Private Sector Participation in Indian Higher Education

Private sector participation in Indian higher education
FICCI Higher Education Summit 2011
Contents
Foreword ............................................................................................ 04 Executive summary ............................................................................ 06 Overview of the Indian higher education sector .................................... 08 Private sector participation: current role and way forward .................... 16 Establishing and growing in Indian higher education: key options for private players ............................................................. 24 Experience of private players: case studies ........................................... 44 Agenda for the government to promote private sector participation ...... 54 Glossary ............................................................................................. 60 Acknowledgements ............................................................................ 61 About FICCI ........................................................................................ 63 About Ernst & Youngs education sector practice .................................. 64
Foreword
Prof M Anandakrishnan
Chairman FICCI Higher Education Committee
Dear Readers, The unprecedented growth in Higher Education during the past two decades has to a large extent been due to the participation of private sector. This is particularly true in some of the large states of India and also in much of the professional disciplines. Their presence in the Higher Education sector is manifesting in many different forms of colleges and universities. Their investment in Higher Education has considerably supplemented the Public investments and helped to enhance the enrollment capacity in selected disciplines as well as employment potential. In the long run it is anticipated that the proportion of private institutions in Higher Education will be much larger than at present. Nevertheless, it is seen that the preferred options of high ranking students seeking higher educational opportunities are by and large not towards the private institutions with some notable exceptions. This raises a vital question as to what are the initiatives that will contribute to the sustainable, credible and robust growth of private higher education sector. There are several misgivings about their quality, fee structure, governance models and so on. Time is ripe to look for models of Educational Social Responsibility that would lead to greater inclusiveness and affordability of higher education to the disadvantaged. Such issues need to be addressed in a frank manner so that proactive measures can be taken by the private sector itself instead of creating situations for regulatory controls by the governments. FICCI Higher Education Summit 2011 has chosen its theme on Private Sector Participation in Higher Education to provide ample opportunity to evolve a rational approach to attracting the right kind of private enterprises. Their role could go beyond contribution to higher enrolment capacity and engaging primarily in teaching functions. To understand the current higher education landscape and assess the scope for future opportunities, this publication by Ernst & Young will indeed serve as a valuable reference guide. The FICCI Higher Education Committee complements them for this highly professional and attractive contribution.
Warm regards, Prof M Anandakrishnan Chairman-FICCI Higher Education Committee & Chairman, Board of Governors, IIT Kanpur
Foreword
Amitabh Jhingan
Partner and Education Sector Leader Ernst & Young
Dear Readers, The Indian higher education system has emerged as one of the largest in the world, with 14.6 million students enrolled in more than 31,000 institutions. However, it continues to suffer from three fundamental challenges access, equity, and qualityas evidenced by the relatively low gross enrollment ratio (GER), wide geographical, community and gender disparity, and unemployability of graduates. The government has therefore set a target of achieving 30% GER by 2020 and is in the process of streamlining the regulatory framework to make higher education more accessible and to improve the quality of education delivery. While the public sector has historically dominated the higher education landscape, the role of the private k][lgj `Yk af[j]Yk]\ ka_fa[Yfldq gn]j l`] dYkl \][Y\]$ with majority students currently enrolled in private institutions. Moreover, the private sector can be credited with the establishment of some globally-renowned institutions that have established state-of-the-art infrastructure and impart world-class education. Going forward, the role of the private sector can be expected to Ykkme] _j]Yl]j ka_fa[Yf[] af ]klYZdakàf_ imYdalq à_`]j education institutions. In this report, we have revisited the role of the private sector in Indian higher education, delineated key options for private sector players to establish and grow in the higher education space, and recommended steps that the Government could take to further encourage the participation of good quality private sector players in strengthening Indian higher education. In conclusion, while the private sector has played a key role in aiding the GER increase from 10% in 2000 to 13.8% in 2010, this role can be expected to increase further over the next decade considering the 30% GER target set by the government. To enable greater private sector participation, the government would need to simplify the current regulatory framework and facilitate the creation of a strong higher education ecosystem.
Warm Regards, Amitabh Jhingan Partner Education Sector Leader Ernst & Young
Executive summary
Executive summary
The Indian higher education system has exhibited impressive growth over the last decade to become one of the worlds largest systems of higher education. The number of institutions has grown at a CAGR of 11% while student enrollment has grown at a CAGR of 6%. Geographically, the Central region has experienced the highest increase in number of institutions, while the Southern region has exhibited the highest increase in student enrollment. The Gross Enrollment Ratio (GER) currently stands at about 13.8%, with West India having the highest GER of 25.7%. While these positive trends augur well for the industry, the GER af Af\aY [gflafm]k lg ka_fa[Yfldq ljYad alk _dgZYd h]]jk Yf\ l`] world average, threatening the sustained high growth of the Indian economic engine. The government has therefore set a lYj_]l g^ +( ?=J Zq *(*($ oà[` k]]ek \a^[mdl lg Y[à]n] Yl the current pace of development. Moreover, the Indian higher education system faces the challenges of ensuring equity and quality. The private higher education sector in countries such as
the Unites States, Japan, and Malaysia has been instrumental in tackling these challenges. In India too, the private sector could play a key role in dealing with these issues through innovative models supported by an enabling regulatory framework and environment. Hitherto, the private sector has played an important role in the growth of the higher education sector, especially in professional disciplines such as engineering and management. @a_` hgl]flaYd \]eYf\ ^gj à_`]j ]\m[Ylagf Yf\ afkm^[a]fl government spend on capacity creation are expected to result af Y kmZklYflaYd af^jYkljm[lmj] Yf\ afn]kle]fl \][al& Af làk backdrop, the role of the private sector has assumed increased ka_fa[Yf[] oal` aee]fk] ghhgjlmfalq ^gj hjanYl] k][lgj players. O] `Yn] a\]fla]\ nYjagmk ghlagfk ^gj hjanYl] ]\m[Ylagf providers to enter and grow in the vibrant higher education space. We have also outlined the key drivers, trends, and regulatory considerations associated with these options.
Establishing and growing in Indian higher education: key options for private players
Forms of presence
Courses
Modes of growth
Value addition and communication Collaborations Marketing and brand building
Universities Colleges Services
General courses Professional courses
Opening new campuses Distance education
O] `Yn] hjgd]\ kge] d]Y\af_ hjanYl] k][lgj hdYq]jk Y[jgkk log categoriesnew entrants and market leadersto understand the models, strategies, and propositions adopted by them. The analysis reveals that a strong focus on delivering a consistently high quality of education and a deep collaborative network with industry and foreign education providers are considered fundamental to success. For existing players, opening multiple campuses seems to be the preferred route for expansion. Recruitment of quality faculty and a complex regulatory framework are some of the key challenges faced by players.
To enable greater private sector participation in higher education, the Government should consider simplifying the regulatory framework by rationalising the number of regulators and providing more operational autonomy to private institutions, while keeping a check on quality and transparency. 9ddgoaf_ afklalmlagfk lg gh]jYl] gf Y ^gj%hjgl ZYkak [gmd\ be considered for boosting private investment. Moreover, measures to deal with structural challenges such as shortage of quality faculty and lack of adequate physical infrastructure should be expedited.
Overview of the Indian higher education sector
The Indian higher education system comprises over 31,000 institutions
Indian higher education landscape
Form of presence
Field of study
Mode of delivery
University and university-level institutions*
600+
General colleges***
16,250
Classroom teaching**
Central Universities
7%
Streams offered include: Arts Science Commerce Education
Enrollment
74%
State Universities
46%
Distance education**
State Private Universities
16% Professional colleges*** 9,701 Enrollment 26%
Deemed Universities
21%
Institutes of National Importance
Streams offered include: 9% Engineering Medical Management Law Other professional and vocation-based courses such as hotel management, architecture, agriculture, etc.
Distance education modes include: Correspondence Study centres Online education
Colleges**
31,324
*Latest data available; **2010-11; *** 2009-10 Sources: UGC; MHRD Annual Report 2009-10. 2010-11; Turkish Online Journal of Distance Education Volume 3: A comparative study on current trends in Distance Education in Canada and India 2002; Planning commission XIth Five Year Plan; Mid Term Appraisal Eleventh Five Year Plan; Eleventh Five Year Plan Volume II
L`]j] `Yk Z]]f Y ka_fa[Yfl af[j]Yk] af l`] number of institutions and enrollment over the last few years
Over the last decade, the number of universities in the country has grown at a CAGR of 7.5% as against the 4.7% growth observed from 1951-2001. The number of colleges has grown at a CAGR of 11% in the period 2001-2011 as against 6.1% in the period 1951-2001. More than 5,000 colleges have been added in the last one year alone.
40000 30000 20000 10000 0 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2009-10 2010-11 Number of colleges Number of universities 27 578 45 1,819 82 3,277 110 6,963 272 184 5,748 11,146 525 25,951 556* 31,324 400 200 0 600
Number of colleges and universities
India has the largest higher education system in the world with respect to the number of institutions
31,324
~6,742
~4,297 China
India
USA
Number of institutions (2011 data for India; latest data available for USA and China)
Higher education enrollment has grown at a healthy pace, with 3.6 million students being added over the last four years
Indias higher education system is the worlds third largest with respect to student enrollment, next only to China and the USA (2008; * for 2010)
26.7
13.8 11 8.4 6.6 4.9 3.6
14.6 18.3 14.6 9.5 6.0
1985-86 1990-91 1995-96 2000-01 2005-06 2008-09 2009-10
China
USA
India*
Russia
Brazil
Student enrollment in higher education (million)
Comparison with other countries (million)
* As on February 2011 Sources: UGC; UNESCO Global Education Digest 2010, MHRD Annual Report 2009-10; US Department of Education: National Center of Education Statistics; Ministry of Education of the Peoples Republic of China
10
General courses account for majority of enrollment; 85% of students are enrolled at the undergraduate level
Course-wise enrollment
Enrollment in Arts and Science courses account for more than 60% of the total enrollment in higher education
0.5% 3.5% 10.3% 0.3% 42.0% 0.1% 1.5% 2.4%
17.9% Arts Science Commerce/management 19.3% Enrollment by courses (Total:14.6 million) Education Engineering/technology Medicine Agriculture Veterinary science Law Others
Level-wise enrollment
Undergraduate students account for 85% of the total enrollment in higher education
12,658
1,681 118 Graduate Post-graduate Research 168 <ahdgeY'[]jla[Yl]
Enrollment by level (in 000s)
Sources: UGC
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In terms of geography, Central India has exhibited the highest growth in institutions while enrollment growth has been the highest in South India
State-wise number of institutions and enrollment
Just three statesMaharashtra, Uttar Pradesh, and Andhra Pradeshaccount for ~38% of the number of institutes and enrollment
20.4% 13.6% 28.1% 2.7% 2.9% 3.1% 3.4% 6.1% 7.1% 7.3% Maharashtra Karnataka Madhya Pradesh West Bengal 9.3% 12.0% 12.5% 15.2%
12.0%
4.3% 4.4% 4.9% 6.3% Andhra Pradesh Tamil Nadu Kerela Others Uttar Pradesh Tamil Nadu Gujarat Others 6.5% 7.3% Andhra Pradesh West Bengal Bihar 10.5%
Uttar Pradesh Rajasthan Orissa Harayana
Maharashtra Karnataka Rajasthan
Percentage share of institutes by state: 31,324
Percentage share in enrollment by state: 14.6 million
Region-wise number of institutions and enrollment

