Indian Education Facts and Stats

Last Updated on 06/02/2022 by TheDigitalHacker

India has generated some of the most brilliant minds in the history of mankind. Scholars such as S. Ramanujan, Dr. Abdul Kalam, Dr. B.R Ambedkar have made significant contributions to the field of Mathematics, science, politics, etc. We’ve come far from the old Gurukul system of education and adopted a new style of education due to British colonization and inclination towards western culture. The following stats cover the present-day scenario of the Indian Education System and reveal some exciting insights.

Overview of Coaching Industry

1. Today, the tuition industry in our country is worth 25 thousand crores annually. And it has increased by 35 percent in the last 5 years.
2. Universal and compulsory education for all children in the age group of 6-14 was a cherished dream of the new government of the Republic of India.
3. The Uttar Pradesh (a state in India) Board of High School and Intermediate Education was the first Board set up in India in the year 1921
4. The share of the education sector in India was 91.7 Billion USD in 2018, which has risen to 117 Billion USD in 2020 and continues to expand.
5. The coaching industry alone contributes approximately 3.5 billion USD to this, which is huge considering there are various types of educational institutes in the country including schools, colleges etc.
6. Coaching institutions also enhance the conceptual learning of the students which is very crucial for their selection to prestigious institutes like IITs, AIIMS, or IIMs.
7. Coaching institution as an industry is witnessing massive expansion.
8. The total number of candidates appearing for IIT-JEE or NEET goes around 25 lakhs(2021), and most of the students who appear for these exams opt for coaching in some of the well-known coaching brands
9. These coaching classes are seen as the stepping stone for the students for the successful preparation of these entrance exams.
10. Lakhs of students happily struggle to cut down their living costs steeply to pay coaching institutes’ hefty fees.
11. The monthly payments of a good mentor are higher than a school teacher.
12. The mentors in coaching institutes are the best in their work, which is a benefactor in the growth of these institutes.
13. India has currently 250 million school-going students as per the IBEF report. This presents coaching industry as a huge market for growth.
14. India has a competitive advantage to its counterparts due to its large English-speaking population. This allows easy delivery of educational products for students to access.
15. Coaching Industry has always been proved to be armor in the education sector parallel to schools, colleges and universities.
16. The coaching industry in India due to the digital transformation has become online and now students have the opportunity to take coaching for different entrance exams by sitting at their homes.
17. The coaching sector is increasing and it can be found in virtually every part of the world. In the future, the coaching industry may take the place of offline classroom classes.
18. The digital form of coaching is a new era and if classroom coaching institutes don’t provide the option of online classes then it will soon go out of business.
19. In a country that has 1.5 million government and private schools, one thousand universities and more than 33 thousand playschools, one private coaching company has become so big that it has outpaced many other big companies.
20. According to a study, children in India start taking tuitions from the age of 4.
21. After 8th grade, children start taking tuition for different subjects.
22. The average monthly fee for teaching a subject in India is Rs 400. And in many cases it is more than 1 thousand rupees.
23. Indian parents first pay the school fees, then the tuition fees and in this way you spend 12 percent of your total earnings on the education of your children.
24. About 7 crore children take private tuition in our country (April 2021).
25. A child spends 9 hours a week taking tuition classes.
26. In India, 30 children should be taught in a class in schools but on average 60 children are taught.
27. West Bengal tops the state in India where children take the highest private tuition. 89 percent of students from classes 9 to 12 take tuition in the state.
28. The number of students who take tuition is 87 percent in Tripura, 67.2 percent in Bihar, 63.4 percent in Odisha and 54.7 percent in Manipur.
29. According to the Global Education Census, 70 percent of students in Japan, 83 percent in Malaysia and 92.8 percent in South Korea, also take the help from private tuition.
30. In September 2020, it was informed in the Lok Sabha that 17 percent of the posts of teachers are lying vacant in government schools in India. These numbers are 10 lakh 6 thousand.
31. If a student after the 12th class wants to prepare for the entrance examination of Medical or Engineering, then he has to spend about one and a half lakh rupees annually. And if he prepares for it by studying in a coaching center for two years, then his expenditure goes above Rs 3 lakh.
32. The reality is that today most people in our country have accepted tuition as the only solution to get a good education.
33. In FY 2019, the total revenue of BYJU’s was $194 million (Rs 1,440.9 crore), 18 percent higher than that of Aakash Institute ($165 million, or Rs 1,225.3 crore).
34. APRIL, MAY and June are the months when India’s coaching industry gets ready to welcome a new batch through its doors.
35. Every year, lakhs of students walk through them, fuelling the industry’s annual revenues to upwards of Rs 24,000 crore, the estimate in 2015 by a government-appointed committee, and its annual growth to double digits, as aspirations outpace seats.
36. A large many of them make their way to India’s coaching capital of Kota, the Rajasthan town whose economy revolves around its coaching institutes.
37. Coaching institutes have been reaching out to both the government and nervous parents reluctant to send wards to classrooms.
38. India accounts for over 29% of the population from the age group under 18 that goes to schools.
39. Over 86% of parents think that they are ill-equipped or lack time to teach their children on their own and here’s where coaching classes come in handy.
40. The statistics reveal that middle-class parents have been spending 1/3rd of their monthly on their wards’ private tuitions.

