Educational Services in India

Arindam Kesh [605]Ashish Tulshankar [606]

Suraj Saini [607]Dijo John []

Shringi Sharan []Sanjay Chayal []

Akhil Shrivastav []

“We don’t need no Education”

Where all does education services leave an indelible mark?1. Individual 2. Society3. Benefits of Girls’ education4. Growth of Nation

5. Benefits to the Individual• Education is Self Empowerment• Increases productivity and earnings• Financial Stability and Dignity of Life• Growth in Personal Aspiration• On the Job Efficiency• Helps Plan Ahead• Improves health and nutrition

6. How it impacts society• Drives economic competitiveness• Reduces inequality and alleviates poverty• Contributes to democratization• Promotes concern for the environment• Promotes peace and stability• Job Seeker to Job Provider

3. Benefits of Women education• Reduces women’s fertility rates• Lowers infant and child mortality rates• Lowers maternal mortality rates• Protects against HIV/AIDS infection• Increases women’s labour force participation rates and earnings• Creates intergenerational education benefits

4. Importance of education to Nation-Building• Education creates an enlightened society• Adoption of the latest advancements in science and technologies with ease• A ‘meritocratic’ bureaucracy needed in order to make the state’s institutions effective• Increase in democratic participation• To embrace diversity in a nation’s culture• Creation of a large bourgeois who fuels the economy largely

|All things said and done education is and will continue to be one of the biggest service sectors through which society can be developed and nations can be led to the path of growth and prosperity|

How the Education Sector fares in the Country

• No progressive governemnt can undermine the importance of this sector as it’s a crucial part of building individual society and nation alike.

• Policy frameworks play a pivotal role in how this industry shapes for itself and the country

• One of the largest market services in INDIA and valued at a combined market size of more than 450 mn students and US$50 bn per annum* *CSFB Report; CLSA Report; KPMG Analysis

• Indian Govt . spending on education is just a lowly 4.1 % of GDP which places India at the 82nd position out of 132 countries for which UNESCO-IS carries out its survey

• APEC economies total spending on education is at least US$1 600 bn *a year. Around 500 mn* persons are enrolled each year in some form of education throughout APEC .

*Centre for International Economics Canberra & Sydney January 2008

• Just 12.7 % of the total government expenditure is the level for India which positions it in the 68th place out of 96 countries. *UN-Human Development Programme

HS code for Educational purposes

CPC Version 1.1

Section: 9 - Community, social and personal services

Division: 92 - Education services

Further Breakdown :-

921 - Primary education services

922 - Secondary education services

923 - Higher education services

929 - Other education and training services. Source - http://unstats.un.org

Indian Education Services – Sectors

▪ Pre school

▪ K - 12 (School education)

▪ Higher Education

▪ Vocational Education

▪ Test preparation

▪ Coaching classes

▪ E – learning / Distance education

▪ Foreign placement consultants

The Pre – School Market

▪ Largely urban phenomenon spawned by nuclear families

▪ Low market penetration with only 12-15% children in cities enrolling for these.

▪ Expected to expand rapidly with CAGR about 25-30%

▪ Competition seems to intensify and new players will have tough time differentiating their offerings.

The Pre-School Market – Growth Routes

• Many corporates are planning to set up their own chains of pre-schools

• Pre-schools are viewed as attractive investment opportunities

Entry of big corporates

• Partnering with builders helps in imparting flexibility in the business against high lease rentals

• Examples: AEZ group and Mother’ Pride group entered in to JV for pre-school

Joint ventures with builders

• Pre-schools trying to move up the value chain• A large majority of pre-schools population is expected to be

potential customers for K12Upgrade to K-12

• Demand and affordability is increasing in small towns• Euro kids plans to add 1000 pre-schools with tier II and tier III as

growth drivers.

Expansion to tier 1 and tier 2 cities

• Leveraging the existing infrastructure with max utilization of space• Additional programs offered on the same premises• Many players likely to tap Equity markets to raise capital

Leveraging infrastructure for

economic viability

Key factors in favor of business in pre-schools

▪ Higher propensity to spend among urban couples

▪ Willingness to pay premium for higher level of services.

▪ Ease of franchising and highly localized services

▪ Low capital requirement and shorter payback period

Kindergarten – Grade 12 (K-12)

▪ Largest K-12 population yet a low enrolment rate

▪ 81% at middle school level and fall further to 31% in secondary and higher secondary level

▪ Caused by low availability of schools, low awareness and prevalence of child labor

▪ Private schools account for 20% of total schools but they provide education to more than 30% students

▪ Current Private spend at US$43.6 and expected to grow at CAGR of 14%

Government Initiatives K-12

Initiative Description Anticipated Benefits

Right to free and compulsory education bill

Education as the fundamental right to children in the age group 6-14

• Fall in drop-out rates• Higher GER in higher

education

Private Public Partnerships

Tender awarded in BOOT (Build own operate and transfer) Model for infrastructure and IT Education

• Improvement in infrastructure

Mid-day meal scheme Mid day meals to students in the I-VIII standards

• Improvement in attendance rates

• Fall in drop-out rates

Sarva Shiksha Abhiyan • Building capacity in the system• Teacher skill development • Improved course content• Mid-day meal scheme