Currently, North India has 9,834 institutions (31%), South has 9,970 (32%), West has 4,307 (14%), East has 2,946 (9%) and Central has 4,261 institutions (14%) Central India recorded the highest growth in number of institutions, an18.7% yoy growth. However, enrollment over the same period increased by only 3.7% While South India added about 800 colleges from 2009 to 2010 (10.5% yoy growth), enrollment increased by 15.5%, the highest amongst the regions
14% 9% 31% 15.5% 11.7% 5.6% 14% North South West East Central 32% Percentage share of institutes by region 2010-11: 31,324 1.0% 10.5% 4.7% 5.4% 3.7% 14.3% 18.8%
North
South
West
East
Central
Percentage increase in number of institutions Percentage increase in enrollment Percentage increase in institutions and enrollment from 2009 to 2010
Source UGC; MHRD 2008-09 : Statistics of Higher and Technical Education; UGC Report January 2011: Higher Education in India: Strategies and Schemes during Eleventh Plan Period (2007-12) for Universities and Colleges
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The Gross Enrollment Ratio (GER) has increased to 13.8%, with West India witnessing the highest increase over the dYkl n] q]Yjk
12% 13.8%
10% 5% 6%
11%
The GER currently stands at 13.8%, up from 11% in 2005 The GER has increased over the last decade at a CAGR of 3.3%
1980
1990
2000
2005
2007
2010
Gross Enrollment Ratio (GER) in higher education
Table 1: State-wise GER

