International Journal of Multidisciplinary Approach [602081]

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 193
Education Sector in India
PROF. REEMA PANJWANI
Faculty, Smt. Chandibai Himathmal Mansukhani College, Ulhasnagar
ABSTRACT :
The Indian education sector has been recognized as a “Sunrise Sector” for investment in the
recent past. This recognition stems from the fact that the sector offers a huge untapped
market in regulated and non -regulated segments due to low literacy rate, high concentration
in urban areas and growing per capita income. The Government has also been proactively
playing the role of facilitat or in this sector.
The paper revolves around the facts of current education in India, Literacy levels, PPP,
Online education, women education , and rural education.
THE EDUCATION INDUSTRY – AN INTRODUCTION
The education industry is expanding rapidly and its many businesses are eager for new talent,
including experienced professionals and enthusiastic individuals just entering the workforce.
The education industry can be described as the collection of organizations and businesses that
provide products and ser vices aimed at enhancing the quality of education in society.
“The equation is simple: education is the most basic insurance against poverty. Education
represents opportunity. At all ages, it empowers people with the knowledge, skills and
confidence they need to shape a better future. ”
The importance of education in India was recognized by the founding fathers of the country
and the subsequent governments, and as a result considerable importance has been given to
literacy, school enrolment, institutions o f higher education and technical education, over the
decades ever since independence which is indicated from the following fact of Gandhiji:
“Live as if you were to die tomorrow. Learn as if you were to live forever.”
– Mahatma Gandhi
India‟s aspirations to establish a knowledge society in the context of increasing globalization,
is based on the assumption that higher and technical education essentially empowers people
with the requisite competitive skills and knowledge. It has been realized that it is the q uality
of education that prepares one for all pursuits of life and in the absence of an acceptable level
of quality, higher education becomes a mere formalism devoid of any purpose or substance.

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 194
As a result, from around the turn of the century, increasing attention has also been paid to
quality and excellence in education.
Education in India is a term has broader significance. Education is a way to gather knowledge
and enrich ones thought. It is the learning of knowledge, information and skills during the
course of life. There is an array of educational opportunity at the informal level as well as
formal level.
SNAPSHOT OF CURRENT EDUCATION SECTOR
The rating agency estimated the Indian education market to be worth Rs.5.9 trillion in 2014 –
15 as against Rs.3. 33 trillion in the 2011 -12 financial year. “India‟s young demographic
would continue to benefit the sector even as protracted infrastructure upgrades and regulatory
issues delay timely benefits,” said India Rating in its FY15 outlook for the sector. India has at
least 250 million students in schools and some 27 million in higher education. The country
has some 1.4 million schools and over 36,000 colleges and 700 universities .
There are 45 technical institutes, 13 management institutes, 4 information technol ogy
institutes, 6 science and research institutes and 3 planning and architecture institutes
As a percentage of GDP, expenditure on education has gone up from 2.9% in 2008 -09
to 3.3% in 2013 -14.
Less than 1% of the $38 bn of the Government spend on educati on was towards
Capex
The total literacy rate in India is 74.04% compared to the world average of 83.4%
The female literacy rate is 65.46 % and male literacy rate is 82.14 %
HISTORY OF EDUCATION
History of Education in India can be traced
back to the anci ent era. Education in Ancient
India conforms to the third century BC.
During that early period sages and scholars
imparted education orally and after the
introduction of alphabets writing developed
on Palm leaves and barks of trees. In addition
to that tem ples and community centers often
took the role of schools. Gradually the concept of Gurukul System originated. The Gurukul