• Overall thrust to universalize elementary education

• Improvement in teacher quality

• Higher GER

Increased public spending

70% of education budget is focused on schooling , four fold increase in 11th plan (~185 k cr) compared to 10th plan (~50 k cr)

• Adequate funding for the initiatives

Kindergarten – Grade 12 (K-12)

• Failure of Public Education System to provide quality Education

• Growing Importance of Education

• Willingness to pay for quality Education

Migration from Public Schools to

Private ones

• Huge gap in quality and quantity

• Shortage of Good Schools and teachers

• Percentage of private schools expected to increase

Large Potential in K-12 Segment • New operating models

• Partnership between Indian and International groups

• Adaptation of hybrid teaching methods by private schools

• Rapid growth international schools

• JVs with real estate players

Major Developments

Higher Education

▪ About 542 universities and institutes of national importance

▪ 31,324 colleges adding to higher education capacity of 14 million.

▪ Third largest in terms of enrollment just behind China and the USA

▪ Growth CAGR of 16-18% (2011 – Rs.46231 Cr)

▪ Poised to grow thrice in next 10 years

Higher Education - Growth Drivers

▪ High demand driven by favorable demographic factors

▪ Increasing disposable incomes

▪ Parents’ willingness to pay more for quality education

▪ Perceived as the differentiator in competitive global environment

▪ Predictable cash flows and sustainable business model

Higher Education – Growth Strategies

• Foreign players can enter the market through joint ventures• Example: Apeejay signed MoU with Dutch Universities

Increasing collaborations with

foreign players• To facilitate scalability• Private players like Amity, ISB, IMT adopting this modelMulti – campus model

• Introduction of campus management software packages• Enhanced quality, accessibility and increasing intervention by corporates is

driving this trend

Higher adoption of technology

• International recognition of Indian Education and ability of Indian players to compete globally have resulted in expansion in foreign geographies

Indian players expanding

internationally• AICTE aims to bring new era of accountability and transparency • Example: Mandatory fee disclosure norms and other details etc.

Stricter policy landscapes

2006 data

Growth of Higher Education Institutes in India

The spread of higher education institutions across our country is uneven and has given rise to issues of access and equity. There are geographical disparities in access to higher education.

GER% in Higher Education across different Population groups in India

Distribution of Income among the Middle Class

India has the third largest volume of enrollments in higher education, after China and the US. Drop out rates in Grades 1-5 is 29%; in Grade 6-8 is 50% and in Grades 9-12 is 62%. The planning commission is targeting a GER of 15.5% by 2012 which is an increase from 11% in 2008. The National Knowledge Commission (NKC) has recommended that the government will need to establish 1500 universities to meet their GER target. The expenditure required in higher education will have to increase to 1.5% of the GDP from the existing level of 0.7%. This translates into a huge potential for about 22mn students enrolling in higher education institutions by 2012. Lack of higher education infrastructure has made it extremely difficult for India to act as a hub for professional education. The current higher education infrastructure can admit only 7-8% of the college students. India attracts 20,000 foreign students yearly, whereas China attracts more than 0.15mn students annually

Unorganized Sector Training through Community Colleges

▪ Around 92% of India’s workforce is unorganised in nature. Without employment guarantee and social security measures, considerable segment of the unorganised sector is prone to economic distress.

▪ Training Projects Available through Ministries of Central and State Governments - India has a population of 1.21 billion with around 70% living in around 6.4 lakh villages. The decadal growth rate of rural population is 12.18%. As per Below Poverty Line (BPL) Census 2010, there are around 7 crore BPL families. Diksha scheme has been drawn for providing training for implementation of various schemes like Bharat Nirman, Mahatma Gandhi National Rural Employment Guarantee Act, E – Governance, Panchayati Raj Institutions,

▪ Training Projects Available through the Ministry of Labour and Employment, Government of India - V.V. Giri National Labour Institute is a premier national institution involved in research, training, education, publication and consultancy on labour related issues.

▪ Training Projects Available through Ministry of Tourism, Government of India - Ministry of Tourism has established a system of training and professional education with necessary infrastructural support capable of generating manpower to meet the needs of tourism and hospitality industry.

▪ Training Projects Available through Ministry of Textiles, Government of India - Indian Textiles industry provides employment to 35 million people. It adds 14% to industrial production, 4% to GDP and 17% to country’s export earnings. For providing human resource development, Ministry of Textiles has made significant initiatives.

Number of Educational Backward Districts in Indian States

Percentage of Children enrolled in pre-primary Education

According to the estimate given by the Seventh All India Education Survey (NCERT, 2005), there are 493,700 pre-primary institutions in India, outof which 456,994 are in rural areas. Theseschools serve 26.453 million children of which 12.829 million are girls. The highest percentage of pre-primary enrolmentin primary schools is in Madhya Pradesh (19.6%) and the lowest of 5.0% in Bihar (Mehta, 2010).There are around 56% of children in pre school are enrolled in Anganwadis (ICDS Centres) for early childhood care and education. Among them only 31% of children are attending the centres regularly

Children in different social groups in different Pre-primary schools•The Quality of Teaching in Public Pre primary Anganwadi centers is unsatisfactory due to lack of trained Teachers.

•Availability of free food in Anganwadi may be cause of high enrollment in poor tribal areas.

•Boys enrollment is higher than girls in private pre-primary school. But in anganwadi’s the boys enrollment is slightly less than girls.

