Higher education in India to 2019 — market entry strategy and opportunities for private players — Indalytics Advisors

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

http://www.indalytics.com/



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




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




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




PUBLICATION DATE

August 2014

NUMBER OF PAGES

104

PRICE OF THE REPORT

Single User: US$2,000

Multi User/ Enterprise: US$4,500

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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.




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.




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.




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).




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.




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




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




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




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




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.




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




FIGURE 2: MARKET SIZE OF HIGHER EDUCATION IN INDIA — BY TYPES OF FACULTY


FIGURE 3: GROWTH OF HIGHER EDUCATION — UNIVERSITIES, COLLEGES, ENROLMENT AND TEACHING STAFF — 1950–

51 — 2012–13


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)




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.




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




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




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]


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NOTES
