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.

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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 Education and technology goes hand in hand

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and good governance. 

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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deemed universities. Universities are of three kinds – universities (unitary and affiliated. HIGHER EDUCATION SYSTEM Higher education is provided by colleges. and institutes of national importance (IIT’S / IIM’S). it is fraught with its unique challenges. With different regulatory bodies governing each stage of the education sector. state and central).School/Kindergarten Education. Primary & Secondary Education and Higher Education. Colleges are affiliated to universities. The diagram below summarizes the Indian Education System: 4 .INDIAN EDUCATION SYSTEM The Education system in India comprises of three key groups based on the extent of student population: Pre.

mainly because of working parents. It has over 700 centres across 265 cities in India and abroad. we expect some consolidation in this space mainly by listed players like 5 . The largest pre-school player is KidZee. help them get independent faster. Currently. While pre-school has been an old concept in the west. but children are taught basic activities which. it is catching up in India. part of Essel Group (Zee Group). the pre school market is very fragmented and going by the way the concept is catching up in India. Apart from KidZee. there are no listed players in this segment in India.Pre-Schools are places where formal education is not imparted.

who have a wide network. and high (IX-XII). with classes being run even in residential premises. THE K-12 SCHOOL SYSTEM The Indian education system is based upon 12 years of schooling (10+2). Many of the private schools as well as many of the good government schools are affiliated with the Central Board of Secondary Education (CBSE). Secondary schools are affiliated with central or state boards. While the sector is very fragmented.The primary education follow the K-12 pattern. The K-12 schools are divided into three categories – primary (I-V). These boards specify the curriculum and conduct examinations at the end of X and XII grades. EDUCATION–A DEVELOPMENT WAY TOWARDS GROWTH AND 6 . upper primary (VIVII). and generates good cash flows. Mahesh Tutorials etc. Initial investment for setting up the infrastructure is high but break even period is about 2 to 3 years. Private Tutoring for schools: Private tutoring has become a flourishing business in India with an estimated market size of almost US$2 Bn. which has already entered the K12 segment and has indicated intentions to cater to the pre-school segment.Educomp.. are benefiting from this growing market. 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. larger players like Chate Coaching Classes. which includes primary and secondary education.

which have changed production. In a knowledge economy. During last quarter of 20th century. transportation and life style of the people profoundly. it contributes to overall increase in economic growth. which has significantly increased the speed of production and distribution. ROLE OF EDUCATION IN INDIAN ECONOMY 7 . reduced communication costs among people.In the past century. 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. It is also seen that knowledge produced by Research and Development. This demands a highly skilled labour force. India progressed from a stage where the application of science to manufacturing techniques or to agricultural practices became the basis for production. and because education increases productive human capital. three technologies emerged. higher education benefits more than just those who attend. These are: • • • Information Technology Communication Biotechnologies The convergence of increased computing power. institutions and countries. Education has been found a major source of productivity growth. (R & D) inventions created in universities and industrial laboratories are creating the so called knowledge industries.

along with land. At the apex of the system are national research institutes.01 percent during 1948-49 to 1968-69. even those affiliated to government universities. is a state subject. 1973).Education. Main features of Indian Higher Education system 8 . almost all universities are government funded and run. 1974). creating a dual management system. Since independence. with high levels of achievement in technology. The research on India also proves this. As per the later studies. the contribution of education to economic growth in India was asserted to be as high as 34. Most countries with high investment in higher education became ‘Leader’ in technology. The role of education in economic growth for developing countries is highly significant. India is well known as a pool of talents and it is largely contributed to its Modern Education System. The study of Sivasubramonian (2004) estimated the sources of economic growth in India between 1950-51 and 1999-2000.4 percent (Psacharopoulos. Each state has the power to create. like health care. While many technical schools and colleges are managed and run by private organizations. India has made tremendous progress in enlarging its education base. Improvement in the quality of labour force was attributable to education (Dholakia. At the same time a number of schools and universities are run directly by the central government. The contribution of education to economic growth in India was asserted to be as high as 14. accredit and fund schools and universities. labour and physical capital contributes significantly to economic growth. and found that education.

