Importance of Fund investment by FDI in Indian Education Sector
The demographic advantage of the large population of Indian youth paired with low gross enrolment ratios (GERs) offers a big opportunity to the players in the education sector. FDI in education sector of India is encouraged by the government to improve the learning quality in the nation.
The education sector of India is at an important stage in its growth phase. The country has the third largest education system worldwide, after China and the US, with one million schools and over 20,000 educational institutes providing higher education.
There is the prevalence of a huge gap in supply-demand in the education system of India. A lot of private players are attracted to invest in education and institutes offering training with the objective of creating an employable candidate by training them in suitable courses.
Explore the Significance of FDI in the Education Division
It is increasingly tough for the Indian education system to cope with the rising demands of the market and competition from educational institutions worldwide because of low investments. It is crucial to have increased FDI in education sector to improve the infrastructure.
Ample opportunities are provided by the sector for increasing the capital due to the lack of good quality infrastructure regarding education in the country, with investors having the chance to create it.
It is extremely beneficial for private players to invest in the education sector of India. Numerous government initiatives are being adopted to boost the growth of the market of distance education, apart from focusing on new education techniques like E-learning and M-learning.
In recent years, there have been a vast number of reforms, and improved financial outlays that have the ability to transform the country into a haven of knowledge. With human resources gaining importance regarding the overall development of the country, the development of educational infrastructure is expected to be the major focus in the present decade.
In this scenario, investment in the infrastructure of the education system is likely to witness a significant increase in the present decade.
The Government of India has taken numerous steps that include the opening of IITs and IIMs in new locations, along with allocating educational grants for research scholars in a majority of government institutions.
With the rising population of the average Indian household, more capital is being saved for the purpose of education. Also, due to governmental initiatives, an increasing number of students are enrolling themselves in higher education.
With the expansion of primary education, a lot of foreign schools are making their presence felt in the country. Kids are being enrolled by their parents into international schools to avail of quality education right from the primary level.
Courses that are technology-oriented are rising in popularity due to the increasing demands in this industry. Revamp in the medical industry is also taking place.
The requirement for more skilled professionals and doctors is increasing in this area. Hence, engineering and medical colleges are going to stay in demand for the upcoming years.
As several Indians are migrating abroad for quality education, the market of foreign universities is a lot prevalent in India. 100% FDI is permitted in this area as long as the rules and regulations are being met. Therefore, FDI in education sector provides a variety of benefits and is turning into a favorable investment area.
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