INTRODUCTION

The word “Education” originated from the Latin word which means “to bring up”
or “to nourish”. Education means drawing out the hidden potentialities and
qualities of the students.

Every society has specialized individuals who fulfill certain positions that require
extended education. In some cases, these people are known as shamans, priests, or
professors or they may be doctors, mechanics, blacksmiths, or artists. In all these
professions, some form of higher education is necessary. It could come from an
apprentice or rigorous private study, or it could take the form of a formal higher
education. Whatever the form, the meanings is the same, gain knowledge and uses
it. There are two types of education

 one should teach us how to make a living,

 and the other how to live.

IMPORTANCE OF EDUCATION

Education not only provides scientific and technical skills, it also provides the
motivation, justification, and social support for pursuing and applying them. The
international community now strongly believes that we need to foster — through
education — the values, behavior and lifestyles required for a sustainable future.
Education provides the skills for:

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 Learning to know
 Learning to live together
 Learning to do
 Learning to be

WHY EDUCATION SYSTEM IS IMPORTANT?

 Education is a basic human right, and is key to a life with dignity.

 Quality, relevant education contributes to economic growth, peace, stability
and good governance.
 Education and technology goes hand in hand

The evolution of education in India

The history and structure of education system in India has not been stable. With
India having a history of invasion during the feudal period, the system of imparting
education also kept changing. Indian educational system has moulded itself on the
pattern of British education system. Post Independence, all government’s greatly
emphasised the importance of spreading education to all corners of the country.
The central and state governments in accordance with constitutional directives,
have tried their best to implement them. Keeping all these developments in mind,
we can safely assume that, although Indian Education System has noticeable

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blemishes, things have definitely improved in the last decade. Indian education
policy makers have tried to prepare a well defined curriculum, which enables
Indian students maintain their position in the top quartile on international stage.
Currently, with hundreds of universities and thousands of colleges affiliated
to them, India has positioned itself comfortably as a country that provides
quality higher education to its people in specific and to the world in general.

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INDIAN EDUCATION SYSTEM

The Education system in India comprises of three key groups based on the extent
of student population: Pre- School/Kindergarten Education, Primary & Secondary
Education and Higher Education. With different regulatory bodies governing each
stage of the education sector, it is fraught with its unique challenges.

HIGHER EDUCATION SYSTEM

Higher education is provided by colleges. Colleges are affiliated to universities.
Universities are of three kinds – universities (unitary and affiliated, state and
central), deemed universities, and institutes of national importance (IIT’S / IIM’S).

The diagram below summarizes the Indian Education System:

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Pre-Schools
are places where formal education is not imparted, but children are taught basic
activities which, help them get independent faster. While pre-school has been an
old concept in the west, it is catching up in India, mainly because of working
parents. Currently, there are no listed players in this segment in India. The largest
pre-school player is KidZee, part of Essel Group (Zee Group). It has over 700
centres across 265 cities in India and abroad. Apart from KidZee, the pre school
market is very fragmented and going by the way the concept is catching up in
India, we expect some consolidation in this space mainly by listed players like

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Educomp, which has already entered the K12 segment and has indicated intentions
to cater to the pre-school segment. The big advantage in the pre-school segment is
that it is not capital intensive and can generate positive cash flows as early as
second year of operations currently.

THE K-12 SCHOOL SYSTEM

The Indian education system is based upon 12 years of schooling (10+2), which
includes primary and secondary education. Secondary schools are affiliated with
central or state boards. These boards specify the curriculum and conduct
examinations at the end of X and XII grades. Many of the private schools as well
as many of the good government schools are affiliated with the Central Board of
Secondary Education (CBSE).The primary education follow the K-12 pattern. The
K-12 schools are divided into three categories – primary (I-V), upper primary (VI-
VII), and high (IX-XII).

Private Tutoring for schools:

Private tutoring has become a flourishing business in India with an estimated
market size of almost US$2 Bn. While the sector is very fragmented, with classes
being run even in residential premises, larger players like Chate Coaching Classes,
Mahesh Tutorials etc., who have a wide network, are benefiting from this growing
market. Initial investment for setting up the infrastructure is high but break even
period is about 2 to 3 years, and generates good cash flows.

