The Representative

India's Youth News Tank

Educational institutions transportation account for 0.6% of India’s GDP

2 min read
school transportation

India has the world’s largest population of about 500 million in the age bracket of 5-24 years, which provides a great opportunity for the education sector. The education sector in India was estimated at $91.7 billion in FY18 and is expected to reach $101.1 billion in FY19. The number of colleges and universities in India reached 39,931 and 993, respectively, in FY19. India had 37.4 million students enrolled in higher education in FY19. Gross Enrolment Ratio in higher education reached 26.3% in FY19.

Economy –
India: $2.8 Trillion (studying online)
China: $14 Trillion (~4x) (schools open)

Fact, “amount of dollars” spent on preparing for “competitive exams & entrance tests” is more than ~7x higher in India than China & is growing fastest in the world – Rajan Anandan, MD Sequoia Capital.

So? A tsunami of VC money in Indian edtech post-COVID hit & huge user growth But, “Transport to education institutions” is a ~1.2 Lakh Crore market! – Credit Suisse. Around 33 Crore students just “traveling” to schools & colleges, is ~0.6% of #India’s GDP!

Online classes on Zoom wiped out the unorganised sector, impacting series of people employed in a chain – buses, diesel usage, fast food & relative student purchases. 2nd largest market for e-learning after the US & has the world’s highest-valued tech – BYJU’S, & Unacademy recently joining the unicorn list. PE & VC funding was $500M as of 2019 & is set to touch ~4x of that in 2020

In May 2020, a new mobile app called ‘National Test Abhyas’ was launched to enable candidates to take mock tests for upcoming exams such as JEE Main and NEET under NTA’s purview. In May 2020, Class plus, a business-to-business (B2B) EdTech start-up, raised US$ 9 million in Series A funding round led by early-stage tech investor RTP Global. Whilst India plans major reforms, #China already started schools & colleges with >200M students back to benches, even in Wuhan!

Do you think Indian edtech ecosystem can compensate for cycle of economic losses of our traditional education sector?

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