State GER (2004-05) North Bihar Uttar Pradesh Uttaranchal Haryana Jammu and Kashmir Delhi Punjab Rajasthan Himachal Pradesh South Tamil Nadu Karnataka Kerala Andhra Pradesh West Maharashtra Goa 12 11.6 25.9 16.7 14 12.4 9.9 12.9 17.6 13.6 12.3 17 Madhya Pradesh Chhattisgarh Gujarat 5.7 9.1 15.1 10.5 7.2 33.2 11 7.1 13.9 8.5 10.6 14.1 18.8 16.3 31.9 10.2 9.1 18 Mizoram Sikkim Orissa West Bengal Tripura Meghalaya Arunachal Pradesh Assam Manipur Nagaland Jharkhand Central 10.9 8.5 11.2 11.3 11.8 13.9 GER (2009-10) State GER (2004-05) East 11 11.4 8.9 7.8 6.3 13.7 6.6 6.7 12.4 9.4 8.1 23.8 22.5 9.3 12.1 10.8 16.2 13.5 8.3 13 13.1 10.4 GER (2009-10)
EY`YjYk`ljY$ EargjYe$ Kaccae$ Yf\ BYeem CYkèaj `Yn] oalf]kk]\ ka_fa[Yfl af[j]Yk]k af ?=J gn]j *((-%)( Table 2: Region-wise trend in GER
Region North South West East Central GER (2009-10) 11 15.6 25.7 10.6 12.3 GER Increase (2005 to 2010) 29% 23.5% 114% 36% 17%
West India has the highest GER at 26%, more the double the GER in 2004-05 The eastern region has witnessed a 36% growth in GER over 2005-10, driven by the high growth in some of the northeast states such as Sikkim and Mizoram
Source: UNESCO Global Economic Digest 2010 ; UGC Report 2008: Higher Education in India: Issues Related to Expansion, Exclusiveness, Quality and Finance; MHRD 2008-09 : Statistics of Higher and Technical Education
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@go]n]j$ l`] ?=J ka_fa[Yfldq dY_k _dgZYd peers; moreover, the projected GER is substantially lower than Government targets
India has a long way to go when compared with global peers like China and Brazil and also when compared to the world average
77% 57% 34% 23% 13.8 % 26% 77% 83%
India*
China
World average
Brazil
UK
Australia
Russia
USA
Indias GER vis--vis global peers (2008, * for 2010)
Indias performance on GER is expected to fall short of targets unless the CAGR is more than doubled from the current 3.3% to 8%
30.0%
21.0% 17.3% 13.8% 14.7% 15.0%
19.1%
The Planning Commission has set a target of achieving a GER of 15% by 2011-12 (end of the 11th 5-year Plan) and 21% by 2016-17 (end of 12th 5-year Plan) The Ministry of Human Resource Development has set a target of achieving 30% GER by 2020 However, at the current growth rate (3.3% over 2000-10), the GER is projected to fall short of all the targets To achieve the 30% target GER by 2020, the CAGR needs to be pushed up from the current 3.3% to 8%
2010A
2012P
2017P
2020P
Actual/Projected GER (based on historical growth) Target GER (Planning Commission) Target GER (MHRD) Actual/Projected GER and Target GER
Sources: UNESCO Global Education Digest 2010, 2009; Eleventh Five Year Plan 2007-12, Volume II Social Sector
14
15
Private sector participation: current role and way forward
The Indian higher education system is plagued by three fundamental challenges: Access, Equity, and Quality
With a GER of 13.8% and enrollment of 14.6 million, access to higher education in India is currently restricted to a limited population There is wide disparity in Higher Education GERs across states, urban and rural areas, gender, and communities. Examples: Equity Access Inter-state disparity: 31.9% in Delhi vs. 8.3% in Assam Urban-rural divide: 23.8% in urban areas vs. 7.5% in rural areas Differences across communities: 6.6% for SCs, 6.5% for STs, 8.7% for OBCs, and 17.2% for others Gender disparity: 10.6% for female vs.14.4% for male Quality
Faculty shortage: 45% of the positions for professors, 51% positions for readers, and 53% positions for lecturers were vacant in Indian universities in 2007-08 <][a]fl h`qka[Yd af^jYkljm[lmj]2 48% of universities and 69% of colleges `Yn] af^jYkljm[lmj] \][a]f[a]k Poor academic standards: The system is plagued with outdated curricula and ill-equipped libraries (average 9 books per student vs. 53 in IIT Bombay) Unaccredited institutions: As of March 2011, only 161 universities and 4,371 colleges had been accredited by NAAC
Source: UGC: Higher Education India 2008; 11the Five Year Plan Volume II 2004-05; National Assessment and Accreditation Council Annual Report; NAAC Website
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Globally, the private sector has played a key role in addressing these challenges
Private Sector Participation USA GER: 71% in 1999; 83% in 2008 Enrollment: 13.2 million in 1999; 18.25 million in 2008 2,823 private institutions (more than 40% share) enrolling 5.6 million students (28% share) in 2009 The role of the private sector has been spurred by the ]e]j_]f[] g^ ^gj%hjgl institutions, whose share in enrollment increased from 3% in 2000 to 8% in 2008 As of 2009, private institutions accounted for 73% of the 2.8 million enrollment in Japans universities The private sector also accounted for 77% of the 773 universities in the same year
Government Enablers
Impact
The US Higher Education system allows the set up g^ ^gj%hjgl afklalmlagfk$ which has enabled such institutions to raise equity capital through PE funds and public markets In 1972, reauthorization of the Higher Education Act increased the student Ya\ YnYadYZd] lg ^gj%hjgl institutions
Equity: E.g. 59% students enrolled in public institutions are white vs. ,( af ^gj%hjgl hjanYl] afklalmlagfk Access: Online education by ^gj%hjgl hdYq]jk `Yk `]dh]\ improve educational access for eadalYjq h]jkgff]d$ oal` ^gj%hjgl institutions enrolling 12% of all military undergraduates Quality: Increased competition resulting from the emergence of forhjgl afklalmlagfk `Yk \jan]f mh l`] overall quality of higher education Access: The Japanese higher education system is largely privatized with the private sector enrolling almost three-quarters of the total number of university students Quality: Competitive resource allocation for public research and development grants incentivises private institutions to improve quality
Japan GER: 45% in 1999 and 58% in 2008 Enrollment: 3.98 million in 1999; 3.94 million in 2008
The Standards for Establishment of Universities was deregulated in 1991, easing the setting up of private universities The Government subsidises operating cost of select private universities Afljg\m[]\ Y []jla]\$ periodic evaluation system in 2002, ensuring standardisation of quality
Malaysia GER: 23% in 1999 and 32% in 2008 Enrollment: 473,357 in 1999; 805,000 in 2008
The comprehensive Private Higher Educational Institutions Act in 1996 spurred private sector growth in the sector Currently, there are ~450 private institutions including 49 universities and university colleges, and 400+ colleges. They account for 54% of total enrollment
LYp Z]f]lk Yf\ exemptions on education materials, investments in technical and vocational institutions, etc., by the private sector The Government put in place frameworks to ensure a certain quality in private higher education (E.g. Malaysian ImYda[Ylagf >jYe]ogjc! based on internationallyaccepted best practices
Access: Private sector participation has helped bridge the demandsupply gap for higher education in Malaysia. Currently, private institutions account for more than half the total enrollment (estimated at more than 450,000 students), about 10 times the 47,200 seats in the 172 private institutions in 1993
Source: UNESCO Global Education Digest 2010; Education and Training: BMO Capital Markets U.S.; Peking University Education review: Financial trends in Higher =\m[Ylagf Mfal]\ KlYl]k3 ;]fl]j ^gj ;gdd]_] 9^^gj\YZadalq Yf\ Hjg\m[lanalq2 >gj%hjgl ]\m[Ylagf af l`] Mfal]\ KlYl]k%9 Hjae]j >gjme gf HmZda[ Hgda[q2 HjanYlarYlagf g^ Higher Education in Malaysia ; New York Times; Times Higher Education
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In India, the private sector has till now been instrumental in increasing penetration and enrollment, especially in professional disciplines
The share of unaided private institutions in the higher education sector has increased considerably over the last few years. There has also been a rapid growth in the percentage of students enrolled in unaided private higher education institutions.
52% 63% 43% 33%
2001
2006
2001
2006
Unaided private higher education institutions as a percentage of total institutions
Enrollment in unaided private higher education institutions as a percentage of total enrollment
Majority of institutions offering programmes in professional disciplines such as engineering, pharmacy, and hotel management have been established by the private sector. As of 2006-07, private sector participation ranged from 50% to 95% of the total number of institutions for various professional courses.
9% 5% 6% 33% 38% 36% 32% 50% 41% 8%
91%
95%
94% 67% 62% 64% 68% 50%
92% 59%
Engineering
Pharmacy
Hotel Architecture Computer Management Management Applications Share of private institutions
Teacher Education
Medicine
Dentistry
Physiotherapy
Share of public institutions
Share of public and private institutions in select professional courses
Source: AICTE and other professional councils, Analysis based on Indian Higher education, Envisioning the Future 2009
19
Going forward, the role of the private sector can be expected to assume greater ka_fa[Yf[] \jan]f Zq l`] à_` hgl]flaYd demand for higher education
1. High potential demand for higher education
The largest target market in the world
224,080 8,277 UK 33,639 Brazil 43,627 US China India 233,980
India has the largest target market in the world, with a population of 234 million in the age group of 15-24 years
Population aged 15-24 years (in 000s) (2011 or latest data available)
Growing target market