EDUCATION–A WAY TOWARDS GROWTH AND

DEVELOPMENT

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In the past century, India progressed from a stage where the application of science
to manufacturing techniques or to agricultural practices became the basis for
production. This demands a highly skilled labour force. During last quarter of 20th
century, three technologies emerged, which have changed production,
transportation and life style of the people profoundly. These are:

• Information Technology
• Communication
• Biotechnologies

The convergence of increased computing power, reduced communication costs

among people, institutions and countries, which has significantly increased the
speed of production and distribution. It is also seen that knowledge produced by
Research and Development, (R & D) inventions created in universities and
industrial laboratories are creating the so called knowledge industries.
Education has been found a major source of productivity growth, and because
education increases productive human capital, it contributes to overall increase in
economic growth. In a knowledge economy, higher education benefits more than
just those who attend. Knowledge economy relies heavily on a well trained
workforce comprising knowledge workers that can not only apply knowledge but
are also capable of analysis and decision making based on information.

ROLE OF EDUCATION IN INDIAN ECONOMY

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Education, like health care, is a state subject. Each state has the power to create,
accredit and fund schools and universities. At the same time a number of schools
and universities are run directly by the central government, creating a dual
management system. While many technical schools and colleges are managed and
run by private organizations, even those affiliated to government universities,
almost all universities are government funded and run. At the apex of the system
are national research institutes.

Since independence, India has made tremendous progress in enlarging its

education base. The contribution of education to economic growth in India was
asserted to be as high as 14.01 percent during 1948-49 to 1968-69. Improvement in
the quality of labour force was attributable to education (Dholakia, 1974). As per
the later studies, the contribution of education to economic growth in India was
asserted to be as high as 34.4 percent (Psacharopoulos, 1973). The study of
Sivasubramonian (2004) estimated the sources of economic growth in India
between 1950-51 and 1999-2000, and found that education, along with land,
labour and physical capital contributes significantly to economic growth.
Most countries with high investment in higher education became ‘Leader’ in
technology, with high levels of achievement in technology. The role of education
in economic growth for developing countries is highly significant. The research on
India also proves this. India is well known as a pool of talents and it is largely
contributed to its Modern Education System.

Main features of Indian Higher Education system

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• Highly bureaucratized system with multiple controls and regulations exercised by
Central and State Governments, statutory bodies (UGC, AICTE and others),
university administration and local management.
• System is heavily subsidized by the Government. Up to 90per cent of the
operating costs are paid for by the state. 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.
Besides unattractive compensation packages, recruitment procedure is lengthy and
working environment not conducive to retention. As a result, a substantial
proportion of highranking students who could fill up such assignments prefer to
work elsewhere or go abroad. In a recent move UGC has further damaged the pay
and promotion prospects of college teachers by reducing promotional grades
thereby creating more stagnation and frustration amongst college teachers.
• Most institutions offer outdated programmes with inflexible structures and
content. While course content has been updated and restructured over time in the
world’s best institutions, Indian university curricula have lagged behind.
• Infrastructural facilities range from inadequate to dismal. Classrooms are often
unattractive and laboratories inadequately stocked, leading to poor teaching. It is
estimated that barely 20per cent of the institutions have the basic minimum
laboratory equipment.
• Steady electric power supply is not available. Laboratories are poorly stocked
and computerization, where it exists is generally dependent on poor
communication lines.

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Indian Higher Education system:

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Higher Education comprises of Diploma Courses, Bachelor’s/Undergraduate
Degrees, Master’s/Post-graduate Degrees and Pre-doctoral/Doctoral programs. It
may be also be broadly classified into technical and nontechnical education.
Technical Education, as derived from the All India Council for Technical
Education Act, 1987, may mean programs of education, research and training in
Engineering & Technology, Architecture, Town Planning, Management, Hotel
Management & Catering Technology, Pharmacy and Applied Arts and Crafts.
Non-Technical Education would, thus, refer to the courses, other than technical
courses, such as Law, subjects related to Science, Commerce and Arts, etc. In
India, there are different bodies/authorities governing technical and non-technical
education as indicated in the chart on the following page