• Salary and compensation for teaching staff is poor and. AICTE and others). 9 . • Steady electric power supply is not available. • System is heavily subsidized by the Government. • Infrastructural facilities range from inadequate to dismal. Indian university curricula have lagged behind. Besides unattractive compensation packages.• Highly bureaucratized system with multiple controls and regulations exercised by Central and State Governments. higher education institutions are unable to attract and retain qualified and trained teachers. As a result. The efficiency of fund utilization is very poor due to internal rigidities. recruitment procedure is lengthy and working environment not conducive to retention. therefore. • Most institutions offer outdated programmes with inflexible structures and content. It is estimated that barely 20per cent of the institutions have the basic minimum laboratory equipment. Up to 90per cent of the operating costs are paid for by the state. statutory bodies (UGC. leading to poor teaching. university administration and local management. 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. a substantial proportion of highranking students who could fill up such assignments prefer to work elsewhere or go abroad. Laboratories are poorly stocked and computerization. where it exists is generally dependent on poor communication lines. While course content has been updated and restructured over time in the world’s best institutions. Classrooms are often unattractive and laboratories inadequately stocked.

Indian Higher Education system: 10 .

Town Planning. 1987. other than technical courses. Bachelor’s/Undergraduate Degrees. research and training in Engineering & Technology. Pharmacy and Applied Arts and Crafts. subjects related to Science. In India. It may be also be broadly classified into technical and nontechnical education. may mean programs of education. Management. Commerce and Arts. etc. there are different bodies/authorities governing technical and non-technical education as indicated in the chart on the following page 11 . such as Law. Architecture. refer to the courses.Higher Education comprises of Diploma Courses. Hotel Management & Catering Technology. as derived from the All India Council for Technical Education Act. Master’s/Post-graduate Degrees and Pre-doctoral/Doctoral programs. Technical Education. thus. Non-Technical Education would.

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governs technical education and the functioning of technical institutions 13 . 1956 (UGC Act) to make provisions for the co-ordination and determination of standards in universities.University Grants Commission (UGC): The UGC was set up under the University Grants Commission Act. 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. The AICTE. Its mandate includes: § Promoting and coordinating university education § Determining and maintaining standards of teaching. thus. 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. 1987 (AICTE Act) with a view to ensure proper planning and coordinated development of the Technical Education System throughout the country.

The DEC was established in 1991 under Sections 16(7) and 5(2) of the Indira Gandhi National Open University Act. the AICTE and the DEC is required. Distance Education Council is the Coordinator of the Joint Committee. It is also responsible to give its recommendations to the Government for establishing new medical colleges. under the AICTE Act. 1985. “Technical Institution”. has been defined under Section 2(g) of the AICTE Act. The Medical Council of India. as previously described. Statutory Professional Councils: Statutory Professional Councils are responsible for recognition of courses. for instance. refers to the institutions. is empowered to prescribe minimum standards for medical education required for granting recognized medical qualifications by universities or medical institutions in India.within the country. the approval of the Joint Committee of the UGC. other than universities. It is responsible for the promotion. Distance Education Council (DEC): For running programmes in ‘distance mode’. 14 . promotion of professional institutions and providing grants to undergraduate programmes and various awards. accordingly. conducting the courses or programs in the field technical education. coordination and maintenance of standards in the open and distance learning system in the country. “Technical education”.

in consultation with the university concerned. in accordance with the rules and regulations of such university. be deemed to be a university for the purposes of the UGC Act. not established under the UGC Act but is only required to adhere to the provisions of the same. declare that any institution for higher education. on the advice of the UGC. • Deemed Universities: Under Section 3 of the UGC Act. and present students undergoing such course of study for the examination for the award of such qualification. A university is. all the provisions of the said Act. a Provincial Act or a State Act. and on such a declaration being made. be recognized by the UGC in accordance with the regulations made in this behalf under 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. other than a university. and includes any such institution as may. Universities are set up mostly under the State Acts. including the power to award degrees under Section 22 of the UGC Act. are recognized as competent to provide such course of study .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. thus. the Central Government may. They facilitate the obtainment of a 15 .

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. the defaulting Institutions/Society/Trust/Company including Associated individuals. • Position of Institutes such as ISB. In settlement of a lawsuit filed by IIPM. 16 . Per the AICTE regulations. Belgium’.: 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. the Education Commission (1964-66) recommended college autonomy recognizing that colleges have the potential for offering programs of higher standard. as the case may be. 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 university could then effectively oversee the working of the colleges.degree but do not grant it. • Autonomous Colleges : The affiliating system of colleges was originally designed when their number in a university was small. etc. while a university awards a degree either through its own departments or through colleges affiliated to it. 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. IIPM.

have entered into an arrangement to offer courses and degree through their newly formed campus in India. Foreign universities have been inking strategic partnerships with educational institutions in the country. while United Kingdom based Leeds Metropolitan University and Jagaran Social Welfare Society. Higher Education: International Scenario 17 . For instance.• Foreign Universities: The immense opportunity in the India education space has not gone unnoticed by foreign universities and institutes. various media reports have suggested that Lovely Professional University. and San Francisco State University have come together to make international education accessible to Indian students. based in Jalandhar. based in Bhopal.