Current Scenario in India

GOI aimed to achieve Universal Elementary EducationSeveral challenges in achieving this goal:•Out of approx. 200 million children in the age group 6-14 yrs, only 177 million were enrolled; percentage of out of school children works out to be 11.5%.(source: National Sample Survey (2004-05)•Quality of education is poor in many schools because of high pupil-teacher ratio. (national average is 46:1 with some states high as 68).•Dearth of qualified and trained teachers. (A study conducted by NUEPA found that about 47 lakh elementary teachers in India have not studied beyond the higher secondary level)•We are still far from achieving inclusion in schools- no mainstreaming in practice•Only selective Inclusion is there i.e. Inclusion of those with minor disability. Need Adequate resources for Inclusive education

Few Questions to Answer?

GOI aimed for UEE by 2012BUT…• Do we have enough schools to accommodate all children?•Do we have enough teachers and whether the teachers available are well trained and qualified?•Do we have quality provisions for schools or only quantity is a concern?•Do we have measures for assuring retention in schools or just enrolment will work?

The Indian private spend on education in 2011 was estimated to be over USD 60 bilion across all segments (Schooling, Higher Education, Vocational and Ancillary) or approximately equal to 3% of our GDP. The 11th five year plan (2007-12) was termed as “India’s educational plan” and placed the highest priority on education as a central instrument for achieving rapid and inclusive growth. At USD 54 billion, it constituted 20% of the plan.

Educational Infrastructure

Public School Infrastructure

Poor infrastructure in Govt. schools and lack of good teachers have forced the Indian middle class to withdraw their children from Govt. schools and enrol them in private schools. While private schools account for 20% (.26 million) of the total number of schools (1.3 million), they provide education to more than 30% of students.) Shortage of Trained Teachers

An estimate that India will require 6.0mn more teachers by 2020 to attain the world average in terms of student teacher ratio. This would mean a requirement to train 0.75mn teachers p.a., as against this the total capacity of all B.Ed. Colleges currently is only 0.25mn p.a.

General Agreement on Trade in Services(GATS)

▪ First international legal trade agreement that focuses exclusively on trade of services

▪ GATS is ratified by all 157 member countries of WTO

Purpose

▪ To progressively and systematically promote free trade in services

▪ To remove many of the existing barriers to trade

▪ To ensure increased transparency of trade regulations

General Agreement on Trade in Services(GATS)

Agreement basically has three parts:

▪ First Part : Framework which contains the general principle and rules such as –

–National Treatment (NT)–Most Favored Nation (MFN)

▪ Second Part :National schedules that list a country’s specific commitments on access to its domestic market by foreign providers

▪ Third Part : detailed specific limitations for each sector and can be attached with second part

Removal of Barriers under GATS(Educational)

▪ Visa and entry restrictions

▪ Difficulty in approval of joint ventures

▪ Restriction on import of educational material

▪ Restriction on electronic transmission of course material

▪ Restriction on export of currency and exchange

▪ Restriction on basis of quota for countries and disciplines

▪ Restriction on repatriation of earnings

▪ Quota on the number of students proceeding to a country or institution

▪ Limitations on FDI by education providers

▪ Nationality or residence requirements

Modes Of Supply

Mode 1: Cross-border Supply

Mode 2:  Consumption abroad

Mode 3:  Commercial presence

Mode 4:  Movement of natural persons

Cross Border Supply

The provision of a service where the service crosses the border excluding the physical movement of the consumer

Examples : – distance education– e-learning– virtual universities– Tele Medicine

Market Size :

▪ currently a relatively small market

▪ Great potential through the use of new information and communication technologies (ICTs) and especially the Internet

▪ Difficult to monitor quality

Consumption abroad

The provision of a service where the consumer moves to the country of the supplier.

Examples : –Students–Patients

Market Size :

▪ currently represents the largest share of the global market for education services

▪ growing rapidly

Commercial presence

The provision of a service where the provider establishes, or has presence in, commercial facilities in another country in order to render service.

Examples : –Local branch –Satellite campuses–Twinning partnerships–Franchising arrangements with local institutions

Market Size :

▪ increasing interest and strong potential for future growth

▪ most controversial because it appears to set international rules on foreign investment

Commercial presence

Indian Context

▪ No foreign University is allowed to setup any kind of campuses in India

▪ Center came up with Foreign Educational Institution Bill in 2010 but it was no good

▪ However Many Indian Institution such as IMT Ghaziabad, IIM Indore, SP JAIN, BITS Pilani, Pune University, Amity opened their campuses in abroad

▪ Many others like IIT Bombay, IIM Bangalore, IIT Madras are planning to open such campuses in abroad

Movement of Natural Persons

The provision of a service where people travel to another country on a temporary basis to provide the service.

Examples : ▪ Professors, Teachers, Researchers, Engineers, Doctors,

Managers and other professionals working abroad.

Market Size :

▪ Potentially a strong market, given the emphasis on mobility of professionals

Schedule of Commitments: India/Education1. Cross-border supply 2. Consumption abroad 3. Commercial presence 4. Presence of natural persons

▪SectorSector or Subsector Limitations on

Market accessLimitations on National Treatment

Additional Comments

9. Community, social and personal services(CPC Version 1.1)

Subsection: 92 – Education services

921 - Primary education services922 - Secondary education services923 - Higher education services929 - Other education and training services

1. Unbound2. Unbound3. Restricted4. Specific

1. Unbound2. Unbound3. None4. Specific

3. Foreign Educational Institute Bill may open the door for this in future.

Note: After GATS 1,2 and 4 is unbound.

