India is renowned as the world’s most populous country and is home to the largest group of individuals aged between 5 and 24 years old, totaling an impressive 580 million in number. This sizeable population offers an opportunity for the field of education, contributing significantly to the Indian Education Market Growth. Currently, it accommodates more than 250 million students enrolled in schools across the nation. Insights from industry experts at IBEF suggest that by the year 2024–2025, the education sector in India could potentially see a market value surge to $225 billion.

In the year 2021 India secured the position, among 112 countries in the English Proficiency Index showcasing its number of fluent English speakers that enable the provision of educational offerings such as online programs. The Indian administration encourages investment in education by allowing, up to 100 percent direct investment (FDI) in this field. Proposed regulatory changes involve setting up the Higher Education Commission of India (HECI) a move detailed in the National Education Policy 2020. 

To meet the growing demand, for education and skills training among over 255 million individuals aged 15-25 in Indias population is a key focus for the government in attracting international investments to bolster educational infrastructure and opportunities for growth and development. Currently only 110 millions of these youth are actively engaged in education programs within the country’s institutions. The Indian government has set a target to raise its enrollment ratio (GER) from 27 percent to 50 percent by the year 2030 as part of its ambitions to expand access to education. In an announcement made in August by Union Minister for Education and Skill Development Dharmendra Pradan hinted at the introduction of new guidelines aimed at facilitating greater foreign involvement and investment, within the educational sector. 

Growth factors for the education sector in India 

The significant expansion of telecommunications services, along with internet prices has resulted in a notable increase in opportunities for online businesses.  

By the end of March 2019 in India saw a total of 451 million internet users on a basis which placed it as the second largest, after China in terms of user numbers online connectivity stood at 36% with projections showing an increase to 829 million users by the year 2021 this rise, in connectivity is foreseen to bring about notable growth opportunities across different sectors encompassing both urban and rural regions notably benefiting traditional physical businesses.  

By 2022 it is expected that the number of people using smartphones will rise to 859 million from 468 million, in 2017—a growth of 84%. This increase is driven by the accessibility of budget top notch smartphones and the widespread reach of mobile and data services, across India. 

The progress, in learning offers a chance to enhance educational reach in India and here is why;  

School education is declining in quality beyond the schools that come with a hefty price tag but local online education platforms, like BYJUs and Unacademy are stepping up to bridge this gap by offering creative and interactive learning modules to support and improve traditional school education methods They are based in Bengaluru and have garnered investments from prominent backers, like Sequoia and General Atlantic.  

Additionally numerous web based courses are taught by professionals and seasoned experts providing real world knowledge that connects concepts with practical applications. This hands on method frequently boosts the appeal of these programs.   

One aspect to consider is the lack of available spots for undergraduate programs at colleges and universities in Indias educational system has a well established practice of Open and Distance Learning (ODL) with prominent institutions such as Indira Gandhi National Open University (IGNOU) Dr. B.R.Ambedkar Open University ( BRAOU) and Nalanda Open University (NOU). Traditionally this method required oversight from teachers. Allowed for students and educators to be physically distant, from each other. Online classes have notably enhanced the experience in these setups by boosting engagement levels to those observed in traditional classroom environments.  

The expensive nature of pursuing education overseas poses a challenge for students. Moving forward to address this issue and bridge the gap in resources and demand international universities are collaborating with institutions to provide cost effective academic programs.With Indias foreign investment policies it is probable that foreign universities will soon set up operations within the country enabling access, to both traditional classroom and online learning experiences. 

How India is facilitating easier access to investment possibilities 

India has now become the e learning market worldwide following the United States of Americas lead position. Predictions for 2021 estimated that the markets value would hit $1.96 billion with around 9.5 Million users. With e learning gaining more traction these days experts foresee Indias Edtech sector expanding into a $30 billion industry over the ten years.  

