Indian Education Services - A Hot Opportunity

Indian Education Services - A Hot Opportunity

The Indian higher education system has been continuously witnessing impressive growth post liberalization. Student enrollments in the country have grown to over 12 Million, from just 0.1 Million in 1947. This revolution has come around with the emergence of a whole new class of education providers, including private institutes, distance education providers, self-financing courses in public institutions and foreign education providers.

As per our new analytical study 'Indian Education Services - A Hot Opportunity', there remains high growth potential in the development of higher education system in India. India has over 400 universities and nearly 21,000 colleges serving the current student base. In order to achieve its target of 21 Million students annually going for higher education by 2012, India needs to invest huge amounts on its higher education infrastructure development and deployment.

With liberalization on place, the Indian education system offers tremendous opportunities for various universities worldwide to enter the rapidly growing education service market in the country. This is because India has all the resources and potential to become a regional hub. However, the sector particularly lacks in proper investments, which is a constraint in coping with growing market demand and global competition.

This report provides extensive research on the present status of the Indian higher education system by providing the number of universities, technical education institutions and colleges available in India. It also presents reason based analysis of the need for opening up of universities (particularly foreign) in the country in long run. We have done rational analysis of the type of courses that foreign universities can leverage as Indian universities/institutions are lacking in those particular domains. The report also gives the entry and operation regulations for foreign universities/institutions providing technical education in India.

1. Analyst View

2. India - Economy & Employment

2.1 Economy

2.2 Occupational Structure

2.2.1 Demand & Supply Ratio of Quality Manpower

3. How is Higher Education System in India?

3.1 Level & Type of Higher Education Institutions

3.2 Academic Structure

3.3 Education Infrastructure

3.3.1 Medical Colleges

3.3.2 Professional Education Institutions (Engineering, MBA, MCA)

3.4 Enrollment

3.4.1 Higher Education

3.4.2 Technical Education

3.5 Emergence of New Class of Education Providers

3.5.1 Private Institutions

3.5.2 Distance Education Providers

3.5.3 ‘Self-financing Courses’ in Public Institutions

3.5.4 Foreign Education Providers

3.5.5 Non-university Sector

3.6 Growth Pattern Analysis

3.6.1 Correlation between Per Capita State Domestic Production & Gross Enrollment Ratio

3.6.2 Privatisation Trends

4. Why Foreign Universities are Looking at India?

4.1 Lack of Quality Institutions

4.2 Low Funding

4.3 Large Student Base

4.4 Government Efforts to Check Brain Drain

4.5 India Going Global

4.6 Low Cost of Setting & Running Campuses

4.7 Liberalisation of Education Sector

4.8 Regional Hub

5. Entry & Operation Regulations for Foreign Universities/Institutions Imparting Technical Education in India

5.1 Procedure for Registration

5.2 Conditions for Registration

5.3 Punitive Measures & Conditions for Withdrawal

6. How to Finance Higher Education in India?

6.1 Existing Funding Arrangements

6.1.1 Overall Funding

6.1.2 Public Funding

6.1.3 Private Funding

6.2 Affordability

6.3 Student Loan Schemes

7. Opportunities & Challenges for Foreign Universities & Other Education-related Sectors

7.1 Opportunities

7.1.1 Entrance Exam Coaching Industry

7.1.2 Education Loan Market

7.1.3 Private Education Expenditure

7.1.4 Notebooks & Stationery Manufacturing

7.1.5 E-learning & Online Tutorial Market

7.1.6 Education Consultants

7.2 Challenges

7.2.1 Government Regulations

7.2.2 Low Affordability

7.2.3 Low Confidence over Private Institutes

7.2.4 ‘Indian’ Conditions

7.2.5 Global Value of Foreign Degree

8. Appendices

8.1 Regulatory System

8.1.1 University Grants Commission (UGC)

8.1.2 Professional Councils

List of Figures:

Figure 3-1: India - Number of Universities (2006-07 & 2007-08)

Figure 3-2: India - Number of Medical Colleges (Mar 2006 & Sep 2008)

