EDUCATION BUSINESS- THE BACKBONE OF DEVELOPMENT

India’s education sector currently offers an estimated US$40 billion market, with a potential 16% five-year CAGR (compound Annual growth rate). Education has long been receiving the major wallet share of the Indian middle class. The Indian middle class is expected to expand significantly, from 300 million people today to 583 million people in 2025. As Indians continue to climb the economic ladder, the composition of their spending will change significantly. Spending on education is expected to grow by 11% over the next 20 years. Also, an increase in GPRS use and the introduction of 3G technology in India should also give a boost to concepts such as e-learning in the country.

The Indian education market has witnessed a series of developments and changes in the last few years, which resulted in a significant increase in market size of the education industry compared to previous years. The present Indian education industry is in its development stage. With increasing per capita income, national economic growth and enhanced technology it has become necessary to develop the structure of the Indian education sector. Private players have taken several initiatives for development of education infrastructure and quality. The emergence of new segments like e-learning and V-SAT training is slowly shifting the education market towards new heights. Education today is perceived as an Investment in both Urban and rural areas, people slog throughout their lives to make sure that their children are well educated so that the next generation has a comfortable life.

Indians today are rated top among people having the highest IQ. They are highly competitive in their approach and have proven to be great achievers. Indians are known for their potential in almost all the fields around the world which is the reason why the Indian IIT and IIM students are sought out for by a number of Multi-national corporations every year.

The importance of education is beginning to be felt in almost all the sectors of the Indian society. people living in both rural areas as well as urban areas have realised that without education there is no way a person can make money and pursue what he dreams to do in life. Rural India, where boys were formerly given preference over girls to attain education and girls were trained to do housework, is a very different scene today. A majority of people now are willing to send their daughters to schools as well so that they can sustain themselves, not be dependent and contribute to the income of the household.

In Urban areas, the importance of Education has sunk in really well. The middle class people are willing to spend humungous amount of money in their child’s education, be it paying the extravagant school fees, getting all the necessary stationery, donations and the most important- coaching classes. Today, coaching classes literally run parallel to school. 2 out of 5 students today attend coaching classes, call it a trend or a need of the hour, people running coaching classes are making huge profits. The business is really good and the best part is that it is growing every year.

People who are not educated nowadays feel a complex as they now know how important it is to get educated. Take the example of the taxi drivers who proudly boast of their children’s educational qualifications or the house maids who get really excited when they tell you how some neighbour of there is teaching them to work on a computer. These basic things are big achievements for them and people yearn for it. Education sector in India has just started booming, it is still a privilege for some and when it is so- It becomes more of a ‘status symbol’ and more people actually want it. Now, since Education has become such a major component of people’s lives, they want the best of it. People are spending lakhs of rupees to get education abroad where it is far better than in India. It is a common view of people today that with good Education comes good money. More so, the Indian economy is developing. Indians are willing to try new things, get introduced to the outside world, travel new places, eat good food, and most of all- get treated well. All this doesn’t come for free- you need to have a good degree and a good qualification, which indirectly means investing a lot.

Education also comes with a whole basket of a lot more other things like stationery, travel expenses, clothes; other essentials etc., so as the Education sector booms so will the other complementary sectors as well. Proper Upliftment of the education sector by the Government and other private players will enhance the economy and bring India to a whole new stage of development. Education is today the crux of everything- this is where people don’t want to compromise at any cost.

In conclusion, the education market is generally regarded as the only market towards which Indians are not price-sensitive because it has helped them reach their present standard of living and promises better earnings and prospects for their children and future generations.
The Educational business today is all about business and nothing else. It is by far the only business in the nation which is most expansive. No other business touches the lives of almost everyone at one time or the other.

- Nikita Bhargava