A recent report by Anand Rathi Advisors Limited suggests that the Indian Higher Education market is expected to grow more than $180 billion by 2035 subject to the achievement of a Gross Enrollment Ratio (GER) of 50%. However, to meet this projected growth experts opined that the government needs to undertake initiatives toward attracting more students to universities and educational institutions. Consequently, there will be an increased demand for resources such as infrastructure, trained faculties, digital facilities, books, accommodation and more. “The projected growth may be contributed by the factors driving it such as awareness about the importance of education for better livelihoods is increasing, need and emphasis on skills development and growing demand of job requirements among youth. Additionally, post-elections, a new government may introduce new courses and programmes, fueling activity growth in the next two cycles,” Kamlesh Vyas, partner, Deloitte India, told FE Education, adding that the skill-based institutions and colleges will play a pivotal role, offering specialised skills and training to a substantial number of individuals seeking higher education. Institutes dedicated to specific skills, such as tool rooms or training centres established by entities like NSDC or other ministries, will also contribute to the evolving educational landscape.
The report further suggested that the number of enrollments is expected to increase to 70 million by 2030 to achieve the 50% GER target also resulting in a rise in per capita GDP. Moreover, the report suggested that India’s per capita GDP is expected to increase by more than 2x with the rise in GER from 31% in 2022 to 50% in 2035. However, experts opine that a higher number of students will be enrolled in private institutions compared to government institutions because of multiple reasons such as diversity of programmes and flexibility, quality and innovation in education. “The expansion of private institutions is rapidly responding to the growing demand for quality education, in contrast to the budgetary and bureaucratic constraints often faced by public institutions. Private institutions offer a diverse array of programmes, including specialised courses in emerging fields like Data Science and Artificial Intelligence. Their agility in curriculum development, aligning programmes with market demands and incorporating new-age skills makes them highly attractive to students aspiring for careers in these sought-after fields,” Nakul Basani, executive director-operations, Acharya Bangalore B-School, said.
Interestingly, for industry experts government institutions in rural areas will clock a higher enrollment.“The increase in enrollment sources, whether from government or private universities, is nuanced in India. Private universities are concentrated in urban areas, while rural and tier three or tier four areas have a mix of private and government institutions. Urban regions witness more private universities due to oversubscription, while semi-urban and rural areas lean towards government universities. An emerging factor is the introduction of foreign universities establishing campuses in India, shaping the educational landscape,” Vyas explained.
Moreover, the report highlighted that only two-three percent of institutions currently offer new-age courses. Experts opined that there are several factors behind the lack of offering new age courses including unavailability of sufficient infrastructure, funds, and trained faculties, among others.. “Institutional inertia and administrative processes restrict flexibility and creativity. Industry involvement and frequent updates are essential due to rapid technological advancements, posing challenges for traditional academic frameworks,” Akash Sharma, director – admission and outreach, Noida International University, said.
Furthermore, the report stated that there has been a substantial increase in the enrollment for reskilling and up-skilling courses, with the highest demand for IT courses, closely followed by business management. However, experts suggest that there is a need for customised training programmes and flexible curriculum development in already-existing institutions rather than opening new IITs and ITIs. “To support the development of smarter cities for India’s expanding population, a crucial emphasis on reskilling and upskilling in the construction industry is vital. Embracing modern technologies like Building Information Modelling (BIM) and Computational Design is key for advancing project efficiency. Educational institutions need to adapt by offering personalised, dynamic, and flexible learning opportunities. Collaboration with EdTech/upskilling platforms, ongoing curriculum updates, and feedback from stakeholders and learners will facilitate this transition,” Harkunwar Singh, co-founder and CEO, Novatr, said.