How education technology startups are easing India’s job crisis

Published: October 11, 2019 3:40:31 PM

This stream of startups has not only been instrumental in envisaging for a societal transformation which has depend the roots and reach of education across India but has also played a pivotal role in terms of contribution to the economy.

The government has very closely worked along with the startup industry in order to boost and promote this ecosystem in India.

By Persainjit Singh, CEO, extraclass.com

Startups have emerged as the growth engines of this country. Young Indian minds are now absorbed in taking up the challenge of entrepreneurship. Growth of startups in India has been fueled by favorable government policies and is backed by venture capitalists who have poured their resources in the Indian market.

By 2020, India is projected to have the world’s largest tertiary age population and second largest graduate talent pipeline globally. The spirit of innovation along with emphasis on skill-based development has been primary objective of the government led by Hon’ble Prime Minister Narendra Modi. This vision of the Prime minister has paved the way for development of India and strengthening of its economy.

With 31 unicorns (start-ups with a billion-dollar-plus valuation), India is said to be the third-largest start-up ecosystem. In the last 5 years, India has seen the rise of about 40,000 startups from January 2014 to September 2018 alone. The government has very closely worked along with the startup industry in order to boost and promote this ecosystem in India.

The Start-up India scheme has played a significant role in channelling the entrepreneurial spirit of India’s innovators and has penetrated Tier 2 and 3 markets as well. With plenty of initiative from the central and state governments, start-ups and early-stage businesses have been given every encouragement and incentive to grow and innovate.

These startups have also started contributing in the economic prosperity of India by accelerating the process of job creation, increase in GDP and wealth creation.

One such promising paradigm of the startup ecosystem is the EdTech or Education Technology. India today has more than 4000 EdTech Startups.

It’s true that education transforms lives but the fundamental question today is, what is transforming education? The existing education system is broadly divided into formal and informal systems which are both multilayered and dynamic. The objective of EdTech startups is to supplement or replace traditional education methods for both students as well as teachers. Further, technologies like AR, VR, Blockchains and STEM (Science, Technology, Engineering and Mathematics) Labs have found acceptance among parents and teachers. This change can be seen in private collaborations of this startups with schools for stimulating and promoting smart learning, focused startups on easing admission process both locally as well globally and dedicated EdTech startups which are offering certified online courses.

Mobility Revolution has played a significant role in the growth of EdTech Startups which have transformed this Indian education system with this help of technology and innovation. This industry has further gain impetus by a boom in funding activities especially from 2015 onwards. The median deal size has also been on a rise. As per Indian Tech Startup Funding Report 2018 by Inc42, EdTech Startups received close to 700 million in funding across 56 deals. This success is a testimony of how efficient and flourishing is the model of “Ease of Doing Business in India”.

This stream of startups has not only been instrumental in envisaging for a societal transformation which has depend the roots and reach of education across India but has also played a pivotal role in terms of contribution to the economy.

Investments both by public as well as private investors have been vital in this regard. However, the most significant aspect has been the boom in skill-based job creation across the sector which has accelerated and backlogged the skills of talent driven youth of the country. The EdTech startup ecosystem has much more significance in terms of job creation because it is not only employing over a million employees directly but has enabled employment to millions by indirect/informal employment. This has given the platform and opportunity to even those who are located in remote locations.

As this sector flourishes, the economy will further strengthen by accelerated job creation which is also the utmost priority for the government as well as the policy makers in India.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.