The Indian Education Industry is in its development stage. Current public spending on education in India is 3.5% of GDP. The Central government accounts for 15% of the total expenditure while state government accounts for 85%. Today India's literacy rate stands at 61%.
The number of junior basic schools are highest in the country & there is a strong need to set up higher secondary schools as well as colleges with a focus on IT education. The government has set up many ICT schools but still more than 50% of the market is untapped which shows an opportunity for private players. Trained teacher's & student's ratio is very low which claims the need of training institutes.
Indian Education System
Indian education system divides into two category.
- Formal Education System
- Informal Education System
FORMAL EDUCATION ( School & Higher Education)
- Under the purview of the ministry of Human Resource Development
- Higher education comprises graduate/diploma/ Professional courses regulated by university grants commission(UGC)
- Professional colleges must operate as not-profit institutes set up under a Trust/Society
INFORMAL EDUCATION ( Pre-Schools, Multimedia in schools & colleges, Coaching classes, Vocational training, Books)
- Informal education system is free of any regulations
- Not governed by any regulatory body
TREND IN EDUCATION
- The Indian education market is expected to grow at 11% over the next 10 years.
- Pre-school, K-12 schooling & Higher Education will together represent 2/3rd of the market.
- Multimedia in schools, child skill development , IT training & E-learning, preparatory & vocational studies are forecasted to grow in the range of 25% to 60% and will together represent 1/4th of the market.
- Pre-school, Education, CD-ROM and child skill enhancement are likely to remain an urban phenomenon.
- Teacher training is likely to grow at 40% to 50%.