Foreign Educational Students Bill 2010

Bill regulates the entry and operations of foreign educational institutions in the country.

Highlights:

▪ It governs institutions in the sector of higher education or technical education in particular

▪ The Bill allows foreign universities to set up branch campuses without an Indian partner

▪ Foreign educational providers have to maintain a corpus fund of a minimum of Rs 50 crore

▪ Atleast 75% of any income generated from the corpus fund shall be utilized for developing its institution in India and rest should be put back in the fund

▪ Any surplus in revenue generated in India by the foreign university has to be invested in the development of the educational institution established by it in India

Foreign Educational Students Bill 2010

Although it was a flawed and misdirected bill but this bill with some changes would positively affect Indian education system , counted as:

▪ Higher wages and incentives for the faculty members

▪ Would help in improving India’s GER rapidly, currently it is 13.8%

▪ actively encourage intellectual – affiliations and knowledge sharing

▪ Increase number of foreign scholars and collaborations.

▪ the quality in terms of faculty, curriculum, methods of teaching would improve

▪ Students going to abroad would decrease in number

Main Destinations for Indian Students

2000 2005 20090%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

73.3860.87

53.56

8.59

14.8614.01

7.4412.08

17.96

8.18 9.05 11.46

OthersCanadaUKAustraliaUS

Indian Students in abroad

▪ 256% rise in Indian students going abroad in last 10 years

▪ India is No. 2 in sending students abroad and is just behind China

Main Source Countries

(% Share in Total International students)

2005 2009

Country Share (%) Share (%)

China 15.6 15.9

India 5.4 6.2

Rep. of Korea 3.9 4.0

Germany 2.2 3.0

Japan 2.5 1.7

Government Initiatives

Role and Contributions of GOI to the Education Sector

Put simply the major role of the government is to ensure that every individual in India is educated. The Government want to set it right with the following agenda

• To make sure that the education policy remains uniform and better implemented.• To ensure that the funds are utilised properly.• To provide effective and good quality leadership with better discipline.• To provide improved education standards.

According to the Planning Commission of India the scope of work of the Education Division covers:• Different stages of education such as Pre-primary formal and non-formal Education Secondary

Senior Secondary University and Technical Education

• Special areas such as that of girls' education Education for the children of SC/ST and OBCs

• Adult Education and Education in the backward areas.

 

Role and Contributions of GOI to the Education Sector

The major Education programmes relate to achieving the aim of

1. Universalization of Elementary Education through Sarva Siksha Abhiyan 2. Adult Education 3. Vocationalization of Education 4. Teacher Education 5. Science Education 6. Educational Planning 7. Administration and Supervision 8. Physical Education 9. Scholarship 10.Regional Language Development 11.Book Promotion 12.Libraries 13.Youth Service Schemes14. Cultural Institutions and activities

The 5-year plans

• Conceptualized and presented for the first time by the first PM of India Mr Jawaharlal Nehru

• The economy of India is based in part on planning through its five-year plans, which are developed, executed and monitored by the Planning Commission

• Education continues to be one of the most anticipated reform sectors for all of these 5-year plans , currently the country is running its 11th five year plans (2007-2012)

Salient features of last 2 Five year plans i.e 10th and the 11th Plans

The Tenth Plan (2002-2007) laid emphasis on Universalization of Elementary Education (UEE) guided by five parameters:

(i) Universal Access

(ii) Universal Enrolment

(iii) Universal Retention

(iv) Universal Achievement

(v) Equity.

The major schemes of elementary education sector during the Tenth Plan

i. Sarva Siksha Abhiyan (SSA)

Sarva Shiksha Abhiyan (SSA) is Government of India's flagship programme for achievement of Universalization of Elementary Education (UEE) in a time bound manner, as mandated by 86th amendment to the Constitution of India making free and compulsory Education to the Children of 6-14 years age group, a Fundamental Right.

ii. District Primary Education Programme (DPEP)Initiated in the early 1990s, the District Primary Education Program (DPEP) was designed to facilitate India’s efforts to achieve universal primary education and it has since become the world’s largest education program, reaching 60 million children.

iii. National Programme of Nutritional Support to Primary Education, commonly known as Mid-Day Meal Scheme(MDMS) The Mid Day Meal is the world’s largest school feeding programme reaching out to about 12 crore children in over 12.65 lakh schools/EGS [Edn Guarantee Scheme]centres across the country. Key objectives of the programme are: i. protecting children from classroom hunger, ii. increasing school enrolment and attendance,iii. improved socialization among children belonging to all castes, iv. addressing malnutrition, and social empowerment through provision of employment to women

The major schemes of elementary education sector during the Tenth Plan contd…

iv. Teacher Education Scheme Within the broad objective of improving the learning achievements of school children, the twin strategy is to 

a) prepare teachers for the school system (pre-service training)b) improve capacity of existing school teachers (in-service training)

v. Kasturba Gandhi Balika Vidyalaya Scheme (KGBVS).