(Cited in the same survey in the Economist). e-education and second. . According to Andreas Schleicher of OECD. and thinks. Internet research has come to be recognized as an essential study tool in all higher education courses in developed countries. They have the facility of faster and surer access to a much wider range of information through the Internet. 2. Internet in Education 2. the Internet has changed the way the world behaves. does business. Higher Education provisioning is now globalised and in many ways. Globalization and Higher Education 3. academicians do not need to spend much time on library research poring over bulky tomes and taking copious notes. According to the International Finance Corporation (IFC). the expanding role of World Trade Organization (WTO) in determining the trends in world economics. not just to read but to print or save or forward to others as might suit their purpose. The days when higher education was a matter of national policy and government regulation are rapidly fading. 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.1 Never before was information so readily available at the press of a button. the growth is now soaring: 2 million university 18 .1 According to the results of a special survey 'Higher Education: Free degrees to fly' higher education is already a global business. Even school children search the web for study material to support their homework.1. a Paris based ‘Think Tank’ the numbers studying abroad were statistically negligible two decades ago. a commercialized affair and the way that the State had in the goings on is vastly diminished. 3. Today.

many countries including India. In April 2002.2 While universities and the academic community in general would like higher education to be viewed as a public good. who are generally made to pay much higher fees than local students. Portugal and Spain adopted a Declaration at the III Summit of Iberian and Latin American Universities in Porto Alegre. World Trade Organization (WTO) and Higher Education 4. 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.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? . However. The Economist Survey on higher education further indicates that annual fee income alone is estimated at $ 30 billion. Brazil in which they declared education as a ‘public good’ and requested their government 19 . 4. continue to control the fee structure of their universities causing financial stress to foreign students. This has resulted in many universities openly soliciting entry of foreign students. 4.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). While private profit seeking companies have entered the education business. Universities from Latin American countries. even government-controlled universities are seeking independence from governmental authority. Since the late 1990s the higher education market is growing by 7 per cent a year. 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.

India. BPP. they have stated that more and more paying students are attracted to these institutions including foreign students. Kalpan is a big education company owned by the same company that runs the Washington Post newspaper. the first University to offer a full time on-line degree is owned by the Apollo Group. has entered into deals with British Universities so that students enrolled into their professional courses can earn degrees from the Boston Post Graduate University. Sixteen of the world’s better ranking universities have got together and set up a $ 50 million joint venture called Universitas 21 Global. Private companies like Kaplan. Universities 21 Global aims to tap markets of potential students from UAE. e-Education 5. Singapore. Korea and China. Edinburgh.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. Malaysia.1 Not only are commercial business concerns interested in entering the education industry aggressively but existing universities and colleges as well. an online MBA business school. 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. British Colombia. Virginia. 5. As a result. Sweden and Melbourne of Australia. It has already enrolled 1000 professionals from 45 countries for its graduate programme. These universities include McGill. BPP and Apollo Group already run successful edu business ventures. 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’. It has also offered an 20 . University of Phoenix. its British rival.

In a report prepared on Globalization & Education. many developed governments see it as an opportunity to expand its educational services. Academic Community on Globalization: 6. 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 21 . for the House of Lords. 6. 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.M.Sc.1 While the academic community has not reacted positively to globalization.

and maintenance of standards and release of grants to universities and research organizations. promotion of professional institutions and provision of grants to undergraduate programmes. 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 22 . As of today software development does not have a statutory council. • Professional councils that are responsible for recognition of courses. NASSCOM is generally accepted as equivalent of a council. determination.• University Grants Commission (UGC) set up under UGC Act 1956 is responsible for coordination.

Expenditure on Higher education per student 23 .

it has abysmally low GER of 9.97. Given the dearth of quality institutes. 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. But the strategy has resulted in India having one of the lowest public spends per student on higher education.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. 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.064). 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) 24 . private HEIs have boomed since 2004 and the number is growing. • Private HEIs dominate Over the years. With liberalization opening up newer and better job avenues.

A shortage of quality HEIs is further fuelling growth. Today.4bn segment (64% of the total nonformal IES. 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. next only to K12 and HE) – coaching classes – has sprouted around formal IES. 25 . The market is rapidly growing as the Indian education system lays heavy emphasis on marks scored in an exam. This is evident in the fact that the number of seats in Indian IIMs (Indian Institutes of Management) has increased merely 3% (20032008) but the number of CAT aspirants has shown a CAGR of 19% in the same period.offered by these career-focused products. So much so that a $6.