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12
University Grants Commission (UGC):

The UGC was set up under the University Grants Commission Act, 1956 (UGC
Act) to make provisions for the co-ordination and determination of standards in
universities. Its mandate includes:
§ Promoting and coordinating university education
§ Determining and maintaining standards of teaching, examination and research in
universities
§ Framing regulations on minimum standards of education
§ Monitoring developments in the field of collegiate and university education
§ Disbursing grants to the universities and colleges
§ Serving as a vital link between the Union and State Governments and institutions
of higher learning
§ Advising the Central and State Governments on the measures necessary to
improve university education

All India Council for Technical Education (AICTE):

The AICTE was set up under the All India Council for Technical Education Act,
1987 (AICTE Act) with a view to ensure proper planning and coordinated
development of the Technical Education System throughout the country,
qualitative improvement of such education in relation to planned quantitative
growth and the regulation and proper maintenance of norms and standards in the
Technical Education System and for matters connected therewith. The AICTE,
thus, governs technical education and the functioning of technical institutions

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within the country. “Technical education”, as previously described, has been
defined under Section 2(g) of the AICTE Act. “Technical Institution”, accordingly,
under the AICTE Act, refers to the institutions, other than universities, conducting
the courses or programs in the field technical education.

Statutory Professional Councils:

Statutory Professional Councils are responsible for recognition of courses,
promotion of professional institutions and providing grants to undergraduate
programmes and various awards. The Medical Council of India, for instance, is
empowered to prescribe minimum standards for medical education required for
granting recognized medical qualifications by universities or medical institutions
in India. It is also responsible to give its recommendations to the Government for
establishing new medical colleges.

Distance Education Council (DEC):

For running programmes in ‘distance mode’, the approval of the Joint Committee
of the UGC, the AICTE and the DEC is required. Distance Education Council is
the Coordinator of the Joint Committee. The DEC was established in 1991 under
Sections 16(7) and 5(2) of the Indira Gandhi National Open University Act, 1985.
It is responsible for the promotion, coordination and maintenance of standards in
the open and distance learning system in the country.

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Avenues of Higher Education

• Universities:
Section 2(f) of the UGC Act defines a university as that which is established or
incorporated by or under a Central Act, a Provincial Act or a State Act, and
includes any such institution as may, in consultation with the university concerned,
be recognized by the UGC in accordance with the regulations made in this behalf
under the UGC Act.
A university is, thus, not established under the UGC Act but is only required to
adhere to the provisions of the same. Universities are set up mostly under the State
Acts.

• Deemed Universities:
Under Section 3 of the UGC Act, the Central Government may, on the advice of
the UGC, declare that any institution for higher education, other than a university,
be deemed to be a university for the purposes of the UGC Act, and on such a
declaration being made, all the provisions of the said Act, including the power to
award degrees under Section 22 of the UGC Act, shall apply to such institution as
if it were a university within the meaning of Section 2(f).

• Colleges:
Colleges are institutions which provide for a course of study for obtaining any
qualification from a university and which, in accordance with the rules and
regulations of such university, are recognized as competent to provide such course
of study , and present students undergoing such course of study for the
examination for the award of such qualification. They facilitate the obtainment of a

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degree but do not grant it, while a university awards a degree either through its
own departments or through colleges affiliated to it.

• Autonomous Colleges :
The affiliating system of colleges was originally designed when their number in a
university was small. The university could then effectively oversee the working of
the colleges, act as an examining body and award degrees. With the increase in the
number of colleges and the universities finding it difficult to attend to the varied
needs of individual colleges, the Education Commission (1964-66) recommended
college autonomy recognizing that colleges have the potential for offering
programs of higher standard.

• Position of Institutes such as ISB, IIPM, etc.:

Despite the stipulated requirement of an AICTE approval for conducting programs
in technical education, there are several institutes including reputed ones such as
the Indian School of Business and the Indian Institute of Planning Management
which offer programs in Management without the approval of the AICTE. Per the
AICTE regulations, the defaulting Institutions/Society/Trust/Company including
Associated individuals, as the case may be, are liable for stringent legal action
including action under the provisions of Indian Penal Code and other relevant
Indian Laws for conducting courses or programs in technical education without the
prior approval of AICTE. In settlement of a lawsuit filed by IIPM, the UGC agreed
to remove IIPM from the list of being a ‘fake university’ in return for which ‘IIPM
agreed to offer only ‘certificate course’ and would clarify that its courses were
aimed at making the students eligible for degree courses like BBA and MBA –
provided under International Management Institute, Belgium’.

