NEW DELHI, May 26 (Bernama) — India’s burgeoning education market is expected to reach a staggering US$50 billion (RM175 billion) by 2015, estimates a top industry agency.
The Associated Chambers of Commerce and Industry (Assocham) in its recent study said about 55 percent of Indian middle class families have started to save for their children’s education, which would be a catalyst for the tremendous growth of the sector.
“A few years ago, only nine percent of middle level households, were saving for the higher education of their children and it used to be considered an expense.
“However, there has been a 20-25 per cent rise in the income of those in the middle class.
“As a result, the savings ratio for obtaining higher education for their children has suddenly gone up to 55 percent, reflecting potential for growth in the education sector,” said D.S. Rawat, Secretary General of Assocham.
At present India’s total education market size is about US$25 billion (RM87.5 billion), of which the higher education sector, is valued close to US$15 billion (RM52.5 billion).
According to Assocham’s projections, the higher education market alone, would grow over US$30 billion (RM105 billion) in the next five years.
Another reason as to why the market size of Indian education will expand substantially during the period, is due to the rising disposable income among urban Indians, compared to those in the rural areas.
India has one of the largest middle class in the world, estimated at about 300 million.