Industry of the Month                                                           “Education in India”eBizWire     Vol . I I...
Biz India News                                                                     Headlines•   Britannia Industries, whic...
Biz Policy Updates                                                                   Legal Headlines• Liberalization of EC...
The education sector India: Education Industry                                                         of India is mainly ...
Interesting StatisticsIndia: Education Industry                                                                           ...
India: Education IndustryPROSPECTS OF FOREIGN INVESTMENT:The central government is ever enthusiastic to welcome overseasin...
India: Education IndustryTHE BIG PICTURE: What lies ahead?India is going to focus on vocational education and training to ...
StartBizIndia Discussion PlatformNRI wants to open a Garment Manufacturing Unit in Free Zone in India.He wants to manufact...
Upcoming Business Summit                                                        National   Food & Agri Processors & Expor...
Contact Us                   Neha Seth                                            Visit us at              E: neha@indiacp...
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Education Industry: Business Idea of the Month : Ebizwire July 2012

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Foreign Education Providers (Regulation for Entry and Operation) bill is aimed at:
1. Regulating the entry and operation of foreign education Providers.
2. Awarding them the status of “deemed universities”.
3. Limiting the commercialization of higher studies.

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Education Industry: Business Idea of the Month : Ebizwire July 2012

  1. 1. Industry of the Month “Education in India”eBizWire Vol . I Issue. VI, July 2012 InsightBiz India News 2Biz Policy Updates 3India: Education Industry 4Business Idea of the Month 7StartBizIndia Discussion Platform 8Upcoming Business Summit 9Contact us 10 For more info on Business setup visit www.startbizindia.in Page |1 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  2. 2. Biz India News Headlines• Britannia Industries, which has a near dominant control in the Indian biscuits Britannia plans to go West, market, is embarking on a global expansion to shore up its growth story. The targets Indian diaspora company, which logged 19 per cent growth in top line at Rs 5,400 crore, derives around Rs 250 crore from global operations and is looking at all vectors to expand its presence overseas on 06th June 2012• The Intellectual Property Office (IPO) and Imperial College today published Copyright industry adds an extra new estimates of investment in the UKs copyright industries on 8th June, £3billion to national accounts 2012. When adopted in the National Accounts this adds more than £3 billion to the economy. This is excellent news not just for the UK economy, but also because it shows that Government is serious about understanding and promoting the creative industries.• Sweden-based single brand furniture retailer IKEA’s CEO Mikael Ohlsson IKEA Applies to Invest Euro 1.5 met the Union Minister of Commerce, Industry and Textiles Shri Anand BN in India Sharma in St. Petersburg today to confirm that they will be investing in India to the tune of Euro 600 Million (approximately Rs. 4200 crores) in the first stage and additional estimated FDI of upto Euro 900 Million (approximately Rs. 6300 crores) totalling to estimated Euro 1.5 billion (approximately Rs. 10, 500 crores) for initial establishment of twenty-five retail stores in a wholly owned subsidiary on June 23, 2012• Infosys has opened a second development centre in Japan as it prepared to Infosys opens second have a more evenly distributed geographic spread across the globe on 26th development centre in Japan June 2012. In a statement on Monday, the IT major said its Japanese subsidiary is targeting the local manufacturing clients and accordingly, it has set up an office in Chibu. “We are aggressively targeting the manufacturing sector in Japan where at present we have 40 clients,” said Mr S.D. Shibulal, CEO and Managing Director, Infosys.