India’s Education and Training Industry: 2024 Outlook

India’s education and training sector is undergoing significant transformation, driven by rapid digitization, increased government investments, and evolving learning needs. According to the “Education and Training March 2024” report, India is poised to become a global leader in education, with substantial growth across all segments, including K-12, higher education, vocational training, and EdTech.

Key Highlights

• Government Investments: In the Union Budget 2024-25, the Indian government allocated ₹73,498 crore ($8.82 billion) to the Department of School Education and Literacy, marking the largest allocation in the history of Indian education funding. This represents a 19.56% increase from the previous year.
• EdTech Growth: India’s EdTech market is expected to reach $30 billion by 2031, driven by rising demand for online learning and skill-based education. Over the last five years, $4 billion in private equity investments have flowed into the sector.
• Gross Enrolment Ratio (GER): The government aims to increase the GER in higher education to 50% by 2035, up from 28.4% in 2022. This effort is supported by key initiatives under the National Education Policy (NEP) 2020, which aims to modernize and digitize India’s education system.

Current State of Education in India

K-12 Education

India has 1.48 million schools, with 265 million students enrolled in primary and secondary education. The majority of these schools are government-run, which account for 70% of the total. The sector is witnessing a shift towards private schools adopting franchise models to scale their offerings and provide higher-quality education at an affordable cost. Additionally, the National Curriculum Framework (NCF) introduced in 2023 promotes a more flexible and child-centric approach to school education.

• Government Schools: 70%
• Private Schools: 22.6%
• IB(International Baccalaureate) Schools: 226, with 31% growth since 2019.
  (IBs offer high quality programs of international education to a worldwide community of schools.)

Higher Education

India has the world’s second-largest higher education system, with 50,734 colleges and 1,265 universities as of 2024. Student enrollment in higher education reached 43.3 million in 2022, a 4.9% increase from the previous year. The government’s push for specialized degrees and online programs is helping to meet the needs of a growing student population, with many institutions offering MBA/Technical degrees tailored to specific industries.

• Number of Colleges: 50,734
• Number of Universities: 1,265
• Student Enrolment: 43.3 million in 2021-2022

Growth Drivers and Opportunities

1. Policy Support and Government Initiatives

The Indian government has introduced multiple policies to enhance educational infrastructure and learning outcomes. The NEP 2020 promotes holistic learning, a multidisciplinary approach, and a greater focus on vocational education. Key initiatives under this policy include:

• National Digital Education Architecture (NDEAR) and National Education Technology Forum (NETF).
• A target of creating 15,000 model Industrial Training Institutes (ITI) by 2035.
• The Samagra Shiksha Abhiyan, which is the largest umbrella scheme for school education.

2. Foreign Direct Investment (FDI)

India’s education sector has attracted $9.44 billion in FDI between April 2000 and December 2023. With 100% FDI allowed under the automatic route, there is enormous potential for foreign educational institutions and edtech companies to collaborate with Indian entities. This has led to mergers and acquisitions across the sector, with major players like PhysicsWallah and UpGrad raising significant funds in 2022-23.

3. EdTech Expansion

The digital learning segment continues to grow exponentially. India’s online education industry is expected to reach $3.6 billion by 2027, growing at a CAGR of 22.26%. The COVID-19 pandemic accelerated this shift, with platforms like Coursera reporting 109% growth in learners in India between 2020 and 2022.

Challenges Facing the Education Sector

Despite the robust growth, several challenges remain:

• Infrastructure Gaps: India needs 200,000 additional schools, 35,000 colleges, and 40 million vocational training seats to meet future demand.
• Teacher Shortages: The pupil-teacher ratio in senior secondary schools stands at 47:1, significantly higher than the ideal ratio of 26:1.
• Digital Divide: While online education is growing, rural connectivity and access to digital devices continue to be barriers to equitable learning.

Recent Trends in the Indian Education Sector

1. International Collaborations: Indian institutions are forming joint ventures with foreign players to offer globally recognized courses. Examples include partnerships between GMR Aviation Academy and Emirates Group Security, and BITS School of Management with the London Business School.
2. Increased Vocational Training: The government’s focus on vocational education is expanding through initiatives like Skill India and PM eVIDYA, with a focus on high-demand skills such as AI, ML, and cloud computing. The Rail Kaushal Vikas Yojana launched in 2021 provides entry-level skill training in railways and related industries.
3. Rise of STEM Education: STEM-based edtech companies are collaborating with the government to build Atal Tinkering Labs (ATL) for K-12 students, aiming to teach AI, robotics, and coding from an early age.

Conclusion: The Future of India’s Education Sector

India’s education sector is at an inflection point, with digital transformation, policy support, and foreign investments driving growth. With a population of 500 million people aged 5-24 years, the demand for quality education is immense. The future lies in expanding digital infrastructure, improving access to quality education, and fostering innovation in learning methodologies. The sector is projected to reach $225 billion by FY25, making it one of the largest education markets globally.

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