Edu Sector Access
Perspectives on education, skill and employment
Welcome to the first edition of Edu Sector Access!
The Indian education sector has been witnessing a number of regulatory developments in the recent past. Although most of these reforms are yet to be approved by the Parliament, such moves highlight the positive intent of the Government to radically transform the existing framework governing this sector. For some time now, the Indian private sector has managed to gain a strong foothold in this sector, however, the foreign investment has not been in line with the expectations of the Government. The foreign investors, although attracted by the huge potential offered by the Indian market, have not been very active due to various regulatory challenges. As per the latest FDI statistics, the Indian education sector has attracted a meager investment of $661 mn since April 2000. Whilst the services sector, consisting of outsourcing, financial services, testing etc, has received a total investment of $36 bn during the same period.
The Indian education sector has over centuries transformed from a gurukul (vedic school), where students resided with the guru (teacher) in the same house to learn, to virtual class rooms wherein a teacher is able to impart learning to students located in any part of the world through satellites. This transformation has largely been due to the dedicated efforts of some innovative Indian entrepreneurs who have managed to change the entire landscape of this industry. The significant reduction in dominance of Government funded institutions due to establishment of quality private institutions has also been one of the key reasons
for this change.
Till 2008, the focus of the Government has largely been on formal school, college and university education however due to the number of unemployed youth in India reaching unmanageable proportions, the focus has now shifted to skill development and vocational education sector. The Government has formulated the National Skill Development Policy to give a much needed impetus to this sector and has set an aggressive target of training 500 mn people by 2022. The Prime Minister has recently set up a strategic body in the skill
development sector, under his direct Chairmanship, to ensure the right policy direction for this initiative. There was also an announcement by the Government for establishment of National Skills Authority in the near future.
In this backdrop, we are pleased to introduce the first edition of Edu Sector Access – Deloitte’s quarterly newsletter on the Indian education sector. The newsletter will feature an interview with an eminent person from this sector along with an article by a senior member of the firm. In this edition, we are pleased to present an interview with Mr.J.P. Rai (ex-IAS), Executive Director at Prime Minister's National Council on Skill Development (NCSD), which is an advisory body entrusted with the task of developing strategy, envisioning reforms and mapping the gaps in the skill development sector.
We are also pleased to include an article by Mr. Vedamoorthy Namasivayam, Head of GUIDe (Government, Utilities, Infrastructure & Development) practice at Deloitte focusing on the Education sector, who has worked very closely with the Central and State Governments in this sector. The newsletter will also provide information on latest sector news and tax & regulatory updates.
The education sector in India is at an evolving stage with a number of important initiatives such as Right to Education, National Commission for Higher Education and Research (NCHER) and Foreign Education Bill facing a number of challenges in approval and implementation. Despite these challenges, we are of the view that these are truly some exciting times for the Indian education sector and sincerely hope that Edu Sector Access serves its purpose of contributing to the knowledge of its readers.
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