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Rise of International Schools in India

Article  in  International Journal of Education Economics and Development · January 2011


DOI: 10.2139/ssrn.2173051

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Dilip K. Prasad (25/11/2011)

Rise of international schools in India


Dilip K. Prasad

National University of Singapore, Singapore

Abstract
Number of international schools is rising in India recently. The trends are
presented and various reasons for the observed rising trends are presented.
Globalization of the Indian economy, recent economic growth, perceived
value of international education, and elitism are identified as a few major
factors influencing the rise of international schools in India. The future
impact of the rise of international schools on the Indian school education
scenario is analysed.

Keywords
International schools, private education, Indian economy, education
financing, India, elitism

1. Introduction
In last 10 years, the number of international schools in India has more than
doubled. Indian education is rapidly involving international institutions for
education at all levels, from pre-primary to university levels. According to
International Baccalaureate (IB) (IBO 2010), India is the 6th nation with
largest number of students enrolled in international schools under IB
curriculum. All these observations beg an inquiry into the rise of
international schools in India. In this report, we investigate the rising trend
of international education in India, the reasons behind these trends, their
impact on the education system in India, and the expected future trends.

2. Trends and insights


Number of schools

Among various international qualification boards, International


Baccalaureate (IB) (IBO 2006; Pont, Chamizo et al. 2007; IBO 2008; IBO
2009; IBO 2010) and Cambridge international examination (CIE)
(Seymour 2011; Seymour 2011; Seymour 2011; Seymour 2011; Seymour

Electronic copy available at: http://ssrn.com/abstract=2173051


Dilip K. Prasad (25/11/2011)

2011; Seymour 2011; Seymour 2011) are the most popular qualification
boards. Schools with international accreditations and/or affiliations1
exceeded 400 in India in 2010. Among these, the number of schools with
CIE and IB affiliations are 242 (Seymour 2011) and 80 (IBO 2010),
respectively. In 2005, the number of schools with CIE and IB affiliations
were 130 and 42, respectively, which are significantly lower in
comparison to the numbers in 2010, see reports (IBO 2006; Pont, Chamizo
et al. 2007; IBO 2008; IBO 2009; IBO 2010; Seymour 2011; Seymour
2011; Seymour 2011; Seymour 2011; Seymour 2011; Seymour 2011;
Seymour 2011).
Since the rise in the number of schools all over the world has been more or
less linear since 20042 (IBO 2006; Pont, Chamizo et al. 2007; IBO 2008;
IBO 2009; IBO 2010), conservatively assuming that the trends in India
adhere to the global trends, it is safe to assume that about 40 schools are
added every year to the number of international schools in India. Thus,
though the number of international schools in India is a very small
percentage of the total number of schools in India, which runs into several
hundred thousands, the number of international schools is consistently
increasing.
Further, among the several hundred thousand schools in India, more than
70% schools are run by the government, more than 27% of schools are
private-aided schools (private schools but receiving significant
government aids) and only less than 3% are private-unaided schools
(MHRD 2008; MHRD 2009) (see Figure 1). That amounts to about 10,000
private-unaided schools. These 10,000 schools are distributed over 29
state boards (forming about 50%), 2 central boards3 (forming another large
chunk of about 46%) (MHRD 2009), and international boards (about 4%).
Thus, among the private schools, the 4% share of international schools is a
sizeable chunk considering that the number of international schools in

1
Council of International Education, Cambridge international examination (CIE),
International Baccalaureate (IB) , The Association of International Schools of India
(TAISI), The Specialist Schools and Academies Trust (SSAT), The Near East South Asia
Schools Council (NESA).
2
The linearity of the global trends in the number of schools has been derived from the
annual statistical reports of International Baccalaureate (IB).
3
Central Board of Secondary Education (CBSE, since 1952) and Indian School
Certificate examinations (ICSE, since 1956) are the national education boards of India,
and more than 60% of schools in India are affiliated to either of these boards.

Electronic copy available at: http://ssrn.com/abstract=2173051


Title: Rise of international schools in India

India in the 1990’s was less than 201 . Also, the national and state boards
of education in India have been active since 1950’s (MHRD 2009); the
prevalence of international schools can be traced to only about 12-13 years
beginning in late 1990’s (see Figure 2).