Growth Of Indian Coaching Institutes

1. As per the reports from IBEF India is the second-largest market for e-learning after the US.
2. The e-learning sector is expected to reach US$ 1.96 billion by the end of 2021 with around 9.5 million users.
3. While the coaching institutes are growing, their reach is limited only to bigger cities as of now.
4. In 2019, the total market size of education in India was estimated to be $101 Bn, which is a 10% growth compared to the previous financial year.
5. The prevalence of the internet and smartphones in the country has expanded the reach of quality education beyond the urban regions.
6. Education is among the top five fastest-growing commodities in terms of private consumer expenditure in India.
7. Indians prefer spending on education to healthcare and, as economic surveys of the country have shown, continue to spend more on education irrespective of the change in their income level.
8. Students will find recourse in coaching institutes to bridge the gap between classroom learning and preparation for entrance exams.
9. According to research agency CRISIL, preparing students for entrance tests is projected to become a Rs 70,200 crore business by 2021, growing at a CAGR of 13 percent.
10. Another global agency, Technavio, predicts that between 2018 and 2022, the education (coaching) market will grow at a CAGR of 16 percent.
11. The market size of coaching classes in India is expected to reach USD 500 million by 2022.
12. India is one of the fastest emerging markets in the world and has experienced significant growth in per capita income and educational standards.
13. The mentoring industry existing in India has had a record growth of almost 35% in the last five-six years.
14. At present, the size of the private coaching industry is $45 billion and is likely to touch $70 billion by 2027.
15. Kids relying on tuitions have increased by 100%.
16. Between 2006 to 2013, secondary school enrollments have also gone up by 92%.
17. With the increasing peer pressure, the majority of parents are forced to rely on private tuition in addition to attending classes in school.
18. According to ASSOCHAM’s survey, a whopping number of close to 87% of primary school children attend coaching classes.
19. And 95% of the higher secondary attend private coaching classes.
20. The compounded annual growth rate (FY12 TO FY16) of expenditure on education-related products was 6.3%, relatively higher than food and beverages (4.1%).
21. At the end of 2019, the total wireless internet subscribers in the country was 665 Mn, whereas the subscribers hailing from the rural regions stood at 248 Mn, a 2.7x surge compared to 2014.

Why do Students take Tuition?

1. Exam phobia is a major attributor for enrolling in coaching classes as it is seen as the most common solution amongst children who want to excel academically.
2. Even the best of the best students have room for improvement, keeping this thought in mind even school teachers sometimes recommend classes as they have little time for individual attention.
3. Signing up for tuition to score higher grades is also seen as a signal of high -intellect these days, it’s a matter of pride.

