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HIGHER EDUCATION IN INDIA TO 2019 — MARKET ENTRY STRATEGY AND OPPORTUNITIES FOR PRIVATE PLAYERS
Indalytics Advisors [email protected] www.indalytics.com
August 2014
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 2
TABLE OF CONTENT
Higher Education System in India
o Technical Education in India
o Difference between UGC and AICTE Regulated Institutes
o Private Higher education in India
Market Size of Higher Education Sector in India
Forecasted Market Size of Higher Education Sector in India
Drivers Impacting Private Higher Education Sector in India
o Government Spending on Higher Education
o Increase in Population
o Growth in Private Higher Education
o Increasing Use of Internet and Technology
Regulatory Framework Impacting Private Higher Education in India
o Regulations Pertaining to Incorporation of Educational Institutions
o Incorporating Private universities and Colleges in India
Incorporation of Private Universities
Incorporation of Private Colleges and Educational Institutes
Foreign Direct Investment and Taxation Norms for Private Universities and Colleges
o Foreign Direct Investment Norms
o Taxation Norms for Private Higher Education Institutions
Government Directives for Foreign Institutions’ Participation in Private Higher Education
o Foreign Collaboration with Indian Universities
o Foreign Collaboration with Indian Higher Education Institutions
o Foreign Institutions Providing Certificate Programs than Degrees and Diplomas
o Best Practices of Collaboration between Foreign and Indian Higher Education
Institutions
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 3
Trends in Private Higher Education Sector in India
o Focus on Teachers’ Training
o Collaboration in Private Higher Education Space
o Expansion in Private Higher Education Space
o Online Courses in Private Higher Education
o Introduction of New Products, Institutes and Courses
o Investment Activities in Private higher Education Space
5–Forces Analysis of Higher Education Sector in India
o Threat of New Competition
o Threat of Substitute Products and Services
o Bargaining Power of Buyers
o Bargaining Power of Suppliers
o Intensity of Competitive Rivalry
Profiles of Major Players in Higher Education
o Amity University
o Birla Institute of Technology and Science
o Christ University
o Great Lakes Institute of Management
o Indian School of Business
o Institute of Chartered Financial Analysts of India
o Manipal University
o NIIT Limited
o VIT University
o XLRI Xavier School of Management
Annexure
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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LIST OF FIGURES
Figure 1: Higher Education in India
Figure 2: Breakup of UGC–recognized Universities — August 2014
Figure 3: Gross Enrollment Ratio of Higher Education — 2011–12 to 2021–22 (F)
Figure 4: Expenditure on Education — % of Total Government Expenditure — Union
Budget 2014–15 (E)
Figure 5: Expenditure on Higher Education — % of Total Education Expenditure— Union
Budget 2014–15 (E)
Figure 6: Regulation of Technical Education in India
Figure 7: Private Universities and Technical Colleges — % of Total Universities and
Technical Colleges
Figure 8: Gross Enrollment Ratio — Government and Private Universities
Figure 9: Higher Education in India — Market Size
Figure 10: Market Size of Higher Education in India — By Types of programs
Figure 11: Market Size of Higher Education in India — By Types of Faculty
Figure 12: Higher Education in India — Forecasted Market Size — 2014–2019
Figure 13: Education Budget — % of Total Government Budget — 2014–15
Figure 14: Increase in Education Budget and Higher Education Budget
Figure 15: Growth in Population of India — 2013–2019(F)
Figure 16: Higher Education Population (18–23 years) in India — As a % of Total
Population
Figure 17: Number of Government and Private Higher Education Institutions
Figure 18: Enrollment in Government and Private Higher Education Institutions
Figure 19: Number of Private Universities in India — 2011–2013
Figure 20: Growth of Higher Education Enrollment in India — Government and Private
Higher Education Institutions — 2008–2012
Figure 21: Growth of Internet and Broadband Subscribers in India
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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Figure 22: Wireless Internet Subscribers — % of Total Internet Subscribers in India
Figure 23: Faculty Shortage (%) in Higher Education Institutions
Figure 24: Growth of Higher Education — Universities, Colleges, Enrolment and Teaching
Staff — 1950–51 — 2012–13
Figure 25: Pupil–Teacher Ratio in Higher Education
Figure 26: Five Forces Analysis of India’s Higher Education Sector
Figure 27: Universities in India — By Specialization of Programs
Figure 28: Colleges in India — By Specialization of Programs
Figure 29: Enrollment in Higher Education — By Levels of Education
Figure 30: Enrollment by Subjects — Undergraduate Programs
Figure 31: Enrollment by Subjects — Postgraduate Programs
Figure 32: Enrollment by Subjects — Master of Philosophy (M. Phil.) Programs
Figure 33: Enrollment by Subjects — Doctor of Philosophy (Ph.D.) Programs
Figure 34: India — Population by Age Groups
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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PUBLICATION DATE
August 2014
NUMBER OF PAGES
104
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Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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ABOUT THE REPORT
The report ‘Higher Education in India to 2019 — Market Entry Strategy and
Opportunities for Private Players’ discusses the higher education sector in
India, with reference to entry and feasibility for private players.
