Education is the New IT in Terms of Industrial Growth

by Skol System Education system

India's education sector is growing by leaps and bounds. Thriving on more than 1.4 million schools and more than 35,000 higher education institutes, the sector is witnessing an unprecedented revolution both in size and the volume. The sector is embedded with immense business potential and that's why from Microsoft India to Cisco are investing aggressively in India's education market.

Many foreign universities are keen to invest here as the new government at the Centre is taking initiative to minimise road-blockages and simplify the policies for foreign universities and colleges. The new trend that is yet to make waves in this sector is the emergence of PPP models. Means, the collaborative efforts of public and private institutions can give a desired direction to the education industry. Furthermore, better coordination between the two may improve the quality of the education in India and will be able to develop new institutes parallel to IITs and IIMs. At present, these quality institutes are unable to meet the required demand of the country and India needs more IITs, IIMs and medical colleges such as AIIMS. Best Material for PMT

In addition to the physical market growth, the sector is also expanding in the online domain and it is expected to touch US$ 40 billion by 2017. Distance education in India is growing at almost 34 percent per annually. In the recent past, some big names like Fidelity and Helion invested more than $10 million into the online test preparation platform. Meanwhile, SKOL System; an education research firm from New Delhi recently came up with a new marketing concept in the education industry and it is the customised study material for coaching industries to enhance their brand and market value. A similar type of organisation, Nayi Disha, which offers engaging learning modules for preschoolers, raised $2 million. Online test preparation is among the fastest growing segment in the education sector followed by collaborations with foreign institutes. The Mumbai-based Embibe, which had raised $4 million last year from Kalaari Capital and Lightbox Ventures, too recently expanded its reach by acquiring competitor 100Marks.

The online education platform is very well anticipated in the urban India as it suits more to the working youth and it is also a pocket friendly solution to most of the working students. If we talk about the interest of foreign investors, then, here again statistics go in favour of the industry. After the onset of the new millennium, the FDI inflow stood at US$ 1,071.5 million from April 2000 to January 2015. Besides, the Government of India is planning to open a national vocational university that will be effective to hone the skills of the students of various ITIs.