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• Foreign Universities:
The immense opportunity in the India education space has not gone unnoticed by
foreign universities and institutes. Foreign universities have been inking strategic
partnerships with educational institutions in the country. For instance, various
media reports have suggested that Lovely Professional University, based in
Jalandhar, and San Francisco State University have come together to make
international education accessible to Indian students, while United Kingdom based
Leeds Metropolitan University and Jagaran Social Welfare Society, based in
Bhopal, have entered into an arrangement to offer courses and degree through their
newly formed campus in India.

Higher Education: International Scenario

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1. The New Economic Order and the Role of Higher Education
1.1 Two parallel developments in the world economy are worth noting, especially
for their influence on provisioning of higher education: the growth of the Internet
and consequently, e-education and second, the expanding role of World Trade
Organization (WTO) in determining the trends in world economics.

2. Internet in Education
2.1 Never before was information so readily available at the press of a button, the
Internet has changed the way the world behaves, does business, and thinks. Even
school children search the web for study material to support their homework.
Today, academicians do not need to spend much time on library research poring
over bulky tomes and taking copious notes. They have the facility of faster and
surer access to a much wider range of information through the Internet, not just to
read but to print or save or forward to others as might suit their purpose. . Internet
research has come to be recognized as an essential study tool in all higher
education courses in developed countries.

3. Globalization and Higher Education

3.1 According to the results of a special survey 'Higher Education: Free degrees
to fly' higher education is already a global business. The days when higher
education was a matter of national policy and government regulation are rapidly
fading. Higher Education provisioning is now globalised and in many ways, a
commercialized affair and the way that the State had in the goings on is vastly
diminished. According to Andreas Schleicher of OECD, a Paris based ‘Think
Tank’ the numbers studying abroad were statistically negligible two decades ago.
(Cited in the same survey in the Economist). According to the International
Finance Corporation (IFC), the growth is now soaring: 2 million university

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students-approaching 2% of the world's total of around 100 million studying
outside their home country in 2003 (cited in Higher Education in the same article
in Economist). Since the late 1990s the higher education market is growing by 7
per cent a year. The Economist Survey on higher education further indicates that
annual fee income alone is estimated at $ 30 billion. While private profit seeking
companies have entered the education business, even government-controlled
universities are seeking independence from governmental authority. However,
many countries including India, continue to control the fee structure of their
universities causing financial stress to foreign students, who are generally made to
pay much higher fees than local students. This has resulted in many universities
openly soliciting entry of foreign students. To facilitate this process they have even
tailored their courses to international requirements besides appointing agents
abroad and publicizing the offers widely in the media.

4. World Trade Organization (WTO) and Higher Education

4.1 Fundamental to understanding the future role of WTO in education is the
question: is higher education a marketable commodity like an fmcg product or is it
a service like water or electric supply? Is higher education a commercial service or
a public good? .
4.2 While universities and the academic community in general would like higher
education to be viewed as a public good, the prevailing argument in the WTO
Secretariat is that higher education is akin to ‘private consumption’ directly
benefiting the consumer by way of higher income. In April 2002, Universities
from
Latin American countries, Portugal and Spain adopted a Declaration at the III
Summit of Iberian and Latin American Universities in Porto Alegre, Brazil in
which they declared education as a ‘public good’ and requested their government

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not to make any commitment on this issue within the framework of WTO.
However, overtime the perception of higher education as a commercial service is
gaining acceptance. The WTO Secretariat in September 1998 has mentioned that
with the rapid changes in higher education ‘education also exists as a private
consumption item with a price determined freely by the providing institutions’. As
a result, they have stated that more and more paying students are attracted to these
institutions including foreign students.

