Education & Training Industry in India

Introduction

India today stands at a defining moment in the evolution of its education system. With the world’s largest population aged 5–24 years—nearly 580 million people—the country possesses unparalleled demographic potential. This expanding young population has created vast demand for quality education across K-12, higher education, skills training, and digital learning. India also hosts one of the world’s largest higher education ecosystems, comprising over 52,000 colleges and 1,300 universities as of FY26. Despite this immense scale, both capacity expansion and quality improvements remain critical priorities.

The last decade has witnessed rapid transformation, driven by rising aspirations, deeper private participation, and the emergence of cutting-edge educational technologies. Indian consumers increasingly seek globally comparable programmes, industry-aligned curricula, and flexible digital learning paths. As a result, private investments, edtech innovations, and international collaborations have accelerated. The Indian edtech market alone—valued at US$ 7.5 billion today—is projected to nearly quadruple by 2030.

India is simultaneously embracing the global Education 4.0 movement, which integrates AI, ML, IoT, and immersive technologies into learning. Government policy, especially the National Education Policy (NEP) 2020, is anchoring this transformation with a focus on inclusivity, skill development, and employability. NEP implementation, ongoing since FY22, aims to modernise curricula, improve teacher training, enhance research ecosystems, expand vocational education, and increase the Gross Enrolment Ratio (GER) to 50% by 2035.

Market Size and Growth Dynamics

The Indian education market is on a strong upward trajectory. Valued at US$ 117 billion in FY23, it is projected to reach US$ 313 billion by FY30. Each segment—K-12, higher education, and edtech—shows robust growth signals.

Higher Education

Higher education constituted Rs. 5,75,000 crore (US$ 68 billion) in 2024 and is projected to almost double to Rs. 11,60,000 crore (US$ 134.8 billion) by 2033, growing at a CAGR of 8.1%. Expansion of institutional capacity remains steady:

• Colleges have increased from 42,343 (FY20) to 52,321 (FY26).
• Universities have increased from 760 (FY15) to 1,355 (FY26).
  Notably, more than 50% of universities and colleges are in rural areas, signalling improving educational penetration.

K-12 Sector

The K-12 market, valued at US$ 48.9 billion in 2023, is expected to reach US$ 125.8 billion by 2032 at a CAGR of 10.7%. With over 250 million school-going children, India represents the world’s largest student base.

Edtech and Digital Learning

Edtech continues to be a major catalyst. The market, worth US$ 7.5 billion, is expected to reach US$ 29–30 billion by 2030–31. India has become the second-largest global e-learning market after the US. Between 2021–25, online education alone is expected to grow by US$ 2.28 billion, at a CAGR of nearly 20%.
Digital enrolment trends reflect this shift, with 62% of student enrolments now driven by online channels.

Quality Challenges

Despite positive expansion, quality remains uneven. UNESCO’s 2021 report highlighted a pupil–teacher ratio of 47:1 at the senior secondary level—significantly above recommended standards. Still, India’s global academic footprint is improving; in the QS Asia Rankings 2025, two Indian universities feature in the top 50 and seven in the top 100, led by IIT Delhi.

Recent Investments and Sector Developments

The sector has attracted substantial domestic and international investment. Between April 2000 and March 2025, FDI in education reached Rs. 72,210 crore (US$ 9.98 billion). Key developments include:

Technological and Digital Learning Initiatives

• Coursera has partnered with 18 major Indian institutions, including IITs and IIMs, to expand GenAI learning. India registered the highest global generative AI course enrolments—2.6 million in 2024–25.
• Oracle, with the Andhra Pradesh Skill Development Corporation, launched massive AI and cloud training for 400,000 students via Oracle MyLearn.
• IIT Guwahati is building India’s first VR-enabled metaverse education platform, Gyandhara, piloting in 56 Assam schools.

Institutional Expansion and Edtech M&A

• IIFT opened its first international campus in Dubai, advancing NEP’s globalisation goals.
• CL Educate acquired NSEIT’s DEX platform for Rs. 230 crore, entering the rapidly growing assessments market.
• Eruditus, PhysicsWallah, UpGrad, and ConveGenius attracted significant funding to scale programmes and digital infrastructure.
• UK-India partnerships have been strengthened through the TNE Grants 2025–26, promoting cross-border academic-industry collaboration.

