Executive summary
The Indian higher education system has exhibited impressive growth over the last decade to become one of the world’s
largest systems of higher education. The number of institutions
has grown at a CAGR of 11% while student enrollment has
grown at a CAGR of 6%. Geographically, the Central region has
experienced the highest increase in number of institutions,
while the Southern region has exhibited the highest increase in
student enrollment. The Gross Enrollment Ratio (GER) currently
stands at about 13.8%, with West India having the highest GER
of 25.7%.
While these positive trends augur well for the industry, the GER
in India continues to significantly trail its global peers and the
world average, threatening the sustained high growth of the
Indian economic engine. The government has therefore set a
target of 30% GER by 2020, which seems difficult to achieve at
the current pace of development. Moreover, the Indian higher
education system faces the challenges of ensuring equity and
quality. The private higher education sector in countries such as the Unites States, Japan, and Malaysia has been instrumental in tackling these challenges. In India too, the private sector could play a key role in dealing with these issues through innovative models supported by an enabling regulatory framework and environment. Hitherto, the private sector has played an important role in the growth of the higher education sector, especially in professional disciplines such as engineering and management. High potential demand for higher education and insufficient government spend on capacity creation are expected to result in a substantial infrastructure and investment deficit. In this backdrop, the role of the private sector has assumed increased significance with immense opportunity for private sector players. We have identified various options for private education providers to enter and grow in the vibrant higher education space. We have also outlined the key drivers, trends, and regulatory considerations associated with these options.
Establishing and growing in Indian higher education: key options for private players |
Forms of presence |
Courses |
Modes of growth |
Value addition and
communication |
- Universities
- Colleges
- Services
|
- General courses
- Professional courses
|
- General courses
- Professional courses
|
- Collaborations
- Marketing and brand
building
|
We have profiled some leading private sector players across two categories—new entrants and market leaders—to understand the models, strategies, and propositions adopted by them. The analysis reveals that a strong focus on delivering a consistently high quality of education and a deep collaborative network with industry and foreign education providers are considered fundamental to success. For existing players, opening multiple campuses seems to be the preferred route for expansion. Recruitment of quality faculty and a complex regulatory framework are some of the key challenges faced by players. To enable greater private sector participation in higher education, the Government should consider simplifying the regulatory framework by rationalising the number of regulators and providing more operational autonomy to private institutions, while keeping a check on quality and transparency. Allowing institutions to operate on a for-profit basis could be considered for boosting private investment. Moreover, measures to deal with structural challenges such as shortage of quality faculty and lack of adequate physical infrastructure should be expedited.
Soft and Hard copy available for Rs 5000/-.
FICCI , Federation House, Tansen Marg , New Delhi-110001
Tel: 91 11 23722921, 23738760-70 (Ext. 316/281)
Fax: 23320714,23721504
Email: education@ficci.com