5. e-Education
5.1 Not only are commercial business concerns interested in entering the education
industry aggressively but existing universities and colleges as well. Private
companies like Kaplan, BPP and Apollo Group already run successful edu
business ventures. Kalpan is a big education company owned by the same
company that runs the Washington Post newspaper. BPP, its British rival, has
entered into deals with British Universities so that students enrolled into their
professional courses can earn degrees from the Boston Post Graduate University.
University of Phoenix, the first University to offer a full time on-line degree is
owned by the Apollo Group. Sixteen of the world’s better ranking universities
have got together and set up a $ 50 million joint venture called Universitas 21
Global, an online MBA business school. These universities include McGill, British
Colombia, Virginia, Edinburgh, Sweden and Melbourne of Australia. This $ 50
million project has been established in collaboration with a private company called
Thomson Learning, an educational and training service division of the Thomson
Corporation. Universities 21 Global aims to tap markets of potential students from
UAE, Singapore, Malaysia, India, Korea and China. It has already enrolled 1000
professionals from 45 countries for its graduate programme. It has also offered an

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M.Sc. in Tourism and Travel Management recently. The online degree of
Universities 21 has been well received in the world market and the degree
certificate awarded by it bears the crest of all the 16 top ranked participating
universities.

6. Academic Community on Globalization:

6.1 While the academic community has not reacted positively to globalization,
many developed governments see it as an opportunity to expand its educational
services.
In a report prepared on Globalization & Education, for the House of Lords, it has
been stated that the UK Government is ‘not just concerned with smoothing the
way for the “businessification of education” to the extent the profit making for
“edu business’’ becomes possible but also is concerned to build up an indigenous
edubusiness and to develop export potential for that.’

Main players in Indian Higher Education

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• 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.

% of GDP spend by India at the global average

Expenditure by Indian Education Sector

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Expenditure on Higher education per student

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 Share of Privat

While India may have one of world’s highest enrollments for HE (11m) as also
networks of HEIs (currently estimated at 18,064), it has abysmally low GER of
9.97.
• Private HEIs dominate
Over the years, public spend on higher education has been gradually reducing –
and rightly so as the focus of governments globally is (and should be) on primary
education. But the strategy has resulted in India having one of the lowest public
spends per student on higher education. Given the dearth of quality institutes,
private HEIs have boomed since 2004 and the number is growing. With
liberalization opening up newer and better job avenues, the proliferation of private
institutions has largely been in the area of professional courses like Engineering
and Medical as also post graduation courses like MBA. Other factors that have
contributed to the phenomenon include the increasing pay propensity of Indians
and prospects of higher returns (payback in the form of fat salary packages)

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offered by these career-focused products. Today, more than 40% of India’s HEIs
are privately owned and funded (77% are privately owned).

GENESIS OF COACHING CLASS MARKET

India’s already inadequate education system is being further stretched due to its
increasing population. So much so that a $6.4bn segment (64% of the total
nonformal IES; next only to K12 and HE) – 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. A shortage of quality HEIs is
further fuelling growth. This is evident in the fact that the number of seats in
Indian IIMs (Indian Institutes of Management) has increased merely 3% (2003-
2008) but the number of CAT aspirants has shown a CAGR of 19% in the same
period.

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We have segmented the market into three broad categories – subject/ concept-
based tuitions catering to K12 and HE segments (estimated at $5.1bn), Graduation
test preparation market ($1.1bn) and Post Graduation test prep market (~$220m).
While we expect some pockets to grow faster, we estimate 15% CAGR for the
segment over FY08-12. Interestingly, players are also looking to provide coaching
through online media – a model quite popular in the global markets, especially
developed ones. However, the model would take time to evolve in India given the
negligible broadband connectivity (< 1%). The coaching class market is typically
fragmented and regional in nature as a big chunk, i.e. tuitions (6th-12th grades and
tertiary level), is subject-based and thus highly people-driven with high
dependence on a local ‘brand-teacher’. However, pockets like grad and post grad
test prep are more process-driven as content assumes higher relevance than
teachers, and content can be standardized across centers.

