUMBER OF UNIVERSITIES & COLLEGES

With both government and the private sector stepping up to invest in the Indian

education sector, the number of schools and colleges have seen an uptrend

over the past few years

Government’s initiative to increase awareness among all sections of the society has played a major role in promoting higher education among the youth

STRONG GROWTH IN THE NUMBER OF UNIVERSITIES AND COLLEGES

FY 7 FY 10 FY 11 FY 12 FY 13 FY 14 FY 7 FY 11 FY 10 FY 12 FY 13 FY 14

18 ,604.00

31,660.00 32,964.00

35,539.00 37,204.00

39,671.00

367.00

467.00 523.00

574.00 624.00

666.00

CAGR 11.42%

CAGR 8.89%

GROWTH IN THE NUMBER OF COLLEGES GROWTH IN THE NUMBER OF UNIVERSITIES

UGC report of HE in India 11th plan (2007 – 2012) for universities & colleges, Note : CAGR – Compound Annual Growth Rate

EDUCATION INDUSTRY IN INDIA HIGHER EDUCATION STUDENT ENROLLMENT

India being world’s third largest higher education system in terms of student enrollment ,is only behind China and USA

5

10

15

20

25

FY 08 FY 09 FY 10 FY 11 FY 12 FY 13

14.4 15.8

17.2 18.7 20.3

21.1

CAGR : 7.94%

During FY 13, gross enrollment for the higher education sector increased by 5.8% to 21.1* million students

Year-wise growth of students enrollment (millions)

Source : UGC Annual Report 2013-14, MHRD Annual Report 2009-10, UGC Report on Higher Education 2010-11 & February 2012


NOTABLE TRENDS – PRESCHOOL

The pre-school segment was worth USD2.21 billion (Year 2015) out of which the

branded pre-school segment was expected to contribute 33.83% to the total pre-

school industry in India and is expected to grow from USD0.75 billion in 2011

to USD3.24 billion in 2017 at a CAGR of 23 per cent

With growing awareness among tier 2 and tier 3 cities, penetration rate for the pre-

school segment is expected to rise to 25 per cent in 2015

To ensure scalability pre-school chains like Kid-zee, Euro-kids are upgrading to K-

12 schools

NOTABLE TRENDS – PRESCHOOLS

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2011

0.8

2012E 2013F 2014F 2015F 2016F 2017F

1.0

1.2

1.6

2.21

2.5

3.2

CAGR : 25.99%

Source : Data sourced from Gyan Research and Analytics Report 2012, Note : E – Estimate, F - Forecast

Pre-school industry in India (USD billion)


NOTABLE TRENDS – K12

Private schools

adopting

franchise models

Various operating models like a mix of franchisee and owned-schools

are being used by the private players to ensure their economic viability

Emergence of

International

School Segment

With increasing awareness, private Indian players are collaborating

with international brands to provide international standard quality

education

NOTABLE TRENDS – K12

Increasing use of

Technology

Increased number of

recognized

Educational

institutions

Key Challenges

Schools are investing in information and multimedia education

technologies to provide better education to students

Number of recognized educational institutions rise from 7,485 in

2011 to 7,906 in 2014

Enrollment rate is quite low across the senior classes, while

dropout rate among girls have witnessed increase in comparison to

that of boys in the primary and secondary levels


SEGMENTATION OF K-12 IN INDIA

Segmentation by ownership/management

Schools are owned by the government (central/state/local government bodies) or

the private sector (individual/trusts/societies)

Government

Government educational institutions are those run by

central government or state government, public sector

undertaking or autonomous organization and wholly

financed by the government

Local body institutions are run by Municipal

Committees / Corporations/ NAC/ Zila Parishads

Panchayat Samitis/ Cantonment Board etc.


Private

Private-aided institutions are managed by private body

and receive regular maintenance grant from the

government, local body or any public authority but do

not receive the maintenance grant in a particular year,

these institutions are still treated as private-aided

institutions for that year

Private unaided institutions are managed by an

individual or a private organization and do not receive

maintenance grant either from government, local body

or any public authority. One time grant for specific

purposes will not make the institutions private aided.