In June 2022 PhysicsWallah (PW), an Edtech platform based in Noida achieved unicorn status by raising $100 million in a Series A funding round, with principal investors being Westbridge and GSV Ventures. Among the Edtech unicorns are Byju’s Eruditus, Unacademy, Lead, Upgrad and Vedantu.  

The Indian government has put in place programs to improve the standard of education and increase the availability of higher education to a larger portion of the population including measures such, as; 

• In August 2019 the Maharashtra International Education Board (MIEB) teamed up with Google to improve Indias EdTech scene. This partnership utilizes Googles resources and technology including tools, like Google Classroom and G Suite, for Education to aid in learning for students and teachers.  
• Complete Foreign Direct Investment (FDI): From April 2000, to December 2019 the education industry in India received a total of $2 billion, in investments through the route.  
• The 2020 New Education Policy was rolled out in 2019 with a focus on nurturing childhood development and revamping the exam system while also improving teacher education and restructuring the education framework.  
• External Commercial Borrowings (ECBs): There is a plan, in progress to allow ECB funds to support initiatives aimed at promoting education, in India. 

Major efforts, by the government to enhance the progress of education, in India consist of : 

• Incorporation of ICT  (Information and Communication Technology) in Education has been a development in the curriculum to improve the efficiency and delivery of education services. By 2018 over 800 master trainers and key resource personnel across India were equipped with the skills through training, on the ICT curriculum tailored for students and educators alike.  
• The NCERT (National Council, for Educational Research and Training) established e Patshala to make e resources more accessible to students and teachers alike. E Patshalas platform and mobile app provided a range of resources as of December 2018 including 3 444 audio and video resources 698 e books and 504 flip books.  
• The National Repository of Open Educational Resources (NROER) strives to collect an array of materials catering to every level. As of December 2018, the platform had accumulated a total of 13635 files comprising 401 collections, 2722 documents, 565 interactive components, 1664 audio clips, 2581 images and 6, 105 videos.  
• The SWAYAM Portal, known as the ‘Study Webs of Active Learning for Young Aspiring Minds‘ provides a range of courses catering to students from school to postgraduate levels with the National Institute of Open Schooling (NIOS)’ offering 44 online courses, on the platform to enrich education through e learning.  
• The National Digital Library of India (NDLI) offers access to a range of books totaling more than 15 million copies online for users to explore and utilize as learning materials. 

Growth of enterprises offering online education 

India is known for being a choice, for investments in the online education field due to its market opportunities and strong yet affordable software industry infrastructure that provides a reliable basis for launching diverse educational technology business strategies ranging from modern techniques to conventional teaching methodologies.  

Statista’s calculations suggest that the value of the EdTech industry, in India stands at $2.8 billion presently and is expected to reach $10.4 billion by 2025 with, around 9043 EdTech startups operating in the country. 

In Indias education sector are categories, like K-2 schooling support test readiness resources, certification courses online,  specialized skill training and business solutions. The surge, in these sectors is driven by accessibility,ease of use cost advantages. Changes brought on by the pandemic; all backed by improving tech capabilities.  

Numerous platforms are currently improving their services by providing products for their audiences; these offerings include additional benefits, like group conversations and live projects as well as career guidance and internship opportunities in addition to regular courses. Moreover tier educational institutions are incorporating features such, as personalized dashboards, detailed progress monitoring and skill assessment tools to draw in users.  

In the realm of education technology advancements are being utilized to develop engaging learning opportunities by enhancing interfaces, for knowledge absorption and retention strategies such as concept simulations leveling up achievements and incentivized learning are driving increased user involvement in educational technology platforms, like BYJus and Cuemath.  

Amid the situation India stood out as a prominent destination, for international venture capital investment in the field of education following closely behind China and the United States. Information provided by analytics company Tracxn shows that from January to August 2021 educational technology companies in India managed to secure a $3.81 billion, in backing. 

