Advantage India
Robust
Demand
*India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector.
*India has over 250 million school going students, more than any other country.
*India K-12 segment growth was valued at US$ 48.9 billion in 2023. It is, currently, estimated to grow at a rate of 10.7%. Projected to reach an impressive US$ 125.8 billion by FY32.
Competitive
Advantage
*In the QS World University Rankings: Asia 2025, India stands out with two universities in the top 50 and seven in the top 100, led by the Indian Institute of Technology Delhi (IITD) at 44th place.
*54 Indian institutes, including the Indian Institute of Science (IISc) Bengaluru and eight IITs got featured among the top 500 universities in the QS World University Rankings CY26.
Policy
Support
*100% FDI (automatic route) is allowed in the education sector in India.
*The Government of India has taken initiatives like National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill.
Increasing
Investments
*The education market in India is expected to amount to US$ 313 billion by FY30.
*From April 2000-March 2025, Foreign Direct Investment (FDI) equity inflow in the education sector stood at Rs. 72,210 crore (US$ 9.98 billion).
*The edtech space has attracted private equity and venture capital investments of over Rs. 1,23,883 crore (US$ 14.4 billion) over the last decade from 2015 to 2025.
*The Union Budget FY26 allocates Rs. 500 crore (US$ 57.57 million) for a Centre of Excellence in AI for Education, aiming to enhance skills, personalize learning, and transform education.
Introduction
India has the largest population in the world in the age bracket of 5-24 years, with nearly 580 million people, offering immense opportunities for the education sector. The country holds a prominent position globally, with one of the largest networks of higher education institutions, comprising over 52,000 colleges and 1,300 universities as of FY26 (as of August 2025). Despite this vast base, there remains considerable scope for expansion and qualitative improvement in the system.
In recent years, growing awareness and aspirations have led private players to collaborate with international brands to bring global standards of education to India. Private investments have surged, supporting the rising demand for specialised, industry-focused degrees and online programmes tailored to consumer needs. The Indian edtech market, already valued at US$ 7.5 billion, is projected to grow nearly fourfold by 2030, highlighting the sector’s rapid digital shift.
With the adoption of transformative technologies such as AI, ML, IoT, and blockchain, India’s education sector is steadily redefining itself. The Education 4.0 revolution, which emphasises inclusive learning and employability, is already underway. Government
initiatives like the National Education Policy (NEP), now in phased implementation since FY22, are set to further reshape the system with a strong focus on high-quality vocational and skills-based education, preparing India’s youth for the demands of a dynamic global economy.
Market Size
The education market in India is expanding at a rapid pace, projected to reach US$ 313 billion by FY30, up from US$ 117 billion in FY23. Within this, higher education alone was valued at Rs. 5,75,000 crore (US$ 68.06 billion) in 2024 and is expected to nearly double to Rs. 11,60,000 crore (US$ 134.84 billion) by 2033, growing at a CAGR of 8.1%, according to IMARC Group. The K-12 segment, valued at US$ 48.9 billion in 2023, is also on a high-growth trajectory and is estimated to reach US$ 125.8 billion by 2032 at a CAGR of 10.7%.
Edtech has emerged as a critical growth driver within the sector. The Indian edtech market, currently valued at Rs. 64,875 crore (US$ 7.5 billion) is projected to reach Rs. 2,50,850 crore (US$ 29-30 billion) by 2030-31, supported by rising digital adoption and demand for flexible learning models. India has also become the second largest e-learning market after the US, with the online education segment alone expected to grow by US$ 2.28 billion during 2021-2025 at a CAGR of nearly 20%.
India’s vast student population underscores the size of this opportunity. With over 250 million school-going children, the country has the largest base of students globally. The network of institutions continues to expand, with the number of colleges rising from 42,343 in FY20 to 52,321 in FY26 (as of August 11, 2025), and universities increasing from 760 in FY15 to 1,355 in FY26 (as of August 11, 2025). As of FY25, more than half of both universities (51.8%) and colleges (54.3%) are located in rural areas, reflecting deeper penetration of higher education.
In FY26 (as of August 2025), India also had 8,439 AICTE-approved institutes, including 3,100 undergraduate, 4,428 postgraduate, and 4,039 diploma institutions.
