Private Investment In Education

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FICCI School Education Conference
EY-FICCI Report
Private Sector’s Contribution
to K12 Education in India
India has the largest K-12 system in the
world
K-12 enrolment and GER across countries 201112* (million)
Number of K-12 schools
2011-12* (‘000)
1,465
253
55
133
8
India
US
UK
33
India
US
UK
However, it serves from key challenges in
terms of access and quality
Enrolment / GER across levels
All-India (Rural): reading level of children in
different grades (%)
137
119
81
Grade
.
Nothing
Letter
Word
Level 1
(Grade
1 text)
Level 2
(Grade
2 text)
1
43.4
37.6
12.0
3.8
3.3
2
20.3
35.9
22.8
10.9
10.1
3
11.9
26.2
23.2
17.2
21.4
4
7.0
17.6
19.9
20.9
34.7
5
4.6
12.0
15.3
21.4
46.8
63
62
31
Primary
Upper Primary
Enrolment (mn)
Secondary
GER (%)
36
18
Senior
Secondary
The private sector constitutes a key part
of the Indian K12 system
Number of students enrolled in
private schools (million)
99.8
India
►
Number of private schools ('000)
339
5.16
0.5
US
UK
28.2
India
US
Evidence of increasing enrolment in private schools in rural
India- from 18.7% in 2006 to 25.6% in 2011 and declining
enrolment in government schools
1.2
UK
And the sector has played a significant
role in terms of both access…..
% enrolment all India K-12 schools in 2011: by level and
management
80%
70%
60%
50%
40%
30%
20%
10%
0%
Grades 1-5
Grades 6-8 Grades 1-8 Grades 9-10 Grades 11-12 Grades 9-12
% Enrolment in All Government Management schools
% Enrolment in Private Management schools
… and quality
Comparison between MCGM and
private school SSC Results (Pass %)
100%
80%
60%
40%
20%
0%
Jan-09
Jan-10
MCGM School
Jan-11
Jan-12
Private School
Schools securing 100 % pass: by management (Andhra)
Government
Private
1,856
1,709
724
706
2010
2011
Going forward 130,000 private schools
would be required over the next 8-10
years
Current state
2022 state
Total projected enrolment
Total current enrolment
373 million students
253 million students
GER overall: 95%
GER overall: ~69.3%
(projected)*
Total number of private schools required to
meet the requirements**:
~ 130,000
(Assuming current GER trends and shift to private schools trend)
However, the private sector is facing
some severe challenges
Inflexible input
based norms:
► Complex regulatory
framework
►
►
Inadequate
compensation by Govt.
for 25% EWS: Schools
facing closure
FINANCIAL
High capital cost
► Inability to access equity funding
► High upfront cost in the initial years
►
Recommendations to encourage private
sector growth
1.
Reduce input based norms – move to outcomes
based system
2.
Allow schools on short term leases/ rental model
3.
Allow hub and spoke model – where
neighbourhood schools are covered in main
school’s ambit
4.
Pooling of government and private resources
5.
Reduce land area requirements/ provide flexibility
in land ownership
6.
Allow companies to set up schools across states
Recommendations to encourage private
sector growth
7.
Allow private schools flexibility on salaries in
initial years
8.
Provide single window clearance
9.
Flexible norms for eligibility of private players
10. Limit regulation of fees
11. Greater independence in admission policies
12. Clarity on utilizing surpluses for new school set-up
DISCUSSION TOPICS
•
01. Relevance of private schools in Indian context; their
contribution to K-12 schooling in terms of:
o
o
o
o
•
02. Bottlenecks in growth of K-12 Private Schools
o
o
o
o
o
•
Introducing modern pedagogy
Introducing new areas of study
ICT Innovations
Professional Development
Availability of land, specially in urban areas
Battery of Permissions required
Increasing interference of government driven by populist political motives
Fee control regulations in various states
Restrictions on making reasonable returns on investment
03. Participation of Private Schools in Nation Building –
Engagement with state schools and assisting them raise their
standards
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