The education sector in India can be divided into formal and non-formal segments. The formal segment refers to K-12 (Kindergarten to 12th grade) and higher education. Although the formal segment constitutes more than 80 percent of the market size, opportunities to invest in this sector remain limited due to strict regulations that prevent participants from distributing profits. The non-formal space is relatively small in size, but the low levels of regulations allow participants to distribute profits.
A Gross Enrollment Ratio (GER) much lower than that of the developing world and the global average is a matter of serious concern for India as a whole. The mid-day meal was planned to enhance the intake of students from rural and backward areas so that these children would also get suitable nutrition and food would act as an incentive to enable parents to send their children to school. The rise in India’s GER from 12 percent to 16 percent between 2008-2013 does indicate positive growth but yet there is immense scope for enhancing educational reach and standards.
Higher EducationFrost & Sullivan research shows that the GER of 11 per cent in 2008 rose to 16 per cent in 2013 and is expected to increase to 21 per cent by the year 2021. The allocation of Rs81,000 crore in 2009 helped create about two million higher education seats.
However, there is a need for almost 10 million higher education seats, which can be appropriately filled by private public partnerships.
Employability is one of the essential goals of a higher education system. Financial accessibility, physical accessibility, and virtual accessibility (online education) will play a key role in the success of higher education. Improved credit facilities for higher education have enabled students to go for higher education. High quality pedagogy coupled with better infrastructure facilities are also likely to give impetus to the higher education sector in India by making it more attractive for foreign students to gain admission.
Digital learning and classrooms are becoming an integral part of the education system.