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HIGHER EDUCATION IN INDIA TO 2019 — MARKET ENTRY STRATEGY AND OPPORTUNITIES FOR PRIVATE PLAYERS 
Indalytics Advisors 
busi...
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players 
©Indalytics Advisors Pvt....
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Higher education in India to 2019 — market entry strategy and opportunities for private players — Indalytics Advisors

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The report ‘Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players’ discusses the higher education sector in India, with reference to entry and feasibility for private players.

The report mentions the current and forecasted market size of higher education sector in India, along with the drivers that will lead to growth of the sector.

It further discusses the key regulations impacting the private higher education, and opportunities for foreign players in the same — along with various best practices followed in private higher education space.

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Higher education in India to 2019 — market entry strategy and opportunities for private players — Indalytics Advisors

  1. 1. HIGHER EDUCATION IN INDIA TO 2019 — MARKET ENTRY STRATEGY AND OPPORTUNITIES FOR PRIVATE PLAYERS Indalytics Advisors business@indalytics.com www.indalytics.com August 2014
  2. 2. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 2 TABLE OF CONTENT  Higher Education System in India o Technical Education in India o Difference between UGC and AICTE Regulated Institutes o Private Higher education in India  Market Size of Higher Education Sector in India  Forecasted Market Size of Higher Education Sector in India  Drivers Impacting Private Higher Education Sector in India o Government Spending on Higher Education o Increase in Population o Growth in Private Higher Education o Increasing Use of Internet and Technology  Regulatory Framework Impacting Private Higher Education in India o Regulations Pertaining to Incorporation of Educational Institutions o Incorporating Private universities and Colleges in India  Incorporation of Private Universities  Incorporation of Private Colleges and Educational Institutes  Foreign Direct Investment and Taxation Norms for Private Universities and Colleges o Foreign Direct Investment Norms o Taxation Norms for Private Higher Education Institutions  Government Directives for Foreign Institutions’ Participation in Private Higher Education o Foreign Collaboration with Indian Universities o Foreign Collaboration with Indian Higher Education Institutions o Foreign Institutions Providing Certificate Programs than Degrees and Diplomas o Best Practices of Collaboration between Foreign and Indian Higher Education Institutions
  3. 3. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 3  Trends in Private Higher Education Sector in India o Focus on Teachers’ Training o Collaboration in Private Higher Education Space o Expansion in Private Higher Education Space o Online Courses in Private Higher Education o Introduction of New Products, Institutes and Courses o Investment Activities in Private higher Education Space  5–Forces Analysis of Higher Education Sector in India o Threat of New Competition o Threat of Substitute Products and Services o Bargaining Power of Buyers o Bargaining Power of Suppliers o Intensity of Competitive Rivalry  Profiles of Major Players in Higher Education o Amity University o Birla Institute of Technology and Science o Christ University o Great Lakes Institute of Management o Indian School of Business o Institute of Chartered Financial Analysts of India o Manipal University o NIIT Limited o VIT University o XLRI Xavier School of Management  Annexure
  4. 4. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 4 LIST OF FIGURES  Figure 1: Higher Education in India  Figure 2: Breakup of UGC–recognized Universities — August 2014  Figure 3: Gross Enrollment Ratio of Higher Education — 2011–12 to 2021–22 (F)  Figure 4: Expenditure on Education — % of Total Government Expenditure — Union Budget 2014–15 (E)  Figure 5: Expenditure on Higher Education — % of Total Education Expenditure— Union Budget 2014–15 (E)  Figure 6: Regulation of Technical Education in India  Figure 7: Private Universities and Technical Colleges — % of Total Universities and Technical Colleges  Figure 8: Gross Enrollment Ratio — Government and Private Universities  Figure 9: Higher Education in India — Market Size  Figure 10: Market Size of Higher Education in India — By Types of programs  Figure 11: Market Size of Higher Education in India — By Types of Faculty  Figure 12: Higher Education in India — Forecasted Market Size — 2014–2019  Figure 13: Education Budget — % of Total Government Budget — 2014–15  Figure 14: Increase in Education Budget and Higher Education Budget  Figure 15: Growth in Population of India — 2013–2019(F)  Figure 16: Higher Education Population (18–23 years) in India — As a % of Total Population  Figure 17: Number of Government and Private Higher Education Institutions  Figure 18: Enrollment in Government and Private Higher Education Institutions  Figure 19: Number of Private Universities in India — 2011–2013  Figure 20: Growth of Higher Education Enrollment in India — Government and Private Higher Education Institutions — 2008–2012  Figure 21: Growth of Internet and Broadband Subscribers in India
