Mumbai: The education sector is estimated to reach around Rs 7.8 lakh crore in 2016-17 and has tremendous potential to grow due to a huge demand-supply gap, according to a report. The market size of the sector was around Rs 6.4 lakh crore in 2015-16, said the report by India Ratings and Research (Ind-Ra).
Beside the expansion in the conventional public and private sector education system in form of schools and higher education institutes, the growth will also be backed by the non-formal private education sector like pre-schools, coaching institutes and vocational training centres, among others, it said.
It said that more international collaborations with education institutions, along with joint ventures and merger and acquisitions with both foreign and domestic corporate players, would further help the sector to grow. According to government data, the share of state private universities out of the total universities in the country spiked to 29 per cent in 2014-15 from around 3 per cent in 2008-09.
It said some private universities have even created a niche within a span of four to five years or even less with efficient faculty, tie-ups with reputed international universities. The rating agency believes there is significant incentive for opening up state private universities in the absence of any regulatory cap on the approved intake for students, which has a positive bearing on the functioning of such varsities.
However, it stated that the rapid expansion of education sector in India is accompanied by a high student-teacher ratio in both school and higher education segments. This indicates that the supply of teachers is not keeping pace with the rise in student strength, the report said. Besides, there is a problem of qualified and skilled faculty. Thus, the quality of learning and academic standards have become an issue, as reflected by the international rankings of Indian educational institutions, it said.
However, the government policy support in the form of a rise in budgetary allocations, setting up of boards to evaluate the standards of schools and colleges as well as teacher training initiatives are positive steps towards augmenting the quality of education in both school and higher education, it said.
