2017 should be an interesting year for the
education sector related to overseas education
Personally I believe that if the impact of
Brexit and change in US Immigration Rules for International Students follow
currently predictable routes the year will see
a)
Change in patterns of
student migration with the curve biased in favour of destinations like Canada, Singapore,
Europe, and (don’t be surprised) China.
b)
More Foreign Universities could
be looking to deliver their teaching in India through suitable alliances
This represents a wide range of
opportunities in this sector
The
basis of my thinking is as follows :
·
These are some facts commonly
available
The education sector in India is poised to witness major growth
in the years to come as India will have world’s largest tertiary-age population and
second largest graduate talent pipeline globally by the end of 2020. In
FY 2015-16, the education market was worth about US$ 100 billion and is
expected to reach US$ 116.4 billion in FY 2016-17. Currently, higher education
contributes 59.7 per cent of the market size, school education 38.1 per cent,
pre-school segment 1.6 per cent, and technology and multi-media the remaining
0.6 per cent.
Wonderful prospects to make the mouth of any global investor
water
·
So where are the pitfalls?
If we do not get the act right,
these mind boggling figures, can become a nightmare instead of a pleasant
dream.
We would
have a monster on our hands instead
of a gentle giant.
·
To ensure optimisation of the
situation and using its potential
a)
Job creation must happen at a
brisk pace to keep up with the eligible job seekers being created
b)
All sectors of the economy must
grow proportionately and not just one or two sectors
c)
Skill sets must be imparted
emphatically before entry into the work space
d)
We cannot depend only on IT,
Insurance and Banking , Transport and
other such sectors
e)
Entrepreneurship must not only
be encouraged but also positively supported by sympathetic investments
It is not enough to create job ready citizens, there must be
jobs for them which seems a tough ask given the current economic situation.
Also, very importantly , demand for products and services must
go up because if that does not happen then all our calculations would be turned
on their head !
In the current scenario,
-
Private and public investment is flowing in and the Government
is supporting with subsidies. The danger is that the private sector investor
may not pass on the benefit of theses sops to the fee paying student.
- Banks and other finance companies are ready to provide loans
- There is an intensive effort on the part of industry and
services to integrate their systems with the learning process thus ensuring
themselves a work force suited to their needs. Today almost every department of
an organisation has a corresponding Post Graduate specialization.
- An
interesting fact is that with the mammoth size of the student group it will be
some time before there will be enough seats available locally and many a
student would look for going abroad to gain the knowledge and expertise.
Foreign Universities can expect the demand for their seats to continue for some
years to come.
- We are
watching with bated breath the real time impact of Brexit and US policy on
student visas and employment of foreigners both of which will have an impact on
the migration and movement of students. I believe the lobby of education
providers in the UK and the USA would be hard put if the numbers of foreign
students dwindle
So given the demand and
supply situation the premises made in the opening para should be right
The Debate is open !