These institutions continue to be treated as private

unaided institutions


Segmentation by level of education

Elementary consists of primary and upper primary levels

Secondary consists of secondary and higher/senior-secondary levels

Primary education

Primary education starts at approximately 5-6 years

of age and lasts for around 4-5 years. Objective of

primary school education is to give students basic

education in reading, writing and mathematics along

with an elementary understanding of social sciences

Upper-Primary

education

Upper-primary education is of three years duration

for students aged between 10-11 years. It usually

continues up to 13 years. At this stage education

consists of the basic programs of primary school

level, though teaching is more subject-focused


Secondary

Education

Secondary school education comprises of two years of

lower secondary and two years of higher secondary

education. The lower secondary levels is for students

aged between 14-15 years. Instructions are more

organized around specific subjects.

Higher/Senior

secondary

Education

Senior secondary education comprises of two years of

higher secondary education which starts at

approximately 16 years and ends at 17th year of the

child. At the senior secondary level; a student can

choose particular subjects (keeping requirement of

boards an d preferences in views)


Segmentation by Board of Affiliation

K-12 schools are regulated by multiple boards of affiliation at the national and

international level

Central Board

of Secondary

Education

Under the purview of MHRD, CBSE gives

affiliations to both public and private schools. It

conducts AISSCE for class X/Xll, AIEEE and

AIPMT for admission to UG courses in engineering

and medicine.

Council for

Indian school

certificate

examinations

CISCE is a non-government board of school

education in India. It conducts the ICSE and ISC

examination in India


State Boards Every state in India has its own apex organization for

secondary and senior secondary education which

regulates and supervises the schools in that state.

National institute of

Open Schooling

NIOS provides a number of vocational, life

enrichment and community oriented courses besides

general and academic courses at secondary and

senior secondary level through open and distance

learning.

International

Baccalaureate

Organization

IBO is an International, non-government organization

founded under the swiss law. IB world school in India

offer three IB programs; primary years program

(PYP), middle years program (MYP) and IB diploma

program (IBDP).

EDUCATION INDUSTRY IN INDIA In addition to the Indian boards, a large number of schools are tying up with international

boards because, international boards offer a more comprehensive, flexible and application

based curriculum/syllabi

There are more than 400 international schools in India

From these 103 schools offer either one or more of

the three IB programs:

IB consists of Primary Years Program (3-12), Middle

years Program (11-16) years and diploma program (16-

19). 44 schools offer PYP, 11 offer MYP and 91 schools

offer IBDP in India.

Currently, there are more than 300 schools in India

are affiliated to the University of Cambridge Local

Examinations Syndicate-UCLES (CIE).

In India, CIE provides globally recognized

qualifications for 5-19 years old that include Cambridge O level, Cambridge International AS and A Level and

Cambridge IGCSE.

More than 50 schools are affiliated to EdExcel

(Pearson). EdExcel offers the following programs:

EdExcel international primary curriculum for ages

(8-11); EdExcel international Lower Secondary

curriculum for ages (12-14); EdExcel ALAN – Literacy

and Numeracy: Level 1 and 2 for ages (13+); EdExcel

international GCSE for ages (14-16); EdExcel GCE AS and A Level for ages (16-19); EdExcel international

Advanced Levels for ages (16-19); EdExcel

International Diploma for ages (16-19).

More than 95% of International schools offer dual

curriculum (International and National Curriculum like CBSE, ICSE or State Board).

EDUCATION INDUSTRY IN INDIA AFFILIATIONS AND ACCREDITATIONS

Currently, according to Quality Council of India (QCI) there is no system of

accreditation of schools by any governing body.

National Accreditation Board for Education and Training (NABET) along with

QCI has developed “Accreditation Standard for Quality School Governance”, which has been adopted by NDMC and KV schools.

Nationally, there are two examining bodies; CBSE and CISCE and

internationally there are various boards such as the IBO.

EDUCATION INDUSTRY IN INDIA CURRICULUM DESIGNING AND SYLLABUS OF DIFFERENT BOARDS

SR. NO BOARDS COMMITTEE ON

CURRICULUM RESOURCES REMARKS

1 CISCE

Has its committee on

curriculum and syllabus

Research, Development and

Consultancy Division

Revises curriculum and

syllabus as per the need

2

CBSE



NCERT (Draws member

from different fields and

prepare National Curriculum Framework)

Though it has its own

committee on curriculum, it

mainly uses the resources of NCERT

3

DELHI

BOARD Merged with CBSE

CBSE, NCERT, Delhi Text Book Bureau and SCERT

Delhi

Delhi Government

Education System is under

the education Directorate,

Delhi

4

IBO



Has a separate Research

wing which prepares

curriculum

Evolving fresh in curriculum

and syllabus is a continuous

process

Source : CBSE-I and Central Board of Secondary Education


NOTABLE TRENDS – HIGHER EDUCATION

International Collaborations

Indian students who seek international exposure, many Indian Universities and colleges have entered into joint venture agreements with International Universities to provide world class education.