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• Post Grad Test prep market– scalable but small
At $200m, the Post Grad Test prep market is relatively easier to scale but forms
only ~3% of the coaching class opportunity. Apart from being held at a national
level, the entrance tests of these courses are more aptitude-based. Thus, this
category of coaching classes has relatively lower dependence on ‘individuals’, and
higher focus on standardized content and study material (a key differentiator).
With ~300,000 applicants every year, the market is dominated by CAT aspirants
(market at $90m).

Market Structure and Size

India is one of the largest markets for education in the world in terms of number of
students. Currently, there are over 1 MM schools in India providing education to
over 200 MM students. The number of teachers in India currently stands at 5.8
MM (Source: Everonn RHP).

• Expected Growth in the Market Size:

Analysts at CLSA Asia Pacific Markets estimate the current private education
market in India to be worth approximately US$ 40 billion and expect it to grow
70% to $68 billion in three years4. Moreover, according to the estimates of
Technopak, this market size could roughly triple to US$ 110 - 120 billion in ten
years’ time5. A combination of a large growing population of youth6 and
inadequacy of existing educational facilities to cater to such a population makes
India among the world’s largest potential markets for education and training. The
CLSA Asia-
Pacific Markets Report indicates the current and the future expected market size to
be as follows:

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The report further states that India’s education and training sector provides private
institutions with a potential compounded annual growth rate of 16% over a five
year period. Another analysis by IDFCSSKI implies that private spends on
education is expected to increase to US$ 80 billion by 20127.

FOREIGN INVESTMENT IN THE EDUCATION SECTOR

Regulations
The economic reforms launched by the Government of India from 1991 onwards
have resulted in substantial economic growth and the integration of India into the
global economy. The pace of reforms has gained a new momentum due to political
stability and strong industrial growth. With the opening up of the Indian capital
markets to Foreign Institutional Investors in 1993, the Foreign Direct Investment
(FDI) regime too has been progressively liberalized. The FDI Policy in India is
formulated by the Department of Industrial Policy and Promotion (DIPP), Ministry
of Commerce and Industry. In formulating the sector-specific FDI policy for
various sectors, the guidelines issued by the other Ministries of the Central
Government are also taken into account14. While the FDI Policy formulated lays
down the broad policy framework relating to foreign investments in India, the
administration of the policy and its implementation are done through the exchange
control laws governed by the Foreign Exchange Management Act, 1999 (FEMA).
The FEMA confers powers on the Reserve Bank of India (RBI), the central bank
of the country, to frame detailed regulations in respect of various aspects of
exchange control in a liberalized framework15. Similarly, the Government has
been empowered to frame rules16. The RBI and the Government have accordingly

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announced a series of regulations and rules respectively relating to various aspects
of exchange control, including foreign investments into India. These regulations
and rules give legislative effect and force to the policy formulated by the DIPP.
The FEMA and the regulations relating to FDI framed there under by the RBI17
(FDI Regulations) have from time to time, on a progressive basis, been liberalizing
the exchange control regime of India. Foreign investments in most sectors are now
under what is known as the “automatic route”, which essentially means that an
investor can bring in investment in those sectors without any prior approval from
any regulatory authority. Some of the sectors even under “automatic route”
continue to be regulated through stipulated maximum investment caps. Where the
foreign investment does not come under purview of the automatic route, they will
be subject to a prior approval of the Foreign Investment Promotion Board (FIPB)
(the “approval route”). Foreign investment in the telecom services, for example,
could be made up to the extent of 49% of a company’s equity under the automatic
route. Foreign investment beyond 49% of the company’s equity would require the
prior approval of the FIPB and would be subject to the guidelines issued by the
Government, which in this instance would be the Press Note 3 (2007 Series).
Subsequent to Press Note 2 (2000 Series), FDI up to 100% has been allowed under
the automatic route in the Education Sector. Despite this liberalized scheme,
investment into the education sector has been restricted due to the prevailing
regulations which require the entity setting up the school or college or a deemed
university to be of a non-profit character. The bearing of a not-for-profit character
inevitably requires the entity to be either a registered society or a trust (in case of
schools, colleges and deemed universities) or a Section 25 Company (mostly in
case of schools). A trust or a society is not eligible to receive foreign investment
under the automatic route. Even if investments were to be permitted, the entities
being of non-profit nature would not be able to distribute returns on the

30
investment. Further, a Section 25 Company being of a charitable nature, would be
required to apply its profits or other income towards the promotion of its objects
which could be either commerce, art, science, religion, charity or any other useful

SWOT ANALYSIS:

Strengths:
• Highly educated , skilled , capable
& force
dynamic human resources .
• English speaking & analytical
students
• Very rich in Natural & Living
resources
• Biodiversity & Traditional
knowledge base
• India Strategic position at various
platforms
• IT & Software superpower
• •
Opportunities:
• 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
• 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 &
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
•

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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).

