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Indian education sector

Statistical View Of India’s Education Sector
  • Growing in double digits over the last 5 years; Expected to grow by CAGR of till 2020.
  • Age Bracket 0-34 has c. 60% of the total population of the country. Current 0.8 Bn people in this segment to become 1.2 Bn by 2030.
  • The second-largest market for e-learning after the US. Online education users expected to reach 9.6 million by 2021 from 1.6 million in 2016.
  • Digital education expected to grow at CAGR 50 0/0+ for next 3-5 years
  • Indians have a high focus on Education. Average urban spend on education is about 9% of the total household income (2012).
  • With the median income elasticity of demand for education nearly 2, a 1% rise in per capita income leads to nearly a 2% rise in spends on education.
Government focus
  • Budget outlay increased to Rs. 85,000 Cr in F Y19; up by 6.7 %.
  • New initiatives in Vocational, Skilling and ICT training.
  • It intends to raise the spending to 6 % of GDP from the current 3.5 %.
Market
  • Market Size for private players is US$ 13.44 Bn.
  • Expected Market by 2020 would be US$ 31.7 Bn; Expected CAGR 19 %.
  • The Indian education system has changed its scenario, with its reach and economical access. For EduTech, the sector is emerging out to be a year full of innovative methods of imparting education.
Growth Drivers
  • With the growing awareness, private Indian players are collaborating with international brands to provide International standard quality education.
  • Increased propensity to spend on quality education / Rising urbanization / Demand vs supply gap / Increase in consumer disposable Income /affordability.
  • Private sector growth at a faster pace as they are perceived to be better than Govt schools.
Motivation Factors
  • Low investment, high returns.
  • Recession in free business.
  • Quick Break Even.
  • White-collar, highly respectable business.
  • A high degree of work satisfaction.
  • Limited working hours, more free time for family and other projects.
  • Highly scalable business. It can easily expand to formal schooling.