This document provides an overview of the educational services sector in India. It discusses the characteristics and types of services, defines education, and outlines the size and growth of India's education market. It also summarizes several key government initiatives to improve access and quality of education such as Sarva Shiksha Abhiyan, Rashtriya Madhyamik Shiksha Abhiyan, and Rashtriya Uchchattar Shiksha Abhiyan. Finally, it discusses the road ahead and challenges facing the educational sector in India including improving access, quality, and funding of education at all levels.

2. Index
1. Introduction to Service Sector.
2. Introduction to Educational Services.
3. Characteristics of Services.
4. Types of Services
5. What is Education
6. Market size of Education
7. Initiative by Government
 Sarva Shiksha Abhiyan
 Rashtriya Madhyamik Shiksha Abhiyan
 Rashtriya Uchchattar Shiksha Abhiyan
8. Road Ahead for Educational Services
9. Key challenges faced by educational sector

3. Introduction to Service Sector
 Service sector is the lifeline for the social economic growth of a country. It is today
the largest and fastest growing sector globally contributing more to the global output
and employing more people than any other sector. For most countries around the
world, services are the largest part of their economy. The real reason for the growth
of the service sector is due to the increase in urbanization, privatization and more
demand for intermediate and final consumer services. Availability of quality services
is vital for the well being of the economy. In advanced economies the growth in the
primary and secondary sectors are directly dependent on the growth of services like
banking, insurance, trade, commerce, entertainment, social and personal, etc. The
U.S. and other developed economies are now dominated by the services sector,
accounting for more than two-thirds of their Gross Domestic Product (GDP).

4. By the mid- 1990s services accounted for almost two third of world GDP up from
about half in the 1980s. Between 1990 and 2000, growth of world services output was
2.9 per cent double that of agriculture which was only 1.4 per cent. As a result, the
contribution of the service sector to world gross domestic product was 64 per cent in the
year 2000, compared to 57 per cent in 1990. (World Bank, ―World Development
Indicators‖ 2001). Between 1990 and 2000, the growth of exports of commercial
services for developing countries (9 per cent) exceeded that for developed countries
(5.5 per cent). The 49 least Home Care Services And Development Perspective – A
Study On Customer Perception And Acceptability In The Urban Parts Of India Page 2
developed countries also experienced particularly strong export growth of commercial
services (6.3 per cent) (WTO statistics, 2001).
 Australia in 2007, 85% of all businesses were in the service sector . In 2009 there
were more than nine million people employed in the service sector in Australia, which
was 86% of all jobs. In India, there has been a huge growth in service sector businesses
which made up 55% of India's GDP in 2006—2007. Computer software businesses in
India are increasing at a rate of 35% per year.

5. Introduction to Educational Services
Education of a nation is one of the foremost requirements
for its development. India’s advantage of having a large
population of youth presents a huge opportunity to the players
in the education sector as well as scope to the government for
development of this sector and consequently, the country.
Several factors such as growing income levels and favorable
foreign policies have attracted many foreign players into the
Indian education market. The Government of India has also
taken several initiatives to provide quality education to the
youth in the country.

6. Characteristics of Services
1. Services perish – The point is similar to perishability of services
marketing. The concept is simple – if you do not watch the movie
now, you wont get a refund of the ticket. If you do not board your
plane or your train, you cannot ask back for the charges of the ticket.
A service once order, perishes, if it is left unused.
2. Services cannot be made available in advance – If you were running
a restaurant, can you make all the dishes one day in advance and then
serve the customer when he comes? No you cant. The simple reason
behind this is that services cannot be stored. They cannot be given in
advance. They can be given only when a purchase of the services has
been made.

7. 3) Time utility is critical – If you were a doctor, and you gave half an
hour to each patient, talking idle talks just to make him comfortable,
you will probably lose the 10 customers sitting in your lobby. Thus
the way you utilise your time is critical to the profitability of your
business. A restaurant which does not have any customers today, will
have lost a lot of money in keeping the restaurant open, in labor
charges etc.
4) A service once consumed cannot be returned – You pay a doctor
for consultation and medicines. But your illness does not get cured or
he is unable to find the source. Can you ask your money back? You
cannot. He gave you the service which you asked for. The bottom-
line – you cannot return a service once it has been consumed. In
restaurants, you can return the dish if you don't like it, and ask for
another same one. But you cannot walk out of the restaurant without
paying for the services.