Kasturba Gandhi Balika Vidyalaya Scheme introduced in August, 2004 meant to provide eucational facilities for girls belonging to SC, ST, OBC , minority communities and BPL families  in Educationally Backward Blocks.

• FY ‘11-’12, the centre had allocated a sum of  ₹ 38,957 crore rupees for Department of School Education and Literacy, which deal with primary level education.

• Within this allotment, about 21,000 crore rupees was spent for 'Sarva Siksha Abhiyan‘ [SSA]. 

A few Charts and figures of the Tenth five year plan in Education

ELEVENTH PLAN: GOALS, TARGETS, ANDSTRATEGIES IN ELEMENTARY EDUCATION

The Eleventh Plan places the highest priority on education as a central instrument for achieving rapid and inclusive growth. It presents comprehensive strategy for strengthening the education sector covering all segments of the education pyramid.

1. The Sarva Siksha Abhiyan (SSA)

The Constitution of India was amended in 2002 making elementary education a justiciable Fundamental Right.

However, 7.1 million children being out of school and over 50% dropping out at elementary level are matters of serious concern.

SSA would, therefore, be reoriented to meet the challenges of equity, retention, and high-quality education. SSA would be restructured into a National Mission for Quality Elementary Education to ensure minimum norms and standards for schools (both government and private).

It would address access, quality, and equity holistically though a systems approach.

ELEVENTH PLAN: GOALS, TARGETS, ANDSTRATEGIES IN ELEMENTARY EDUCATION

2. Opening up new classrooms

The backlog for additional classrooms is aboutut 6.87 lakh. Opening of about 20000 new primary schools and upgradation of about 70000 primary schools are

required.

3. Decentralization of school management

Without strong effort to address the systemic issues of regular functioning of schools like teacher attendance and competence, accountability of educational administrators, pragmatic teacher transfer and promotion policies and transfer of powers to Panchayati Raj Institutions (PRIs), it would be difficult to build upon the gains of SSA

ELEVENTH PLAN: GOALS, TARGETS, ANDSTRATEGIES IN ELEMENTARY EDUCATION

The Targets of the 11th Plan

1. Universal enrolment of 6–14 age group children including the hard to reach segment.

2. Substantial improvement in quality and standards with the ultimate objective to achieve standards of Kendriya Vidyalayas (KVs) under the Central Board of Secondary Education (CBSE) pattern.

3. All gender, social, and regional gaps in enrolments to be eliminated by 2011–12.

4. One year pre-school education (PSE) for children entering primary school.

5. Dropout at primary level to be eliminated and the dropout rate at the elementary level to be reduced from over 50% to 20% by 2011–12.

6. Universalized MDMS at elementary level by 2008–09.

7. Universal coverage of ICT at UPS by 2011–12.

8. All States/UTs to adopt NCERT Quality Monitoring Tools.

ELEVENTH PLAN: GOALS, TARGETS, ANDSTRATEGIES IN ELEMENTARY EDUCATION

ELEVENTH PLAN: A Few out of the BOX thought process

Creation of educational SEZsPrivate Public Partnerships

Government Run Educational Institutions across INDIA• Higher Education

• The higher education system in India includes both private and public universities. Public universities are supported by the Government of India and the state governments

• Universities in India are recognized by the University Grants Commission (UGC), which draws its power from the University Grants Commission Act, 1956.In addition, 16 Professional Councils are established, controlling different aspects of accreditation and coordination.

• The types of universities controlled by the UGC include Central universities, State universities, Deemed universities and Private universities

• Central Universities: A total of 42 central universities Tezpur University, University of Delhi, Jamia Milia Islamia Jawaharlal Nehru University, Banaras Hindu University, Vishva Bharati University, Maulana Azad National Urdu University etc

• State Universities : A total of 285 which includes Jawaharlal Nehru Technological University, Kakinada, Kakatiya University, Jadavpur University, Bengal Engineering and Science University, Shibpur, University of Calcutta, Anna University, Chennai etc

• Deemed Universities: Punjab Engineering College, Indian Institute of Foreign TradeJamia Hamdard, IISC-Bangalore etc.

• In addition to the above universities, other institutions are granted the permission to autonomously award degrees. They usually fall under the administrative control of the Department of Higher Education. Includes:

• Indian Institutes of Technology (IITs)  (16 in No listed by the  The Institutes of Technology Act, 1961

• School of Planning and Architecture• National Institutes of Technology (NITs) (erstwhile Regional Engineering Colleges formed by

National Institutes of Technology Act, 2007, total 30 in No)• Indian Institutes of Management ( IIMs are registered Societies governed by their respective

Board of Governors, total 13 in No)• Indian Institutes of Science Education and Research(IISER group of five institutes established by

the Ministry of Human Resource Development, devoted to science education• All India Institute of Medical Sciences (AIIMS are a group of autonomous public medical colleges

of higher education.)•  Indian Institutes of Information Technology (IIITs), a group of four institutes focused

on information technology. • Another group of institutes are the Agricultural Universities, which are under the control of the

Agricultural Education Division of the Indian Council of Agricultural Research (ICAR), one of the professional councils.

• Of specific interest are Institutes of National Importance (INIs). INIs are institutions which are set by an act of parliament. They receive special recognition and funding.

