Knowledge Based Guidance for Sustainable Growth...

Education

The Indian education sector is currently valued at about USD 100 billion for the years 2014-2015, about a 79% increase from the 2011-2012 period (India Ratings and Research Pvt Ltd). This sets the stage for a crucial step in its growth. The country’s demographics feature an enormous youth population, which coupled with a low Gross Enrolment Ratio (GER) provides immense opportunities for the growth and expansion of companies in this sector.

The recent surge experienced in the Indian economy and an upward trend in per capita income is boosting the spending on education, which currently is the second-largest expenditure for middle-class households. Government support has also pushed the sector forward with big reforms and improved financial outlays being implemented and utilised. These reforms are pushing the current boundaries of the sector.

This is one of the few industries which is recession-proof, and this fact is highly lucrative for entrepreneurs across the globe ever since the great recession in 2008. Government aids and the Indian middle-class mentality respecting and valuing educational qualifications in any field is leading the path towards sustainable growth.

Players in the private equity market are entering the sector with high hopes. But one must not forget the competition at the same time. Each new institution has to offer something new and unique. Within a few years the concept of giving free laptops to B.Tech and MBA students has become the norm rather than an exceptional marketing strategy. 100% placement assistance is also the minimum an institution can offer. Hence, for sustainable growth, it is necessary to think beyond the visible premises, much ahead of the time and plan accordingly.

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