Education is the base for economic growth as well as social transformation for any country. Among all the key indicators of socio-economic development like economy's growth rate, literacy rate, birth rate, death rate and infant mortality rate (IMR), the literacy rate of the country is one of the most vital one as the rise and fall of others largely depend upon country's literacy rate. In India, high literacy rate leads to low birth rate as well as low IMR and it also increases life expectancy rate. So, the importance of education industry in India can be understood.
The education system in India is much more improved these days and is one of the leading ones in the world. It is also one of the biggest contributors to the economic growth of the nation. Besides various government initiatives, the role of the private institutions in the development of education industry in India cannot be denied. India's private education market was worth $40 billion in 2008, which is expected to reach $68 billion by the year 2012.
However, there are also some glooming statistics as well. Despite such rising investment in education industry, 40% of country's population is still illiterate. Only 15% of the students can go to next level to reach high school.
The Higher EducationIndia has world's third largest higher secondary education system with a number of institutions. More and more students are going for higher education these days. The result gets reflected on the number of students enrolling for higher education. The number of institutions is also increasing day by day. India has got following numbers of educational institutions (as on December 31, 2007):
| Institution | Qty (in no.) |
| Central University | 25 |
| State University | 231 |
| Institutions established through State Legislation | 5 |
| Deemed University | 100 |
| Institutes of National Importance | 31 |
| Degree-granting Engineering College | 1,522 |
| Polytechnic | 1,244 |
Prominent InstitutionsThere are a number of Indian universities/colleges/institutions that have crafted its name in the world of education through its quality of education and infrastructure. Many of those have won awards. Some of the prominent institutions that have won awards are listed below:
World's Top 200 Universities (Times Higher Education) - Indian Institute of Technology
- Indian Institutes of Management
- Jawaharlal Nehru University
Top 20 Science and Technology Schools in Asia (Asiaweek) - Indian Institutes of Technology
- Birla Institute of Technology and Science
Global MBA Ranking (Financial Times, London) - Indian School of Business, Hyderabad (15th)
Medical Research and Treatment - All India Institute of Medical Sciences (AIIMS)
Major Players - There are a number of major players in the education industry in India.
Educomp SolutionsIt is India's one of the fastest growing education solutions company. Educomp offers end-to-end solutions to government as well as private schools. Educomp is currently growing at a great pace. It is expected that the top-line and bottom-line of the company will grow at CAGRs of 76% and 67% respectively from FY2008 to FY2010 (Estimated).
Educomp Solutions has got the following features:
- It is the market leader in SmartClass and Instruction and Computing Technologies (ICT) segment.
- Well-developed content
- Strong Sales Team
Everonn SystemsEveronn Systems is into ViTELS business. It's also a leader in the government schools business. With the growth rate that the company is going through, it is expected that the top-line and bottom-line of the company will grow at CAGRs of 52% and 28% respectively from FY2008 to FY2010 (Estimated).
Following are the features of Everonn Systems:
- A leader in Institutional Education and IT Infrastructure Services (IEIS) business
- Focus on content development
- Less prone to economic cyclicality
- Highly depends on government business
NIIT LimitedNIIT Limited is the largest training company in India. The top-line and the bottom-line of the company are expected to grow at CAGRs of 21.5% and 36.4% respectively from FY2007 to FY2010 (Estimated).
Features of NIIT Limited:
- Have strategic initiative to shift to a 'Global Talent Development Corporation'
- Scalability of new businesses
- Strong hold in domestic IT training market in India
IT Training InsitutuesIT has brought a major growth in the Indian education industry. It has also given India the much needed visibility and recognition in the global market. The overwhelming success of the Indian software industry has also helped India to build a strong economy. And for all these, the IT training industry played a major role.
The revenue generated by the Indian IT training industry during FY2007 was Rs. 2,135 crore, comparing to Rs. 1,453 crore in FY2006. The 46% growth rate in 2007 was much higher than the growth rate of 2006 (14%). Though after the dot com bust, the industry started de-growing at a CAGR of about 24% during FY2001-04. The revenue in FY2004 was also less than 45% of the revenue's of FY2001. But the scenario started changing from FY2005 onwards.
Following are the list of leading players in IT training in India.
| Company | FY2007 Revenues (in crore) | FY2006 Revenues (in crore) |
| NIIT | 795 | 450 |
| Aptech | 190 | 121 |
| Jetking Infotrain | 87 | 63 |
| Siemens | 44 | 34 |
| CMS Computers | 23 | 15 |
| SQL Star | 15 | 16 |
| MAAC | 19 | 5 |
| New Horizon | 16 | - |
| Educomp | 28 | - |