Possibilities for expansion and obstacles in the post-pandemic education sector in India 

A recent UNESCO study revealed that the global pandemic impacted a majority of students, around 91 percent to be exact! In India specifically than 320 million students faced disruptions when schools and educational institutions had to shut down to control the spread of the virus. These unexpected and prolonged closures spanning the three years pushed schools, colleges and coaching centers to come up with solutions to ensure learning continued and course schedules were met despite the obstacles.  

Institutions are utilizing tools such, as Zoom and Microsoft Teams to conduct both recorded classes amid challenges like inconsistent internet access and the different availability of devices like smartphones and laptops across various areas, during the pandemic lockdown period Some teachers even took the initiative to send scanned documents through emails or short video clips via WhatsApp to address particular queries in a bid to reduce data consumption and connectivity problems. Upon making these efforts to improve the experience post reopening of schools for students to meet their learning requirements effectively and comprehensively; educators acknowledged the importance of incorporating face, to face classes.  

In the era following the pandemics impact, on society it is not unexpected that online education is now being combined with learning centers resulting in the emergence of a blended educational approach. This transition is warmly welcomed by companies in the educational technology sector such, as Byjus Aakash, UpGrad, Vedantu, PhysicsWalla, 99mytuitions app and Utkarsh Classes who are setting up brick and mortar institutes.  

Students are showing a preference, for a mix of traditional classroom settings over relying on e learning due to its constraints and limitations. Moreover due to a reduction in funding for the Edtech sector, during the quarter of 2021 companies are feeling pressured to adjust their approaches to maintain growth. 

Regulatory regime 

International businesses and educational institutions interested in entering the market have avenues for setting up operations in the country; they can either function as an unincorporated entity like a branch office or liaison office or establish themselves as an incorporated entity such as a wholly owned subsidiary or limited liability partnership entity.However the All India Council for Technical Education ( AICTE ) lacks a framework, for online degree and diploma programs.  

While official recognition, from the government may not be extended to certifications obtained through programs, degree and diploma courses have the potential to gain acknowledgment from the University Grants Commission (UGC). This regulatory body falls under the Ministry of Human Resource Development. Is responsible for managing and upholding standards, in education.  

In order to provide accredited degree or diploma programs online according to UGC standards a foreign organization needs to meet the criteria of being recognized as a Higher Education Institution (HEU). An HEU is defined by the UGC Act of 1956 as an establishment identified as a university that offers education or conducts research using classes, distance learning methods or online educational platforms. 

In order to get the light, for providing education services Higher Educational Institutions (HEIs) need to satisfy these requirements: 

• The portal needs to undergo verification and receive approval from the expert committee of the UGC.  
• The online material should include a four quadrant approach comprising video lectures, e content self assessment tools and a forum for discussions.  
• Only courses that are not technical, in nature can be taken online; programs like those in fields such, as law and medicine are not included for delivery options.  

Furthermore,  

• Operate continuously for a minimum of five years.  
• To meet the standards set by the National Assessment and Accreditation Council aim to attain a rating of 3.  
• Ensure placement, in the Top 100 of the National Institutional Ranking Framework for a minimum of two years. 

Some takeaways 

Ever since the COVID-19 outbreak started in India, the way education is delivered has changed a lot. The lockdowns pushed people to start learning which was already becoming popular before that.  

Teachers and students are becoming more accustomed to using platforms and digital learning materials these days. In the era following the outbreak these digital resources are expected to fill voids, in conventional classroom teaching provides individualized tutoring services and assist with different skill enhancement programs.  

The quick transition to learning between 2020 and 2021 brought attention to issues with internet and education systems while also uncovering possibilities for development, within this field.  

It seems clear that more and more people are opting for tools to meet their requirements nowadays. Given its user base and technological progressions, in place India could potentially emerge as a player in education investment on a global scale.. The challenge lies in ensuring that regulatory bodies are able to adapt to the changing landscape of the market. Recent indications from sources hint at advancements, in this area soon.