Multi campus model

Many private institutions are adopting Multicity Campus Model to scale up their operations and expand in the untapped market of tier 2 and tier 3 cities.

Specialized Degrees

With more & more students opting for industry focused qualifications, the demand for specialized degrees is picking up. Most of the Universities are offering MBA / Technical Degrees with focus on specific sectors.

SOURCE: DATA SOURCED FROM UGC ANNUAL REPORT 2014-15


NOTABLE TRENDS – VOCATIONAL TRAINING

Increasing interest from PE/VC firms

Private equity players become bullish on the growing education sector including vocational and supplementary training. Between 2010-13 there were 47 private equity deals worth USD586 million.

Online channel gaining

momentum

With an increasing internet penetration in India, vocational training companies are using online channel to offer courses and thereby increasing their national reach.

NOTABLE TRENDS – VOCATIONAL TRAINING

Corporate Partnership

According to a recent trend, vocational training companies have

entered into agreements with corporate houses to train their existing employees with the required skill sets. Also, through corporate partnerships, vocational training companies are training college pass- outs with both soft and hard skills required by their corporate partners.

Highest enrolment in the Arts/Science and Social Science

discipline for the Higher Education

Segment

In 2014, 41.35 per cent pass-out in higher education were from Arts/Humanities and Social Science while discipline also exhibited 40.69 per cent in Higher Education.

EDUCATION INDUSTRY IN INDIA GROWTH DRIVERS

Education in India

Formal Education Non-formal Education

K-12

Increasing awareness

and substandard government

school structure in

India is driving private

schools enrolments

Higher

Education

High demand of qualified employees

from the growing

service sector

Vocational

Education

Increasing demand for

skilled labour and low

employability levels

Pre-Schools

Franchisee models and increasing

awareness in tier 2 and tier 3 cities is set to drive the

sector

Coaching

Institutes

Higher competition

for professional

courses


OPPORTUNITIES

Immense growth potential Proposed FDI in education Policy Support

Indian has the world’s largest

population of about 500 million

in the age bracket of 5 to 24

years and this provides a great

opportunity for the education

sector.

The Indian education sector

is set for strong growth and a

strong demand for quality

education.

Indian education sector

market size is expected to

reach USD110 Billion by

FY15*

Indian Government is focused

towards liberalizing the education sector ; is reflected by the proposed

introduction of trend setting bills such

as the Foreign Educational Institutions

(Regulations of entry and operations)

bill 2010 and the Educational Tribunal

Bill 2010.

Adoption of “The Model School

Scheme” to provide quality education

in rural areas by setting up 6000

schools across the rural regions of the

country.

Ministry of HRD in its 12th five year

plan, aims to link all the schools in the

country through 20 new design

innovation centers and one open

design school.

100 per cent FDI (automatic

route) is allowed in the Indian

education sector. An estimated

investment of USD200 billion is

required to achieve the target of

30 per cent GER for the

education sector by 2020.

Indian government promotes

Public Private Partnership and

tax concessions to encourage

foreign players in the industry.

Government announced the

establishment of more than 10

community colleges in

association with government of

Canada and more than 100 in

the coming years.

Public Private Partnership (PPP) Opportunities for Foreign

Investors

Opportunities for innovative

services

Setting up of formal educational institutes under

PPP mode and enlarging the

existing ones.

In the case of PPP, the

government is considering different models like basic

infrastructure model,

outsourcing model, equity /

hybrid model and reverse

outsourcing model.

Indian government

announced allocation of 48.8

billion budget for public private

partnership in its 12th five year

plan.

More opportunities for the private and foreign sector

involve twinning

arrangements/academic and

financial partnership with

Indian institutions, rendering

infrastructure services including development, IT and

development of course

content.

Future opportunity of setting

up campuses of foreign universities in India.

With the tutoring in the

schooling segment expected to

grow from USD8 billion in 2011

to USD26 billion in 2020, there

lies a large and fast growing

market for coaching and tutoring

services imparted through

innovative means; mainly the

internet.

OPPORTUNITIES

Source: India Ratings and Research, UGC Report on Qualitative Expansion of Higher Education

We give them roots, we give them wings

And great joys from, little things,

A hope that they will soar ,

A hope that they will try,

We are sure that one day ,

Our children will learn to fly.

Prepared by students of “St. Mark’s Public School”

education industry in india

Documents