| The education sector in India is one of the thrust areas for investments as emphasis is being laid on revamping the systems through increasing investments. The size of the education sector currently is pegged at US$ 25 billion, according to an industry chamber study released recently. According to the report, the government is planning to spend about 5 per cent of GDP in the next five years on education. It also adds that the size of the education sector is expected to double to US$ 50 billion by 2015 with the rise in government expenditure along with an increase in middle-class income. |
 |
| Also, the pre-school segment, according to the Kaizen Education Report released by Kaizen Mgmt Advisors, is worth an estimated US$ 500 million currently and is expected to grow to US$ 1 billion in the next two years. Further, the segment is growing at a compounded annual rate of 30 per cent. This growth is being fuelled by increasing enrolment amongst the 119 million children between the ages of 0 to 4. This segment has 11 major chains including KidZee, Euro Kids, Tree House, Bachpan, Mother's Pride and Sunshine and around 10 smaller players. |
|
|
| SECTOR FACTS |
|
|
|
|
|
India has about 480 universities and about 22,000 colleges currently and about 460 million school-going children |
|
|
|
|
FDI inflows in the education sector during the period April 2009 to March 2010 stood at US$ 58.05 million, according to the latest DIPP SIA Newsletter |
|
|
|
|
FDI inflows in the education sector during March 2010 alone stood at US$ 0.24 million, according to the latest DIPP SIA Newsletter |
|
|
|
|
| Investment Opportunities |
|
| According to the Union Minister for Human Resource and Development, Mr Kapil Sibal, India needs 1.2 million more teachers under the Right to Education Campaign. He also added that with 546 million people under 25 years of age, there is huge potential in India in the education sector that needs to be tapped. According to a senior official in the Ministry of HRD, the target will be to achieve the Saakshar Bharat Mission's aim of raising the literacy rate to 80 per cent within the next two years for which huge investments will be required. |
|
| The country's fast-growing education sector holds a potential to attract a US$ 100 billion (about Rs 4.57 lakh crore) investment over the next five years driven by demand for skilled professionals and need for infrastructure development, according to experts, such as KPMG. |
|
| By the next decade, to increase the percentage of students going for higher education from the present 12.4 per cent to 30 per cent in the country, India will need 800 more universities and another 35,000 colleges, according to the Union Minister for Human Resources Development, Mr Kapil Sibal. |
|
|
| Investment Policy Updates |
|
| The Medical Council of India (MCI), a state body that regulates the medical education sector and registers doctors, has allowed hospital chains such as Fortis Healthcare, Max Healthcare and Apollo Hospitals to set up medical colleges. The Centre has also said that medical education would remain separate from general education and would not come under the jurisdiction of the National Council for Higher Education and Research (NCHER), a body that is being instituted by the education ministry. |
|
| Three bills were introduced in the Parliament by the government, namely: |
|
|
|
|
|
The National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 postulates that every higher educational institution and every programme conducted by it should require accreditation in the manner provided in the proposed legislation |
|
|
|
|
The Educational Tribunals Bill, 2010 provides for the establishment of the State Educational Tribunals and the National Education Tribunal. The National Education Tribunal would exercise power and authority over any dispute between a higher educational institution and any appropriate statutory regulatory body and all other matters pertaining to higher education |
|
|
|
|
The Prohibition of Unfair Practices in the Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 bars accepting admission fee and other charges other than those declared by the institution in the prospectus |
|
|
|
| 100 per cent FDI is allowed in education sector. |
|
| Finance Minister, Mr Pranab Mukherjee, has said that the proposed allocation for education under the Eleventh Five-Year Plan will be US$ 65.21 billion, taking the share of education in total planned expenditure from 7.7 per cent to 20 per cent. |
|
| The Central Universities Act was promulgated in January 2009 for conversion of three state universities into central universities. It also brought new central universities in 12 states. |
|
| (Source: Ministry of HRD, Eleventh Five Year Plan) |
|
|
|
 |
|
 Understanding the need for immediate impetus to all educational initiatives, the Government of India has decided to spend around US$ 67 billion in the next five years on education. |
|
Sam Pitroda
Chairman
National Knowledge Commission |
|
|
|
|
|
|
|
|
| WHAT'S NEW |
|
|
|
| Private equity firm Mayfield India has invested about US$ 8.62 million into Bharti's Centum Learning, a major player in the higher education space |
|
|
|
| Chennai-based Everonn Education Ltd has instituted virtual and technology-enabled learning solutions (ViTELS) which connects to colleges and retail centres across the country offering skill development and job-oriented programmes |
|
|
|
| GMR Group and the Schulich School of Business of York University in Toronto have entered into an agreement to develop a Schulich campus in Hyderabad |
|
|
|
|
|
|
|
|
|
|
|