• Indian and Australian scientists will jointly undertake 13 new research India, Australia team up for 13 projects. Developing new batteries for electric vehicles, recycling of research projects hazardous e-waste, method to manage wastewater discharged from ethanol distilleries, new vaccines against tuberculosis, etc will be the focus of some of the collaborative work An Australia-India Strategic Research Fund has been created for which the Australian Government has th committed a total Fund of Australian $64 million on 27 June 2012• On 29th June, 2012, Spices exports from India rose nine per cent in Exports do spice industry proud volume in 2011-12, at 575,720 tonnes, against 525,750 tonnes in the previous financial year. Total export earnings were up 43 per cent at Rs 9,783 crore compared to Rs 6,841 crore earlier; in dollar terms, up six per cent, according to the Spices Board. For more info on Business setup visit www.startbizindia.in Page |2 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  3. 3. Biz Policy Updates Legal Headlines• Liberalization of ECB norms for infrastructure sector and power sector Liberalization of ECB norms for th On 25 June 2012, Reserve Bank of India (RBI), in consultation with the infrastructure sector and power sector Government of India has decided to introduce the following measures with immediate effect: It has been decided to allow Indian companies in manufacturing and infrastructure sector and having foreign exchange earnings to avail of external commercial borrowing (ECB) for repayment of outstanding Rupee loans towards capital expenditure and/or fresh Rupee capital expenditure under the approval route. The overall ceiling for such ECBs would be USD 10 billion. The existing limit for investment by Securities and Exchange Board of India (SEBI) registered foreign institutional investors (FIIs) in Government securities (G-Secs) has been enhanced by a further amount of USD 5 billion. This would take the overall limit for FII investment in G-Secs from USD 15 billion to USD 20 billion. In order to broad base the non-resident investor base for G-Secs, it has also been decided to allow long term investors like Sovereign Wealth Funds (SWFs), multilateral agencies, endowment funds, insurance funds, pension funds and foreign central banks to be registered with SEBI, to also invest in G-Secs for the entire limit of USD 20 billion. The sub-limit of USD 10 billion (existing USD 5 billion with residual maturity of 5 years and additional limit of USD 5 billion) would have the residual maturity of three years. The terms and conditions for the scheme for FII investment in infrastructure debt and the scheme for non-resident investment in Infrastructure Development Funds (IDFs) have been further rationalised in terms of lock- in period and residual maturity. Further, Qualified Foreign Investors (QFIs) can now invest in those mutual fund (MF) schemes that hold at least 25 per cent of their assets (either in debt or in equity or both) in infrastructure sector under the current USD 3 billion sub-limit for investment in mutual funds related to infrastructure. For more info on Business setup visit www.startbizindia.in Page |3 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  4. 4. The education sector India: Education Industry of India is mainly divided into two main“India, first of all, came to the game with some just natural advantages:one, English-speaking population; two, real emphasis on education. You segments:also had a country that is very instinctively able to globalize, take the bestof the global world and meld it with their own culture.” Core Segment- Tom Friedman, Columnist, the New York Times Schools & Higher EducationWhen you hear of India being called a great country; the first thought that Universityusually comes to the mind is of India being one of the most populatedcountries, or India having one of the largest geographical areas in theWorld. But there are other things too which contribute to making India one Non Core Segment-of the most talked about countries. One such fact is the Indian education Coaching classes,system which is one of the largest in the World. Pre schools, and Vocational TrainingsAccording to a report “Emerging Opportunities for Private and ForeignParticipants in higher Education” by PWC; the Indian education Industryis one of the major areas for investment because it is going through a Controlling Body of Educationmetamorphosis, a renovation process. The Annual Report 2010-11 of Sector:MHRD states that India has 544 university level institutions, whichincludes 261 state universities, 73 state private universities, 42 central The Ministry of Humanuniversities, 130 deemed universities, 33 institutions of national importance Resources Developmentand 5 institutions established under various state legislations. India also (MHRD)has 79 centrally funded institutions, which includes 15 Indian Institutesof Technology, 11 Indian Institutes of Management and 30 National Various Boards/ AuthoritiesInstitutes of Technology. which acts in affiliation;THE MARKET: At a glanceEducation is one among the largest services market in India. Let’s have a • All India Council forlook at