  5. 5. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 5  Figure 22: Wireless Internet Subscribers — % of Total Internet Subscribers in India  Figure 23: Faculty Shortage (%) in Higher Education Institutions  Figure 24: Growth of Higher Education — Universities, Colleges, Enrolment and Teaching Staff — 1950–51 — 2012–13  Figure 25: Pupil–Teacher Ratio in Higher Education  Figure 26: Five Forces Analysis of India’s Higher Education Sector  Figure 27: Universities in India — By Specialization of Programs  Figure 28: Colleges in India — By Specialization of Programs  Figure 29: Enrollment in Higher Education — By Levels of Education  Figure 30: Enrollment by Subjects — Undergraduate Programs  Figure 31: Enrollment by Subjects — Postgraduate Programs  Figure 32: Enrollment by Subjects — Master of Philosophy (M. Phil.) Programs  Figure 33: Enrollment by Subjects — Doctor of Philosophy (Ph.D.) Programs  Figure 34: India — Population by Age Groups
  6. 6. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 6 PUBLICATION DATE August 2014 NUMBER OF PAGES 104 PRICE OF THE REPORT Single User: US$2,000 Multi User/ Enterprise: US$4,500 Visit www.indalytics.com or write to us at info@indalytics.com to know more about the report.
  7. 7. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 7 ABOUT THE REPORT The report ‘Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players’ discusses the higher education sector in India, with reference to entry and feasibility for private players. The report mentions the current and forecasted market size of higher education sector in India, along with the drivers that will lead to growth of the sector. It further discusses the key regulations impacting the private higher education, and opportunities for foreign players in the same — along with various best practices followed in private higher education space.
  8. 8. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 8 EXECUTIVE SUMMARY Indian higher education sector is witnessing high growth rate, both from demand as well as supply side. While the enrollment in higher education has increased by an estimated 18% from 2012 to 2013, the sector has also witnessed 107 new universities, from 2012 to August 2014. Higher education sector has been allocated 20.2% of the total educational budget, and 3.5% of the overall government expenditure in the 2014–15 budget. Besides government, several private players are also investing in the Indian higher education space. Number of private universities has increased from 173 in 2012 to 186 till August 2014. The sector is also witnessing new for–profit companies, working in the higher education services space. Attracted by the high demand and enrollment rates, several foreign higher education institutions are entering India through collaborations and twinning agreements. The foreign institutions are expected to benefit further due to ongoing developments in government regulations — such as the Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010, allowing foreign players to setup educational institutions in India, and RUSA (Rashtriya Uchchatar Shiksha Abhiyan) initiatives — which have an objective to achieve 32% gross enrollment ratio in higher education by 2017, the end of current five–year plan.
  9. 9. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 9 The higher education sector is witnessing several favorable trends, such as expansion and collaboration among universities and higher education institutions, introduction of new institutes and products, investments, and increasing adoption of technology. The sector is expected to grow at a compound annual growth rate (CAGR) of 11.46% till 2019. The growth will be supported by various drivers, such as increase in higher education population and enrollment rates, increased government expenditure, use of technology, and demand for private education.
  10. 10. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 10 DEFINITION OF HIGHER EDUCATION IN INDIA In India, higher education is defined as post–secondary education, which is provided by universities of higher education institutions, and leads to a degree, diploma or professional certificate. The higher education comes under the governance of the Ministry of Human Resource Development (MHRD) and Universities Grants Commission (UGC). In some specific cases — depending on the technicality of the programs — higher education is also supervised by statutory councils such as All India Council for Technical Education (AICTE) or Medical Council of India (MCI). Higher education in India does not encompass vocational education — as the latter overlaps with secondary education, and is mostly supervised by the Ministry of labor and Employment (MOLE).