8. 5) Intangibility-Services are intangible and insubstantial: they cannot be
touched, gripped, handled, looked at, smelled, tasted. Thus, there is neither
potential nor need for transport, storage or stocking of services. Furthermore, a
service can be (re)sold or owned by somebody, but it cannot be turned over
from the service provider to the service consumer. Solely, the service delivery
can be commissioned to a service provider who must generate and render the
service at the distinct request of an authorized service consumer.
6) Inseparability- The service provider is indispensable for service delivery as
he must promptly generate and render the service to the requesting service
consumer. In many cases the service delivery is executed automatically but the
service provider must preparatory assign resources and systems and actively
keep up appropriate service delivery readiness and capabilities. Additionally,
the service consumer is inseparable from service delivery because he is
involved in it from requesting it up to consuming the rendered benefits.
Examples: The service consumer must sit in the hairdresser's shop & chair or in
the plane & seat; correspondingly, the hairdresser or the pilot must be in the
same shop or plane, respectively, for delivering the service.

9. Types of Services.

10. What is “EDUCATION”
Education in its broadest sense is any act or
experience that has a formative effect on the
mind, character, or physical ability of an
individual.
Education is the process by which society
deliberately transmits its accumulated
knowledge, skills and values from one
generation to another through institutions.

11. Market Size of Educational Services
• The education market in India, which is presently worth around Rs 5.9
trillion (US$ 92.98 billion), is poised for some major growth in the years to
come, as by 2020, India will have the world's largest tertiary-age population,
and second largest graduate talent pipeline globally. Presently, higher
education contributes 59.7 per cent of the market size, school education 38.1
per cent, pre-school segment 1.6 per cent, and technology and multi-media
the remaining 0.6 per cent. The higher education sector in India is poised for
an average growth of 18 per cent per year till 2020.
• Due to the growth advantages, this sector has also received number of
investments from several foreign organizations. In the period from April
2000—September, 2014, the education sector in India has attracted FDI
equity to the tune of US$ 964.03 million, according to the Department of
Industrial Policies and Promotion (DIPP).

12. Initiative by Government
1. Sarva Shiksha Abhiyan Mission
 Sarva Shiksha Abhiyan has been operational since 2000-2001 in Gujarat.
However, its roots go back to 1993-1994, when the District Primary
Education Programme (DPEP) was launched, with the aim of achieving the
objective of universal primary education.
 The expenditure on the program was shared by the Central Government
(85%) and the State Governments. The Central share was funded by a
number of external agencies, including the World Bank, DFID and
UNICEF. By 2001, more than US$1500 million had been committed to the
program and 50 million children covered in its ambit.
.

13.  Goals by SSA
• Open new schools in areas which do not have them and to
expand existing school infrastructures and maintenance.
• Address inadequate teacher numbers, and provide training a
development for existing teachers
• Provide quality elementary education including life skills
with a special focus on the education of girls and children
with special needs as well as computer education.

14.  The program seeks to open new schools in those habitations which do
not have schooling facilities and strengthen existing school
infrastructure through provision of additional class rooms, toilets,
drinking water, maintenance grant and school improvement grants.
 Existing schools with inadequate teacher strength are provided with
additional teachers, while the capacity of existing teachers is being
strengthened by extensive training, grants for developing teaching-
learning materials and strengthening of the academic support structure
at a cluster, block and district level.

15. Rashtriya Madhyamik Shiksha Abhiyan (RMSA)
 Rashtriya Madhyamik Shiksha Abhiyan (RMSA) is a centrally
sponsored scheme of the Ministry of Human Resource Development,
Government of India, for the development of secondary education in
public schools throughout India. It was launched in March 2009. The
principal objectives are to enhance quality of secondary education and
increase the total enrolment rate from 52% (as of 2005–2006) to 75%
in five years, i.e. from 2009–2014.It aims to provide universal
education for all children between 15–16 years of age. The funding
from the central ministry is provided through state governments,
which establish separate implementing agencies. The total budget
allocated during the XI Five Year Plan (2002-2007) was INR 2,012
billion.

16.  The Ministry of Human Resource Development directly provides funds to the state
governments. Each state government then release the funds to the approved
implementing agencies or institutions. During the XI Five Year Plan the central
government provided 75% of the total fund for each state, while 25% was borne by
the state as matching share. However in the remote Northeastern
states and Sikkim the matching share was waived to 10%.
 RMSA is planned to promote secondary education by establishing in every target
school the following infrastructure;-
• Additional class rooms
• Laboratories
• Libraries
• Art and crafts room
• Toilet blocks
• Drinking water provisions
• Residential hostels for teachers in remote areas