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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 road ahead for India is directly linked to creation of quality Higher Education
Institutions in a big way to meet the challenge of the knowledge Hub, which India
is fast
becoming.

• 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.

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• India needs to have a proactive demand based policy towards private higher
education including foreign institutions/universities desirous of setting up campus
in India or entering into joint-ventures. India could offer tax concessions/fiscal
incentives for setting up campuses.
• The issue of raising the fees upwards to meet the cost of education is critical if
we are to maintain and sustain the quality of our government and aided institutions
as private institutions are already using a higher fee structure. In a competitive
setting there is no reason why the fees should not meet a reasonable proportion of
the cost of education. A figure of 20 per cent of recurring cost is considered
reasonable in the international scale, although in some countries (ala South Korea)
it could go up to 40 per cent.
• The need for financing of higher education for students, especially those coming
from low income households needs special attention. Like in the United States, we
may also evolve a guarantee system, where students coming from low income
households are eligible for a student loan without parental security or guarantee so
that there is no discrimination due to the financial background of the student.
Subsidization of the interest rate for students should be based on his and his family
income. For this innovative financial mechanism needs to be evolved
incorporating some of the salient features of the systems existing in UK, USA.
• Broad-band services and provision of computers is an essential requirement of
higher education. A Committee for this purpose needs to be constituted to look
into providing broad band connectivity to all students along with low priced
computer accessibility.
• Open Universities need to be encouraged to offer quality programmes at the least
cost. This becomes the most cost-effective way of providing higher education,
including technical and vocation education.

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• In view of the expanding role of WTO, higher education would soon become an
item under it. We should encourage foreign universities to come to India to set up
independent operations or collaborate with existing Indian Institutions,
colleges/institutes. There is no need for government approvals in FDI in education.
• While a regulatory set up is required to ensure that there is no cheating or hoax,
fixation of fees should not be in state control. On the issue of admissions, private
player may be given the discretion for admission, but will have to justify merit.
Perhaps a Tribunal on Admission Disputes can be set up for those aggrieved by the
admission policy of an institution.
• It is also important that a lobby or association of non-aided private colleges be
organized, which could then articulate the needs and demands of such institutions
and provide a platform to counter the tendency of the bureaucracy to dominate its
workings. It could create appropriate pressure for the dropping of the bill in private
professional education in its present form.

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 CONCLUSION

With the outset of 21st Century there is an emerging need to identify the way
economies are diverging. The late 20th century saw the growth of a knowledge
centered, as opposed to a manufacturing centered economy. Consequently,
knowledge and people with knowledge are now the key factors of production,
main drivers of growth and major determinants of competitiveness in global
knowledge economy.

Along with increased educational requirements, new skill requirements have also
emerged. General reasoning, problem solving and interpersonal skill have become
more important in today’s workplace because most new position are created in
education, health care and office sittings, where there are higher level of human
interaction. The emergence of new and advanced technologies has led

A strong education system lays foundation of strong values, culture and ethics.
Like technology education now days is getting misused. Terrorism is a strong
example of education mixed with technology but used in a wrong manner.

“Better Education will lead to a Developed INDIA”

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 BIBLIOGRAPHY

• Education Sector Report, 2008 by Angel Broking

• Indian Education Services Report By Prime Broking
• Investment in Education by Nishith Desai Associates
• Indian Education Sector Report by IDFC SSKI India Research
• Higher Education in India Report by Sanat Kual

Websites:

• www.icirer.org
• www.nishithdesai.com

Search Engine:
• Google
• msn
• Yahoo

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