WELCOME

TO
EDUCATION SECTOR
History of Education Sector:
1948-49 University education commission constituted
1951 First Indian Institute of Technology (IIT) established at Kharagpur
1952-53 Secondary Education Commission constituted
1958 Second IIT established at Mumbai
1961 First two Indian Institutes of Management (IIMs) set up at
Ahmedabad and Kolkata

1968 First National Policy on Education (NPE) adopted

1975 Integrated Child Development Services (ICDS) Scheme launched
1985 Indira Gandhi National Open University (IGNOU) established by an
Act of Parliament
Contd….
1987-88 All India Council of Technical Education (AICTE) vested with
statutory status by an Act of Parliament

1994 District Primary Education Programme (DPEP), National

Assessment and Accreditation Council (NAAC) , National Board of
Accreditation (NAB) established.
2001     Sarva Shiksha Abhiyan (SSA) launched to universalize
elementary education of good quality all over the country
2004 Mid-Day Meal scheme as well as EDUSAT a satellite dedicated to
education, launched
2005 National Commission for Minority Educational Institutions
established by Act of Parliament
2006 Two Indian Institutes of Science Education & Research (IISERs)
established at Kolkata and Pune, respectively
 Indian education system

Elementary Education

Secondary board Examination

Vocational Secondary
(SSC/ICSE/CBSE Board)
Senior/ Higher secondary
Polytechnics
Board Examination Engineering/
(Diploma Course)
Graduation Degree Doctor Degree
(B.com, B.sc, BA)
Master’s Degree Masters Degree
(MBA,CA,CFA) (M.tech MD)

Doctorate level Programme

(PhD)
Indian Education system

Pre-School and Primary & Secondary Education

• Central Board of secondary education CBSE
• Council for the Indian School Certificate Examinations CISCE
• State Board

Higher Education :
• Diploma Courses
• Bachelor’s/Undergraduate Degrees
• Master’s/Post-graduate
• Degrees and Pre-doctoral/Doctoral programs
Main features of Indian Higher Education system

• Highly bureaucratized system with multiple controls and regulations

exercised by Central and State Governments.
• System is heavily subsidized by the Government. The efficiency of
fund utilization is very poor due to internal rigidities.
• Salary and compensation for teaching staff is poor and, therefore,
higher education institutions are unable to attract and retain
qualified and trained teachers.
• Most institutions offer outdated programmes with inflexible
structures and content.
• Infrastructural facilities range from inadequate to dismal.
• Steady electric power supply is not available.
Classification of Higher Education
Higher Education

Technical Non Technical

 Classification cntd..
TECHNICAL EDUCATION

Governed by
UNIVERSITY GRANTS ALL INDIA COUNCIL STATUTORY DISTANCE
COMMISSION FOR TECHNICAL COUNCILS SUCH AS EDUCATION
(UGC) EDUCATION (AICTE) THE MCI, BCI, ETC COUNCIL

Non –Technical Education is governed by University Grants

commission and Distance education council.
Avenues of Higher Education:

Avenues of Higher Education

Governed by

University Deemed Universities Colleges

Higher Education: International Scenario

• Economic Order and the Role of Higher Education

• Internet in Education

• Globalisation and Higher Education

• World Trade Organization (WTO) and Higher Education

• e-Education

• Academic Community on Globalisation

 Current Scenario:

• World’ well known higher education institutions

• Challenge of maintaining quality of education in primary and secondary

schools, vocational studies, distance education

• New emerging professions (like BPOs, clinical research, aviation, travel,

tourism etc.)

• Rough estimate of approx 8.8 lacks elementary schools & 3-4 lacks upper
primary schools

• 1.46 lacks secondary and senior secondary schools

• Around 7.7 lack ISO 9000 certified schools and 1.1 lacks
ISO 14000 certified schools all over the world
Facets of Higher Education

• University Grants Commission (UGC)

• Universities
• Autonomous Colleges
• Deemed Universities
• All India Council for Technical Education (AICTE)
• Position of Institutes such as ISB, IIPM, etc.
• Foreign Universities
• Distance Education Council (DEC)
• Statutory Professional Councils
Main players in Indian Higher Education
• University Grants Commission (UGC) set up under UGC Act 1956
is responsible for coordination, determination, and maintenance of
standards and release of grants to universities and research
organizations.
• Professional councils that are responsible for recognition of
courses, promotion of professional institutions and provision of
grants to undergraduate programmes.
• As of today software development does not have a statutory
council. NASSCOM is generally accepted as equivalent of a
council.
• Research Councils: A number of them have been setup under the
Central (federal) government.
Present Situation : Why the sector is lagging

• Indian education sector is regulated by two agencies namely the

University Grants Commission (UGC) and the All India Council for
Technical Education (AICTE).

• The UGC controls the establishment of private universities in the

country while the AICTE has the sole authority to plan and maintain
technical education in the country.

• Another reason for slow pace of growth in this sector can be

attributed to delay in allowing FDI in education.

