Statistics, news & updates: everything you need to know about the Education Industry in India

Education Industry In India


  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats


India holds an important place in the global education industry. India has one of the largest networks of higher education institutions in the world. However, there is still a lot of potential for further development in the education system. At present, India has the world’s largest population of about 500 million in the age bracket of 5-24 years. Therefore, this provides a great opportunity for the education sector. Not only this, the country has become the second-largest market for e-learning after the US. Key drivers for the growth in education industry are increasing disposable incomes, awareness and government policies like Skill India, EBSB, SANKALP, STRIVE, PMGDISHA. Ancillary policies include Beti Bachao and Beti Padhao Yojana.

Covid-19 Impact

Covid-19 has prompted experts to rethink the conventional mode of the education industry. With this in mind, digital education appears to be a viable solution. So as to fill in the void for classroom education. This could continue for a time span of three to four months. It will  minimize the chances of any infection to students until classes resume. More importantly, it has also brought the issue of digital education to the centre stage. Going forward, digital education is likely to be integrated into mainstream education.  Alternatively, Educational technology companies are taking online education to the next level.  As a result, Ed-tech seen substantial growth in terms of new users entering the market. Therefore, players, such as UpGrad(50%), Vedantu(10x growth), CL Educate (100%), Imarticus Learning (54%), Simplilearn (15%) and Toppr (100%) have seen a sharp rise in new users.

However, in the long run, remote learning can be seen as a potential alternative to school education. Generally, face-to-face interaction is usually perceived as the best form of communication rather than the impersonalized nature of online learning.

Thus, the statistics below are taken from Industry data available pre-Corona virus impact.

Growth Drivers

  • Consequently, increasing disposable incomes and willingness of people to spend on education is a key driver for the Indian education industry
  • Conversely, the huge demand-supply gap has created additional requirements. Up to 200,000 schools, 35,000 colleges, 700 universities and 40 million seats in the vocational training centres are required to fill in the existing gap.
  • It is generally observed that the large English-Speaking population allows easy delivery of educational products. Therefore, India ranked 34 out of 100 countries in English Proficiency Index 2019
  • However, the largest population of about ~500 million lies in the age bracket of 5-24 years. This also presents a large number of opportunities in education space.
  • Accordingly, as per the Union Budget 2019-20, under the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA), over 2 crores rural Indians are taught digitally.
  • Not to mention, the other major initiatives by government are Skill India and Pradhan Mantri Yuva Yojana.
  • In addition to, the Government has also laid the foundation of 141 universities and 7 IITs in the past four years.
  • Private Indian players are collaborating with international brands to provide international standard quality education. Therefore, increasing awareness.
  • In 2019, Unacademy, an educational technology company based in Bangalore, received PE investment of US$ 50 million.
  • Udemy, a US-based online learning marketplace, has entered India with an employee hub at Haryana.
  • Last but not the least, Shagun, an online junction for school education has been inaugurated by the Ministry of Human Resource Development.

Market Stats

  • Moreover, the education sector in India estimated at around US$ 91.7 billion in FY18 and expects to reach at US$ 101.1 billion in FY19.
  • On the other hand, India has also become the second-largest market for e-learning after the US. Consequently, the sector is expected to reach US$ 1.96 billion by 2021. Overall, we see an increase of around 9.5 million users.
  • A combination of online learning and games, is expected to grow by up to 38 per cent in the next 2-4 years.
  • Interestingly, India has over 250 million school going students, more than any other country.
  • A total number of colleges and universities in India are 39,050 and 903, respectively in 2017-18.
  • India had 36.64 million students enrolled in higher education in 2017-18.
  • The Government has allocated the expenditure budget for higher education is US$ 5.4 billion.
  • On the other hand, for school education and literacy of US$ 8.08 billion.
  • The government provided US$ 51.23 million for ‘World Class Institutions’ for FY 2019-20.
  • Above all, the total amount of Foreign Direct Investment (FDI) inflow into the education sector in India stood at US$ 2.47 billion from April 2000 to March 2019

Map – Industry Clusters


Key Players in India


  • Delhi University
  • IIT’s
  • Delhi Public School
  • Vidya Bharati Schools
  • Educomp Solutions
  • NIIT Limited


  • Udemy
  • University of Michigan
  • University of Cambridge
  • Imperial College
  • Yale University
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