26 . The coaching class market is typically fragmented and regional in nature as a big chunk.1bn) and Post Graduation test prep market (~$220m). Graduation test preparation market ($1. However. especially developed ones. we estimate 15% CAGR for the segment over FY08-12. tuitions (6th-12th grades and tertiary level). the model would take time to evolve in India given the negligible broadband connectivity (< 1%). Interestingly.e. is subject-based and thus highly people-driven with high dependence on a local ‘brand-teacher’. While we expect some pockets to grow faster. players are also looking to provide coaching through online media – a model quite popular in the global markets.1bn). 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.We have segmented the market into three broad categories – subject/ conceptbased tuitions catering to K12 and HE segments (estimated at $5. However. i.

8 MM (Source: Everonn RHP). Market Structure and Size India is one of the largest markets for education in the world in terms of number of students. the Post Grad Test prep market is relatively easier to scale but forms only ~3% of the coaching class opportunity. and higher focus on standardized content and study material (a key differentiator). • 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. Apart from being held at a national level. Moreover. according to the estimates of Technopak. Currently. the market is dominated by CAT aspirants (market at $90m). Thus. The number of teachers in India currently stands at 5.000 applicants every year. there are over 1 MM schools in India providing education to over 200 MM students.120 billion in ten years’ time5. With ~300. The CLSA AsiaPacific Markets Report indicates the current and the future expected market size to be as follows: 27 . this market size could roughly triple to US$ 110 . the entrance tests of these courses are more aptitude-based. 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. this category of coaching classes has relatively lower dependence on ‘individuals’.• Post Grad Test prep market– scalable but small At $200m.

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the Government has been empowered to frame rules16. Similarly. While the FDI Policy formulated lays down the broad policy framework relating to foreign investments in India. 1999 (FEMA). 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 FDI Policy in India is formulated by the Department of Industrial Policy and Promotion (DIPP). the administration of the policy and its implementation are done through the exchange control laws governed by the Foreign Exchange Management Act. to frame detailed regulations in respect of various aspects of exchange control in a liberalized framework15.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. The pace of reforms has gained a new momentum due to political stability and strong industrial growth. Another analysis by IDFCSSKI implies that private spends on education is expected to increase to US$ 80 billion by 20127. the Foreign Direct Investment (FDI) regime too has been progressively liberalized. In formulating the sector-specific FDI policy for various sectors. Ministry of Commerce and Industry. The RBI and the Government have accordingly 29 . the central bank of the country. the guidelines issued by the other Ministries of the Central Government are also taken into account14. With the opening up of the Indian capital markets to Foreign Institutional Investors in 1993. The FEMA confers powers on the Reserve Bank of India (RBI).

Some of the sectors even under “automatic route” continue to be regulated through stipulated maximum investment caps. Despite this liberalized scheme. Foreign investment in the telecom services. colleges and deemed universities) or a Section 25 Company (mostly in case of schools). could be made up to the extent of 49% of a company’s equity under the automatic route. Subsequent to Press Note 2 (2000 Series). which in this instance would be the Press Note 3 (2007 Series). on a progressive basis.announced a series of regulations and rules respectively relating to various aspects of exchange control. the entities being of non-profit nature would not be able to distribute returns on the 30 . The FEMA and the regulations relating to FDI framed there under by the RBI17 (FDI Regulations) have from time to time. These regulations and rules give legislative effect and force to the policy formulated by the DIPP. Where the foreign investment does not come under purview of the automatic route. 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. 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. A trust or a society is not eligible to receive foreign investment under the automatic route. been liberalizing the exchange control regime of India. which essentially means that an investor can bring in investment in those sectors without any prior approval from any regulatory authority. 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. Foreign investments in most sectors are now under what is known as the “automatic route”. FDI up to 100% has been allowed under the automatic route in the Education Sector. for example. including foreign investments into India. they will be subject to a prior approval of the Foreign Investment Promotion Board (FIPB) (the “approval route”). Even if investments were to be permitted.