• Also, there is an effort on the part of the government to block the

entry of foreign universities into India.
 Principal goals in educational services:
• Ensure right of US companies to establish operations in
foreign markets including the right to wholly own these
investments.
• Ensure that U.S companies get ‘national treatment’ by
getting foreigners same rights as domestic investors.
• Promote pro-competitive regulatory reform focused on
an adequacy of appropriate and consistent rules.
• Remove barriers to generate cross border trade.
• Remove obstacles to free movement of people and
business information.
Issues related to Education Sector

• Funding And Infrastructure

• Quality education requires teacher training
• increase in Enrolment rate
• Curriculum issues
• Controversy
• Development of Teachers
% of GDP spend by India at the global average
% of GDP Spend on Education
100%
80%
60%
40%
20%
0%
Brazil Italy France UK Germany India Japan China USA
Population Aged 5-25 yrs GDP Public Education Expenditure
Expenditure by Indian Education Sector
Expenditure on Education by IEC

14%
12%
10%
8%
6%
4%
2%
0%
1999 2000 2001 2002 2003 2004 2005 2006
 Expenditure on Higher education per student

Public Expenditure
12000
10000
8000
6000
4000
2000
0
Malaysia USA UK Japan Brazil China India
Genesis of Coaching Class Market:
• India’s inadequate education system is being further
stretched due to its increasing population.
• $6.4bn segment of coaching classes has sprouted around
formal IES.
• The market is rapidly growing as the Indian education
system lays heavy emphasis on marks scored in an exam.
• At $5.1bn, the tuitions market forms 80% of the coaching
class opportunity and is
• inherently difficult to scale.
 Share of Private and Public Education
100
80
60
40
Public
20
Private
0
g y t e e y
in ac en ur CA BA n p
e r
rm ec
t M M ici ra
ne a gem t ed h e
ng
i Ph n a ch
i M si ot
E a A r i
l M Ph
o te
H
Market size – Current & After Five years
Segment Current Market (US $M) 2012 Market (US $M)
Preschools 985 3,426
Engineering 5,850 9,750
Medical 473 675
MBA 731 1463
Engineering (Test Prep) 1,000 2,000
UPSC (Civil Service) 120 240
Medical (Test Prep) 420 840
IT-Training - Retail 187 376
IT-Training - Corporate 38 140
E-learning - Retail 14 147
FDI In Éducation Sector

• Government allows FDI up to 100% in education sector.

• Foreign investments can be made only into companies

providing educational services

• Other segments such as vocational training and tutoring

services are attracting a great amount of interest among
investors largely due their unregulated environment.
Genesis of Coaching Class Market:

• India’s inadequate education system is being further

stretched due to its increasing population.
• $6.4bn segment of coaching classes has sprouted
around formal IES.
• The market is rapidly growing as the Indian education
system lays heavy emphasis on marks scored in an
exam.
• At $5.1bn, the tuitions market forms 80% of the
coaching class opportunity and is inherently difficult to
scale.
Coaching class Market

Coaching Class Market

3% 17%

Post Grad test

Grad test prep
6th -12th & Tertiary
education

80%
Post Grad Test Prep Market:
Post Grad Test Market
12% 4%
35%
3%
3% GATE
GMAT
GRE
2%
IELTS
TOEFL
CAT
CET
42%
SWOT Analysais:
Strengths:
• Highly educated , skilled , capable &
dynamic  human resources .
• English speaking & analytical
students
• Very rich in  Natural & Living resources
• Biodiversity & Traditional knowledge
base
• India Strategic position at various
platforms
• Opportunities:
IT & Software superpower
•
• General Agreement of trade on Services
• Research & Development capability
• Generate intellectual property
• Resource Building capacity
• Competition- cost – Quality service
• Collaboration : win-win thinking
• Hybrid solution–balancing & blending
• Rural economy development
Weaknesses:
• Lack of trained & skill work force  
• Small supply of specialize professional
• Lack of effective & execution framework
• Lack of Indian management models
• Lack of transparency-Trust-Responsibility
• Lack of spirits of entrepreneurship
• Fear of sharing knowledge & taking risk
•
SWOT
Threats:
• A feeling of unstable government
• Self centered political leadership
• Slow & Dysfunctional judiciary and
corrupt law enforcers
• Regulation, protection and restriction
• Mechanistic -stable-Layered-complex
system
• Corruption, Ignorance & Complacency
• High competitive & marketing forces
•
Challenges : Need for Reforms

• Provide Quality education rather than focusing on quantity.

• A huge variance between Rural and Urban education system.
• Like Health Sector a very low or no focus by Indian Government to
improve education in Government Schools and Colleges.
• Reservations and Quota system emerged as the only motivating
factor to improve literacy. The actual need is to come up with
reforms to promote literacy by better education.
• More Stress is required to improve the quality of teachers and
promote environment and perks to improve teacher ship.
• Create quality education hubs like IIT’s and IIM’s. Reforms on
bringing up the foreign college affiliations in India to improve
quality.
Impact of the Recession on Education
• Education Financing.
• Employment trends in the education sector.
• Changes in migration and mobility patterns.
• Salaries - trends and changes.
• Changes in working hours.
• Changes in other benefits (pensions, health, other
social protection).
Mergers and Acquisition

• Edserve currently serves a niche in Education space by

providing technology to meet human resource requirements
for educational institutions along with focus on content
delivery and learning model for schools in India.
• Schoolmate is a branded CRM and ERP software for
educational institutions.
• The solution thus helps schools in automating the information
providing process right from admission to school activities.
• Schoolmate's acquisition will provide Edserv access to more
than 70 schools and will help it to achieve its target of 250
schools by the year end.
Recommendations

• The Government resources for higher education are simply not

enough. Government supervision of higher education is dismal,
to say the least.
• Recourse to quality private higher education, both university
and non-university is essential.
• India needs to have a proactive demand based policy towards
private higher education.
• Broad-band services and provision of computers is an essential
requirement of higher education.
• Open Universities need to be encouraged to offer quality
programmes at the least cost.
 Conclusion:
A number of studies and reports indicate that strong
returns could be expected from the sector. With about
50% of India’s population being younger than 25
years of age and the severe shortage of institutions
delivering high quality education and training across
various segments, what is present before the
regulators and policy makers is a timely opportunity
to usher in change and raise the reach and standards
of education in India.