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Education In India
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The Indian education system, one of the largest in the world, is based on pre-schooling, coupled with 12 years of schooling, which includes primary and secondary education; followed by college education system divided into three primary levels- Undergraduate, Postgraduate and Doctoral level. There are also non-core elements of education, comprising vocational courses, e-learning and so on.
With an allocation of INR65,867 crore for 2013-14 fiscal year, the Indian Education sector is a lucrative sector for potential players eyeing this arena. However, the gap between the spend on education and the actual human development is disturbing. Learnmile is an Education focused Research + Advisory firm driven towards bridging this gap, and helping education spend create right impact.
The Indian Education market stands on a year-on-year (YoY) growth of 15 per cent. A peek at the research findings by Crisil shows that Pre-school business in India is expected to touch Rs 13,300 crore (US$ 2.20 billion) by 2015-16, out of which branded pre-schools are expected to contribute about Rs 4,500 crore (US$ 747.66 million). Further, consulting firm Technopak sees enrollments in Kindergarten-12th grade (K-12) growing to 351 million, requiring an additional 34 million seats by 2018.
For private players, the opportunity is immense. The private education sector is estimated to reach US$ 70 billion by 2013 and US$ 115 billion by 2018, according to Technopak. Realising the fast growth of education sector in India, many private companies are looking for relevant acquisitions and alliances in this space. Major investments are being seen in the areas of pre-schools, private coaching and tutoring, teacher training, the development and provision of multimedia content, educational software development, skill enhancement, IT training and e-learning. Learnmile works with private players in Education investigate numerous options available for market entry or scaling up of business and hence arrive on a decision backed by thorough research.
The benchmark for success of any player in the education domain is the quality of education being delivered. The current system of education, especially after 10+2, fails to serve the purpose for which it has been started, to a great extent. Although there is an increase in the number of colleges in India, it has also led to an increase the rate of unemployment in the country.
The objective of imparting education is to help students achieve understanding of subject and in-turn ones’ own life objective. To meet the expectations of students and their families alike, challenges need to be addressed and reforms be implemented in the education system. Research throws light on loopholes existing in the education sector, hence helping educational institutes and in turn, students themselves. Profit cannot be the sole motive for undertaking this business by the private players. It must be carefully driven by an unflinching commitment to the society, which in turn will benefit the business in the long run.
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