17.  The major achievements of RMSA as of October 2013 report are:
• 10,230 new schools were sanctioned, and 9,219 schools were opened.
• In 34,891 existing schools 23,407 new science laboratories, 19,641 computer rooms,
25,869 libraries, 28,969 art/craft/culture rooms, 19,401 toilet blocks, 12,370
drinking water facilities and 2,020 residential quarters were allocated.
• 64,215 teachers were sanctioned for the new schools and 24,184 teachers were
already recruited.
• In existing schools 41,507 additional teachers were approved, out of which 21,936
were appointed.
• 49,356 additional classrooms were approved out of which 9,516 have been
completed.
 The objectives of Rashtriya Madhyamik Shiksha Abhiyan can be summarized as
follows;-
• To improve quality of education imparted at secondary level through making all
secondary schools conform to prescribed norms.
• To remove gender, socio-economic and disability barriers.
• Universal access to secondary level education by 2017, i.e., by the end of the XII
Five Year Plan.
• Universal retention by 2020.

18. Rashtriya Uchchattar Shiksha Abhiyan (RUSA)
 Rashtriya Uchchattar Shiksha Abhiyan (RUSA) is a holistic scheme of
development for higher education in India initiated in 2013 by the Ministry of
Human Resource Development, Government of India. The centrally sponsored
scheme aims at providing strategic funding to higher educational institutions
throughout the country. Funding is provided by the central ministry through the state
governments and union territories (UT), which in coordination with the central
Project Appraisal Board will monitor the academic, administrative and financial
advancements taken under the scheme.[1] A total of 316 state public universities and
13,024 colleges will be covered under it.
 RUSA is provided by the central Ministry of Human Resource Development directly
to the state and UT governments. From the state/UT budget the funds are disbursed
to individual institutions. The funding to states would be made on the basis of
critical appraisal of state plans for higher education plans. The amount of funding
from central government will be 65% of the total grants, and 35% will be
contributed by the state/UT as matching share.

19. • For northeastern states, Sikkim, Jammu and Kashmir,
and Uttarakand the matching share is waived to 10%. During the 12th
Five-Year Plan period between 2012–2017, RUSA is allotted a
financial outlay of INR 228.55 billion, of which INR 162.27 billion
will be contributed by the central government. During the first phase,
80 new universities would be created by converting autonomous
colleges/colleges in a cluster to state universities. 100 new colleges
would be set up and 54 existing colleges would be converted into
model degree colleges.
• Infrastructure grants would be given to 150 universities and 3,500
colleges to upgrade and fill critical gaps in infrastructure especially
libraries, laboratories, etc. Further additional 5,000 faculty positions
would be supported. Then the scheme will extend into the 13th Five-
Year Plan.

20. Objectives of RUSA.
1. Improve the overall quality of existing state institutions by ensuring that all
institutions conform to prescribed norms and standards and adopt accreditation as a
mandatory quality assurance framework.
2. Usher transformative reforms in the state higher education system by creating a
facilitating institutional structure for planning and monitoring at the state level,
promoting autonomy in state universities and improving governance in institutions.
3. Ensure academic and examination reforms in the higher educational institutions.
4. Ensure adequate availability of quality faculty in all higher educational institutions
and ensure capacity building at all levels of employment.
5. Create an enabling atmosphere in the higher educational institutions to devote
themselves to research and innovations.
6. Improve equity in higher education by providing adequate opportunities of higher
education to SC/STs and socially and educationally backward classes; promote
inclusion of women, minorities, and differently abled persons.

21. Road Ahead for Educational Services
 Globalization in education means to create path for discovery and to shape the
education sector. Globalization in education means to bring the changes in the
functioning of the educational institutions in context with the foreign institutions. In
the past most of the institutions which were good were either supported by State
Government or by Central Government but now days many foreign institutions and
local private institutions are available which are good. The requirement of these
foreign institutions and local private players stood up because there was more
demand than supply of students in corporate. The growing demand of the industries
and the corporate sector has increased the scope of higher education in India.
 The main objective is to focus on the prospects and the problems of globalization of
education in India. The next main objective is to find the solutions related with the
above existing problems through the research work.

22. Challenges faced by Educational Sector
1. Since Independence, successive Indian governments have had to address a number
of key challenges with regard to education policy, which has always formed a
crucial part of its development agenda. The key challenges are:
• Improving access and quality at all levels of education;
• Increasing funding, especially with regard to higher education;
• Improving literacy rates.
2) Currently, while Indian institutes of management and technology are world-class,
primary and secondary schools, particularly in rural areas, face severe challenges.
3) While new governments commonly pledge to increase spending on education and
bring in structural reforms, this has rarely been delivered in practice.
4) Improving the standards of education in India will be a critical test for the current
Congress-led government. It will need to resolve concerns over the content of the
curriculum, as well as tackling the underlying challenges to education.