Figure 3-3: India - Government & Private Dental Colleges (%), Aug 2008

Figure 3-4: India - Number of Degree-level Engineering Institutions (2001-02 to 2006-07)

Figure 3-5: India - Degree-level AICTE-approved Engineering Colleges by Region (%), Jul 2007

Figure 3-6: India - Enrollment in Institutions (in Million), 2001-02 to 2006-07

Figure 3-7: India - Enrollment in Institutions by Stream (%), 2005-06

Figure 4-1: India - Number of Colleges (2002-03 to 2006-07)

Figure 4-2: India - Number of Private Universities (2000-01 & 2005-06)

Figure 4-3: India - Enrollment of Students in Age Group of 17-23 w.r.t Other Asian Countries* (%)

Figure 4-4: India - Population in the Age Group of 19-24 (in ‘000), 2000, 2005, 2010F, 2015F & 2020F

Figure 4-5: India - Number of Students Studying in USA (2001-02 to 2006-07)

Figure 4-6: India - Number of Students Studying in Australia (2002-2007)

Figure 6-1: India - Centre & State Expenditure on Education by Sector (%), 2006-07E

Figure 6-2: India - Cost-recovery through Tuition Fees by State Universities (%), 2004-05

Figure 7-1: India - Forecast for Engineering Entrance Exam Coaching Industry (in Rs Crore), 2008-2010

Figure 7-2: India - Outstanding Education Loan (in Rs Crore), Mar 2005* to Mar 2009F

Figure 7-3: India - Private Education Expenditure (in Rs Crore), 2000-01 to 2006-07*

Figure 7-4: India - Forecast for Notebooks & Stationery Industry (in Rs Crore), 2008-2010

Figure 7-5: India - Forecast for Computer-based & E-learning Market (in Million US$), 2008-2011

Figure 7-6: India - Forecast for Online Tutorial Market (in Million US$), 2008 & 2012

Figure 7-7: India - Households by Disposable Income (%), 2007-08E

List of Tables:

Table 2-1: India - GDP Growth (%), 2001-02 to 2007-08

Table 2-2: India - Share of GDP & Employment* by Sector (%), 2007-08

Table 2-3: India - Employment in Software & Services Sector (in Number), 2001-02 to 2007-08E

Table 3-1: India - Number of State, Central & Deemed Universities (2006-07 & 2007-08)

Table 3-2: India - Number of AICTE-approved Technical Education Institutions by Stream (Aug 2007)

Table 3-3: India - Intake of Students in AICTE-approved Institutions by Streams (Aug 2007)*

Table 3-4: India - Enrollment in Private Institutions (in Million), 2000-01 & 2005-06

Table 3-5: India - Number of Government Institutions (2000-01 & 2005-06)

Table 3-6: India - Enrollment in Government Institutions (in Million), 2000-01 & 2005-06

Table 3-7: India - Number of Open Universities & Correspondence Course Institutes (2007-08)

Table 3-8: India - List of AICTE-approved Institutions under Foreign University Regulations

Table 3-9: India - Number of Collaborations by Type

Table 3-10: India - Per Capita Net SDP (in Rs) & GER in Higher Education (2002-03)

Table 4-1: India - Number of Private Aided & Unaided Colleges (2000-01 & 2005-06)

Table 4-2: India - Number of Professional Education Institutions by Course (1999-00 & 2005-06)

Table 4-3: India - Number of AICTE-approved Professional Education Institutions by Course (2006-07)

Table 4-4: India - Forecast for GDP Growth (%), 2008-09 to 2011-12

Table 4-5: India - Enrollment of International Students in Top 10 Countries (%), 2005

Table 6-1: India - Plan & Non-plan Budgeted Expenditure (Revenue Account) by Education Departments (in Rs Crore), 2004-05 to 2006-07

Table 6-2: India - Income from Tuition Fees as Percentage of Total Revenue (2005-06)*

Table 6-3: India - Expenditure on Education by Major States

Table 8-1: India - Regulatory & Statutory Bodies for Higher Education