some of the facts of online education and similar trend in India Technical Educationparticularly non-core segment of Education Sector. (AICTE) Coaching Institutes: This segment will witness a 17% increase by the th end of 11 5-year plan as compared to the figure of 2008. Vocational Training: Owing to the significant improvement this sector • Central Board of is witnessing in respect of methodology and technology; it is gathering Secondary Education huge investments from the corporate and private equity firms. All this (CBSE) has been possible due to the enhanced demand and supply of online and correspondence courses, facilitation by government and quality improvement. Education through Television: Media, Telecommunication and Education players are now providing education through TV by taking • State Boards digital education Business-to-Customer (B2C) and helping children study while watching TV. Competitive Exam Service “iExam” is one such step by Bharti Airtel’s DTH service. For more info on Business setup visit www.startbizindia.in Page |4 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  5. 5. Interesting StatisticsIndia: Education Industry The Fact - The Figure Game based Learning: Games on the lines of NCERT and International Baccalaureate curricula covering subjects such as  Number of students : Mathematics, English, Science, General Knowledge and; 450 million Environmental studies are soon picking up. NCR based company approximately “Digiwise Knowledge” pioneered the concept.  Annual revenue: Interactive Learning platform for K12 students: A Hyderabad based US$ 50 billion Education Service Company “Edutor technologies” is developing a proprietary touch-screen device which comes pre-loaded with  Investment requirement: educational content which can be updated with the student’s promotion US$ 100 billion to a higher class. The product which is being marketed only in by 2014 Hyderabad will soon spread over other parts.  Expected growth in the Online Education: E-learning market in India was valued at Rs. 1841 decade 2011-2021: crores in 2010-11 and is expected to increase at a rate of 20%. Around 10-15% Increasing Internet availability and rising demand are going to take this segment to its heights. Large investments have already poured in  Pre-School Segment: which makes it clear that there are going to be huge business Will reach US$ 1 opportunities in e-learning segment in the near future. th billion by the end of 11 5- year planREGULATIONS IN THE INDIAN EDUCATION SECTOR:Education Sector of India operates in a highly regulated framework. The  World Bank for Secondaryregulation starts at the Central level gets decentralized at State level. Education:Hence, the regulations differ from one state to another. Credit of US$ 500 million to ensure K 12 Sector: This fragment is governed by the “School Education Act” quality education of the respective states and CBSE Rules and regulations concerning affiliation and rules of any affiliating body.  K-12 sector (Kindergarten to Class 12th):Who qualifies to be affiliated with CBSE? Expected too Non Profit Trusts & Societies registered under Societies Registration increase by 14% in worth Act 1860 against the correspondingo Companies registered under Section 25 of the Companies Act, 1956 market size of 2008Income Tax Exemptions are available to Schools and Institutions forhigher education set up trust provided they comply with Section 11 of  Indian Higher Education system World rank:Income Tax Act, 1961. Trust has to ensure that its main activity is the 3rd largest in thenoble purpose of promoting education and not earning profts. world after China and USA Professional Institutions: Professional councils like the All India Council for Technical Education (AICTE) regulate the professional and  Growth of Higher education technical educations in India. Setting up of educational institutions against last year : 20 % requires huge funds after all and your investment might not be sufficient. University Grants Commission (UGC) or other schemes of Government may seem like the light at the end of a tunnel. For more info on Business setup visit www.startbizindia.in Page |5 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  6. 6. India: Education IndustryPROSPECTS OF FOREIGN INVESTMENT:The central government is ever enthusiastic to welcome overseasinvestment. It is because, not only the government’s expenditure will reducebut the development of education sector will take a better shape. As theforeign participation increases, one can hope for the regulations to mellowdown a bit. The entry of foreign participants is proposed to be covered bythe new “Foreign Education Providers (Regulation for Entry and Operation)bill which is aimed at: 1. Regulating the entry and operation of foreign education Providers. 