would be required to apply its profits or other income towards the promotion of its objects which could be either commerce. • English speaking & analytical students • Very rich in Natural & Living resources • Biodiversity & Traditional knowledge base • India Strategic position at various platforms • IT & Software superpower • • force Lack of trained & skill work • Opportunities: Small supply of specialize professional • Lack of effective & execution framework • Lack of Indian management models • Lack of transparency-TrustResponsibility • Lack of spirits of entrepreneurship • Fear of sharing knowledge & Threats: • General Agreement of trade on Services • Research & Development capability • Generate intellectual property • Resource Building capacity • Competition. skilled . charity or any other useful SWOT ANALYSIS: Strengths: Weaknesses: • Highly educated . capable & dynamic human resources .investment. Further. Ignorance & Complacency • High competitive & marketing forces • 31 . religion. protection and restriction • Mechanistic -stable-Layeredcomplex system • Corruption. art. science.cost – Quality service • Collaboration : win-win thinking • Hybrid solution–balancing & blending • Rural economy development • • • A feeling of unstable government Self centered political leadership Slow & Dysfunctional judiciary and corrupt law enforcers • Regulation. a Section 25 Company being of a charitable nature.

Changes in working hours. Employment trends in the education sector. Changes in other benefits (pensions. health. A huge variance between Rural and Urban education system.trends and changes. Reforms on bringing up environment and perks to improve teacher ship. the foreign college affiliations in India to improve quality. • • More Stress is required to improve the quality of teachers and promote Create quality education hubs like IIT’s and IIM’s.Challenges : Need for Reforms • • • Provide Quality education rather than focusing on quantity. • improve literacy. Changes in migration and mobility patterns. 32 . Like Health Sector a very low or no focus by Indian Government to improve Reservations and Quota system emerged as the only motivating factor to education in Government Schools and Colleges. Salaries . The actual need is to come up with reforms to promote literacy by better education. other social protection). Impact of the Recession on Education • • • • • • Education Financing.

• The Government resources for higher education are simply not enough. process right from admission to school activities.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. 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. to say the least. both university and non-university is essential. • Recourse to quality private higher education. • • • Schoolmate is a branded CRM and ERP software for educational The solution thus helps schools in automating the information providing Schoolmate's acquisition will provide Edserv access to more than 70 schools institutions. Government supervision of higher education is dismal. which India is fast becoming. 33 . and will help it to achieve its target of 250 schools by the year end.

India could offer tax concessions/fiscal incentives for setting up campuses. we may also evolve a guarantee system. although in some countries (ala South Korea) it could go up to 40 per cent. • Broad-band services and provision of computers is an essential requirement of higher education. • The need for financing of higher education for students. • Open Universities need to be encouraged to offer quality programmes at the least cost. Like in the United States. 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. USA. especially those coming from low income households needs special attention. In a competitive setting there is no reason why the fees should not meet a reasonable proportion of the cost of education. Subsidization of the interest rate for students should be based on his and his family income. 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. 34 . • 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. This becomes the most cost-effective way of providing higher education. including technical and vocation education. For this innovative financial mechanism needs to be evolved incorporating some of the salient features of the systems existing in UK.• 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. A figure of 20 per cent of recurring cost is considered reasonable in the international scale.

It could create appropriate pressure for the dropping of the bill in private professional education in its present form. higher education would soon become an item under it. Perhaps a Tribunal on Admission Disputes can be set up for those aggrieved by the admission policy of an institution. fixation of fees should not be in state control. • While a regulatory set up is required to ensure that there is no cheating or hoax. 35 . but will have to justify merit. colleges/institutes. 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. We should encourage foreign universities to come to India to set up independent operations or collaborate with existing Indian Institutions. private player may be given the discretion for admission.• In view of the expanding role of WTO. On the issue of admissions. There is no need for government approvals in FDI in education. • It is also important that a lobby or association of non-aided private colleges be organized.

CONCLUSION With the outset of 21st Century there is an emerging need to identify the way economies are diverging. culture and ethics. health care and office sittings. Along with increased educational requirements. problem solving and interpersonal skill have become more important in today’s workplace because most new position are created in education. Terrorism is a strong example of education mixed with technology but used in a wrong manner. knowledge and people with knowledge are now the key factors of production. Consequently. new skill requirements have also emerged. “Better Education will lead to a Developed INDIA” 36 . main drivers of growth and major determinants of competitiveness in global knowledge economy. The late 20th century saw the growth of a knowledge centered. The emergence of new and advanced technologies has led A strong education system lays foundation of strong values. Like technology education now days is getting misused. General reasoning. as opposed to a manufacturing centered economy. where there are higher level of human interaction.

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.BIBLIOGRAPHY • • • • • Education Sector Report.org www.com Search Engine: • • • Google msn Yahoo 37 .nishithdesai.

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