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E-education sector to cross $45 bn mark by 2015

ICT

Mumbai: At USD 600 billion, the education spending in India has surpassed that of the US and is growing by leaps and bounds, a research report said.

The education spend in India is at USD 600 billion and the private education segment alone is expected to cross USD 45 billion mark by 2015 from the present USD 35 billion, according to a research report prepared by Investor Relation Society, affiliated to US based Global Investor Relations Network.

The report said that skill and vocational training are fast throwing good amount of opportunities.

With an education network of more than one million schools and 20,000 higher-education institutes, the market size of the Indian education system is estimated at USD 45 billion, Investor Relation Society president M S Anand said.

A little over two lakh Indian students migrate overseas every year for higher studies. These students alone contribute to foreign universities as much as USD 5 bn every year.

Based on this observation, several foreign institutions are foraying into India. This is expected to boost the quality of education in the country, the report said.

The higher education in India shall soon witness a sea change, leading to a surge in the growth of education sector. The sector may not only witness emergence of growth of small companies into gigantic organisations, but also lead to entry of new players.

These new players could be either technocrats as in the case of First Object Technologies Ltd or companies promoted by conglomerates like Zee.

In India, there are too many regulations, as unfortunately, education is in “concurrent list”, hence governed by both central and state governments. It’s the Government which decides what can be taught, what should be the fee and what’s the eligibility criterion, said M S Anand.

The education segment in India can be broadly divided into formal and informal. While formal education constitutes schools, higher education, and professional programs, the informal education includes pre-schools, multimedia, vocational training and virtual classroom training. Informal education is completely free from regulation at present.

Naturally, the requirement of funds has also gone up and both PE as well as IPO played a key role. The listed companies are going to be major player in future, Anand said.

Though there are several Companies in “me-too” kind-of-race, First Object Technology and Educomp have created their own USPs in the industry that has names like: Career Point; Core Education; Tree House Education & Accessories to reckon with.

Educomp (EDSL) is the only player in India offering end-to-end services in the education sector. The rising share of its subsidiaries in revenue, chiefly due to the strong growth in K-12, is likely to reduce dependence on the smart-class segment of School Learning Solutions.

Zee News, 13 May 2012

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