Indian Education Sector: Road Ahead For Private Participation

Saurya Bhattacharya Jun 24, 2020

Education is a key human development sector for India with participation from both the public sector as well as the private sector. It has come into sharp focus especially over the last month due to the unfortunate pandemic crisis affecting the entire country. The government has moved to rise to the needs of the occasion with a list of announcements made to make education more technology-enhanced to make sure it reaches a wider section of the student community. There have also been discussions around updates to the draft National Educational Policy (NEP) of 2019, with a view to bring in the emphasis on the use of technology in the sector.

In this light, it is worthwhile evaluating what role private players can be played in the days ahead, in a sector that continues to operate primarily in the not for profit mould.

Governmental Initiatives

For instance, under the comprehensive initiative named PM eVidya that has been announced, existing initiatives, as well as new initiatives in the space of digital/online/on-air education, is expected to receive a boost. Included in this are DIKSHA, a planned digital infrastructure for e-content for school students; as well as SWAYAM (a massive open online course platform), for both school and higher education students. It was also announced again that the top 100 universities will be starting online education courses. The component of online learning is to increase from 20% to 40% in conventional universities as well as online and distance learning programmes. Another aspect that garnered substantial attention was the plan to impart education through television channels, radio shows and podcasts. It is also acknowledged that along with the technology push, content, as well as pedagogy of education, would require evolution under a new framework.

These aspects are likely to receive due reflection in the formal NEP, expected soon this year.

Possible Impact Evaluation

While a direct fallout of developments in this direction is increased reach, newer teaching methods and variation in course content for the students, it also means increased opportunities for private participation and cultural acceptance of non-traditional teaching models and platforms. This should create more scope for education service providers, ed-tech platforms, content creators and training/pedagogy designers.

It should be recognized that for the changes that are proposed, there may be a need for public-private participation to achieve the best results. Be it in designing e-learning content, training the teachers on teaching and evaluation methods and other services that may be required for operationalising the new initiatives. Traditional private educational institutions that have relied on brick and mortar set up and classroom teaching may also have to innovate. For this, they could either tie-up with or collaborate with education service providers and ed-tech platforms.

In other words, there is a growth opportunity for innovators in this field – whether it is educational apps, remote learning platforms, teachers’ training tools, or course creation platforms that cater to remote or practical learning – if they can demonstrate value in their offering to its potential clientele.

Foreign Institutions

There have been encouraging signs even in the draft NEP for foreign institutions. It indicated that some foreign institutions will be allowed to set up shop in India, a subject matter that has long been on the anvil. At the same time, Indian institutes of higher education have also received guidance on working with their foreign counterparts to mutually recognise MOOCs and other forms of online courses and degrees.

Currently, there are no signs to indicate that when the NEP is formalised, these aspects would be omitted.

Student Habits and Demography

Given the uncertainties around travelling abroad for studies as well as opportunities offshore after course completion, students have seen some signs of adapting to alternate options. This is a mix of remote learning as well as India-based learning, keeping in mind value for money.

The student demography has also seen widening in the past few months, with the addition of professionals who have focused on upskilling by joining various courses that are mostly online.

Investment Opportunities

The education market in India itself is estimated at over $100 billion, and the e-learning market is now understood to be second only to the United States. Therefore, although considered fragmented, investment opportunities are likely to remain robust. Of course, it will remain important for potential investors to make informed decisions; being aware of business models as well as the Indian regulatory framework.

Road Ahead

Evidently, the private sector can play an increased participatory role in the Education sector. With the government intent clearly articulated, even while the minutiae of policy and legislation are in the works, this is would be an opportune time for the private sector to lead the way in the sector’s technology-enhanced evolution.