Figure 1: Distribution of private-unaided schools across the prevalent education


boards in India

Figure 2: Number of years of active involvement of various boards in Indian


education.

On one hand, the number of private unaided schools is rising very fast in
India (Kingdon 2007; Gupta 2008; Goyal 2009)2, and on the other hand,
due to huge profits in international schools (Kingdon 2007; Mint 2009;
Nambissan 2010), many existing private unaided schools are adopting
international curriculum. Many of the new international schools are
actually existing schools or educational institutions that have been adhered
to a national or state board of India previously, and have decided to
1
Kodaikanal International School is the oldest international school in India, established
in 1901, and achieved the status of international school in 1976, when it adopted the IB
diploma program (see http://www.kis.in/). Most international school (about 20) in India
before 1990s were established in the 20th century to cater for upper class society.
2
In 1993 to 2002, more than 95% of the growth in number of schools in urban India and
the total amount of enrolment was absorbed by private education sector alone , and this
percentage has been consistently rising since 1978.
Dilip K. Prasad (25/11/2011)

convert themselves to international education. As a consequence, as the


time progress, chunk of national/state boards is constantly being shifted to
the international education boards. Thus, the percentage of international
schools in Indian education is increasing faster than expected.

Number of students enrolled

According to IB annual statistics reports (IBO 2006; Pont, Chamizo et al.


2007; IBO 2008; IBO 2009; IBO 2010), the number of students has been
consistently rising in the international schools all over the world. For
analysis, we separate the Indian scenario in the context of international
schools into two aspects.
The first aspect is the number of new students enrolled in international
schools located in India. We see that the enrolment in Indian schools has
been on a rise consistently (IBO 2006; Pont, Chamizo et al. 2007; IBO
2008; IBO 2009; IBO 2010) (see Figure 3). The only dampener in this
trend is the year 2010, when recession hit the global economy. As shall be
discussed in later sections, the economy and the financial capabilities of
the families are an important determinant of the participation of Indian
families in international education. Thus, it is reasonable that the new
enrolments have decreased in 2010. Further, in the statistical report
published by IB in May 2006 (IBO 2006), India ranked 10th in terms of
new enrolment in the international schools within nations. On the other
hand, in the report of May 2010 (IBO 2010), the rank of India had
improved to 6th. Also, the only other developing nation having a better
rank than India is Mexico, which consistently remains at 4th or 5th rank
(IBO 2006; Pont, Chamizo et al. 2007; IBO 2008; IBO 2009; IBO 2010).
This indicates that the international education in India is being more
favored in comparison to other developing nations.
Title: Rise of international schools in India

Figure 3: Number of students enrolled in international schools with IB education


boards in the context of Indian scenario (IBO 2006; Pont, Chamizo et al. 2007; IBO
2008; IBO 2009; IBO 2010).

The second aspect is the number of students with Indian nationality who
newly enrol in international schools all over the world. This number is
also on the rise consistently over past few years (IBO 2006; Pont,
Chamizo et al. 2007; IBO 2008; IBO 2009; IBO 2010) (see Figure 3). This
implies that Indians, abroad or not, are increasingly favoring international
schools. In this respect, India has been consistently ranking 6th in the IB
statistics from the years 2006 to 2010 (IBO 2006; Pont, Chamizo et al.
2007; IBO 2008; IBO 2009; IBO 2010). We note that the number of
Indian students in international schools is always more than the number of
foreign students in international schools in India (IBO 2006; Pont,
Chamizo et al. 2007; IBO 2008; IBO 2009; IBO 2010). This can be
attributed to the fact that the number of international schools in India is
rising now, but the Indian immigrants to other developed nations have far
more and easier access to international schools, especially in the United
States, United Kingdoms, and Canada.