Global Rankings and Recognition

India has emerged as a major presence in global rankings:

• 54 universities appear in QS World Rankings 2026 (fourth highest globally).
• India and the UK jointly rank third in the Times Higher Education Rankings 2025 for number of universities featured.

Government Initiatives and Policy Reforms

The government remains a central driver of sector transformation, backed by major budgetary commitments, structural reforms, and capacity-building programmes.

Budget Allocations (Union Budget 2025–26)

• School Education & Literacy: Rs. 78,572 crore (up 16.28%).
• Higher Education: Rs. 50,078 crore (up 5.16%).
• Samagra Shiksha: Increased to Rs. 3,750 crore.
• AI in Education Centre: Rs. 500 crore allocated to build AI capabilities and personalised learning.

Skill India and Vocational Training

Multiple schemes aim to align skills with Industry 4.0 and emerging job markets:

• Modernisation of 1,000 ITIs under a Rs. 60,000 crore scheme, training two million youth in partnership with industry.
• Launch of SOAR (Skilling for AI Readiness) for Classes 6–12.
• PM VIKAS to empower minority communities through education, women’s leadership, and entrepreneurship.
• Renewed Skill India Programme, extended to 2026 with an outlay of Rs. 8,800 crore.

Higher Education Reforms

• Expansion of five IITs with Rs. 11,829 crore investment.
• Opening of new IITs and IIMs to widen access.
• Establishment of AI Centres of Excellence in Healthcare, Agriculture, and Sustainable Cities.
• PM Vidyalaxmi scheme, offering loans up to Rs. 10 lakh for higher education with interest rate benefits.

School Education Reforms

• Implementation of the 5+3+3+4 curriculum structure, replacing the traditional 10+2 model.
• PM SHRI Schools: Development of 14,500 model schools with high-quality infrastructure and inclusive learning environments.
• Launch of the National Curriculum Framework for School Education (NCF-SE) aligned with NEP 2020.
• Board exams to be offered twice a year, giving students more flexibility.
• PM eVIDYA, recognised globally for digital education during COVID-19, continues to expand ICT-enabled learning.

Teacher Training and Capacity Building

• Upgradation of all District Institutes of Education and Training (DIETs) into centres of excellence with Rs. 9,000 crore funding.
• Launch of the National Mission for Mentoring to strengthen teacher training.
• Programmes like CBDE (Design and Entrepreneurship) promote creative problem-solving among students.

Regulatory Liberalisation

The government has permitted 100% FDI under the automatic route in the education sector and pursued policy reforms such as the Foreign Educational Institutions Bill and the National Accreditation Regulatory Authority Bill to encourage global collaboration and accountability.

Vision and Road Ahead to 2030

India’s education system is poised for profound transformation by 2030, supported by demographic momentum, technological innovation, and policy reform. Projections for 2030 include:

• Widespread adoption of hybrid learning models, combining online tools, gamified systems, and personalised learning pathways.
• Expected 38% growth in these tech-enabled methods within 2–4 years.
• Achievement of 50% GER, making education significantly more inclusive.
• Minimisation of state, gender, and social disparities in higher education enrolment to below 5%.
• Emergence of India as the largest global supplier of talent, with one in four graduates worldwide being Indian.
• Ambition to be among the top five nations in global research output, supported by an annual R&D spend of US$ 140 billion.
• Over 20 Indian universities expected to feature among the world’s top 200.

Distance education, e-learning, and m-learning will continue to expand, supported by reforms encouraging flexible, lifelong learning. With increased investment in research grants, new IITs and IIMs, and a growing global presence of Indian institutions, higher education is set to undergo significant qualitative upgrades.

The combination of expanding digital infrastructure, rising incomes, ambitious policy frameworks, and large-scale skilling initiatives places India on a firm trajectory toward becoming not just a regional leader but a global powerhouse in education.