13% 4% 6% -4% -12%
Not only does India have the largest target market in the world, but also the fastest growing market, resulting in a \]eg_jYhà[ \ana\]f\ ^gj à_`]j ]\m[Ylagf hdYq]jk Indias youth population aged 18-24 years is expected to increase by 13% over 2005-2020 vs. the world average of 4%
World Average
USA
Brazil
China
India
Brazil and China, on the other hand, are expected to witness a decline of 4% and 12% respectively
Growth of population aged 18-24 years: Global comparison (2005-2020)
Growing number of students enrolled in higher secondary schooling

44.5 35.0 22.9 28.0
The number of students enrolled in Classes 9-12, which is an indicator of potential demand for higher education, has increased at a CAGR of 5.7% over 1996-2008, in line with the growth in higher education enrollment Moreover, with the implementation of the RTE Act, there ak ]ph][l]\ lg Z] Y ka_fa[Yfl af[j]Yk] af ]fjgdde]fl Yl the primary and middle school levels which will result in an increase in eligible population for higher education over the long term
1995-96
1999-00
2003-04
2007-08
Number of students enrolled in Higher Secondary Classes (in millions)
Source: US Census Bureau: International Programs; OECD 2008 Higher Education to 2030, Volume 1: Demography; Population Projections for India and States 2001-2026, Report of the Technical Group on population projections constituted by the National Commission on population May 2006; Selected Education Statistics, 2005-06, MHRD; Selected Education Statistics, 2007-08, MHRD
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Yf\ l`] afkm^[a]fl kh]f\ Zq l`] government on capacity creation
*& Afkm^[a]fl _gn]jfe]fl kh]f\ gf [YhY[alq [j]Ylagf

Focus of the central government on centres of excellence
21.1%
7.5% 0.7% 1.8% 1.2% 1.3% 0.8% 8.0% 12.1% 4.9%
44.0%
44% of Central Government spend on higher education is allocated to the UGC, which, in turn, assists colleges mainly in the form of grants for their maintenance and development Centres of excellence including IITs, NITs, and IIMs accounted for nearly 20% of the budgeted expenditure, most of which is directed towards the maintenance of existing institutions
0.6% IGNOU IITs IIMs IIS ISM, Dhanbad Others
UGC National Mission on Education through ICT NITs AICTE IISER 19 techincal institutions
Other major expenditure heads include National Mission in Education through ICT and the Development of Languages
Breakdown of budgeted expenditure on higher education (2010-11): INR16,690 crore
High non-plan expenditure by state governments

12,601 11,523 9,955
Traditionally, state governments have not focused on capacity creation Plan expenditure by state governments accounted for only 14-17% of total expenditure in the last few years Non-plan expenditure, which accounts for bulk of expenditure, is directed towards the maintenance and administration of existing institutions
1,665
2,184
2,635
2006-07
2007-08 Plan expenditure
2008-09
Non-plan expenditure
State plan and non-plan expenditure (INR crore)
Source: Analysis of Budgeted Expenditure on Education (various years); UGC Annual Report 2008-09.
21
The consequent widening of the demandsupply gap will result in an infrastructure and afn]kle]fl \][al$ [j]Ylaf_ ]fljq Yf\ _jgol` opportunities for private sector players
Afkm^[a]fl af^jYkljm[lmj] lg e]]l l`] _jgoaf_ \]eYf\
40.0 25.4 14.6
If India is to meet its 30% GER target by 2020, about 40 million students would be enrolled in the higher education system in 2020 Currently, 14.6 million students are enrolled in the higher education sector
Current enrollment
Student enrollment assuming 30% GER in 2020
Additional seats required
Therefore, an additional capacity of about 25 million seats would be required over the next decade to cater to the increased demand
Additional capacity required (in million)
Afn]kle]fl \][al2 L`] hjanYl] k][lgj `Yk Y c]q jgd] lg hdYq af [j]Ylaf_ [YhY[alq
1,000,000
520,000
As per EY estimates, an investment of INR1 million crore will be required to create the additional capacity of 25 million seats, averaging INR0.4 million per seat Assuming that the private sector would continue to account for 52% of total enrollment (as in 2006), investment required by private players works out to INR0.52 million crore i.e. an average of INR50,000 crore per year
Total investment required by 2020 (est.)
Private investment required (est.)
Investment required for capacity creation (in INR crore)
Source: Analysis of Budgeted Expenditure on Education (2006-09); Population Projections for India and States 2001-2026, Report of the Technical Group on population projections constituted by the National Commission on Population May 2006
22
23
Private players have some key options while evaluating entry and growth opportunities in Indian higher education
A Forms of presence
B Courses
C Modes of growth
D Value addition and communication
Universities Colleges Services
General courses Professional courses
Opening new campuses Distance education
Collaborations Marketing and brand building
25
A. Forms of presence
Universities State Private University Deemed University
Colleges Forms of presence
9^daYl]\ ;gdd]_]
AICTE-approved Diploma-granting Institution
Services Study Centre and Online education
26
Universities || Colleges || Services
Universities State Private University (SPU)
A State Private University (SPU) refers to a University established by the private sector under an Act passed by the Legislative Assembly of the State in which the SPU is situated E.g. Azim Premji University (Karnataka), Amity University (Uttar Pradesh), NIIT University (Rajasthan) Overview Growth in SPUs
94* 5% 60 3% 4% 7% 6 5 13 21 7% 11% 12% 14%
State-wise distribution of SPUs (2010-11)

