The Indian

Schooling Segment
An Industry Report
Essentials of 3 Ds: Democracy, Demography and
Demand

Rashi Jain
17P046
Abstract

Education not only makes a difference to the growth and prosperity of human beings, but
also contributes to the overall development of a nation. It not only uplifts the economic
status of a country but also reduces the social ills plaguing the country in question by
developing the future leaders and workforce.

India's educational goals, policies and programs have been spelt out within the framework
of the national goals and the principles laid down in the Constitution. Over the years,
education for human rights and democracy has become an integral goal of education. The
first national curriculum framework, formulated in 1975, stated:

Discrimination of any kind based on sex, caste, religion, language or region is to be looked
at with aversion because it is irrational, unnatural and harmful to the growth of modern
India. All subjects should be taught in such a manner as to foster the spirit of scientific
humanism.

Today, Indias schooling segment, comprising of pre-schools and K-12 schools is valued at
USD 70 billion. The Indian literacy rate has witnessed a six-fold growth from the end of
British rule in 1947.

The demand for education exists both at the student and employment level with India
having the worlds largest population in the age bracket 0-14-years of about 415 million and
around 845 million people in the 15 to 59 bracket which constitutes the working
populationi.

The demographic dividend of India has the potential to bring enormous economic
opportunities. However, the ability to seize these opportunities depends on how
successfully the challenges plaguing the Indian education system can be addressed. The
challenge of transforming education in India can only be accomplished with a clear,
coherent, and coordinated vision of reform.

Page | 1
Contents
1. Evolution of Schools in India ........................................................................................................... 4
2. Framework of Educational Policies ................................................................................................. 4
3. Overview of Indias Schooling Segment .......................................................................................... 5
3.1. Pre-school Education .............................................................................................................. 6
3.2. K-12 Education ........................................................................................................................ 7
4. Growth Drivers of Indian Schooling Segment ................................................................................. 9
5. Challenges Faced by India Schooling Segment ............................................................................... 9
6. Emerging Trends in the Indian Schooling Segment ...................................................................... 10
7. Conclusion ..................................................................................................................................... 12

Page | 2
Table of Exhibits
Exhibit 1: Current and Estimated Literacy Levels in India ....................................................................... 6
Exhibit 2: Distribution of Pre-schools according to Number of Schools and Enrolment ........................ 7
Exhibit 3: Segmentation of Schools ........................................................................................................ 8
Exhibit 4: Indias K-12 Educational Infrastructure .................................................................................. 9
Exhibit 5: Growth of International Schools in India .............................................................................. 11

Page | 3
1. Evolution of Schools in India
In India, education has a rich and interesting history. During the ancient days, education was
imparted orally by the sages and scholars and was restricted only to the elite. These schools
had a highly personalised learning model which was not scalable.

To overcome the shortcomings of the ancient schools, a new education system emerged in
the 19th century. Mainly brick and mortar institutions emerged, catering to the growing
needs of industrial revolution. Though scalable, these schools lacked a personalized
approach to education and were devoid of technology.

The Europeans brought western education to colonial India. By the end of the British era,
the traditional education system was replaced by the formal schooling system. The latter
half of 20th century witnessed revolutionary changes in the education sector with the
introduction of ITC in schools and smart classes with higher emphasis on holistic
development and experiential learning.

Schools today are moving towards collaborative experiential learning with focus on
phenomenon-based teaching a move away from subjects and topics being taught
through an inter-disciplinary approach. Learning is now being driven by students and the
delivery model is defined with active support of students and teachers acting as facilitators
in the learning process.

2. Framework of Educational Policies

India's educational goals, policies and programs have been spelt out within the framework
of the national goals and the principles laid down in the Constitution. The Resolution on the
National Policy on Education of 1968 laid down a common educational structure throughout
the country. The implementation of the "10+2," is followed almost throughout the nation. It
provides for 10 years of undifferentiated general education with 5 years of primary, 3 years
of upper primary and 2 years of secondary education.ii

The first national curriculum framework, formulated in 1975 strengthened human rights
education by making it an integral part of every subject and at all levels. Most of the
common core elements are related to one or another dimension of education for human
Page | 4
rights and democracy. Various dimensions of education for human rights and democracy are
reflected in the curricular guidelines, syllabi and textbooks.

At the Primary Stage (Classes I-V), the main subjects are Environmental Studies and
Languages, which aim to promote knowledge and understanding of the natural and physical
as well as of the social and cultural environment. At the Upper Primary Stage (Classes VI-
VIII), the major subject areas are Social Sciences, Sciences and Languages. At the Secondary
Stage (Classes IX-X), the major subject areas are Social Sciences, Sciences and Languages and
at the Higher Secondary Stage (Classes XI-XII), students are initiated into the specialized
study of subjects of their choice.

