India Education Sector has shown a remarkable growth I the past few years. The developments in this respective industry have been tremendous. Looking at the present scenario, it can be expected for India to become an education superpower in the future. There are some reasons that support the above said expectation.
Aspirations in the minds of the Indian parents for their children to leap forward (compared to themselves) in their careers. They are keen to put their kids in the best of schools like those with annual fees of Rs. 5-6 lakhs. They are also quite happy to spend crores to get their kids a degree through a US/UK based university like MIT/Oxford etc. Irrespective of economic status, they have a strong desire to ensure that their chil get the bestest educational degree greatly contributes the cause. This is the most important factor that drives the demand for high quality education services in the country.
A systematic shift from an agricultural economy to an industrial/knowledgeable economy. The determination of seeing ones kid to study in a best possible way, people are making a shift to cities, rent a house and stay there for few years to ensure that their kids get the best possible education. This is creating, and will continue to create massive demand for high quality education and training. India has the largest population of young minds, which in return provides a massive consumer base and also as a large human capital that can be used to develop goods and services to be in turn used by this large consumer base. The only need is to train them at scale school level, college level and vocational level.
Human mind is the most productive asset to enable progress of a society. Machines, technologies and automations in vacuum (without significant consumer base) cannot create a sustained economic advantage. Most of the good schools in large cities have annual fees in the range of Rs 15,000 to Rs 50,000 per annum. This is less than 1/10th of what you see in developed world either in terms of per capita cost in public schools or per capita fee in private schools. It makes high quality education affordable in India. This cost structure is certainly sustainable for the next few decades. The problem of teacher quality issue can be solved by identifying the unemployed graduates and post-graduates and addressing the teacher training problem. This indicates that there are large numbers of aspirants available for teaching jobs. This in turn will ensure that education cost does not inflate due to disproportionate increase in teacher’s salary costs. This cost structure has started driving students from other countries to come to India, and it will definitely accelerate further.
Technologies and tools like the internet, flight travel, telephone have made humans locationaly mobile. Due to which, Indians do not mind leaving their hometown and settling in any part of the world. A large number of Indians relocate either within or outside the country to produce greater income for their families. This creates a larger demand for trained and educated human capital supply chain. In economics, demand is the fundamental building block of progress, which has to be met by corresponding supply. Fulfilling demand for education services will create hundreds of large suppliers and entrepreneurs catering to various verticals and horizontals segments within the sector. Higher entrepreneurial activity leads to competition and innovation, which in long run creates a superpower status for the country in that sector.
- Bill Rammell: Higher Education to help India shape world future
- India in Higher Education Emergency : TeamLease India Labour Report 2012
- A glimpse of the future of Business Academics