The report mentions the current and forecasted market size of higher
education sector in India, along with the drivers that will lead to growth of
the sector.
It further discusses the key regulations impacting the private higher
education, and opportunities for foreign players in the same — along with
various best practices followed in private higher education space.
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 8
EXECUTIVE SUMMARY
Indian higher education sector is witnessing high growth rate, both from
demand as well as supply side. While the enrollment in higher education
has increased by an estimated 18% from 2012 to 2013, the sector has also
witnessed 107 new universities, from 2012 to August 2014.
Higher education sector has been allocated 20.2% of the total educational
budget, and 3.5% of the overall government expenditure in the 2014–15
budget. Besides government, several private players are also investing in
the Indian higher education space. Number of private universities has
increased from 173 in 2012 to 186 till August 2014. The sector is also
witnessing new for–profit companies, working in the higher education
services space.
Attracted by the high demand and enrollment rates, several foreign higher
education institutions are entering India through collaborations and
twinning agreements. The foreign institutions are expected to benefit
further due to ongoing developments in government regulations — such
as the Foreign Educational Institutions (Regulation of Entry and
Operations) Bill, 2010, allowing foreign players to setup educational
institutions in India, and RUSA (Rashtriya Uchchatar Shiksha Abhiyan)
initiatives — which have an objective to achieve 32% gross enrollment
ratio in higher education by 2017, the end of current five–year plan.
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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The higher education sector is witnessing several favorable trends, such as
expansion and collaboration among universities and higher education
institutions, introduction of new institutes and products, investments, and
increasing adoption of technology.
The sector is expected to grow at a compound annual growth rate (CAGR)
of 11.46% till 2019. The growth will be supported by various drivers, such
as increase in higher education population and enrollment rates, increased
government expenditure, use of technology, and demand for private
education.
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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DEFINITION OF HIGHER EDUCATION IN INDIA
In India, higher education is defined as post–secondary education, which
is provided by universities of higher education institutions, and leads to a
degree, diploma or professional certificate.
The higher education comes under the governance of the Ministry of
Human Resource Development (MHRD) and Universities Grants
Commission (UGC). In some specific cases — depending on the technicality
of the programs — higher education is also supervised by statutory
councils such as All India Council for Technical Education (AICTE) or
Medical Council of India (MCI).
Higher education in India does not encompass vocational education — as
the latter overlaps with secondary education, and is mostly supervised by
the Ministry of labor and Employment (MOLE).
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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RESEARCH METHODOLOGY
This report has been prepared through the following comprehensive
methodology:
The market definitions used in the report are the standard definitions
recognized by the industry. In this report, the market size of the higher
education sector is defined as the sum total of core expenditure on
teaching students.
It includes the government expenditure, subsidies, and fees paid by
students in both public as well as private universities and higher education
institutions.