It is important to understand that schools should be viewed not only as institutions that
impart certain knowledge and skills to students, but also as environments that socialize
them. They should inculcate the skills and dispositions needed to actively participate in all
aspects of democratic life.iii When it comes to civic education, how students are taught is
equally important to what they are taught.

3. Overview of Indias Schooling Segment

Today, Indias schooling segment, comprising of pre-schools and K-12 schools is valued at
USD 70 billion. The Indian literacy rate currently stands at 80%, compared to 12% at the end
of British rule in 1947. Despite a six-fold growth in literacy levels, India still has the largest
illiterate population in the world, with its literacy rate below the world average of 84%.
Exhibit 1 provides an insight into the current literacy levels of Indians.iv

Page | 5
Exhibit 1: Current and Estimated Literacy Levels in India

The demand for education exists both at the student and employment level with India
having the worlds largest population in the age bracket 0-14-years of about 415 million. It
also has around 845 million people in the 15 to 59 bracket which constitutes the working
population, of which 380 million are unemployed or are not working.

The Indian schooling segment can be divided into two sub-segments: Pre-school Education
and K-12 Education.

3.1. Pre-school Education

There are 106 million children in the 2-5 year age group in India, out of which the number of
students going to pre-schools or some kind of early childhood education centres (totalling
1.35 million) is 60 million. The pre-school segment is currently unregulated in India.

Pre-school or early childhood education is being imparted in India through the following five
categories of institutions:

a. Anganwadi
b. Mom & Pop pre-schools
c. Pre-schools on designated land parcels
d. Corporate day-care
Page | 6
 e. As part of K-12 schools

Exhibit 2: Distribution of Pre-schools according to Number of Schools and Enrolment

Currently there are about 0.5 million private pre-schools in India which include both
organized and unorganized players. Unlike K-12 schools, private pre-schools in India can be
set up as a for-profit entity.

3.2. K-12 Education

The K-12 segment caters to an eligible population of about 296 million students in the age
group 6 to 17 years.

Private schools account for only about 25% of the 1.5 million K-12 schools in India. 2016,
which requires every establishment with more than 50 employees to provide crche
facilities for working mothers, received approval in March, 2017. It is estimated that the K-
12 education segment currently employs about 50 million people including academic and
non-academic staff and support personnel.v

Based on fee levels, it is estimated that nearly 62% of students are enrolled in mass schools
(primarily state board schools) while a mere 0.01% are enrolled in super premium schools of
the country. Masstige schools form 17% of the total schools in the country; however, they

Page | 7
accommodate nearly 40% of the students. Exhibit 3 shows the segmentation of schools in
India.vi

Exhibit 3: Segmentation of Schools

The education infrastructure in India is suffers from an enormous need-gap. It has been
observed that an average private school enrols twice as many students as a government
school. It is estimated that India needs 36,000 additional schools. This would require an
investment of USD 55 billion to address the current need-gap in K-12 educational
infrastructure, as can be seen in Exhibit 4vii.

Page | 8
Exhibit 4: Indias K-12 Educational Infrastructure

4. Growth Drivers of Indian Schooling Segment

a. Robust Demand
Huge demand and supply gap with additional requirement of 36,000 schools.
b. Increasing Investments
The FDI in the education sector in India has increased at a CAGR of 45.91% from Rs.
167 crore in 2011 to Rs. 1,108 crore in 2016. During FY17, the FDI inflow in the
education sector has been Rs.856.37 crore.viii
c. Demographics
India has the largest population in the world of about 415 million in the age bracket
of 0-14 years. Literacy rate of around 80% compared to world average of 84%.
d. Policy Support
Several initiates taken by the Government of India such as Sarva Shiksha Abhiyan,
Pradhan Mantri Kaushal Vikas Yojana, Study Webs of Active-Learning for Young
Aspiring Minds (SWAYAM) have contributed to the growth of the industry.

5. Challenges Faced by India Schooling Segment

a. Enrolment Levels

Page | 9
 Despite having the largest Kindergarten to Grade 12 (K-12) population globally, India
has a low enrolment rate in schools, especially at the senior secondary level. The
enrolment percentage falls from 97% at the elementary level to 69% at the
secondary and higher secondary levels. Such low enrolment and high dropout rates
can be attributed to the lower availability of schools in rural areas, lower awareness
levels, and the prevalence of child labour among the lower income strata.

b. Public School Infrastructure and Capacity Constraints

The poor infrastructure in government schools, along with a lack of good teachers,
has forced the Indian middle class to withdraw their children from government
schools and enrol them in private schools. While private schools account for around
25% of the total number of schools, they provide education to around 43% of
students.
Metro cities like Delhi and Mumbai have very high land prices and almost no vacant
educational land parcels, thereby limiting capacity expansion, due to which
established quality schools are charging high fees

c. Shortage of Trained Teachers

The schooling segment in India suffers from a shortage of trained teachers, which
has become a major concern for the education sector.