12% 21% Rajasthan Uttar Pradesh Himachal Pradesh Gujarat Uttaranchal Meghalaya Harayana Punjab Chattisgarh Others
2005-06
2006-07
2007-08
2008-09
2009-10
2011
Af l`] dYkl n] q]Yjk$ l`] fmeZ]j g^ KHMk `Yk af[j]Yk]\ egj] l`Yf ^l]]f%^gd\
While there are SPUs in 18 states, the top 5 states Rajasthan, UP, Himachal Pradesh, Gujarat and Meghalaya account for 65% of the total
Drivers and key regulations
Drivers for establishing an SPU SPUs enjoy considerable academic, administrative, and fYf[aYd Ymlgfgeq3 [gfljgd Yf\ _gn]jfYf[] ak dYj_]dq vested with the sponsoring body of the SPU SPUs have the ability to award degrees These institutions are subject to lesser regulatory constraints as they are governed by the Act under which they are formed Several states have put in place favourable acts allowing the establishment and operation of SPUs
Regulatory considerations for establishing an SPU SPUs are established and operated through an Act of legislature of their respective states Some states have enacted general legislation for the establishment and operation of SPUs (E.g. Haryana Private Universities Act, 2006). Other states pass kh][a[ d]_akdYlagfk ^gj ^gjeYlagf g^ KHMk SPU Acts comprehensively regulate SPUs including eligibility criteria, land and infrastructure requirements (E.g. Min 10 acres within municipal limits in Haryana), endowment fund, etc.
State Private Universities are a relatively recent phenomena with 88 SPUs (94% of the total) being set up in the last 5 years alone
*Latest data available Source: UGC; MHRD; Haryana Private Universities Act, 2006
27
Universities Deemed University
9 <]]e]\ Mfan]jkalq ak Yf afklalmlagf l`Yl `Yk Z]]f YoYj\]\ \]]e]\ klYlmk Zq l`] E@J< _an]f l`Yl al `Yk Y[imaj]\ the characteristics of a university as demonstrated by the diversity of its programmes, quality of research, and proven contributions to innovation and teaching E.g. Indian Institute of Foreign Trade, BITS Pilani, Thapar Institute of Engineering and Technology
Overview Public-private split of Deemed Universities State-wise distribution of Deemed Universities (2010-11)
16 4 44% 56% Private deemed universities Public deemed universities 3 5 10 8 15 12 7 Delhi Andhra Pradesh Karnataka Maharashtra Tamil Nadu Rajasthan Uttar Pradesh Harayana Madhya Pradesh Uttrakhand Others
21 29
There are 130 Deemed Universities in the country of which 73 are in the private sector
Tamil Nadu, Maharashtra and Karnataka account for more than half the Deemed Universities in India
Drivers and key regulations Regulatory considerations for establishing a Deemed University An institution applying for deemed status should have been in operation for at least 15 years (except where applying for the de novo category) and should satisfy several other criteria <]]e]\ Mfan]jkala]k Yj] \][dYj]\ \]]e]\ Yf\ are regulated as per the UGC [Institutions Deemed to be Universities] Regulations, 2010, which is a comprehensive regulatory framework covering the establishment and operation of such universities including eligibility criteria, infrastructure, funding, etc.
Drivers for establishing a Deemed University Deemed Universities have degree-granting power L`]q Ydkg ]fbgq gh]jYlagfYd ]paZadalq af j]dYlagf lg curriculum design, conducting examinations, and assessment Scalable: Deemed Universities can scale by setting up off-campus centres in India and off-shore campuses overseas on meeting certain conditions An existing college can secure Deemed University status upon meeting prescribed criteria
While there are several private Deemed Universities in India, the Government has become more stringent on granting new approvals and is also reviewing the deemed status of existing institutions
Source: UGC Website
28
Colleges 9^daYl]\ ;gdd]_]
9^daYl]\ [gdd]_]k j]^]j lg afklalmlagfk oà[` gh]jYl] hjg_jYee]k d]Y\af_ lg l`] YoYj\ g^ \]_j]]k'\ahdgeYk af Af\aY3 l`]q Yj] Y^daYl]\ lg \]_j]]%_jYflaf_ mfan]jkala]k af l`] bmjak\a[lagf o`]j] l`]q Yj] dg[Yl]\ E.g. St. Stephens College, Shri Ram College of Commerce
Overview Growth in colleges State-wise distribution of colleges (2010-11)

12% 25% Andhra Pradesh Maharashtra Uttar Pradesh Karataka Tamil Nadu Madhya Pradesh Gujarat Rajasthan Others
9%
25,951 11,146 5,748
31,324 14%
7% 12% 6% 6% 10%
1990-91
2000-01
2009-10
2010-11
7%
L`] _jgol` jYl] af Y^daYl]\ [gdd]_]k `Yk af[j]Yk]\ ^jge / in 1991-2001 to 11% in 2001-2011. 374 of the colleges had been granted autonomous status as of April 2011
Maharashtra, Andhra Pradesh, Uttar Pradesh and Karnataka Y[[gmfl ^gj Ydegkl `Yd^ l`] lglYd fmeZ]j g^ Y^daYl]\ [gdd]_]k af the country
Drivers and key regulations Regulatory considerations for establishing Yf Y^daYl]\ [gdd]_] 9^daYl]\ [gdd]_]k Yj] inter alia subject to the following regulatory framework: The UGC Act 1956, and UGC Regulations; M?; S9^daYlagf g^ ;gdd]_]k Zq Mfan]jkala]kU Regulations, 2009; Fgjek Yf\ klYf\Yj\k g^ l`] Y^daYlaf_ Mfan]jkalq They may also be subject to regulations by Professional Councils (such as AICTE) depending on the course offered Min corpus of INR1.5-3.5 million needs to be maintained, depending on the nature of programme
<jan]jk ^gj ]klYZdakàf_ Yf Y^daYl]\ [gdd]_] ?an]f l`] lqha[Yd k[Yd] g^ Y^daYl]\ [gdd]_]k$ k]llaf_ up one requires lower investment than setting up a university Lower regulatory entry barriers as colleges do not require cumbersome legal processes or Government fgla[Ylagfk It is a favourable form of presence for new entrants in higher education as they can leverage the established kqkl]ek Yf\ hjg[]kk]k g^ l`] Y^daYlaf_ mfan]jkalq
The number of colleges in India has increased at a relatively fast pace given that establishing them entails lesser operational hassle and investment
Source: MHRD Annual Report for various years
29
Colleges AICTE-approved Diploma-granting Institution
AICTE-approved diploma-granting institutions are institutions approved by the AICTE for offering diploma programmes in nYjagmk l][`fa[Yd ]d\k km[` Yk ]f_af]]jaf_$ h`YjeY[q Yf\ eYfY_]e]fl E.g. Management Development Institute, S.P. Jain Institute of Management and Research
Overview Split of AICTE approved Diploma-granting institutions by stream