2. Awarding them the status of “deemed universities”. 3. Limiting the commercialization of higher studies. Companies in onlineMany foreign educational institutions are operating in the country offering education in Indiadifferent types of courses and programmes and there is no regulationpresently in place to control and curb the operation of such institutionswith academic credentials which may not even be satisfying in their owncountry.GOVERNMENT: The FacilitatorThe role of Central Government is of paramount importance in theevolution and monitoring of the education policies and programmes. Thefollowing initiatives have been taken by the Government:- Right to Education - Sarva Siksha Abhiyan: Rs. 25,555 Crore have been allotted for the year 2012-13 which is a 21.7 increase from the previous allotment. Model Schools: 6,000 schools have been proposed to be set up at b lock level in the 12th five year plan. Rashtriya Madhyamik Siksha Abhiyan: Rs. 3,124 crore have been provided which is a 29% increase over the previous budget allotted Features of online Platform for Education IITs and IIMs: budget allocation for the education sector has been increased by almost 17% i.e. Rs. 150 Crore for establishing new Indian • 24/7 online Learning Institutes of Technology and Indian Institutes of Management. Excellence in Journalism: Measures have been taken to establish 4 • Live Chat regional centers of Indian Institute of Mass communication. • Mobile learning Financing of Deemed and Central Universities: Rs. 6,36,215 Crores Solution have been allocated to University Grants Commission (UGC). Collaboration with European Union: India and EU have joined hands • Online Tutoring to launch a skill development project in India where EU will invest 6 million euros over a span of four and a half years. • Online Classes Strategic Partnership with US: India will set up a higher education platform to enhance collaboration in research, skill development and student and faculty exchange. For more info on Business setup visit www.startbizindia.in Page |6 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  7. 7. India: Education IndustryTHE BIG PICTURE: What lies ahead?India is going to focus on vocational education and training to increase itsformally skilled workforce by about 70 million people in the next five years.Huge changes are expected to occur in the higher education segment inthe coming years. Foreign partnerships will enter the country to bring newideas while Indian entities will work on improvising the existingmethodologies of teaching to make India an even better place foreducation.Education is one phenomenon which is ever evolving and Indianeducation sector is not behind. It offers huge business opportunities forthose eager to invest. Availability of funds and a noble mindset to promotequality education can take the investor to places. Source: ibef The USP of such a venture is thatBusiness IDEA OF THE Month you can adopt different methodologies E-Tutoring +You can connect to the E-Tutoring is all about learning online through Internet and student virtually on real-time basis TV. Talk to any student and he will tell you about the neck-in- neck competition that exists at school level. Coaching and tuitions seem to be the buzz-words in the education sector these days because of the way they supplement the regular school education. Not only the e-tutors help a student to cope up with the syllabus at the child’s own pace, they even fulfill the need of individual attention which is sometimes not possible in school. Who knows better than a worried parents Another thing which the parents know pretty well is the way computer education has gone ahead of times. One can only marvel how tech-savvy kids have become these days. Getting a child to spend 4 hours with his laptop seems easier than getting him to study for that duration! Isn’t it A huge business opportunity lies in front of you if you are game enough to combine the 2 things we have discussed above! Any guess what we are talking about? Yes. An online coaching venture! There’s absolutely no better way to attract a computer loving student towards studies. For more info on Business setup visit www.startbizindia.in Page |7 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  8. 