Thumb Rules for Investment in Private Education ; As an Industry, Private Educational Institutions in India Were Worth $40 Billion in 2008, a Figure That Is Projected to Grow to $70 Billion by 2013 and $115 Billion by 2018.

Summary

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The private sector has been playing an increasingly important and influential role in India's education sector over the past few years. In fact, at last count, over 50 per cent of the country's educational institutions were privately run (in the US, the private sector's share is 32 per cent and in China, it is 25 per cent). As an industry, private educational institutions in India were worth $40 billion in 2008, a figure that is projected to grow to $70 billion by 2013 and $115 billion by 2018 from a demand growth perspective, if supply keeps pace.

The problems, however, are two-fold: a large demand-supply gap and average to poor quality of most privately-run institutions. There is clearly an opportunity, therefore, for more private players to enter the education space. While schooling and higher education institutes are required to be set up as 'not-for-profit' ventures, with mandatory registration as a Trust or Society, quality private institutes are the need of the day. Entrepreneurs and companies wanting to invest in education, therefore, need to follow certain thumb rules.

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Extract

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Thumb Rules for Investment in Private Education ; As an Industry, Private Educational Institutions in India Were Worth $40 Billion in 2008, a Figure That Is Projected to Grow to $70 Billion by 2013 and $115 Billion by 2018.

Market Assessment: A pragmatic assessment of the "catchment in each segment of education is important, from the s...

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