1,659
Intake capacity of AICTE-approved Diploma-granting institutions (in 000s)

471
575
375 86 4 32
44
4 HMCT*
0.5 Applied Arts & Crafts
Engineering
Pharmacy Management
HMCT* Applied Arts & Crafts
Engineering Pharmacy Management
There were 2,699 diploma-granting institutions approved by AICTE as of June 2009. Engineering accounts for more than 60% of these institutions
The total intake capacity of AICTE-approved diploma-granting institutions stood at ~552,000 as of June 2009
Drivers and key regulations Drivers for establishing an AICTE-approved Diplomagranting institution Increasing demand for technical education both from the student-side as well as industry Such institutions are in high demand as they offer shorter term, industry-recognised programmes Lesser regulatory interface: Need to deal with a single regulatory body (AICTE) as they do not grant degrees Regulatory considerations for establishing an AICTE approved Diploma-granting institution AICTE approves the setting up of Technical Education Institutions in the country AICTE regulates a host of issues relating to the set up and operations of such institutions including land and infrastructure requirements (E.g. 0.5 to 1 acre for management programmes), extension of approval, increase in intake, faculty requirements (E.g. Facultystudent ratio of 1:15 for management programmes), etc.
AICTE-approved Diploma-granting institutions have become an increasingly preferred mode of entering the higher education space given the increasing demand for technical education
* Hotel Management and Catering Technology Source: AICTE Website
30
Services Study Centre and Online education
A study centre generally refers to a centre established and maintained for the purpose of advising, counseling or for rendering any other assistance required by students in the context of distance education Online education involves usage of technology for delivering lectures and content
Overview Player Manipal Universal Learning Centum Learning Delivery model 725+ Learning Centres in 310 towns 170 Learning Centres University Collaborations Sikkim Manipal University Annamalai University, IGNOU, Delhi University, National University of Singapore, Coventary University Osmania University, Pondicherry University, The Hotel School the Hague (HTH), Association of Business Executives (London) Karnataka State Open University, Uttrakhand Open University, IIM Shillong, Don Bosco University MIT School of Distance Education, Assam Down Town University, University of Hertfordshire, University of Fredericton, Annamalai University Course Offerings Offers 40 programmes across 10 disciplines BBA, MBA, Diploma courses in Retail, Telecom, etc. BBA, MBA, Hotel Management, Aviation, Retail, English and Personality Development M?$ H? Yf\ []jla[Yl] hjg_jYee]k af IT and business management Indian as well as global programmes in disciplines like Management, IT, Art and Design, and Engineering
UEI Global
16 campuses in 12 cities
University18
Online
Universal Training Solution
Online
Drivers and key regulations Regulatory considerations for setting up Study Centres/Online education Study centres offering mainstream higher education programmes are covered by DEC guidelines The guidelines prescribe the scope of operations of study centres, a case in point being that franchising of study centres is not permitted The procedural aspects of establishment of study centres are contained in the Handbook on Recognition of Open and Distance Learning Institutions
Drivers for setting up Study Centres/Online education Independent study centre chains such as Centum and UEI Global have gained scale using the study centre model by providing services to multiple universities for g^^]jaf_ \]_j]]'\ahdgeY [gmjk]k l`jgm_` l`]aj []flj]k across the country Demand for online education can be expected to rise as broadband and PC penetration increases Klm\q []flj]k _]f]jYddq gh]jYl] gf Y ^gj%hjgl ZYkak Yk they provide non-core services to universities
The services model is relatively nascent; however, several private players are exploring this route given the limited regulatory restrictions
Source: Institute websites; New Policy on Distance Learning in Higher Education, 2009
31
B. Courses
General courses
Course options Professional courses Conventional professional courses
Vocation-based professional courses
32
General courses || Professional courses
General courses
General courses such as Arts and Science impart generalised skills with less focus on employability within a particular function or industry Enrollment in General courses (in 000s)
11,940 9,379 4,977 6,144 2,255 2,823 Arts % of total higher education enrollment 42% Science 19% 1,986 2,608 161 Commerce 18% 2005-06 2009-10 366 Total 81%
Education 2%
?]f]jYd [gmjk]k Y[[gmfl ^gj egj] l`Yf ^gmj%^l`k g^ lglYd klm\]fl ]fjgdde]fl$ oal` 9jlk Yf\ K[a]f[]k [gmjk]k Y[[gmflaf_ ^gj .) g^ total enrollment.
Growth and change in share of enrollment (2006-2010)

22.8% 14.4% 5.4% 5.8% 7.0%
Number of colleges offering General courses

16,250 6% 8,737 4,067 4,862 6,569 10,377
-1.8% Arts
-1.4% Science
-0.3% Commerce Education
Per annum change in enrollment Per annum change in share of enrollment 1985-86 1990-91 1995-96 2000-01 2004-05 2009-10
While enrollment in general courses has increased in absolute terms, its share of total higher education enrollment has decreased over the years
The number of colleges offering general courses has grown at a 6% CAGR over the last 24 years
While enrollment in general courses accounts for the lions share of higher education enrollment, it is growing at a slow pace and losing share to professional courses
Note: Commerce includes Management; however, those numbers are negligible compared to Commerce Source: UGC data, UGC Annual Report 2005
33
Professional courses Conventional
Hjg^]kkagfYd [gmjk]k ^g[mk gf aehYjlaf_ kcaddk Yf\ [geh]l]f[a]k d]Y\af_ lg ]ehdgqe]fl af kh][a[ af\mklja]k'^mf[lagfk Enrollment in Professional courses (in 000s)
2,584 1,511 795 348 509 336 344 Law 221 Total 1,568
88
Engineering % of total higher education enrollment
Medicine
Others*
10%
3%
2% 2005-06 2009-10
2%
19%
Professional courses account for 19% of total higher education enrollment. Engineering is the most popular professional stream in India, accounting for about 10% of total higher education enrollment
Growth and change in share of enrollment (2006-2010)

17.4% 9.4% 9.9% 2.4% 0.5% Law - 6.3% Per annum change in enrollment Per annum change in share of enrollment Others* 17.5%
Number of colleges offering Professional courses

