EDUCATION AND NOT-FOR-PROFIT

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SECTORS EDUCATION AND NOT-FOR-PROFIT

According to Reuter’s recent survey on the ‘Indian Education Market’, with increasing per capita income, national economic growth and enhanced technology it has become necessary to develop the structure of the Indian education sector. Private players have taken several initiatives for development of education infrastructure and quality. The emergence of new segments like e-learning and V-SAT training is slowly shifting the education market towards new heights.

Education industry is one of the fastest developing sector worldwide, generating large scale revenues and employment. The Global education industry is the second-largest industry after healthcare. With education gradually being looked at as an investment as opposed to an inevitable expense, the higher education market size in India is expected to grow by over US$30 billion in the next five years. The government is planning to spend about 5% of its GDP revenues in the next five years on education. Subsequently, India’s market for primary, secondary and tertiary education could be over US$50 billion by the year 2015.

Looking at a global perspective, trends in this sector are changing dynamically. There is a still a lot of scope to harness the potential of this sector through major reforms. India is now being looked as a global hub for investments, with the education industry being considered as a lucrative option for investors across the globe. Globally, academicians and institutions are benefiting by leveraging their expertise to India. Additionally with the Foreign Education Bill, foreign players are getting into India through JV’s or by setting up Independent Research centres (Ex. Harvard).

Indian education market consists of two segments formal and non-formal education system. K-12 segment has shown tremendous increase in terms of market growth and revenue from past years and is expected to grow at same pace. Private professional institutes are expanding with a strong growth rate which has opened the doors for foreign universities.