Bases of all the figures are taken from the statistics provided by the
government, ministries, as well as prominent organizations such as the
World Bank, International Monetary Funds, UNESCO Institute of Statistics,
World Factbook — CIA etc. The data is further validated through credible
analyst reports, white papers by industry organizations, questioners and
expert interviews.
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 12
LIST OF ORGANIZATIONS MENTIONED IN THE
REPORT 24x7 Learning — Avagmah
Academic Ranking of World Universities
Acer
Akash Institute
Al Abbas Institute of Technology
All India Council for Technical Education
Amity Business School
Amity University
Ansal University
Association of Indian Universities
Avanse Education Loans
Avanti Learning Centers
Baldwin Wallace University
Bauer College of Business
Benesse Holdings Inc.
Bharat Sanchar Nigam Limited
Bharathidasan University
Biocon Academy
Birla Institute of Technology and Science
Catholic University of America
Chennai Angels
Christ University
Cochin International Airport Limited
Cochin International Aviation Services
Limited
Daily Mail Group Information
EasySkillz
Edge Institute of Financial Studies
EduKart
Faizal and Shabana Foundation
Financial Times
Frankfurt School of Finance and
Management
GradeStack Private Limited
Graduate School of Business and
Management
Gray Matters India Private Limited
Great Lakes Institute of Management
Great Lakes Institute of Management
Griffith University in Australia
Harvard Business School
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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Heraud Education Trust
Hewlett-Packard
Hobsons
IBM
ICFAI University
ICICI direct Centre for Financial Learning
ICICI Securities
IDG Ventures India
Illinois Institute of Technology
Indian Institute of Management
Indian Institute of Science
Indian Institute of Technology
Indian School of Business
InOpen Technologies Pvt. Ltd.
Institute of Chartered Financial Analysts of
India
Institute of Customer Experience
Management
Institute of Electronic Governance
International College of Financial Planning
International School of Entrepreneurship
Education and Development
iProf Learning Solutions Private Limited
Kalinga Institute of Industrial Technology
Kansas City's School of Computing and
Engineering
Kasbah Systems Software
Keck Graduate Institute
Kellogg School of Management
Learnof.com
Lille Catholic University
Liqvid e-Learning Services
Liverpool Hope University
London Business School
Manipal Global Education Services
Manipal Institute of Technology
Manipal University
Manipal University
Manya Abroad
Max Healthcare
Max Institute of Health Education and
Research
MBD Group
Meritnation
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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Metropolitan State University
Michael & Susan Dell Foundation
Microsoft Corporation
MIT Sloan School of Management
myBskool.com
Nanyang Technological University
National Institute of Management and
Technology
National Stock Exchange
NHTV University of Applied Science
NIIT Limited
NIIT University
Norwest Venture Partners
NSHM Knowledge University
Oracle India
Pearson Affordable Learning Fund
Pearson Education
Pearson Plc.
Quacquarelli Symonds
Reliance Industries Limited
RVS Group of Institutions
Service Quality Centre Pte. Ltd.
Sheffield Hallam University
Shiv Nadar University School of Education
Simplilearn Solutions Private limited
Skyfi Labs
Snapdeal
Spark Capital
Stuart School of Business
Supertech Limited
Swansea University
Tata Teleservices
The Fletcher School
Times Higher Education
Times Internet Limited
Toulouse Business School
Tufts University
TutorVista
Universiti Tun Abdul Razak
University of Burdwan
University of Chicago
University of Cincinnati
University of Houston
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 15
University of Missouri
University of Pennsylvania
Ventureast Tenet Fund II
VIT University
VIT University
Western Michigan University
Wharton Business School
XLRI Xavier School of Management
Yale University
Zaya Learning Labs
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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REPORT SAMPLE
UGC approves and supervises universities in India, as well as provide them
grants. It supervises universities that can have several colleges, including
the ones providing technical education. AICTE, on the other hand, provides
accreditation to only the technical institutes, and its supervision is limited
to them.
By definition, an institution — not affiliated to any university — will come
under supervision of only AICTE (for providing technical education). While,
an institution — affiliated to a university — will come under supervision of
AICTE (for providing technical education), and UGC (for being part of the
university).