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 195
system of education is one of the oldest on earth. Gurukuls were traditional Hindu residential
schools of learning. Another noticeabl e modification took place during the British period.
Education in Modern India refers to the period of 18th century. The concept of school
developed during this era. Every temple, mosque or village in country had schools. These
schools guided students to r ead, write, arithmetic, theology, law, astronomy, metaphysics,
ethics, medical science and religion. The style and content of Indian society during the 19th
century witnessed a radical change. Women education was introduced and educational rights
became a Fundamental Right for citizens of India. History of Education in India proves that
the existing education system has been roughly modeled upon the British system.
GROWTH IN LITERACY LEVELS
 Increasing inclination
In a country like India, literacy is the ma in foundation for social and economic growth. When
the British rule ended in India in the year 1947 the literacy rate was just 12%. Over the years,
India has changed socially, economically, and globally. After the 2011 census, literacy rate
India 2011 was found to be 74.04%. Compared to the adult literacy rate here the youth
literacy rate is about 9% higher. Though this seems like a very great accomplishment, it is
still a matter of concern that still so many people in India cannot even read and write. The
numbers of children who do not get education especially in the rural areas are still high.
Though the government has made a law that every child under the age of 14 should get free
education, the problem of illiteracy is still at large.
 Female literacy
Now, if we consider female literacy rate in India, then it is lower than the male literacy rate as
many parents do not allow their female children to go to schools. They get married off at a
young age instead. Though child marriage has been lowered to very l ow levels, it still
happens. Many families, especially in rural areas believe that having a male child is better
than having a baby girl. So the male child gets all the benefits. Today, the female literacy
levels according to the Literacy Rate 2011 census are 65.46% where the male literacy rate is
over 80%. The literacy rate in India has always been a matter of concern but many NGO
initiatives and government ads, campaigns and programs are being held to spread awareness

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 196
amongst people about the importance o f literacy. Also the government has made strict rules
for female equality rights. India literacy rate has shown significant rise in the past 10 years.
 State literacy levels
Here are some facts about different states literacy rate, Kerala is the only state in India to
have 100% literacy rate. It is followed by Goa, Tripura, Mizoram, Himachal Pradesh, and
Maharashtra, Sikkim. The lowest literacy rate in India is seen in the state of Bihar. We also
need to think why is the literacy rate is low here in India c ompared to other developed
countries. Basically the population in India is very high. Being the 7th largest country its
population stands 2nd in the world after China. There are over 1 billion people in India. The
number of schools and educational centers especially in rural areas is less. Even today many
people are below the poverty line. Also people aren't aware that children should get free
education according to the law.

Government of India has taken several measures to improve the literacy rate in vi llages and
towns of India. State Governments has been directed to ensure and improve literacy rate in
districts and villages where people are very poor. There
has been a good improvement in literacy rate of India in
last 10 years but there is still a long way to go.

List of Steps taken by Government of India to
improve Literacy Rate in India:
Free education programs to poor people living
in villages and towns.

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 197
Setting up of new school and colleges at district and state levels.
Several committees have been formed to ensure proper utilization of funds allotted to
improve literacy rate.
ROLE OF HIGHER EDUCATION
Today‟s students will become the leaders of tomorrow‟s education industry. Using a diverse
skill set, ranging from business expertise to a deep under standing of education, visionaries
have an opportunity to reshape the industry to better serve students of all ages. Higher
education plays a vital role in accelerating the economic development of a country and
making its citizens better skilled and more p roductive. Higher education makes it possible for
people to learn how to create and use ideas and technologies to their advantage in a
knowledge -based global economy.
There has been significant increase in the number of institutions and enrollment over th e last
few years. Individuals seeking a career in the education industry should be passionate
advocates of change based on an understanding of the education market today. Higher
education may result in higher income levels, greater tax revenues, increased entrepreneurial
activities, and strong governance. Evidence suggests that higher education has a positive
correlation with income level and quality of life for citizens in many countries.

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 198
Higher education is the most significant sector of the Indian educa tion market. 2006 higher
education enrolment was 10.5 million students (a gross enrolment Ratio of 10%, which by
2010 had already increased to (12%), of which over 7 million attended private institutions.
Drivers of private sector involvement in Indian hig her education include unsatisfied demand

due to a cap on public sector funding and rapid growth of the number of school leavers,
together with individual drivers (labor market demand for higher level vocational degrees and
high wage returns) and inte rnational drivers (a good return for private companies and the
deregulation of markets).The Federation of Indian Chambers of Commerce & Industry
(FICCI) believes that for -profit universities market share will continue to grow in coming
years, while the num bers of not -for-profit universities will decline.
 It is suggested that a route for the private sector in higher education may lie in the
establishment of a higher education institution which does not work under the
auspices of the UGC. A strong brand and high quality provision is essential for the
success of such an organization (e.g. the Indian School of Business). Certain subject
areas have to be taught in an accredited institution, however, to enable the profession
to be practiced (doctors, architects, lawyers and pharmacists), and attempts are being
made to crack down on unregulated institutions.