9,701
9.5% 1,533
8% 2,409 3,201
886
1,354
Engineering
Medicine
1985-86
1990-91
1995-96
2000-01
2004-05
2009-10
=fjgdde]fl af Hjg^]kkagfYd [gmjk]k `Yk _jgof ka_fa[Yfldq in absolute terms and as a share of total higher education enrollment
The number of colleges offering Professional courses has grown at an 8% CAGR over the last 24 years, witnessing particularly high growth in the last decade
Enrollment in professional courses has grown at a CAGR of about 13% over the last four years, more than \gmZd] l`] jYl] ^gj _]f]jYd [gmjk]k$ j]kmdlaf_ af Y ka_fa[Yfl _jgol` af l`] fmeZ]j g^ afklalmlagfk g^^]jaf_ such courses
* Others includes Agriculture and Vet Science Source: UGC data, UGC Annual Report 2005
34
Professional courses Vocation-based
Ng[YlagfYd gj bgZ gja]fl]\ [gmjk]k af[dm\] \]_j]]'\ahdgeY hjg_jYee]k af af\mkljq%kh][a[ Yf\ ^mf[lagfYd%kh][a[ Yj]Yk km[` Yk Hospitality, Retail, Aviation, Media, BFSI, Marketing, Sales, Customer Service, etc.
Overview The demand for vocation based professional courses has increased in the recent years leading to many private players introducing such courses in their portfolio. Amity University, for example, offers 39 vocation-based courses while Manipal offers more than 20 such courses.
Manipal IT BFSI Retail Aviation Hopitality Media Functional*
Amity
Symbiosis
ICFAI
Annamalai
Drivers and key regulations Regulatory considerations for offering vocation-based courses Depending on the nature of the course, approvals could be required from UGC or other Professional councils such as AICTE, Indian Nursing Council, Council of Architecture, etc, for offering vocation-based courses
Drivers for offering vocation-based courses Increasing demand for vocation-based employmentgja]fl]\ [gmjk]k af Y [gmfljq o`]j] ]ehdgqYZd] lYd]fl is scarce Traditionally offered as vocational programmes, streams such as Aviation, Hospitality and Retail have become increasingly popular over the years and entered the mainstream higher education space
?an]f l`] k[Yj[alq g^ ]ehdgqYZd] lYd]fl af l`] [gmfljq$ l`] hghmdYjalq g^ ng[Ylagf%ZYk]\ \]_j]]'\ahdgeY programmes has increased over the years, with leading higher education players introducing such courses in their portfolio
* Functional refers to Sales, Marketing, Accountancy, etc. Source: Institute websites
35
C. Modes of growth
Opening new campuses
Mode of growth Distance education
36
Opening new campuses || Distance education
Opening new campuses
Domestic or overseas expansion can be undertaken by existing universities through the establishment of off-campus centres in India or off-shore centres overseas
Overview Several higher education players have leveraged their capabilities and reputation to open multiple campuses in India and abroad in order to capture the growing demand for higher education
Player Manipal Education Group Amity BITS Pilani SP Jain Institute of Management and Research
Campuses in India 5 4 3 1
Locations Manipal, Mangalore, Bangalore, Goa, Sikkim Noida, Delhi, Gurgaon, Jaipur Pilani, Hyderabad, Goa Mumbai
Campuses abroad 4 3 1 3
Locations Malaysia, Nepal, UAE, Antigua Singapore, London, San Francisco Dubai Dubai, Singapore, Sydney
Drivers for establishing new campuses There is a substantial shortage of capacity in the higher education space in India An established institute can capitalise on the brand and reputation that it has built over the years to scale up by opening off-campus centres in the country Overseas expansion gives players the opportunity to enhance scale and diversify their risk by tapping international markets as also the increasing number of Indian students going to study abroad
Regulatory considerations for establishing new campuses Private universities are generally permitted to establish off-campus centres, subject to complying with applicable norms including period of operation SPUs can, however, establish off-campus centres only within their state of establishment The UGC has formulated guidelines for recognition of programmes offered by Indian universities abroad through various modes including offshore campus, twinning programmes, partnerships, and study centres
Given the shortage of quality higher education capacity in the country and in several international markets, established players are leveraging their capabilities and reputation to open multiple campuses
Source: Institute Websites
37
Opening new campuses || Distance education
Distance education
Distance education implies imparting education through off-campus means be it through correspondence material, technology (VSAT, Internet, etc.) or through contact programmes Sikkim Manipal University and Symbiosis are examples of large private players in distance education
Overview Enrollment in distance education as a percentage of total enrollment

26% 20% 17% 10% 5% 2% 1975-76 1981-82 1990-91 1999-00 2000-01 2009-10 18 22 40 74 74
Number of institutions offering distance education
176
1975-76 1981-82 1990-91 1999-00 2000-01 2009-10
Demand for distance education has rapidly increased, with distance education enrollment now accounting for more than a quarter of total higher education enrollment
The number of institutions approved for providing distance ]\m[Ylagf hjg_jYee]k `Yk af[j]Yk]\ ka_fa[Yfldq ^jge /, af 1999-2000 to 176 in 2009-10
Drivers for distance education Ability to rapidly scale and reach out to multiple customer segments such as those living in inaccessible parts of the country, those that are immobile, and those who cannot afford more costly face-to-face education Existing content, faculty and brand can be leveraged to offer distance learning programmes Low investment required vis--vis the potential reach
Regulatory considerations for distance education Distance education in India is regulated by the Distance Education Council (DEC), established under the IGNOU Act, 1985 DEC guidelines for the establishment and operation of Open and Distance Learning Institutions in India include programmes offered, minimum staff requirements, delivery system, infrastructure, etc Multiple models exist for operating distance education programmes in India including through study centres and online programmes
<aklYf[] ]\m[Ylagf `Yk _Yaf]\ ka_fa[Yfl ljY[lagf gn]j l`] q]Yjk oal` egj] l`Yf )(( \aklYf[] ]\m[Ylagf institutions added over the last decade; it now accounts for over a quarter of total enrollment
Source: Report to the Nation 2006-09; MHRD Annual Report 2009-10; Turkish Online Journal of Distance Education Volume 3: A comparative study on current trends in Distance Education in Canada and India 2002
38
39
D. Value addition and communication

Collaborations Collaborations with Industry Collaborations with Academia Value addition and communication Marketing and brand building
40
Collaboration || Marketing and Brand building
Collaborations Industry
Academic institutions collaborate with industry in several areas such as Research & Development, curriculum design, and placements and internships
Overview While only the best public institutions in the country have deep collaborations with industry, a broad base of private higher education institutions is engaging in such collaborations to make education more industry-relevant and enhance employability of students. Select examples are given in the table below. MDI Gurgaon Training, Consulting and Research Maruti Suzuki Power Grid Corporation LOreal Group Hero Honda Motors BITS Pilani Provision of continuing education and industry internships for students Biocon Mahindra & Mahindra Tata Motors Idea Cellular Manipal Education Training and Research Thapar University 1 [gddYZgjYlagfk af ]d\k km[` as training, curriculum design and research IBM India Limited Infosys Intel Technology KRBL
ICICI Bharti Bank of Baroda National Stock Exchange
Drivers for industry collaborations Helps produce industry-ready talent Placement linkages bolster the value proposition of the institute and help attract potential students Collaborating on content development helps institutes develop a more relevant and practical curriculum and pedagogy Collaboration with industry spurs innovation driven by sponsored research
Regulatory considerations for industry collaborations Collaborations between industry and academia are typically undertaken for R&D purposes and are therefore not regulated at the Central Government level by education regulators, unless they involve the conduct of educational programmes leading to the conferment of regulated awards Partnerships for R&D activities are, in certain cases, ]da_aZd] ^gj hj]k[jaZ]\ af[ge] lYp Z]f]lk$ kmZb][l lg compliance with prescribed conditions
Several educational groups are collaborating with MNCs and leading Indian companies to bolster their value proposition and develop alternate revenue streams such as research and consulting
Source: Institute Websites
41
Collaborations Academia
Collaborations between Indian HEIs and academia, especially foreign institutions, are becoming increasingly popular. They collaborate in several areas including joint R&D, twinning programmes, resource sharing, and student exchange
Overview There are 161 foreign education providers and 143 Indian institutes which have entered collaborations to offer 641 programmes at various levels and across disciplines
Type of Indian Institute Private: 83% Public: 14% Others: 3%
Type of foreign institute Private: 34% Public: 57% Others: 9%