• Higher Education

Indian SchoolsThere are several Indian schools that are supported by the Government of India. Some of these Government run Indian Schools are:• Jawahar Navodaya Vidyalaya (JNV), Mouli, Panchkula, Haryana• Central Tibetan Schools Administration• Jharkhand Education Project Council(JEPC)• Kendriya Vidyalaya Sanghatan• National School of Drama• Sarva Shiksha Abhiyan• Navodaya Vidyalaya Samiti (NVS)

Specialized and Training InstitutionsApart from schools and colleges, the Indian Government also runs various specialized and training institutions. Some of these are:• Administrative Training Institute, Nagaland• Andhra Pradesh State Institute of Telegu• Biju Patnaik National Steel Institute• Central Institute for Cotton Research• Central Institute of Road Transport• Administrative Training Institute, West Bengal• Advanced Training Institute, Mumbai• Apprenticeship Training Scheme

Awareness Programs By Government

Educational Broadcasting

▪ The Indian broadcaster has been an active partner in educational broadcasting.

▪ the broadcasting organisations (Akashvani or All India Radio; and Doordarshan or Indian television) have been involved in the production of educational programmes.

▪ Doordarshan's was started as an educational experiment in 1959.

▪ The first educational broadcasting was with higher secondary schools in Delhi with subjects such as Physics, Chemistry, Hindi, Current Affairs, and Geography covered.

Landmark in Educational Broadcasting

▪ The Satellite Instructional Television Experiment (SITE) in 1975 designed jointly by NASA and ISRO- the setting up of massive communication infrastructure began with the launching of India’s own satellite INSAT IB in 1982.

▪ TELESCHOOL was the project for school children. These were telecast on the national and regional networks of Doordarshan.

▪ THE SINGLE MODE OPEN UNIVERSITIES are also engaged in the production and telecast of educational programmes. The Indira Gandhi National Open University (IGNOU) has been broadcasting since the late 1980s.

▪ GYAN DARSHAN-- was born on January 26, 2000. The programme mix is a blend of core curriculum based programmes in the areas of primary, secondary, higher, open and distance education.

▪ EDUSAT. The fourth major landmark in India’s educational broadcasting has been the development and the imminent launch of EDUSAT, a satellite exclusively dedicated to educational and development programming

Three best practices for Educational Reforms

▪ Practice 1: Bridge the urban-rural divide - . Through new policies and purchase programs, the government has begun to address the disparity in education between urban and rural areas.

▪ Practice 2: Establish public-private partnerships - The national government could not transform India’s education system without the aid and support of numerous partners, including local governments, local and national industry partners, and leaders in the education sector.

▪ Practice 3: Emphasize professional development - Sustained change in the classroom depends on professional development that helps teachers learn to integrate technology throughout their work.

Private Participation in Indian Education System

Higher Education

▪ Private Players play a vital role in any education system, especially in higher education.

▪ With a population of 234m in age group of 15-24 the demand for higher education in India is growing.

▪ RTE and other initiatives has resulted in increased enrollment in primary and secondary schools, and also contributed to demand for higher education.

▪ Moreover Government’s inability in capacity creation calls for increased Private participation.

▪ Over the years enrolment in private institutes have grown significantly and at a very fast pace.

Share of private institutions in various disciplines

▪ Sources: AICTE

0

20

40

60

80

100 9195

94

67 6264 68

5059

92Share of Private Institutions

Share of Private Institutions

Growth of State Private Universities(SPUs)

▪ In the last five years the number of SPUs has increased by more than 15 fold.

– Source: UGC,MHRD

2005-06 2006-07 2007-08 2008-09 2009-10 20110

20

40

60

80

100

6 513

21

60

94

Growth in SPU

Growth in SPU

State wise distribution of SPUs

22%

15%

13%11%

7%

7%

4%

3%

5% 13%

State wise Distribution of SPUs

RajasthanUPHimachal PradeshGujaratUttranchalMeghalayaHaryanaPunjabChattisgarhOthers

Deemed Universities

▪ There are 130 deemed universities in India out of which 73 are in private sector.

– Source: UGC

56%44%

Public Private Split of deemed Universities

Private Deemed UniversityPublic Deemed University

Education Sector in India

•Combined market size of more than 450 mn students and USD 50 bn per annum

One of the largest services market

•Growth rate of 10-15% expected over next decadeRobust growth rates expected

•Investment requirement of approx. 100 bn by 2014 to meet expected demand

Huge demand supply mismatch

•Attractive margins considering volumes and propensity of people to pay for HEHigher rate of returns

• Over 95% is held by the unorganized sector, with few large players

Largely fragmented industry

Source CSFB Report; CLSA Report 2011

Education In India

Formal Education

Higher Education

K-12

Informal Education

E-learning

Pre-schools

Coaching Institutes

Vocational Education

Education System In India

Price of education has increased by 3-6x over the last decade

Private School Coaching classes IIM A IIT0

100

200

300

400

500

600

700

20002010

In Thousands Rs.

Coaching Industry

MARKET OVERVIEW

India’s non-formal education market is currently dominated by coaching class business (accounting for 64% of the total). However, the business ($8.4bn(2010); 15% CAGR till 2012E) is inherently regional in nature and person-centric (a people driven model), which implies high dependence on a ‘brand-teacher’, or a low degree of stability and scalability.

It is believed ~80% of the coaching class market arises from subject/ concept-based school and tertiary level coaching, which has to be localized to suit the dynamic needs of various institutions and has high dependence on ‘brand teachers’.