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 199
PRIVATIZATION OF EDUCATION SECTOR
 Entry of private players
Privatization: where, everyone wants a slice.
There are number of ways where private sector particip ates in education in both developed
and developing countries. They include:
1. Contract schools.
2. Providing scholarships or vouchers for students to attend private schools.
3. Providing inputs into the educational process, building infrastructure such as school
buildings.
As the proportion of students pursuing private education rises, there is a corresponding
increase in private investment entering the sector. Due to privatization, schools have open up
with various curricular activities other than just bookish kno wledge like swimming, physical
training, practical knowledge i.e. industrial visits and sports and most importantly they look
after the health of students.
Various schools provide with nutritional breakfast and lunch too. Due to which guardians are
not wo rried about and are ready to pay high amount for such facilities. The various institutes
who provide the facilities are:
1. Podar I nternational school.
2. Omkar I nternational school.
3. And most importantly the largest school in the world is “City Montessori” schoo l
located in Lucknow city of Uttar Pradesh and has over 25000 students in grade levels
ranging from K indergarten to college w here the students gain unbounded knowledge.
 Growing demand
Demand for private education provision in India has risen sharply over t he past decade,
driven mainly by the growth of the aspirational middle classes and the continued criticism of
the quality of public education. The private education sector in India is big business. The
International Finance Corporation estimates that more than 90% of IT, engineering and
management colleges in India are private. It adds that there are more than 1,200 private
engineering colleges, 300 business schools and 140 private medical colleges, which in 2008
represented a combined market value of US$7 billion.

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and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 200
It can be also seen that parents even enroll their 3 -5 years children in private schools paying
an enormous amount of fees. Examples of private schools: Blooming Buds, Poddar, Tree
House International and other branded private schools.
 Foreign edu cation
The role of foreign education is growing and the long delayed -foreign educational
institutional bills may become a law within a year. The bill includes changes to the
accreditation process, penalties for fraudulent providers and rules under which fo reign
universities would be allowed to operate in India. Foreign universities would have to deposit
a start -up fund of US$11 million. They would be able to grant degrees, diplomas and
equivalent awards, although not through distance learning. They would al so be able to offer
certificate courses without having to register under the Act.
 Indian private schools
Unlike many foreign private schools, Indian private schools tend to have poorer infrastructure
and facilities than public schools, and their teachers receive less training. On the other hand,
lower teacher salaries in private schools mean that pupil: teacher ratios tend to be lower and
educational outcomes are correspondingly higher. This has led to questions about growing
educational inequalities. Prof it-making private secondary schools are not allowed in India;
private, unaided schools may only be run by trusts or educational, charitable or religious
societies. Infrastructure and services, however, can be leased by Private businesses to school
trusts. Outsourcing training to private companies has also started to develop in recent years.
According to an analysis by Credit Suisse, the high level of regulation against profit -making
schools, combined with social resistance against schools with a profit moti ve, have resulted
in large corporations avoiding the business of running schools. This has contributed to
fragmentation and in the private schools sector which can be known from the piece of
information:
“The more I live, the more I learn. The more I learn , the more I realize, the less I know.”

PUBLIC PRIVATE PARTNERSHIP
The main rationale for developing public private partnerships (PPPs) in education is to
maximize the potential for expanding equitable access to schooling and for improving

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Volume 01, No. 4, July – Aug 2014

Page : 201
education outc omes, especially for marginalized groups. Specifically, we examine how
contracts are used to hold all partners accountable and how contracts are designed to produce
measurable improvements in education outcomes or performance. The analysis considers
contracting as a distin ct instrument from any other education accountability mechanisms. We
define contracting as the process whereby a government procures education or education –
related services of a defined quantity and quality at an agreed price from a specific provider.
The agr eement between the funder and the service provider is recorded in a contract and is
valid for a specified period of time.
Arguments in favor of PPP:
The theoretical literature on the topic suggests four positive outcomes of the private provision
of public services:
 PPPs can create competition in the education market. The private sector can compete
for students with the public sector. In turn, the public sector has an incentive to react
to this competition by increasing the quality of the education that it provides.
 PPP contracts can be more flexible than most public sector arrangements. Generally,
the public sector has less autonomy in hiring teachers and organizing schools than the
private sector does. Public -private contracts can be a better fit between the supply of
and demand for education. Flexibility in teacher contracting is one of the primary
motivations for PPPs.
 Governments can choose private providers in PPP contracts by means of an open
bidding proces s in which the government define specific requirements for the quality
of education that it demands from the contractor. The contracts often include
measurable outcomes and clauses that specify the condition to deliver a certain quality
of education, and the contractor with the best or lowest cost proposal is then chosen.
This one characteristic of the contract alone can raise the quality of education.
 PPP contracts can achieve an increased level of risk -sharing between the government
and the private sector. This risk sharing is likely to increase efficiency in the delivery
of services and, consequently, to induce the channeling of additional resources to the
provision for education.