Despite these achievements, challenges remain in terms of quality and teacher availability. According to UNESCO’s State of the Education Report for India 2021, the pupil-teacher ratio at the senior secondary level was 47:1, much higher than the overall school system average of 26:1. Nonetheless, India is beginning to gain global recognition, with two universities ranking in the top 50 and seven in the top 100 in the QS World University Rankings: Asia 2025, led by IIT Delhi at 44th place.
Investments/ Recent Developments
From April 2000-March 2025, Foreign Direct Investment (FDI) equity inflow in the education sector stood at Rs. 72,210 crore (US$ 9.98 billion).
The education and training sector in India has witnessed some major investments and developments in the recent past. Some of them are:
- Coursera is expanding GenAI skills in India through partnerships with 18 leading universities, including IITs, IIMs, and BITS Pilani, along with Fractal Analytics for industry-focused courses, while its AI tool Coach enhances course completion rates, especially among women and learners from weaker academic backgrounds, recording a 107% YoY rise in generative AI course enrolments to 2.6 million, the highest globally, driven by increased upskilling demand following the COVID-19 pandemic, as of August 2025.
- In May 2025, Oracle, in collaboration with Andhra Pradesh State Skill Development Corporation, began digitally training 400,000 students in emerging technologies including Oracle Cloud, AI, Data Science, DevOps, and Security through over 300 hours of structured learning on Oracle MyLearn. The programme provides certifications and skill badges to enhance employability and prepare youth for future technology roles.
- In March 2025, IIT Guwahati is developing “Gyandhara,” India’s first VR-enabled metaverse platform, to teach maths and science in local languages at PM Shri schools, starting with a pilot in 56 schools in Assam later this year.
- The Indian Institute of Foreign Trade (IIFT) opened its first overseas campus in Dubai, advancing India’s higher education globalisation under NEP 2020 and serving global learners and the Indian community abroad.
- In January 2025, CL Educate Limited acquired the Digital Exam Assessment (DEX) business of NSEIT Limited for Rs. 230 crore (US$ 26.6 million) upfront with an additional Rs. 75 crore (US$ 8.7 million) earn-out, entering India’s Rs. 7,000 crore (US$ 809.5 million) assessments market.
- In October 2024, executive education startup Eruditus raised Rs. 1,267 crore (US$ 150 million) led by TPG Rise at Rs. 27,037 crore (US$ 3.2 billion) valuation, with participation from SoftBank and others, plans to shift domicile to India ahead of a likely IPO in two years.
- In September 2024, PhysicsWallah raised 1,774 crore (US$ 210 million) from Hornbill Capital and Lightspeed at a Rs. 23,657 crore (US$ 2.8 billion) valuation to expand operations, with SEBI having approved its IPO in July 2025.
- Imarticus Learning has announced a partnership with PwC Academy in India to provide digital-savvy professionals with expertise in Generative AI (GenAI), as stated in a recent announcement in Feb 2025.
- In August 2025, Going Global Partnerships launched UK-India Industry-Academia TNE Grants 2025-26, offering up to US$ 23,294 for projects starting September 30, 2025, to foster UK-India education and industry collaboration.
- India has 54 universities in the QS World University Rankings 2026, making it the fourth most represented country. The Indian Institute of Technology (IIT) Delhi is the highest ranked at 123, and eight Indian institutions entered the rankings for the first time, the highest number of new entrants from any country this year.
- The Union Budget 2024 introduces a significant financial support program offering loans up to Rs. 10 lakh (US$ 11,943.31) for higher education in Indian institutions. This includes e-vouchers for one lakh students each year and a 3% reduction in interest rates on these loans.
- Edtech startup ConveGenius has raised US$ 7 million, led by UBS Optimus Foundation.
- Digital channels now drive 62% of student enrolments in India, with AI-based insights showing Google as the top paid source, highlighting institutions' growing reliance on online marketing.
- The National Education Policy (NEP) 2020 has been a cornerstone in driving comprehensive reforms in higher education, with the overarching goal of increasing the gross enrolment ratio (GER) to 50% by 2035.
- A total of 105 Indian institutions were included in the list of the Times Higher Education World University Rankings 2025, up from 91 in CY24.
- India along with UK rank third for the most numbers of universities in Times Higher Education University Rankings CY25.
- Under the Interim Budget 2024-25, the Department of School Education & Literacy's budget allocation for FY25 is Rs. 73,498 crores (US$ 8.82 billion), the highest amount ever.
