India to become a globally prominent education hub

India, throughout its rich history, has been home to some of the world's most ancient and prestigious educational institutions.

Today, India boasts of one of the largest education systems with about 1.49 Mn schools, 9.5 Mn teachers, and nearly 265 Mn students. Being the world’s most populous nation, India boasts a remarkable demographic advantage with a substantial youth population. Nearly one out of every four individuals falls between the ages of 15 and 29, fuelling the demand for a highly skilled and capable workforce across a wide range of industries and sectors.  

The government's implementation of the National Education Policy, 2020, marks a groundbreaking step towards reforming the Indian education system. The NEP focuses on curricular changes to build strong foundational skills with primary focus on holistic development of students. Further, it envisions making India a preferred destination for higher education and thus, promotes internationalization by fostering collaborations and exchange programs between Indian and foreign institutions. 

The education sector in India was estimated to be worth $117 Bn and is expected to reach $313 Bn by FY30. 

100% FDI (automatic route) is allowed in the education sector in India. Soon, foreign universities and higher education institutions may be allowed to set up physical campuses in India.  

India has also embraced the Education 4.0 revolution, which promotes inclusive learning and increased employability and includes cutting-edge technologies such as AI, ML, IoT and blockchain.

  • %

    of GDP India’s public spending on Education in 2021-22

  • AICTE approved technical institutes in India in 2021-22

  • $ Bn

    Upraised across 100 deals in 2020

Indian Education System is one of the largest in the world with more than 1.5 mn schools, 8.5 mn teachers and 250 mn students 

2nd largest education system in the world. 

3rd in Higher Education System in terms of students. 

Industry Scenario

India has become the second largest market for e-learning after US


  • Pre-Schooling 
    • With 25 mn children born every year, India’s Pre-school market is expected to grow by $ 735 mn at 8% CAGR between 2012-25.
  • K12 Education
    • India is making significant progress with its 1.46 mn schools and 230 mn students participating in modern K-12 education. 
    • The number of private schools in the country has increased from 325,760 in 2018-19 to 340,753 in 2020-21. There are approximately 90 mn Indian children going to private schools. 
  • University Education 
    • India has one of the largest networks of higher education systems in the world, 45,000-degree colleges, over 1000 universities and around 1500 top institutes.
    • There are over 450 medical colleges and about 70,000 doctors graduate from India every year. India has the second largest medical workforce in the world with over 1.3 mn doctors registered with medical council.
    • In 2020, 3,800 institutes participated in NIRF Rankings. As per the QS employability rankings 2022, the Indian Institute of Science (IISc), Bengaluru, six Indian Institutes of Technology (IITs), Delhi University, University of Mumbai, University of Calcutta, OP Jindal Global University, Sonepat and BITS Pilani were among the top 500 global universities. 
    • The number of Indian institutes registered for the NIRF ranking 2020 increased by 20 % as compared to 2019. 
    • A total of 71 Indian institutions have been qualified Times Higher Education World University Rankings 2022, up from 63 in 2020.
  • Professional Certification/ Vocational Learning 
    • There are around 10,000 professional colleges in India with 4200 engineering colleges, 600 medicals,1300 law and 1063 approved AICTE vocational colleges.
  • Ed- Tech
    • India is becoming Ed Tech capital of the world; out of 36 Ed-Tech unicorn companies 7 are Indian which are valued at $ 34.05 Bn in June 2022. 
    • The world's most-valued edtech company Think & Learn Pvt Ltd which runs education platform Byju's has also become the world's most expensive edtech company.


  • Demographic Advantage

    Huge market for education with over 580 Mn people in the age group of 5 to 24 years.​ 68% of India’s population is young and 55% of its population is in the age group of 20-59 (working population) in the year 2020 and is estimated to reach 56% of the total population by 2025.

  • Wide middle-class expansion

    By 2030, India will add 140 Mn middle-income and 21 Mn high-income households which will drive the demand and growth of Indian education space. ​

  • Large English-speaking population

    This allows easy delivery of educational products. India was ranked 52nd out of 111 countries in the English Proficiency Index 2022.

  • Strong Technology Infrastructure

    Technology infrastructure, with high-speed internet and widespread use of smartphones creates favourable environment for technology-driven educational solutions. India has 2nd largest Internet user market with 820+ Mn users.

  • Rising Gross Enrolment Ratio

    100% enrolment ratio at the Primary level, comparable to developed nations. The aim of NEP is to increase the Gross Enrolment Ratio in higher education including vocational education from (2018) to 50% by 2035.​

  • Policy initiatives

    Favourable Government policies like The National Education Policy (NEP) 2020, Sarva Shiksha Abhiyaan, Rashtriya Ucchatar Shiksha Abhiyan and programs to transform the Indian education system to meet the needs of the 21st Century.​

  • Improving Higher Education Ecosystem

    University Grants Commission of India (UGC) in April 2022, approved regulations for foreign collaboration to offer joint, dual, or twinning programs. It has also announced Draft Regulations 2023 to allow foreign universities to establish physical campuses in India.

  • IFSC GIFT City

    IFSC GIFT city allows the setting up of offshore centres for foreign universities in India.


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Asked Questions

What is the FDI policy in Education Sector?

100% FDI is allowed through automatic route in Education Sector. Under the Automatic Route, the foreign investor or Indian company does not require prior approval from Reserve Bank of India or Government of India.

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What does National Education Policy 2020 says about investment in the sector?

The Centre and the States will work together to increase the public investment in Education sector to reach 6% of GDP at the earliest with provide easy approval for private investment. 

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How has National Education Policy 2020 supported foreign investment?

Education Policy has envisioned setting up of Foreign University campuses in India and also collaboration with Indian Universities to provide Dual degree, Joint degrees and twinning programmes.

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What are the new regulations for offshore centres in GIFT CITY?

For the first time, foreign universities or educational institutions are allowed to establish offshore centres in GIFT City and offer courses such as financial management, FinTech and courses in Science, Technology, Engineering and Mathematics.

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What are the guidelines of UGC for foreign collaboration with home universities in India?

University Grant commission has framed guidelines for foreign collaboration with home universities to offer joint and dual degrees in India. 

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