Segment Views

– Non-regulated space

– Supplements the inefficiency of the public education system

– Large scope for M&A to enter new geographical markets

– High scalability in the test prep segment

Key Concerns

– Geographical scalability a issue for coaching classes

– Capital intensive

75%

25%

Coaching Class market Break Up (2010)

Private Tutions

Entrance Test Prep

Source : Emerald Research

Drivers Challenges

Coaching institutes enter mainstream education

P

E

/

V

C

f

ir

m

s

s

h

o

w

i

n

g

i

n

t

e

r

e

s

t

i

n

e

d

u

c

a

ti

o

n

s

e

c

t

o

r

Trends

Institute History Current Network

MT Educare Started in 1988 153 CentresChate Group Started in 1989 89 CentresSukh Sagar Institute Started in 1976 24 Centreslearninghour.com Started in 2006 Online TutoringTutorVista Started in 2005 Online Tutoring

Key Players in the Private Tution Market

Institute History Current Network

IMS Started in 1977 185 Coaching CentresTIME Started in 1992 175 Coaching CentresCareer Launcher Started in 1995 135 Coaching CentersFIITJEE Ltd Started in 1992 35 Coaching CentresCareer Point Started in 1993 27 Coaching Centres

Key Players in the Entrance Test Preparation Market

Private Equity Investors

KaizenEphiphanySong Investment AdvisorsMilestone CapitalBeacon India Advisors Ltd.Sequoia Capital

School Financing - 1.5

K12 Schools - 15

Day Care Center - 2.2

Management Training & Assessment - 0.1

Engineering Entrance Coaching - 1.13

Test Preparation - 19.2

Vocational - 4.5

Pre-Schools - 8.5

Sports - 1 Training - 1 Education Aids - 1

Breakdown of PE investment in 2010 (In US Mn)Source : Asian Venture Capital Journal ; Dow Jones Factiva ; ISI Emerging Markets and Ernst & Young Research

2006 2007 2008 2009 2010

School Financing 0 0 1.5 0 0

K12 Schools 0 0 0 0 15

Day Care Center 0 0 0 0 2.2

Management Training & Assessment 0 0 0.1 0 0

Engineering Entrance Coaching 0 1.13 0 0 0

Test Preparation 0 0 0 5 14.2

Vocational 0 0 0 0 4.5

Pre-School 0 0 0 0 8.5

Sports 0 0 0 1 0

Training 0 1 0 0 0

Educational Aids 0 0 0 0 1

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

47.5

AMOUNTIn US Mn

Source : Asian Venture Capital Journal ; Dow Jones Factiva ; ISI Emerging Markets and Ernst & Young Research

VOCATIONAL TRAINING

28%

26%20%

14%

9%

3%

Vocational Training Market Segmentation

English Training

Financial Services

Retail

IT

Airlines

Others

Segment Views

– Non-regulated space

– Players offering skills that have flexibility are equipped to handle changing trends/ preferences

– Supplements the inefficiency of the public education system

Key Concerns

– Slowdown in services industry directly impacts vocational training institutes

– Corporate training revenues have low margins and are lumpy in nature

– Lack of financial institution support for vocational training

– Corporate spends on training are discretionary and based on competitive pricing

Source : Emerald Research

Comparing Govt. run Conventional training and private vocational training

Conventional Training Private Training

Gov. Intervention Govt. controlled/run Lesser/ No Govt. Intervention

Profit Motive Not for profit For profit

Penetration Deep but highly under utilized Urban areas, Optimum Utilization

Streams Offered Welding, turning (total 110) IT, Finance, Retail, Media, Animation

Up gradation of courses Less/ No up gradation of courses

Frequent up gradation

Quality Infrastructure Basic and inadequate Advanced and adequate

Linkage with Industry Lesser tuning with industry Designed per industry requirement

Job Orientation Yes, low key jobs Yes, medium-top end jobs

Strategic Investors/ Buyers Private Equity Investors

Manipal Group Milestone CapitalEducomp Solutions Ltd. Helix Investment Company

IEPSterling PartnersBeacon India Advisors Ltd.Sequoia Capital

Institute History Current Network

VETA Started in 1981 175 CentersNIIT Started in 1981 473 CentersAptech Computers Started in 1987 460 CentersFrankfinn Started in 1993 120 CentersICA Started in 1999 350 CentersK 10 Started in 2003 32 CentersJet King Started in 1990 120 CentersCMS Started in 1976 60 CentersEducomp Started in 1994 40 Centers

Key Players in the sector

DISTANCE LEARNINGDistance education modes include:Correspondence, Study Centres and Online Education

Positives

▪ It can fill the gap that arise because of low GER

▪ It doesn’t impose a limit on the number of students to be admitted

▪ Large untapped potential as out of the ~10% population registered in HEI’s in India, a miniscule ~7% go in for distance education

