1. EDUCATION SYSTEM IN INDIA
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PRESENTATION BY :-
Prateek Kataria Avika Sood Sanjay Agarwal Prabhleen

2. INTRODUCTION
 Indian Department of Education : Ministry Of Human Resource
Development
 Headed By: KapilSibbal
 National Budget: 52,057 crore
 System Type: Federal ,State , Private
 Literacy
Total Male Female
71% 82% 65%
Source: IDFC-SSKI Research

3. PRESENT SCENARIO
 National Council For Education Research and Training is the apex body for
Curriculum
 NCERT provides research and Training and Research assistance to various
Schools.
 Other Bodies
o ICSE (Indian School Certification Examination)
o State Boards
o National Institute Of Open Schooling
Source: IDFC-SSKI Research

4. STRUCTURE
Primary Secondary Higher Open &
Education Distance
Learning
Private
Senior
Secondary
Home Non
Schooling Technical Technical
Source: IDFC-SSKI Research

5. ISSUES
 Work Force Quality
o 25% of public sector teachers and 40% of public sector medical
workers were absent
o Absence rates ranged from 15% in Maharashtra to 30% in Bihar
 Infrastructure
o 59% of the schools had no drinking water and 89% had no toilets
o 3.5% of primary schools in Bihar and Chhattisgarh had toilets for girls
o The number of secondary schools is almost half the number of upper
primary schools available in the country
 Curriculum Issues
o Rote learning rather than problem solving
 Participation
o Lower secondary level enrolment rate is 52%
o Senior secondary level it is 28%
o Pre-school is merely 18%
o 48% drop-out rate in elementary education Source:Fortress Team Research

6. GRIM REALITY
A NEED FOR CHANGE

7. IES - the largest Inefficiency - the highest Investablityquotient(I
Q)- the lowest
Largest Capitalized space ‘Insufficient’ funds $40bn:‘overregulated
• Public spend of $30bn • Free product loses market & under- governed’
(3.7% of GDP) share - 40% of the student • For 80% of the
• Private spend of $50bn base enrolled in private private spends
(14% CAGR) schools (formal IES),
regulations (not-for-
profit mandate) a big
Largest Supply ‘Inefficient’ supply deterrent
• A network of ~1m •66% of the school network • Low political will to
schools and 18,000 HEIs only till primary level bring about the much
• First Indian satellite - • Only 0.85% of USD 30 bn required structural
EDUSAT (launch Sep-04) spent on capital change
to serve the education expenditure
sector
Largest Demand Lowest $10bn: Scores low on
• Globally the largest enrollments, highest scalability. For
population of 572m dropouts remaining 20% (non-
within the 0-24 years age • 61% of target population formal IES), scalability
group enrolled remains a big issue
• 40% dropout
Source: IDFC-SSKI Research

8. COMPARATIVE ANALYSIS
( 2009)

9. COMPARISON OF REGULATIONS
Segment India US UK Brazil Singapore
Pre-School Profit motive Profit motive No Low Low
allowed allowed regulations regulations regulations
K-12 Non profit Profit motive Profit No Profit making
motive allowed making not government allowed
allowed interference
in fees
Tutoring Profit motive - - - -
allowed
Higher Non profit Profit motive Profit No Profit making
Education motive allowed making government allowed
allowed interference
in fees
Vocational Profit motive Profit motive Not Not Special
allowed allowed controlled controlled policies to
encourage
growth
Preparatory Profit motive - - - -
allowed
Source: Technopak Advisors Report

10. KEY PLAYERS IN PRIVATE SECTOR
Preschool
Multimedia/
IT in Schools
Coaching
Classes
Vocational
Training
Book Market
Source: Company, IDFC-SSKI Research

11. DEEPER DIVE INTO PRIVATE IES
Total no. of schools 1,025,000
7% 93%
Private Government
7% of these schools
are private - yet 40%
of the students are Total no. of students enrolled 219m
enrolled Private
40% 60%
Private Government
India has 18,000
higher education Total no. of Higher Education Instututes18,000
institutes - 77% of
77% 23%
them are private
Private Government
US$ 50 Bn expected to grow to US$ 80 Bn by 2012 (14% CAGR)
Source: IDFC-SSKI Research

