Indian Edu'n Market demands US$ 100billion as investment. Is it worth?

US$ 100billion for Indian Edu'n
India is the one of the most emerging education market especially due to the upcoming generation who is willing to explore more and secondly due to the demographic dividends.


Amit Gupta, Chairman, Education Committee, PHD Chamber of Commerce & Industry stated "However, there exist certain gaps which are to be filled by government and private entities in order to sustain the overall ecosystem."

"Education sector should also be prioritized in a similar manner as Infrastructure sector, the return on education should be good, and government should work on the tax incentives of education. And also I believe that Government should spend high on sustaining and developing the common education across Tier 2, 3 and 4 cities," Gupta added.

"Indian Education Investment Report 2013", was released at the third edition of Indian Education Congress. The report brings forth the persisting gaps changing consumption patterns, demographical investments and business opportunities existing in the current Indian education sector.

"The need to reform the Indian education system has become very prominent in past few years. To keep pace with the fast moving world of education there are a lot of aspects that the Indian education has to focus on. The Indian Education Congress has successfully covered as many aspects as possible, which could be fruitful if and when induced in our current education system" stated Gaurav Marya, Chairman, Franchise India.

According to report the education market in India currently stands at a whopping YoY growth of 15 percent. However, there is a further demand of investments to the tune of USD 100 billion for construction and provisioning of education facilities especially in K - 12 and higher education segments.

The current spending on Education stands at INR 1035 per month for an urban household and INR 293 for a rural household however consumers are willing to spend even higher spends if given access to quality education and this has brought players to the forefront. Likewise, the private sector is rapidly spreading its horizon in the Education market and currently accounts for 48 percent of its total revenue. Realizing the pertinence of Private sector to uplift Indian Education the government has launched Public - Private Partnership to invest in the Education market.

The current industry stats depict that the industry will have 13-15 percent year-on-year growth and reach USD 100 billion mark by the year end. The private sector and the alternative methods of teaching are helping to transform the education system at all levels from Pre-K to post-Secondary. Among all the segments, private education stream has taken the lead which is growing at the rate of around 30 per cent and shares 48 percent of the total revenue stream.

Also, the Early Education, K-12 and vocational education franchise chains are expanding their wings all across the country as well as abroad. Within the education sector, pre-school and child enhancement education services together have taken the lead in franchising with a significant share of 35 per cent. This is followed by professional skill-based education and vocational courses which carry the weight of 30 per cent of the educational franchise industry. There are more than 50,000 franchised education outlets.

Press Release.

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