8. StartBizIndia Discussion PlatformNRI wants to open a Garment Manufacturing Unit in Free Zone in India.He wants to manufacture or import the raw materials from outsideIndia and export the finished goods back. Please advice for suitablelocation. What is the minimum investment required to set up theproject? Can he apply for PAN Card in the capacity of NRI?Free Zone covers SEZ (Special Economic Zone) and EOU (ExportOriented Unit). Since, you want to manufacture garments in India andexport it to outside India, so, it is recommended to choose setting up ofEOU (Export Oriented Unit). The biggest advantage of setting up EOU isthat the unit can import capital goods, raw materials, consumables,packing material, spares etc. without payment of customs duty. Similarly,these can be procured indigenously without payment of excise duty.Second hand capital goods can also be imported.The incentives are as follows:-a. Exemption from customs/excise duties.b. Income Tax exemption on income derived from the business of development of the EOU in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.c. Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.d. Exemption from dividend distribution tax under Section 115O of the Income Tax Act.e. Exemption from Central Sales Tax (CST)f. Exemption from Service Tax100% FDI investment is permitted through Automatic Route. The suitablelocation is Noida, Uttar Pradesh in North India.Minimum investment in plant and machinery and building is Rs 100 lakhs(INR) for EOU. This should be before commencement of commercialproduction. In case of SEZ, there is no minimum requirement in terms ofinvestment. The minimum capital requirements of forming a Private LimitedCompany are Rs. 1 Lakh (INR). In addition to this, the other costs willdepend upon number of factors such as size of the business, location, landcost, etc.As far as applying for PAN card is concerned, NRI can apply for PAN inIndia by submitting certain documents to Income Tax Department . For more info on Business setup visit www.startbizindia.in Page |8 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  9. 9. Upcoming Business Summit National Food & Agri Processors & Exporters Conclave • Food & Agri Processors & Exporters Conclave The programme aims to discuss key challenges faced by food agri processors and Exporters. Also, the event aims to identify the business opportunities for food and agri business in India. There has been a session on suggestions in policy changes for facilitation of promotion of agro based industry. The focus areas are statutory requirements of importing countries, WTO Agreement, Food parks, SEZ and Agri processing zones and also inbound and outbound investment • Entrepreneur 2012 - Investor opportunities and special international corridors of focus Meet - for Indias hottest th startups, VCs angel Date: 25 July, 2012 investors. Venue: Hotel Fortune Landmark, Ahmadabad Entrepreneur 2012 - Investor Meet - for Indias hottest startups, VCs angel investors. This programme is especially for startups which have the potential to transform India’s landscape, and solve problems with inspired solutions. th Date: 26 July, 2012 Venue: Hotel Sofitel Bandra Kurla Complex, Mumbai Scaling Businesses from One Orbit to the Next The workshop answers dilemmas surrounding scaling businesses, frequently faced by entrepreneurs once they are in revenue stage such • Scaling Businesses from as: One Orbit to the Next • How do I scale? Will it affect my current pace of my business? • Is it the right time for me to consider funding? • How do I grow my venture from strength to strength? Date: 27th July 2012 to 28th July 2012 Venue: Electronics City 1st Phase Bangalore 8th Indo-US Economic Summit • 8th Indo-US Economic Summit Emerging Frontiers in the Indo-US Economic Cooperation is all about Exchange of views on various sectors of business between India and US, including investment opportunities in both the countries. The event shall be held Date: 12th September to 13th September 2012 Venue: Hotel Le Meridian, New Delhi For more info on Business setup visit www.startbizindia.in Page |9 For Business setup queries email at neha@indiacp.com or call at 011 40622239
  10. 10. Contact Us Neha Seth Visit us at E: neha@indiacp.com D: +91.11.40622239 A Venture of Shipra Paul D- 38, Ist Floor, South Extn. Part I New Delhi – E: shipra@indiacp.com 110049 T: 40622200 F: 91.40622201 D: +91.11.40622246 E: info@startbizindia.comDisclaimer:This paper is a copyright of Corporate Professionals (India) Private Limited. The entire content of this paper havebeen developed for the new startups. The author and the Company expressly disclaim all and any liability to anyperson who has read this paper, or otherwise, in respect of anything, and of consequences of anything done, oromitted to be done by any such person in reliance upon the contents of this paper. For more info on Business setup visit www.startbizindia.in Page |1 For Business setup queries email at neha@indiacp.com or call at 011 40622239

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