- In February 2025, UpGrad secured an additional Rs. 521.10 crore (US$ 60 million) from Temasek, maintaining its valuation at Rs. 19,541 crore (US$ 2.25 billion). This funding round also included a secondary transaction where Ronnie Screwvala, UpGrad's founder and chairman, bought out Bharti Enterprises' stake for Rs. 173.70 crore (US$ 20 million).
- In December 2023, UNICEF, and its global partnerships platform Generation Unlimited (also known as YuWaah in India) partnered with key organisations committed to working towards a green future for children and young people as a part of the Green Rising India Alliance.
- Prime Minister Mr. Narendra Modi, in July 2023, laid the foundation stone for three new buildings at Delhi University — the faculty of technology, a computer centre, and an academic block.
- In September 2023, the government launched the Skill India Digital (SID) platform to make skill development more innovative, accessible, and personalised with a focus on digital technology and Industry 4.0 skills.
- In September 2023, a three-year partnership called "Education to Entrepreneurship: Empowering a Generation of Students, Educators, and Entrepreneurs" was launched by the Ministry of Education and the Ministry of Skill Development and Entrepreneurship, and Meta in New Delhi.
- In August 2023, Union Minister of Education Mr. Dharmendra Pradhan unveiled the National Curriculum Framework for School Education (NCF), which has been developed based on the National Education Policy (NEP), 2020 vision. As per that, in order to guarantee that students have adequate time and opportunity to perform successfully, board exams will be offered at least twice a year.
- In August 2023, Amazon India launched the third edition of Machine Learning (ML) Summer School. This program aims to provide students with the opportunity to learn key ML technologies from Scientists at Amazon.
Government Initiatives
Some of the other major initiatives taken by the Government are:
- The Government of India’s Rs. 60,000 crore (US$ 7.02 billion) ITI modernisation scheme will upgrade 1,000 institutes in partnership with leading corporates and train two million youth in five years. The programme will align training with industry needs, overseen by a National Steering Committee and supported by global lenders.
- In July 2025, the Ministry of Minority Affairs launched the Pradhan Mantri Virasat Ka Samvardhan (PM VIKAS) scheme to empower minority communities through skill development, entrepreneurship, women’s leadership training, education, and cultural heritage promotion.
- In May 2025, the Union Cabinet has approved a Rs. 11,829 crore (US$ 1.38 billion) expansion of five IITs, adding 6,576 seats, 130 faculty posts, and research parks by FY29 to boost capacity, industry collaboration, and innovation.
- PM SHRI School, a centrally sponsored scheme, aims to develop over 14,500 schools with safe, inclusive environments, quality infrastructure, and diverse learning experiences, seeks to nurture students as engaged, productive citizens aligned with the vision of the National Education Policy (NEP) 2020.
- India marked 10 years of Skill India with Skilling for AI Readiness (SOAR), an AI skilling programme for Classes 6-12 and educators, backed by MoUs with leading institutions to boost future-ready education.
- The Government of India is upgrading 1,000 Industrial Training Institutes (ITIs) under a Rs. 60,000 crore (US$ 6.94 billion) scheme, with hubs, Centres of Excellence, and industry partnerships to train two million youth and boost employability.
- Union Minister for Education, Mr. Dharmendra Pradhan, announced the establishment of three AI Centres of Excellence (CoE) in New Delhi, focusing on Healthcare, Agriculture, and Sustainable Cities. These CoEs, aimed at realizing the vision of "Viksit Bharat," will be led by leading educational institutions in collaboration with industry partners and startups.
- The Union Cabinet, led by Prime Minister Mr. Narendra Modi, has approved the PM Vidyalaxmi scheme, aimed at providing financial support to meritorious students to ensure that financial constraints do not hinder their pursuit of higher education. This initiative aligns with the recommendations of the National Education Policy, 2020.
- According to the Union Budget 2025-26:
- The government allocated Rs. 78,572 crore (US$ 8.99 billion) for the Department of School Education and Literacy in FY26, an increase of 16.28% compared with the revised Union Budget 2024-25.
- The government has allocated 50,077.95 crore (US$ 5.73 billion) to Department of Higher Education in FY26 an increase of 5.16% from previous year.
- Allocation towards the Samagra Shiksha Scheme increased to Rs. 3,750 crore (US$ 429.11 million) in FY26.