  11. 11. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 11 RESEARCH METHODOLOGY This report has been prepared through the following comprehensive methodology: The market definitions used in the report are the standard definitions recognized by the industry. In this report, the market size of the higher education sector is defined as the sum total of core expenditure on teaching students. It includes the government expenditure, subsidies, and fees paid by students in both public as well as private universities and higher education institutions. Bases of all the figures are taken from the statistics provided by the government, ministries, as well as prominent organizations such as the World Bank, International Monetary Funds, UNESCO Institute of Statistics, World Factbook — CIA etc. The data is further validated through credible analyst reports, white papers by industry organizations, questioners and expert interviews.
  12. 12. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 12 LIST OF ORGANIZATIONS MENTIONED IN THE REPORT 24x7 Learning — Avagmah Academic Ranking of World Universities Acer Akash Institute Al Abbas Institute of Technology All India Council for Technical Education Amity Business School Amity University Ansal University Association of Indian Universities Avanse Education Loans Avanti Learning Centers Baldwin Wallace University Bauer College of Business Benesse Holdings Inc. Bharat Sanchar Nigam Limited Bharathidasan University Biocon Academy Birla Institute of Technology and Science Catholic University of America Chennai Angels Christ University Cochin International Airport Limited Cochin International Aviation Services Limited Daily Mail Group Information EasySkillz Edge Institute of Financial Studies EduKart Faizal and Shabana Foundation Financial Times Frankfurt School of Finance and Management GradeStack Private Limited Graduate School of Business and Management Gray Matters India Private Limited Great Lakes Institute of Management Great Lakes Institute of Management Griffith University in Australia Harvard Business School
  13. 13. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 13 Heraud Education Trust Hewlett-Packard Hobsons IBM ICFAI University ICICI direct Centre for Financial Learning ICICI Securities IDG Ventures India Illinois Institute of Technology Indian Institute of Management Indian Institute of Science Indian Institute of Technology Indian School of Business InOpen Technologies Pvt. Ltd. Institute of Chartered Financial Analysts of India Institute of Customer Experience Management Institute of Electronic Governance International College of Financial Planning International School of Entrepreneurship Education and Development iProf Learning Solutions Private Limited Kalinga Institute of Industrial Technology Kansas City's School of Computing and Engineering Kasbah Systems Software Keck Graduate Institute Kellogg School of Management Learnof.com Lille Catholic University Liqvid e-Learning Services Liverpool Hope University London Business School Manipal Global Education Services Manipal Institute of Technology Manipal University Manipal University Manya Abroad Max Healthcare Max Institute of Health Education and Research MBD Group Meritnation
  14. 14. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 14 Metropolitan State University Michael & Susan Dell Foundation Microsoft Corporation MIT Sloan School of Management myBskool.com Nanyang Technological University National Institute of Management and Technology National Stock Exchange NHTV University of Applied Science NIIT Limited NIIT University Norwest Venture Partners NSHM Knowledge University Oracle India Pearson Affordable Learning Fund Pearson Education Pearson Plc. Quacquarelli Symonds Reliance Industries Limited RVS Group of Institutions Service Quality Centre Pte. Ltd. Sheffield Hallam University Shiv Nadar University School of Education Simplilearn Solutions Private limited Skyfi Labs Snapdeal Spark Capital Stuart School of Business Supertech Limited Swansea University Tata Teleservices The Fletcher School Times Higher Education Times Internet Limited Toulouse Business School Tufts University TutorVista Universiti Tun Abdul Razak University of Burdwan University of Chicago University of Cincinnati University of Houston
  15. 15. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 15 University of Missouri University of Pennsylvania Ventureast Tenet Fund II VIT University VIT University Western Michigan University Wharton Business School XLRI Xavier School of Management Yale University Zaya Learning Labs
  16. 16. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 16 REPORT SAMPLE UGC approves and supervises universities in India, as well as provide them grants. It supervises universities that can have several colleges, including the ones providing technical education. AICTE, on the other hand, provides accreditation to only the technical institutes, and its supervision is limited to them. By definition, an institution — not affiliated to any university — will come under supervision of only AICTE (for providing technical education). While, an institution — affiliated to a university — will come under supervision of AICTE (for providing technical education), and UGC (for being part of the university). However, the Supreme Court of India has passed a judgment in Bharathidasan University vs. AICTE (Case number: Appeal (civil) 2056 of 1999), that universities providing technical education do not require additional approval from AICTE for their courses. The court has also defined Masters of Business Administration (MBA) as a non–technical course. E.g. Amity Business School, which is one of the prominent business schools in North India, has not taken accreditation from AICTE, as it is affiliated to Amity University — Private University established under the state acts of Rajasthan and Uttar Pradesh.
