Tuesday, January 19, 2010

Indian Education Industry

Indian Education Industry – A Great Business & Investment Opportunity

Many of you may not know that, India’s Education Industry is world’s largest Education Industry. No other Country’s Education Industry is as large as Indian Education Industry. The Indian Education Industry is a $ 100 Billion Industry. The Second rank is of China which has $ 92 Billion Education Industry.

Today, all the Countries & Investors from all around the world are keeping a close watch on the Indian Education Industry. This is because everyone around the world want to Invest in this Industry. Recently, you may have heard about the following News Story.

44 Indian Deemed Universities have been derecognized

My own University – D.Y. Patil University, Kolhapur, Maharashtra is one of them.

I see such kind of moves by governments as a cleaning procedure in the Education Industry. This is because if you don’t clean the malpractices in the Education Industry than the Foreign Investors will run away from India and will never invest in the Indian Education Industry.

Here are the Few Facts about the Indian Education Industry -

In recent months, the education segment has also seen the rising interest of private equity players. India-focused PE firm Gaja Capital Partners invested 8.25 million dollars in Career Launcher. Similarly, SAIF Partners invested 10 million dollars in the English training academy Veta and ICA Infotech. Some of the other listed companies in the education segment are Educomp Solutions, which posted a return of 374 per cent. Everonn Systems, which got listed in August 2007, gave a return of 130 per cent in just five months. Not far behind are the older horses such as Aptech and NIIT, which fetched returns of 162 per cent and 124 per cent last year. He also added, “In the next five years, I don’t see any reason why we shouldn’t be looking at a thousand crore market.”

India’s youth, often referred to as its demographic dividend, accounts for over 50 per cent of its total population, with 367 universities and 18,000 colleges with half-a-million teachers and about 11 million students on the rolls, India could reap huge returns off its demographic dividend. Speaking on the topic, Ritesh Hemrajani, Consultant, IMS, said if one looks at the last five years there are about 1,500 management colleges, close to about 3,500 engineering colleges and about 1,200 medical colleges. In terms of private schools mushrooming day in and day out and a majority of the new institutions being private, if one wants to put a number to it, the privately-managed part of it would not be anything less than 20 to 25 thousand crores.

Thus, the Indian Education Industry is this much large. And that’s why the government is planning to clean this great industry.

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