- The Union Budget 2025-26 allocates Rs. 500 crore (US$ 57.57 million) for a Centre of Excellence in AI for Education, aiming to enhance skills, personalize learning, and transform education.
- The Union Cabinet approved the continuation and restructuring of the Skill India Programme till 2026 with an outlay of Rs. 8,800 crore (US$ 1.01 billion) to enhance industry-aligned, tech-driven training nationwide.
- In March 2024, Union Minister of Education and Skill Development & Entrepreneurship launched various initiatives namely, District Institutes of Education and Training (DIETS) of Excellence and National Mission for Mentoring. This program is to strengthen teacher training.
- Financial assistance, totalling to US$ 1.08 billion (Rs 9,000 crores) will be delivered to States/UTs for upgradation of all DIETs to develop them as DIET of Excellence in the country in a phased manner in the next five years.
- In May 2024, Department of Higher Education, Ministry of Education, launched the ‘Capacity Building on Design and Entrepreneurship (CBDE)’ program. This program target to build a problem-solving approach that encourages creative and innovative solutions in students.
- In August 2023, Union Minister for Education and Skill Development & Entrepreneurship, Mr. Dharmendra Pradhan the National Curriculum Framework for School Education (NCF-SE), marking an important and transformative step towards the implementation of the National Education Policy 2020. The development of the NCF-SE was guided by a vision to align education with the demands of the 21st century and the ethos of the Indian knowledge system.
- 100% FDI under automatic route is allowed in the Indian education sector.
- To liberalise the sector, the Government has taken initiatives such as the National Accreditation Regulatory Authority Bill for Higher Education and the Foreign Educational Institutions Bill.
- As part of a comprehensive initiative known as PM eVIDYA, the Department of School Education and the Ministry of Education were recognised by UNESCO for their use of information and communication technology (ICT) during the COVID-19 pandemic.
- The Department of School Education and Literacy (DoSE&L), Ministry of Education, has planned to solicit opinions from various stakeholders through an online public consultation survey. This will be helpful in gathering especially useful and important inputs for the formulation of the National Curriculum Framework.
- The government schemes of Revitalising Infrastructure and System in Education (RISE) and Education Quality Upgradation and Inclusion Programme (EQUIP) are helping the government tackle the prominent challenges faced by the education sector.
- Under the Interim Budget 2024-25, the Department of School Education & Literacy's budget allocation for FY24-25 is Rs. 73,498 crores (US$ 8.82 billion), the highest amount ever.
- In February 2022, the Ministry of Education approved the scheme of Rashtriya Uchchatar Shiksha Abhiyan (RUSA) to continue till 2026.
- The National Education Policy (NEP) 2020 emphasis on early childhood care and education. The 10+2 structure of school curricula is to be replaced by a 5+3+3+4 curricular structure corresponding to ages 3-8, 8-11, 11-14, and 14-18 years, respectively.
- The Cabinet accepted the continuance of the Samagra Shiksha School Education Scheme in 2021 from April 1, 2021-March 31, 2026.
Road Ahead
In 2030, it is estimated that India’s higher education will:
- Combine training methods that involve online learning and games, and it is expected to grow by 38% in the next 2-4 years.
- Adopt transformative and innovative approaches in higher education.
- Have an augmented Gross Enrolment Ratio (GER) of 50%.
- Reduce state-wise, gender-based and social disparity in GER to 5%.
- Emerge as the single largest provider of global talent with one in four graduates in the world being a product of the Indian higher education system.
- Be among the top five countries in the world in terms of research output with an annual R&D spend of US$ 140 billion.
- Have more than 20 universities among the global top 200 universities.
Various government initiatives are being adopted to boost the growth of the distance education market, besides focusing on new education techniques such as E-learning and M-learning.
The Government of India has taken several steps including opening of IITs and IIMs in new locations, as well as allocating educational grants for research scholars in most government institutions. Furthermore, with the online mode of education increasingly being used by several educational organisations, the higher education sector in India is set for major change and development in the years to come.
Note:The conversion rate used for July 2025 is Rs. 1 = US$ 0.012
References: Media Reports, Press Releases, Press Information Bureau, RNCOS Report, Department for Promotion of Industry, and Internal Trade (DPIIT), Union Budget 2023-24, 24-25, 25-26
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