  17. 17. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 17 UGC, on December 3, 2013 has also passed the UGC [Approval of Colleges offering Technical Education by Universities] Regulations, 2013. The regulations stated that as per the Supreme Court’s ruling on April 25, 2013 (Civil Appeal No. 1145 of 2004 and Civil Appeal No. 5736-5745 of 2004) — “colleges affiliated to a University do not come under the purview of the definition of Technical Institution as defined under Section 2(h) of the AICTE Act, 1987.” FIGURE 1: PRIVATE UNIVERSITIES AND TECHNICAL COLLEGES — % OF TOTAL UNIVERSITIES AND TECHNICAL COLLEGES Source: Indalytics Advisors Universities AICTE- accrediatedTechnicalColleges Private Government
  18. 18. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 18 FIGURE 2: MARKET SIZE OF HIGHER EDUCATION IN INDIA — BY TYPES OF FACULTY Source: Indalytics Advisors FIGURE 3: GROWTH OF HIGHER EDUCATION — UNIVERSITIES, COLLEGES, ENROLMENT AND TEACHING STAFF — 1950– 51 — 2012–13 Source: Indalytics Advisors Teaching Staff (in Thousands) Enrollment (in Millions) Colleges (in Thousands) Universities (in Tens) 2012 13 1950–51 Commerce / Management Engineering / Technology Medical / Pharmacy Law Arts Science Education Others Year = XX Total Market Size = INRXX trillion (US$XX billion)
  19. 19. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 19 At present, there is no government regulation, which enables foreign universities to set up universities in India and award degrees. The Ministry of Human Resource Development (MHRD), in 2010, had introduced the Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010. The bill is intended to regulate the entry and operation of foreign educational institutions in India. However the bill has not been passed, and is still under discussion. MHRD, however has now tried to bypass the bill, and has sent proposals to the Department of Industrial Policy and Promotion and the Department of Economic Affairs to permit foreign universities to open their campuses in the country as companies as provided under the Companies Act. As per the proposals, MHRD will include the processes for foreign universities to set up campus in India and issue foreign degrees — in the UGC (Established and Operation of Campuses of Foreign Educational Institutions) Rules.
  20. 20. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 20 FIGURE 4: UNIVERSITIES IN INDIA — BY SPECIALIZATION OF PROGRAMS Source: Ministry of Human Resource Development; Indalytics Advisors General Technical Agriculture Medical Law Sanskrit Veterinary & Animal Sciences Others Total = XX Year = XX
  21. 21. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 21 FIGURE 5: ENROLLMENT BY SUBJECTS — POSTGRADUATE PROGRAMS Source: Ministry of Human Resource Development; Indalytics Advisors Management Social Science IT & Computer Science Indian Language Commerce Engineering & Technology Foreign Language Medical Science Education Area Studies Social Work Law Oriental Learning Journalism & Mass Communication Others Total = XX Year = XX
  22. 22. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 22 DISCLAIMER No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Indalytics Advisors Private Limited. The information contained in this report is of a general nature and is not intended to address any particular individual or entity’s circumstances. Although proper care has been taken to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The publisher should not be held liable for any discrepancy in the information. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. Publication Volume: GCI-14-GL–05 Publication Date – August 2014 © 2014 Indalytics Advisors Private Limited For further information, please contact info@indalytics.com
  23. 23. Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players ©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 23 NOTES

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