Distribution of schools in economy hubs

It is interesting to note that the distribution of international schools in


India is very closely related to the economy hubs in India (see Figure 4).
According to CIE (Seymour 2011), the highest concentrations of the
Dilip K. Prasad (25/11/2011)

international schools in the descending order are in Mumbai, Bangalore,


Pune, Hyderabad, and other cities and hill-stations in India (see Figure 6).
All the international schools before 1990’s were in the hill-stations of
India, which included Dehradun, Ooty, Kodaikanal, Panchgani, etc. Since
the independence of India, the notion of international schools was
associated with luxury, pride and status symbol for upper class
(colloquially translating to very few very rich Indians). The rich people
associate international education with the modernization,
internationalization, and their economic advantage (over others with lesser
financial resources) (Gupta 2008). An interesting and relevant perspective
on the financial affordability, quality of education, and relationship to elite
social status is given in (Nambissan 2010). In (Nambissan 2010),
Nambissan indirectly refers to the international schools as K-12
(kindergarten to 12th grade) richly resourced, elite private schools through
the global markets.
However, almost all the international schools formed in this millennium
are distributed among the new and current economic prosperity zones of
India (see Figure 4). We see that the Mumbai, which has been the
economic capital of India since post-independence (Nakaskar 2011), has
the largest concentration of international schools (see Figure 6 and Figure
5(a)). In fact, as the urbanization and expansion of Mumbai has been
continuous over past many decades, Pune, the nearby city has also become
a prospering economic hub for all kind of industries, research institutions,
educational institutions, etc. (NIC 2008; Wikipedia 2011).

Figure 4: The distribution of international schools (Cambridge international


centers) in India (Seymour 2011).
Title: Rise of international schools in India

Figure 5: Cities under various categories in Figure 4, and the distribution of


international schools (Cambridge international centers) in these categories.

Figure 6: Cities with maximum density of international schools (Cambridge


international centers) in India (Seymour 2011).

It further helps that while the urban boundaries between Mumbai and Pune
are constantly blurring, the geographical region between Mumbai to Pune
offers many small hill stations, which are traditionally associated with
luxury in India. Thus, Pune also has a high concentration of international
schools (see Figure 6 and Figure 5(c)).
Dilip K. Prasad (25/11/2011)

Further, the thrust in liberalization and globalization of Indian economy


beginning 1990’s is responsible for huge increase in immigration and
emigration between India, south Pacific countries, United States, and
European nations (Bank 2011; Nakaskar 2011; Wadhwa, Jain et al. 2011).
While everyone, inside and outside India, is more than willing to cash in
on these opportunities, the continuity of the education of young ones
becomes a great obstacle. This is especially significant as the project
timelines are becoming shorter every day and relocation to new global
cities often happens every few years. Also, the traditional close-knit
family values, present almost everywhere in the world, make parents
unwilling to enrol their children in boarding or residential schools before
university education. In this scenario, the convenient location of
international schools with globally accepted curriculum in the migration
intensive cities is considered a great plus point and a very good incentive
to people considering professional roles with global migration component.
Owing to these components, Bangalore (which is a silicon valley of India
primarily concentrated with ITeS and BPOs), Hyderabad (propagated by
Indian government as the hardware and semiconductor industry hub),
Gurgaon (trilogy of Gurgaon, Delhi, and NOIDA have been categorized
by India as special trade and economy zones, Gujarat (the state of Gujarat
is the first state government to implement e-governance and promote
aggressively many free trade, industrialization, and economic policies),
and Chennai (traditionally, the second major economic capital of India)
also have significant number of international schools (see Figure 4, Figure
6, Figure 5 (a,b,c)).

3. Acceptance of international schools in Indian education


system
Social acceptance

Following the liberalization policies of Indian government, globalization


of Indian economy, and huge thrust in India-based information technology
(IT) industry and business and knowledge process outsourcing (popularly
referred to as BPOs and KPOs) in the 1990’s, the distribution of economic
strength has changed significantly and the conventionally called middle
class families can now roughly be recategorised as upper middle class and
lower middle class. As Nambissan points out in (Nambissan 2010), the
middle and upper classes have reaped the maximum benefits of
globalization, especially in the context of education and opportunities
provided by the new economic era. In most cases, an upper middle class
Title: Rise of international schools in India

