Rising incomes and rapid urbanization, increasing awareness about importance of quality education have resulted in robust growth of sector, says agency
India has 1.4 million schools and more than 35,000 higher education institutes. Photo: Mint
New Delhi: Rising incomes and rapid urbanization, coupled with increasing awareness about the importance of quality education, have resulted in robust growth of the Indian education industry, rating agency CARE Ltd said in a research paper on Thursday.
The report pegged the market size of the Indian education industry at Rs.3.83 trillion in the last financial year.
While 59.7% the market size is accounted for higher education, school education contributes 38.1%. While the pre-school segment accounts for 1.6% of the market, technology and multi-media contribute the remaining 0.6%.
“With the increasing role of private sector in education in setting up of institutes, especially in the K-12 and Higher Education segment, the market size of the Indian Education industry aggregated to Rs. 3,833.1 billion during FY2013,” the rating agency said.
The potential of K-12 segment remains healthy with higher growth coming from private spending owing to a consistent shift towards private schools in the country, the paper said.
This shift has been taking place due to growing awareness of importance of quality education and enhanced affordability. The rating agency said various government initiatives such as Right to Education Act 2009, Sarva Shiksha Abhiyan (SSA) and Mid-Day Meal scheme are playing an important role in driving the growth in K-12 segment.
“Despite high growth in enrolments, the margins of K-12 players remain stable, as the not-for profit segment is highly regulated,” CARE said.
India has 1.4 million schools and more than 35,000 higher education institutes.