India’s education sector ‘a $225bln opportunity’: Bahrain

India’s education sector ‘a $225bln opportunity’: Bahrain

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India’s education sector is a $225 billion opportunity, according to new research by Investcorp.

A white paper released yesterday by the Bahrain-based alternative investment firm analysing investment opportunities in India’s education infrastructure sees the industry growing at 14 per cent annually over the next few years to reach an overall size of $225bn.

The research finds that the rapid growth of private K-12 schools and increasing focus on building an asset-light scalable business offer significant growth potential to investors.

It states that the Indian education sector has been growing at a double-digit rate in recent years, riding on long-term growth drivers like favourable demographics and recession-proof spending.

As per IMF estimates, India’s GDP is expected to grow at a pace of 9pc during FY23 and average growth rate of 8.3pc per annum during 2021-2026, overtaking China to become the fastest growing large economy in the world.

With a nominal GDP of $2.9 trillion in 2019, India became the world’s fifth-largest economy and third-largest in the world by purchasing power, with the second-highest population of any country in the world.

The white paper highlights how the private K-12 sub-segment, which constitutes around 50pc of the growing Indian education industry by revenue, is responding to this long-term growth