12. STRUCTURAL CHANGES REQUIRED
Ag What is the Issue? What Needs to Change?
Agenda
• Regulations require all • A structural change required to
institutions to be run as a trust or allow for-profit schools &
‘Trust’ society colleges.
Issues • No dividends & surplus to be
ploughed back
• More than 75% of educational • Strong political will to realign
Political institutes run by politicians education policies
Quagmire • Vested interest needs to take a
back seat
• Subsidized land demarked for • State development authorities
Land Blues schools is hoarded & resold to need to put a system in place to
schools at much higher prices ensure genuine bidders get land
• Despite 100% FDI, no regulation • Clear regulations need to be in
Low FDI formulated for recognizing place to recognize foreign
foreign HEIs under UGC universities
Source: IDFC-SSKI Research

13. DEEPER DIVE INTO PRIVATE IES
1.4 45000
Fees per annum (Rs. m)
40000
1.2 1.15 40000
35000
Fees per annum (Rs.)
1 0.9
30000
0.8 25000
0.6 0.6
0.6 20000 15000 16000
0.4 15000
0.2 0.2 0.15 0.15 10000
0.2 CAGR 12% 3500
5000
0 0
CAGR 18%
IIM A IIM B IIM C IIM K Private Schools Coaching Classes
1999 2008 1999 2008
Household spend on education - CAGR of 8.6% versus consumption
growth of 3.2% over 1995 - 2005
Source: IDFC-SSKI Research

14. Value Non-
Growth Scalabliby Comments
creation regulated
Kids and Kangaroo Kids are the
Pre-school
relevant players
Innovative structures evolving;
K-12 Educomp Solutions
Innovative structures evolving; a
Higher
long term game; Manipal Universal
Education
Learning the only investable player
Vocational
NIIT the only scaled-up model;80%
Training and
of the market difficult to scale
coaching
Low-growth market (reusability at
Books 70%Low-growth market
(reusability at 70%
Multimedia Annuity business model;
in Schools EducompSolutions
Source: IDFC-SSKI Research

15. KEY TRENDS & WAY FORWARD
Internationalization
 Establishing international collaborations for faculty/student exchange
 Offshore campuses - Monash University, Leeds University
Changes in Policy Landscape
 Changes expected in matters of transparency & norms
 Stress on quality above quantity
Increase in the Need for Professional Talent
 Scarcity of availability of faculty
 Increase in difficulty in filling jobs - 67% in 2011
Adoption of Technology
 Increasing need for streamlining & controlling processes
 Multimedia in school is expected to grow to $320 mn in 2013
Source: IDFC-SSKI Research

16. KEY TRENDS
Growth of Multi-Campus Model
 Colleges opening other campuses
Online Education
 Due to an great increase in the number of internet users
 Expected to grow to $220 mn in 2013 from $40 mn in 2008
Sports Education
 $38 bn sports education and management industry
 Entities like Edu Sports, Kooh Sports, Sports Education Development
Vocational Education/ Training
 Enhance workforce from current 12% to 25% by 2017
 Government intends to open 250,000 schools in next 5 years
Source: IDFC-SSKI Research

17. SWOT
ANALYSIS

18.  Responsible for creation of large human resources
 Skill set with English proficiency and quantitative has resulted
STRENGTHS
in international demand of Indian students
 Presence of Government run initiatives and NGO’S have
provided a strong base to the system
 New education reforms has made education sector more
lucrative
 According to world bank, 3.6 million teachers working on full
time basis
Source: IDFC-SSKI Research

19.  Lack of investment in infrastructure leading to mis –
administered universities
WEAKNESS
 Heavy dependence on government funding
 Political interference in the university administration
 Lack of market orientation in designing curriculum
 Inadequate collaboration among professional organizations
 Little scope in extra curricular activities
Source: IDFC-SSKI Research

20.  Inflow of foreign students resulting in huge revenues
OPPORTUNITIES
 Increased competition resulting in improved efficiency and
quality
 FDI in education helping the Indian students to get education
at cheaper costs
 More than 300 equity funds likely to invest in indian
education system
 44.4% increase in American students (2,690 in 2010 to 3,884
in 2011)
Source: IDFC-SSKI Research

21.  Private institutions may not indulge in social responsibility
 Regional disparities between rich and poor may widen
THREATS
 Marketing techniques by universities may promote courses
which are irrelevant to students
 High growth in foreign and Indian colleges might focus on
profit making rather than quality education
Source: IDFC-SSKI Research

22. THANK
YOU