family has at least two family members who have professional degrees
and have directly or indirectly been associated with the IT/KPO/BPO
boom. While many middle class families have propelled into an
economically more comfortable upper middle class, they have also
warmed up to the luxuries that were generally associated with the upper
class families. As a consequence, more and more families are keen at
sending the children to international schools in order to cultivate a sense of
better life style among themselves and their peers. The components
defining the better life style in this context include the sense of luxury,
modernization, upper class social status, and a sense of achievement for
the whole family.
The educated class of India has always been very keen on education,
globalization, and exposure to international cultures. However, strict
immigration rules, restricted finances, low family income, etc., have
always restricted the aspiration of Indian youth to experience foreign
lands. With globalization, the governments of most countries have greatly
relaxed the immigration rules, increased the permitted quota of various
visa types, and are promoting inter-cultural and educational exchanges at
various levels. The economy restraint has also become considerably
relaxed for the educated class, owing to the above mentioned economy
thrust and the encouragement of family accompaniment and foreign travel
by the multi-national companies for their employees. In such situation,
more and more Indian parents appreciate the possibility of early exposure
of their children to international education.
Another aspect related to this topic is the perceived quality of education
provided by the international schools (Kingdon 2007; Tooley and Dixon
2007; Goyal 2009; Tooley, Bao et al. 2011)1. Various parameters of
evaluating the perceived quality of education and test scores are presented
in (Kingdon 2007; Tooley and Dixon 2007; Goyal 2009; Tooley, Bao et
al. 2011). These include reading scores, mathematics scores, literacy of
parents, average assets index, average absence last week, students to
teachers ratio, number of permanent teachers, number of teachers with
graduate degrees, average salary of teachers, etc. Indeed, in all these
parameters, international schools score very well. In fact, other evaluation
criteria used by international boards (IBO 2010; Seymour 2011;
Wikipedia 2011) include students to computer ratio, online presence of the
school, size of the library and availability of the books to students,

1
In all the cited papers, it is pointed out that parents perceive the private education to be
better than education in government schools and try to afford it despite limited income.
The same argument extends in the favour of international schools a well.
Dilip K. Prasad (25/11/2011)

technological setup of the class rooms, possibility of virtual classrooms,


timing of availability of infrastructure to students, parents teachers
communication channels, laboratory of high technical grades, etc. All
these parameters enhance the perception of quality of education in the
parents’ minds.
The accreditation and affiliation rules for all the international boards and
councils are generally very high. Due to the huge profit margins,
international schools are considered a good investment option and many
venture capitalists and investment firm consider this to be a fail-safe
option (Mint 2009). As a consequence of the international accreditation
and the funding from professional investors, corporate culture prevails in
the management of the schools and accountability to parents, education
board, and investors is always maintained. As a result, the schools have to
maintain and continuously upgrade the infrastructure and facilities like
laboratories, playgrounds, IT infrastructure, classroom setting, etc
(Seymour 2011; Wikipedia 2011). The variety and flexibility of the
choices of courses is also an enticing factor (IBO 2006; Pont, Chamizo et
al. 2007; IBO 2008; IBO 2009; IBO 2010; Seymour 2011; Seymour
2011). The teachers to students ratio is generally very high. The teachers
and staff undergo routine and special training exercises to maintain their
edge and excellence. The focus on good academic results while
encouraging diverse extra-curricular activities is also interesting to most
parents. In an era, where extra-curricular media and art talents are also
being encouraged in India, this balance serves as a great incentive for
overall personality development of the children. In addition to all these,
most parents appreciate the exposure of the children to future possibilities,
especially in terms of applications for admissions and scholarships in
overseas universities with good ranking, even at undergraduate levels 1.
These aspects form a direct correlation with the perceived qualities and
incentives of international education. In addition, the possibilities of
international projects, competitions, excursions, study tours, etc. are
greatly appreciated and associated with the quality of education indirectly.

Acceptance by government

University Grants Commission (UGC), a regulating government body of


India, oversees and regulates the university education in India. According

1
There are many studies which clearly indicate that the percentage of immigrant students
from developing countries (especially for India and China) is significantly higher for post
graduate education, as compared to undergraduate education.
Title: Rise of international schools in India