▪ Low entry barriers for the suppliers in this segment

Deterrents

▪ Low brand perception mars the potential to scale

▪ Lack of quality and concentration

Way forward

▪ Quality to be controlled by improving the input and hence the output

▪ Adopting superior pedagogic measures

▪ Target the BPO, KPO sector where great opportunity is seen

Opportunity

A Snapshot

200

2,500

-

500

1,000

1,500

2,000

2,500

3,000

2008 2012e

Online EducationUSD Mn

Segment Views

– Not capital intensive

– Huge growth prospects

– Highly scalable due to standardized content

– Higher margins and ROCEs

– Unregulated market

Key Concerns

– Online universities face recognition issues

– Dependent on the broadband penetration in India

Segment Views– Unregulated space– High value creation proposition as a technology-based product

and an underpenetrated market ensure scalability– High return on capital employed and an annuity revenue

stream Key Concerns

– Large upfront investment– Low margins owing to L1 bidding process– Long receivables cycle– Duplication of content – Excessive competition

Source : Emerald Research

Source : FICCI Higher Education Summit 2011, E & Y Report

INDIRA GANDHI NATIONAL OPEN UNIVERSITY

▪ Came into Existence : 1985

▪ Students on roll : 2.5 million

▪ Registered : 5.35 Million

▪ Programmes on offer : 338

▪ Schools : 21, Regional Centres : 62

▪ Academic Counsellors : 36000

▪ No. of overseas centres : 52 in 34

▪ Study Centres : 2800

Status as on 2009

VALUE ADDITION

Collaborations • Industry• Academia

Collaborations Industry

Source : FICCI Higher Education Summit 2011, E & Y Report

Collaborations Academia

Adult Education in India

Adult LiteracyDesirable Outcomes of Adult Literacy• Basic Literacy• Knowledge of civil needs• Personal hygiene• Adopting to occupational skills.

Factors contributing to Adult illiteracy• Poverty• Gender Bias• Population• Lack of educational resources- (especially rural areas).• Lack of mass participation/awareness• Cultural issues- (culture favoring occupational skills rather than literacy)• Lack of motivation- adults prefer to work for earning rather than attend classes

National Literacy Mission

▪ Founded in 1988 with main aim to impart functional literacy to Indians mainly in the age bracket 15-35.

3 Major campaigns under NLM

▪ Total literacy campaigns (TLC)– Implemented through autonomous and independent district level literacy committees.– Area-specific, time-bound, volunteer based, and outcome oriented.

▪ Post Literacy Program (PLP)– Aimed at neo-literates, who have completed the basic literacy course.– Gives an opportunity to harness and develop individuals’ learning potential.

▪ Continuing Education Programme (CEP)– Aims at maintaining a channeled continuous and life long learning process.– Multi faceted – includes basic literacy, post literacy, and later continuing education.

– Source- www.nlm.nic.in

National Literacy Mission

Other Initiatives

▪ Support to Non-Governmental Organizations– NLM provides monetary grants to NGOs for undertaking projects aimed at promoting literacy.– Also help NGOs in evaluation of literacy/adult education programs and in establishing resource centers.– Widens the reach of education programs

▪ NLM and Women Empowerment– NLM has been able to create an environment where women demand knowledge and thus resulted in

increased women participation.– One measure could be during 1991-2001 female literacy rate increased by 14.87% while male literacy rate

increased by 11.72% in the same period.

▪ Directorate of Adult Education– Provides academic and technical resource support to NLM.– Monitor the progress and status of literacy campaigns and provide regular feedback to NLM.– Media support (such as print or TV ads) to NLM.– Prepare guidelines for development of teaching and learning materials.

Source- www.nlm.nic.in

Adult Education- Significance

▪ Offers a second chance to adults to receive mainstream education.

▪ Literacy is key to development of a country’s economy.

▪ Increases health awareness and thus contribute to reduction of child mortality rate.

▪ Literacy is the road to employment and self- sufficiency.

▪ Helps in population control.

▪ Awareness of fundamental rights and duties. Thus help in creating responsible citizens.

▪ Helps in reducing social taboos and superstitions.

Corporate Social Responsibility

Why do companies engage in CSR?

▪ Concept of triple bottom line – focus on People, Planet, and Profit.

▪ Positive public image.

▪ Retaining staff, enhancing employee morale. �▪ Higher productivity, reduction in costs and increase in profitability.�▪ Positive engagement with government. �

Education is one of the major areas in which corporates engage themselves in CSR.

SATYA BHARTI SCHOOL PROGRAM

▪ Aims to provide free quality education to underprivileged children across rural pockets.

▪ Special emphasis on girl child and children from marginalized community education.

▪ Has 500 primary and 50 senior secondary schools, and benefits over 200,00 children in rural India.

▪ Currently present in six Indian states (Punjab, Har, U.P., Raj., T.N., W.B.)

Some other Initiatives by Satya Bharti Schools

▪ Physical education in curriculum

▪ Interactive radio instruction program – involves ICT based learning and focuses mainly on quality of English Teaching.

▪ Green efforts – using green buildings and plantation of trees.Source – www.airtel.in

Computer Based Functional Literacy Solution For Adult Literacy TCS

▪ Makes innovative use of theories of Cognition and Pedagogy, and multimedia to impart learning.

▪ Imparts reading, writing and basic Arithmetic ability in about 45 learning hours, spread over 10 to 12 weeks compared to 200 learning hours and 9- 18 months required in traditional method.

▪ Does not require trained teachers.

▪ Quick results.

▪ Cost effective.

▪ Lay out the foundations for higher skills for individuals.

▪ Reachability is more than traditional methods.

▪ Has benefited more than 120,000 Indians till now.

Thank You!