6. Emerging Trends in the Indian Schooling Segment

a. Private schools adopting franchise models

Various operating models like a mix of franchisee and owned-schools are being used
by the private players to ensure their economic viability.
b. Emergence of International Boards
In recent years, focus of the parents has shifted from theoretical learning and
academic development of a child towards a more holistic child growth. The growing
awareness among Indian parents about quality education coupled with the rising
paying capacity of a burgeoning middle class has led to an increased preference for
international schools in India. Consequently, the profile of students studying in

Page | 10
 international schools is no more limited to expats, multinational professionals and
business class; but also includes students belonging to middle class families. Many
schools are now offering a combination of Indian and international boards or a
combination of international boards thus catering to the different needs of society,
even in Tier II cities.
Currently, three international boards are available in India:
Cambridge International Examination (CIE)
International Baccalaureate (IB)
Edexcel Examination Board

ix
Exhibit 5: Growth of International Schools in India

c. Multi campus model gaining popularity

Many private institutions are adopting multi city campus model to scale up their
operations and expand in the tier2 and tier 3 cities.
d. Increasing use of technology
Schools are investing in information and multimedia education technologies to
provide better education to schools. New education techniques such as e-learning
and m-learning are being used by private schools and also promoted by government.
This has helped in teaching students sitting far away in rural areas, provides cost-
effective courses for students and makes students well-versed with curriculum.

Page | 11
7. Conclusion

The education sector is probably the most important sector for our country, and is also one
of the most complex sectors with myriad segments and ever-evolving trends. The schooling
segment of the sector deals with the pre-school and K-12 education. Pre-schools cater to
the educational needs of children in the age group of 2-4 years and K-12 schools cater to the
educational needs of children in the age group of 5-18 years. With half of Indias population
is below the age of twenty five and low literacy rates, educating our countrys next
generation is no small task considering the uncertainty of the future and the rapid changes
likely to occur over the next few decades. Despite growing demand for education, the lack
of infrastructure plays the role of a major bottleneck in the prosperity of the segment. There
is the need for getting the best out of our children and making them future-ready.

i
Census 2011 Data
ii
Arjun Dev. Education for Human Rights and Democracy in Indian Schools. Retrieved
from https://www.hurights.or.jp/archives/human_rights_education_in_asian_schools/section2/1999/03/edu
cation-for-human-rights-and-democracy-in-indian-schools.html
iii
Christopher Koliba. (2000). Democracy and Education, Schools and Communities Initiative, Conceptual
Framework and Preliminary Findings. Retrieved from Agency name website:
http://www.uvm.edu/~dewey/articles/Democonc.html
iv
Aurobindo Saxena, Priyesha Singh Rajan, Disha Saraf, Rashi Jain, Disha Ahuja, Sanya Bansal.
(2017). Technopaks Outlook on Indian School Education Sector: A Vision for School 4.0. Retrieved from Agency
name website: http://www.technopak.com/Technopak-Education.aspx
v
Aurobindo Saxena, Priyesha Singh Rajan, Disha Saraf, Rashi Jain, Disha Ahuja, Sanya Bansal.
(2017). Technopaks Outlook on Indian School Education Sector: A Vision for School 4.0. Retrieved from Agency
name website: http://www.technopak.com/Technopak-Education.aspx
vi
Aurobindo Saxena, Priyesha Singh Rajan, Disha Saraf, Rashi Jain, Disha Ahuja, Sanya Bansal.
(2017). Technopaks Outlook on Indian School Education Sector: A Vision for School 4.0. Retrieved from Agency
name website: http://www.technopak.com/Technopak-Education.aspx
vii
Aurobindo Saxena, Priyesha Singh Rajan, Disha Saraf, Rashi Jain, Disha Ahuja, Sanya Bansal.
(2017). Technopaks Outlook on Indian School Education Sector: A Vision for School 4.0. Retrieved from Agency
name website: http://www.technopak.com/Technopak-Education.aspx
viii
IBEF (2017). Education and Training. Retrieved from Agency name website:
https://www.ibef.org/download/Education-and-Training-September-20171.pdf
ix
Aurobindo Saxena, Priyesha Singh Rajan, Disha Saraf, Rashi Jain, Disha Ahuja, Sanya Bansal.
(2017). Technopaks Outlook on Indian School Education Sector: A Vision for School 4.0. Retrieved from Agency
name website: http://www.technopak.com/Technopak-Education.aspx

Page | 12