to its recent report (TWB 2011), there are 533 universities or university-
like-entities in India. The norms, policies, and rules of the individual
universities are generally diverse and independent (as long as they adhere
to the basic regulations of UGC). In this situation, where universities can
make and change their own decisions about accepting the high school
education boards, it is very difficult for any non-government board to get
the approval or acceptance from each and every university. However, CIE
and IB have been constantly getting approval from all the important,
famous, and large universities of India. In fact, CIE has posted a document
online that shows the acceptance and recommendation certificates from
various universities in India (TWB 2011). As a consequence of the
approval from reputed and large universities, small universities are also
increasingly accepting the international school boards (TWB 2011).
Another major thrust has come from the UGC and the ministry of
education itself (TWB 2011). Motivated with the requirement of
globalized economy and society, the UGC has itself actively promoted
internationalization of education at all levels (various school levels and
university levels). UGC itself is adapting international evaluation
benchmarks for evaluating the educational institutions. It promotes the
accreditation of schools, colleges, and universities by international
agencies and includes it as one of the parameters of judging the
educational institutions. In the recent years, it has been encouraging and
promoting various forms of teaching and research collaborations with
overseas institutions. Further, the ministry of education has recently
permitted international education bodies to open completely private,
autonomous, and semi-government regulated education campuses in India
(Gupta 2008). With all these measures from government, Indians are
further warming up and welcoming international education at school
levels as well.
These moves by the government have been globally appreciated and
globally welcomed. As discussed in the next section, international schools
are indeed big businesses. Thus, with the huge and growing population of
India, the increased acceptance of the international education in India, and
increased affordability of Indians for expensive education, many
international institutions are interested in getting a slice of the huge pie of
Indian education.

Financial implications on family

According to IB, the annual licensing cost to school per student is from
USD $7000 for primary education to USD $9600 for diploma levels
(equivalent to higher secondary levels in Indian boards) (IBO 2010). It is
Dilip K. Prasad (25/11/2011)

evident that the schools have to charge more to the parents in order to
break even or make profits (Nambissan 2010)1. As a result, most
international schools charge more than USD $10,000 per student on
average. In comparison, the nominal per capita income of Indians is USD
$1265 per annum and the purchase power parity per capita is USD $3339
(IBO 2011). The above numbers mean that international schools are still
restricted to the families with significant income sources. For example, a
person in senior technical position in IT gets an average of about USD
$30,000, while a manager gets about USD $60,000. Also, these income
slabs are subject to >30% taxation rate (Seymour 2011), which
significantly reduces the actual disposable income. Thus, for a family with
a single earning member and two children, IT technical professionals may
barely be able to make their ends meet if they decide to send their children
to international school. But, with multiple earning members or managerial
and executive positions, many families are increasingly willing to enrol
students in international schools. However, for people in lower income
strata, international education is still a distant dream.

4. Expectations from future and conclusion


The future of international schools in India looks bright. The number of
international schools and the number of students in these schools are
expected to rise consistently over many years to come. Following the
economic boom, encouragement by the government, and the involvement
of huge amount of money, many existing schools are expected to embrace
international education boards and become international schools. Almost
every school which has sufficient infrastructure and financial backup will
show their intent in converting to international schools. However, since
the market of international schools (upper middle class families) is small
in comparison to the larger population of India, many schools may adopt
two board systems (one national/state and one international) and allow
parents to choose or migrate between these two boards. This shall give the
schools the financial security of low profit large market of middle class as
well as the high profit source of upper class and upper middle class
Indians.
It is likely that some years later, government schools may also consider
international accreditation of selected government schools and institutions.
However, since the bulk of government schools are supposed to cater to

1
Nambissan points out the profit-driven nature of private schools at many places in the
paper.
Title: Rise of international schools in India

people in low income strata and in rural segments (Nambissan 2010),


things are not expected to change significantly beyond a marginal increase
in the quality of education. Nevertheless, such a move may help
government to create a nation-wide stimulus in education system where
better teaching standards are encouraged.
The impetus on the infrastructure, quality of teachers, and teachers to
students ratio are likely to increase in coming days and shall be looked
upon as means of getting reputation in the society. It can also be envisaged
that more sophisticated courses and course structures shall be designed
even for national and state curricula, so that they are comparable to the
international standards. Most schools will be interested in recruiting
teachers with qualifications that are close to the standards of international
boards, so that the conversion to international schools, if decided, can be
accomplished easily. It will be required for most teachers that they have at
least one post graduate degree in their field of expertise and one degree in
education itself.
However, due to the high cost of international education (IBO 2010;
Nambissan 2010), the quality of education is expected to become better
only for the people who can afford it. While education itself may become
a very hot business, thriving on a societal improvement, the lives of the
people with large income are expected to benefit from it. For those, who
cannot cross the barrier of affordability, education scenario may not really
change a lot and the dependency on the existing dependable education
system will remain.

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