However, the Supreme Court of India has passed a judgment in
Bharathidasan University vs. AICTE (Case number: Appeal (civil) 2056 of
1999), that universities providing technical education do not require
additional approval from AICTE for their courses. The court has also
defined Masters of Business Administration (MBA) as a non–technical
course. E.g. Amity Business School, which is one of the prominent business
schools in North India, has not taken accreditation from AICTE, as it is
affiliated to Amity University — Private University established under the
state acts of Rajasthan and Uttar Pradesh.
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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UGC, on December 3, 2013 has also passed the UGC [Approval of Colleges
offering Technical Education by Universities] Regulations, 2013. The
regulations stated that as per the Supreme Court’s ruling on April 25, 2013
(Civil Appeal No. 1145 of 2004 and Civil Appeal No. 5736-5745 of 2004) —
“colleges affiliated to a University do not come under the purview of the
definition of Technical Institution as defined under Section 2(h) of the AICTE
Act, 1987.”
FIGURE 1: PRIVATE UNIVERSITIES AND TECHNICAL COLLEGES — % OF TOTAL UNIVERSITIES AND TECHNICAL COLLEGES
Source: Indalytics Advisors
Universities
AICTE-accrediated
TechnicalColleges
Private Government
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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FIGURE 2: MARKET SIZE OF HIGHER EDUCATION IN INDIA — BY TYPES OF FACULTY
Source: Indalytics Advisors
FIGURE 3: GROWTH OF HIGHER EDUCATION — UNIVERSITIES, COLLEGES, ENROLMENT AND TEACHING STAFF — 1950–
51 — 2012–13
Source: Indalytics Advisors
Teaching Staff (in Thousands)
Enrollment (in Millions)
Colleges (in Thousands)
Universities (in Tens)
2012 13 1950–51
Commerce / Management
Engineering / Technology Medical / Pharmacy
Law
Arts
Science
Education
Others
Year = XX Total Market Size = INRXX trillion
(US$XX billion)
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 19
At present, there is no government regulation, which enables foreign
universities to set up universities in India and award degrees. The Ministry
of Human Resource Development (MHRD), in 2010, had introduced the
Foreign Educational Institutions (Regulation of Entry and Operations) Bill,
2010. The bill is intended to regulate the entry and operation of foreign
educational institutions in India. However the bill has not been passed, and
is still under discussion.
MHRD, however has now tried to bypass the bill, and has sent proposals
to the Department of Industrial Policy and Promotion and the Department
of Economic Affairs to permit foreign universities to open their campuses
in the country as companies as provided under the Companies Act. As per
the proposals, MHRD will include the processes for foreign universities to
set up campus in India and issue foreign degrees — in the UGC (Established
and Operation of Campuses of Foreign Educational Institutions) Rules.
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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FIGURE 4: UNIVERSITIES IN INDIA — BY SPECIALIZATION OF PROGRAMS
Source: Ministry of Human Resource Development; Indalytics Advisors
General
Technical
Agriculture
Medical
Law
Sanskrit
Veterinary & Animal Sciences
Others
Total = XX Year = XX
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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FIGURE 5: ENROLLMENT BY SUBJECTS — POSTGRADUATE PROGRAMS
Source: Ministry of Human Resource Development; Indalytics Advisors
Management
Social Science
IT & Computer
Science
Indian Language
Commerce
Engineering & Technology
Foreign Language
Medical Science
Education
Area Studies
Social Work
Law
Oriental Learning
Journalism & Mass Communication
Others
Total = XX Year = XX
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 22
DISCLAIMER
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Indalytics Advisors Private Limited.
The information contained in this report is of a general nature and is not intended to address any particular individual or entity’s circumstances. Although proper care has been taken to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The publisher should not be held liable for any discrepancy in the information. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
Publication Volume: GCI-14-GL–05
Publication Date – August 2014
© 2014 Indalytics Advisors Private Limited
For further information, please contact [email protected]
Higher Education in India to 2019 — Market Entry Strategy and Opportunities for Private Players
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NOTES