Charges in the Coaching Sector

1. Private mentors charge anything between INR 500 to INR 4,000 every hour for each student depending upon the cities and the subjects, which for multiple educational subjects costs between INR 1,000 to INR 6,000 every month to a student.
2. Thus, there is a very huge earning potential for private tutors.
3. The private tutors charge anything between Rs 1,000 and Rs 4,000 per hour per student on a one-to-one basis, while group tuition costs Rs 1,000 to Rs 6,000 per month.
4. The survey revealed an estimate of 78 percent of parents spend Rs 1,000 to 3,000/-per month on tuition for a primary ward and above Rs. 5000 for the tuition of a secondary-level child monthly.

NEP 2020 affect the coaching industry

1. The NEP will not have any negative impact on prep institutes as most students take coaching classes because school teachers don’t have much time to provide one-on-one training or problem-solving to all the students because of time constrain.
2. Coaching centers provide a broad range of educational services where students can have a better understanding and additional help in problem-solving, competitive learning, and preparation for various competitive exams.

Leading Coaching Institutes 

1. In the pre-2015 era, the traditional coaching centers such as FIITJEE, Akash Institute, Vajiram & Ravi along with others enjoyed the upper hand in capitalizing on the test preparation demand of the country.
2. In 2015 the total number of internet subscribers in the country was a mere 267 Mn out of which 34% (92 Mn) were rural.

Division of Coaching Centres Geographically

1. Most of these classes run in metros like New Delhi, Mumbai, Kolkata, Hyderabad, Bangalore, and Chennai for civil services, law, C.A. or medical coaching urban towns like Jaipur, Chandigarh and Kota for engineering, Pune for Designing or Management etc.
2. Geographically the Indian market is segmented on the basis of zones as South zone, North zone, Central zone East zone and West zone.
3. The South zone covers Karnataka, Tamil Nadu, Andhra Pradesh and Telangana and Kerala.
4. The west zone covers states such as Maharashtra and Goa, Rajasthan, and Gujarat.
5. The East Zone covers West Bengal, Orrisa, Bihar and others.
6. The North Zone covers states such as Punjab, Uttar Pradesh, Haryana, New Delhi and others.
7. The West Zone accounted for the largest market size followed by North Zone.
8. The greater part of these classes are running in metro cities like New Delhi, Mumbai, Kolkata, Hyderabad, Bangalore, and Chennai which are favoured for common administrations, law, and chartered accountant examinations.
9. Jaipur, Chandigarh, Kota, and Pune are favourable destinations for engineering and management exams.

Revenue Generation

1. Online test prep has dominated funding with over $1.4 Bn raised from 2014 to 2019
2. BYJU’s reported higher revenue than coaching institute Aakash in FY’19, indicating the raising importance of online coaching centres.
3. As highlighted in the economic survey of 2017-18, the income elasticity on education is lower (0.93) than healthcare (1.95).
4. Edtech startups have been at the forefront of this technology revolution in India — between 2014 and 2019, the total capital inflow across Indian edtech startups was $1.8 Bn, growing at a CAGR (2015 to 2019) of 47%.

Rare sides of Coaching Institutes

1. Between 2018 and 2019, BYJU’s ad spends surged 2.3x from $28.9 Mn to $65 Mn (2019).
2. Vedantu’s advertising expenditure witnessed a surge of 54% from $487K in 2018 to $748K in 2019.
3.  In the case of FIITJEE, the ad spend declined from $3.1 Mn in FY18 to $2.9 Mn in 2019
4. TIME cut down its ad spend from $11.9 Mn (FY18) to $9.1 Mn in FY19.
5. A study by DataLabs on the data provided by Stones2Milestones, an edtech startup that focusses on developing reading skills among Indian students, concluded that advanced reading skills of Indian students are decreasing as they move in higher standards.
6. In standard six, only 2.9% of the total participants displayed advanced reading skills compared to 12.5% in standard fourth.

Conclusion

In India, coaching institutes are becoming more prevalent due to the heavy bombarding of advertisements and endorsements through top academic performers. Basic education has still not penetrated the rural areas of the country which is a necessary means to reduce poverty and raise the standard of living of the people. Online academies are proving to be less reliable due to their fancy promises not meeting consumer expectations. India has a long way to go to produce many scholars that will bring revolutionary changes to the world.