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 202
Arguments against PPP :
 PPPs will lead to the privatization of education and thus will reduce the government‟s
control over a public se rvice.
 Increasing the educational choices available to students and their families may
increase socioeconomic segregation if better prepared students end up self -selecting
into high -quality schools, thus further improving their outcomes.
 PPPs will lead to poorer students being left behind in the deteriorating public schools
that lose the support of more educated parents.
ONLINE AND DISTANCE EDUC ATION: MOVING TOWARDS A DIGITAL
FUTURE
The typical Indian classroom was once characterized by students sitting thr ough hour -long
teacher monologues. Now, technology is making life easier for both students and educators.
Schools are increasingly adopting digital teaching solutions to engage with a generation of
pupils well -versed with the likes of PlayStations and iPad s, and trying to make the classroom
environment more inclusive and participatory.
Technology makes the teaching -learning process very easy and interesting. For instance, if
done with chalk, it would easily take half of the lecture to just draw a particular diagram on
the blackboard. However, with the help of technology one can easily show how it really
functions. This is where technology comes to our aid – now a 3D model of the diagram can
be shown. Instead of wasting precious time drawing the diagram on t he blackboard, one can
invest it in building the conceptual clarity of my students.
ONLINE EDUCATION TECHNOLOGY
Audio, Video, Computers, tablets and mobile devices, Blogging, Webcams, Whiteboards
WOMEN EDUCATION
Women can never see her children go uneducat ed. She will be most insistent upon sending
her children to school be it even at the cost of her hobbies, interests or even stomach. This is
because she appreciates the importance of education. So with an educated mother, we „can
safely assume that we have most effective motivator for the spread of education. The so –

International Journal of Multidisciplinary Approach
and Studies ISSN NO:: 2348 – 537X

Volume 01, No. 4, July – Aug 2014

Page : 203
called‟ Filtration theory' fits very well into it. If we teach a woman, she acts as a filter to
spread education among many others and as it is also said, “You educate a man; you educate
a man. You educate a woman; you educate a generation.”
Woman belongs to a weaker section of the society because she suffers from many handicaps
due to rigid, outdated social customs and religious practices. But an educated woman cannot
be exploited easily. She i s aware of her rights and will go any length to defend them. Having
experienced problems herself, she understands the difficulties faced by other women. She is
therefore more sympathetic to their cause. Women have a much lower literacy rate than men.
Far f ewer girls are enrolled in the schools, and many of them drop out. Conservative cultural
attitudes prevent some girls from attending school.
RURAL EDUCATION
India is a vast country with a large population of about 65 crores. About 90 per cent of the
peopl e live in villages. They are engaged in agriculture or small cottage industries, though
there has been rapid expansion of facilities for education in the urban areas, the rural areas
have remained neglected to a great extent. The main reason for such lopsi ded expansion has
been the attitude of our rulers. As in other matters, the urban vocal population has in this
matter as well been able to get the lion‟s share. Many Universities, Colleges and institutions
of higher learning have been established in big ur ban centers and cosmopolitan cities. The
villages and small towns have had to be contented with primary, middle and high schools,
with certain exceptions of Intermediate Colleges and a few degree Colleges.
Education in rural India is plagued by many probl ems. Poor infrastructure, access difficulties,
lack of financial support and poor quality of educators are a few of the most pressing of
problems. The state and central government is trying to tackle these issues by pumping
almost INR 310 billion (approx. USD 5.7 billion) into improving school infrastructure and
recruiting teachers. There is also the Right to Education act enshrining the rights of all
children to free and compulsory education. Quality mid -day meals are also attracting students
and giving th em the fuel they need for learning. These and other initiatives have over the past
four years led to the increased enrollment and attendance levels in schools. The big
question, however, is whether enrollment and attendance is the right barometer for eva luating

