Increase digital literacy and e-learning: Demands in the Edtech Sector in India

India has a very large number of education institutions and the government aims to increase digital literacy in the coming years.


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India’s education sector offers a great opportunity for Norwegian companies with approximately 29 % of India’s population being between the age group of 0 – 14 years. The schooling segment in India is anticipated to grow to US$ 144 billion by 2020 from an estimated US$ 95.8 billion in 2015.

Huge market for e-learning

India also has one of the largest networks of higher education institutions in the world with 666 universities, 29.63 million students and approximately 48,116 colleges. It is also the third largest in terms of education enrollment with over 21.5 million enrollments per year and expected to increase to US$ 37.8 billion by 2020. The private education sector was valued at US$ 96 billion in 2015 and is estimated to reach US$ 133 billion by 2020.

India is currently the second largest market for e-learning after the US. The sector is currently pegged at US$ 2 – 3 billion, and is expected to touch US$ 40 billion by 2017. The distance education market in India is expected to grow at a Compound Annual Growth Rate (CAGR) of around 34 % during 2013-2014 to 2017-2018. The country has more than 1.4 million schools with over 227 million students enrolled and more than 36,000 higher education institutes.

Aim to increase digital literacy

FDI inflows into the sector were estimated at US$ 1,256 million from April 2000 -March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP). The Indian Government aims to increase digital literacy over the next three years to at least 50 % currently. Prime Minister Modi has launched the Skill India initiative whereby the government has set itself a target of training 400 million citizens by 2022 enabling them to find jobs.

Increasing disposable income and willingness to spend on education are key growth drivers of the sector. These are illustrated below:



Ambika Oberoi Sawhney
Market Advisor
Innovation Norway, New Delhi


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