Education industry in india ppt

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 11FY 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

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 and 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).

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).

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.

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.

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 educationPolicy 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”

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