The Indian EdTech sector received $16.1 billion in venture capital funding, a 32X increase from the $500 million it received in 2010. The K-12 segment, higher education, and upskilling categories are significantly responsible for this industry’s growth.
According to management consultancy and market research firm Redseer, the online higher education and lifelong learning market within India’s edtech space is expected to surpass $5 billion by 2025, supported by the relaxation of laws regulating degrees.
With government’s initiative to allow colleges to run degree courses online asking with an evolving NEP policy, higher education and lifelong learning is seeing massive acceptance and growth.
More students and working professionals are realizing the value of higher education, which is fueling the sector’s expansion along with the switch to the credit system. This sub-segment has a promising future, making it a fascinating market to watch.
Edtech Start-ups Are Helping India’s Workforce Upskill & Become Future-Ready
Professional skill-imparting start-ups have had phenomenal growth, and this growth will continue for a number of reasons.
Addressing the Employment Crisis
With a median age of only 28.4 years and a sizable population between the ages of 18 and 35, India, one of the world’s youngest countries (in terms of population), offers a wealth of potential for growth for the economy as a whole. There is a talent gap in the country despite the increasing number of young workers; according to a survey, just one in four management professionals, one in five engineers, and one in ten graduates are employable.
Making young people more employable is the main problem that is addressed by edtech businesses that provide skill-building courses. No other industry has this particular competitive advantage. Due to the high demand for these services and the dearth of suitable substitutes, such firms have a very promising future. The online courses are also customizable and accessible, so anyone can take them from a location of their choice.
Providing training for vocational and skills development
With only 7% of Indian males obtaining vocational and skill development coaching in the nation’s urban areas in FY20 (the number was only 3.1% in the country’s rural parts), the proportion of the employable population receiving such training is quite low. According to the Economic Survey of India, female recipients’ circumstances are much worse.
As a result, there is a stark gap between the supply and demand for skills, which can be addressed by startups that provide a wide variety of courses that are especially suited to the requirements of the young, employable workforce. As the nation’s economy continues to grow, so will the demand for these courses.
Tech-based professional skills
To deliver the highest levels of knowledge and education, edtech businesses employ cutting-edge, technologically driven methods. Learning is thus simpler and quicker for professionals in numerous areas and businesses. The platforms give students a lot of options because they offer a combination of live lessons and pre-recorded lectures.
Juggling work and learning new things is doable for those who desire to gain new abilities. For instance, these platforms make it easier to give advanced data and development courses like those in machine learning, data science, web programming, and Android, among other topics.
To conclude
According to industry estimates, the Indian higher education system consists of around 35,500 colleges and about 700 universities. Over 85% of these students are enrolled in bachelor’s degree programs, while over 16% of all students in India are engaged in engineering or technology degree programs. More than 70% of Indians are either illiterate or poorly educated, and the Right to Education Act has not done anything to change that.
On this front, online and digital-based learning have the full potential to overcome the barriers to access and equity. Edtech can play the role of enabler to narrow down the social gap between education and learners and thereby help the government and society.
Disclaimer
Views expressed above are the author’s own.
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