India is termed as a rising star in the world, as we have educated and highly qualified human resources in abundance. Education is often considered as one of the chief reasons for transforming India to fastest growing economy since 1990’s liberalization. Education was always recognized as the pillar for development and as a result, considerable fraction was devoted by the government towards literacy, school enrollment, higher studies institution and practical education, over the decades ever since independence.
The Indian education system is considered as one of the largest in the world, is classified into two major groups of core and non-core businesses. While, schools and higher education form the core group, the pre-schools, vocational training and coaching classes form the non-core business. A market research report confirms that Indian education sector size will rise to US$ 111.16 billion by the year 2015 with the growth of 18.0 percent CAGR till 2020 in higher education sector. By the end of 2020, there will be a surplus of 47 million people in the working age group. As a result, the informal and formal education sectors are growing at a rapid phase.
What drives the Growth?
• Growth is driven by the market size which is huge in terms of the number of students and the revenues.
• The increasing tendency of the middle class to spend on education.
• An initiative taken by the government to make awareness about education in rural regions by making Public Service Advertisements.
• More and more private players entering the market.
• Constant change in the quality of education and the curriculum.
• Increase in the number of foreign students.
• Niche sectors like vocational training, child-skill enhancement, finishing school, and e-learning.
India is budding in terms of the education sector. It is understood that education prepares one for all the major challenges in life. There has been an exceptional growth of higher education in India since Independence. Education sector in India is flourishing and also is the major area of investments. India has the third largest higher education system in the world in terms of enrollment.