International Journal of Multidisciplinary Approach
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the progress of rural Indian education. In the mad search for numbers, has quality been
ignored?
Are They Learning?
The Poverty Effect : Secondly, families in rural India struggle to make ends meet. Their low
income is hardly enough to cover dail y supplies of food and shelter let alone education.
Children are needed to work in fields, which eventually mean that they drop out of school,
usually after their primary education. Also, more children in the age group of 5 -14, whose
parents are not educat ed, seem to be opting to go for work instead of staying in school
(UNICEF report 2011). Clearly financial stability and awareness of the opportunities
provided via a good education are big factor in ensuring continued education in these
families.
The oppor tunities for improving rural education are endless. Governments must do their part,
but NGOs and private -sector companies will play a vital part as well.
SWOT ANALYSIS
Strengths:
 Huge demand – estimated 150 mn population in 18 -23 age group
 Growing middle class with increasing incomes
 Growing economy with numerous employment opportunities
 Huge demand for Indian students in overseas markets
 Growing broadband market leading to increase in distance education opportunities

Weaknesses:

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 Lack of infrastructure
 Shortage of trained faculty to meet the increased demand
 Highly complex and unclear regulatory framework at Central and State level
 “Not for profit” tag in formal education
Opportunities:
 Unsaturated demand for quality global education
 Low GER of 15% in Hig her education as compared to 84% in USA
 Sharp decline in dependency ratio predicted in the next 30 years
 Increasing night schools from current figure of 210 night schools in Maharashtra
which will provide increased income to faculty.
 Opportunity for establ ishing blind schools so that people who are blind, and are
keenly interested in education, will get the prospect to be educated.
Threats:
 High time lag in introduction of reforms due to various reasons
 Deterioration in quality of education specially in pri vate sector due to lack of
availability of trained faculty
 Over regulation – Control over course curriculum, entrance tests, fees et c

RECOMMENDATIONS
1. Primary educations that pass all the students studying in Standard I to VIII st andar d without
any efforts need to be regulated.
2. There should be more flexibility in disbursal of funds by the government.
3. The monitoring of private schools, in terms of ensuring a transparent admissions process,
regulation of fee structures, as well as meeting minimum set standard s for quality of
teaching and infrastructure, also requires attention. The possibility of greater exchange
between schools, including mentoring of one school by another, should be allowed and
encouraged
4. School education must be made more relevant to the li ves of children. There is need to
move away from rote -learning to understanding concepts, developing good comprehension
and communication skills and learning how to access knowledge independently. This also

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requires substantial changes in the examination s ystem, especially at Board level but also
earlier.
5. Proficiency in English is widely perceived as an important avenue for employment and
upward mobility, which also greatly facilitates the pursuit of higher education. The
incorporation of English into the curriculum through the teaching of English as a langu age
in class and teaching of one other subject in English medium in later classes requires
making pedagogical changes to contextualize language learning, increasing the availability
of English language teachers and providing more bilingual and supplementar y teaching
materials.
6. There are two aspects to ensuring the universalization of early schooling and pre -school
education. Fi rst is the systematic extension of balwadis with trained staff to handle child
pedagogy. The second is the provision for one year of pre-schooling in all institutions of
elementary education. Both of these have implications for resource allocation and
recruitment of the requisite staff.
7. The content of the syllabus should be updated regularly with the changing world.
CONCLUSION :
It is t o conclude that what needs to be kept in mind that education helps mitigate the impact
of global crisis such as climate change, food crisis and financial crisis. Education for
sustainable management is a key to sustainable globalization. Education thus inc reases the
likelihood that we may succeed in the long term which is known from the fact:
“Intelligence plus character -that is the goal of true education.”

Prime Minister Manmohan Singh stressed on the need to impart skills and world class
education to the youth for a faster economic growth of the country stating,

"To fulfill the demands of our fast growing economy, we have to make our youths educated
and skilled. The hard fact is that without proper skilled manpower, we cannot sustain the fast
pace of economic growth for long."

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REFERENCES
i. WEBLIOGRAPHY
 www.indianhighereducation.org
 www.gvctesangaria.org/websiteimg/publications/jdarticle
 –
 www.indianetzone.com › Reference › Education
 www. indiaeducation .net/alternative -education /online
 www.technofunc.com
 www.ibef.org
 http://www.deloitte.com/view/en_IN/in/insights -ideas/india –
thoughtware/cb6d5265115ea310VgnVCM3000003456f70aRCRD.htm
ii. Books
 Experience and Education
By John Dewey
 Envisioning the future
By Pawan Agarwal

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