5% 7%
Discipline-wise distribution 18% 27% EYfY_]e]fl =f_af]]jaf_'AL @gl]d e_el 9hhhda]\ Yjlk 9hhda]\ k[a]f[] 21% 23% Gl`]jk 33%
Level-wise distribution 13% 1%
UG PG ;]jl[Yl] 55% Ph.D/M.Phil
Private sector players in India have taken the lead in collaborating with foreign institutions, primarily public institutions. Almost half the number of collaborations are in the Management and Engineering disciplines with the undergraduate level accounting for a majority of the collaborations.
Drivers for collaborating with academia Allows institutes to tap Indian students interested in an international education but who prefer staying in India Helps the player create a brand in India and abroad Enhances value proposition through faculty and student exchanges Helps improve content and pedagogy through access to world-class faculty and practices
Regulatory considerations for collaborating with academia AICTE regulates collaboration and partnerships Z]lo]]f Af\aYf Yf\ >gj]a_f Afklalmlagfk af l`] ]d\ g^ Technical Education, Research and Training, and spells out the conditions and procedure for approval of such arrangements For example, a student admitted in a twinning programme should spend at least one semester in the Foreign Institution and the Degree awarded by the Foreign Institution should be in the parent country
<ge]kla[ afklalmlagfk Yj] af[j]Ykaf_dq hYjlf]jaf_ oal` ^gj]a_f afklalmlagfk$ ]kh][aYddq af hjg^]kkagfYd ]d\k such as engineering and management, to enhance their reputation and value proposition
Source: UKIERI
42
Marketing and Brand Building
Promotion and brand building include the advertising of institutes, programmes, events, etc., through print and electronic media
Overview Print advertising budgets of select HEIs Player A leading private university in West India One of the largest private universities with a strong distance education focus One of the fastest growing universities in North India An engineering-focused university in South India A niche private university in West India 2008-09 (INR mn) 128.50 332.78 104.57 299.36 86.4
OOH 9%
Typical marketing mix of a university

Below-the- line 7% Direct 2%
TV 4%
New media 6% Radio 8% Print 64%
@a_`]j ]\m[Ylagf afklalmlagfk Yj] kh]f\af_ ka_fa[Yfl Yegmflk gf eYjc]laf_ Yf\ ZjYf\ Zmad\af_$ oal` egj] l`Yf .( g^ al lqha[Yddq kh]fl gf hjafl e]\aY& Làk ak j]][l]\ af l`] ^Y[l l`Yl l`] ]\m[Ylagf k][lgj ak l`] dYj_]kl kh]f\]j gf hjafl Y\n]jlakaf_ af l`] [gmfljq
Spend on new media is increasing Players are now leveraging new media to market innovatively and connect with their target audience in a more focused manner For example, as per the Internet and Mobile Association of India, online spend by education players is estimated to have increased to INR530 million in FY11 from INR410 million in FY10 Amity University is the top globally-ranked education brand on Facebook
Common communication themes used Players have multiple marketing objectives from hjgeglaf_ Y [Yehmk lg Y kh][a[ hjg_jYee] lg Yf ]n]fl j]imajaf_ kh][a[ kljYl]_a]k Yf\ e]kkY_af_ Size of the player and ranking by third parties are common communication themes for players Accreditation and endorsement through testimonials by academicians and industrialists are also popular communication themes
9k [geh]lalagf afl]fka]k$ ZjYf\ [geemfa[Ylagf ak Z][geaf_ af[j]Ykaf_dq aehgjlYfl lg Zj]Yc l`jgm_` l`] clutter in the marketplace; new media is increasingly being leveraged for more targeted and cost-effective marketing
Source: Internet and Mobile Association of India; Secondary research
43
Experience of private players: case studies
Private sector players have used innovative models and strategies for establishing and growing in the higher education space
We have analyzed entry and growth strategies of leading players across two categories: New Entrants and Market Leaders New entrants: Players that have commenced operations within the last 2 years Market leaders: Well-established higher education players that have been in existence for several decades We conducted interviews with the leadership of 6 players (given below) in these 2 categories to understand their current state, entry and growth strategies employed by them, their value proposition and their key success drivers and plans
Afklalml]k hjgd]\
Enrollment
Manipal Education Group
Symbiosis International University
BITS Pilani
Narsee Monjee Institute of Management Studies
OP Jindal Global University Shiv Nadar University
Time of existence New Entrants Market Leaders
45
New entrants
Case study Shiv Nadar University (SNU)
Form of presence: State Private University Key facts Year of establishment: 2011 Size of campus: 286 acres Location: Greater Noida, Uttar Pradesh
Institution vision
To establish Shiv Nadar University (SNU) as a globally recognized, research-led, multi and interdisciplinary institution
Key entry parameters Course offerings (current and planned) SNU is planning 8 schools Engineering, Natural Sciences, Social Sciences and Humanities, Business Management, Education, Communication, Fine Arts, and Law Al `Yk dYmf[`]\ l`] jkl k]kkagf with the School of Engineering
Target audience and positioning SNU is targeting the highest quality students having strong academic and extra-curricular backgrounds It aims to be a viable alternative for Indian students planning to study abroad as well as for students from the Middle east, Africa, and South East Asia
Scale and capacity SNU has enrolled 300 students in l`] jkl q]Yj g^ gh]jYlagf *())% 12) and plans to scale up to 8,500 students over the next 8-10 years
Value proposition and value addition initiatives
Value proposition Inter and multi-disciplinary allowing students to choose from a variety of electives across schools Four year programmes, giving the klm\]fl lae] lg ]phdgj] àk'`]j interests Strong emphasis on global education, research and practical training through exchange programmes and internships
Collaborations SNU has collaborated with Carnegie Mellon University for the engineering programme It plans to collaborate with corporates for industry-sponsored research It also plans to build a collaborative network with institutions in India and abroad
Marketing and brand building SNU launched an innovative eYjc]laf_ [YehYa_f ^gj l`] jkl year, primarily stressing its inter and multi-disciplinary aspects It has also managed to attract high quality faculty from India and abroad basis its strong research commitment
Future plans
KFM hdYfk lg \]n]dgh l`] [mjj]fl [Yehmk Yk Y Y_kàh afklalmlagf oal` j]k]Yj[` []flj]k af hjgpaeYl] cities such as Delhi
46
New entrants
Case study O.P. Jindal Global University (JGU)
Form of presence: State Private University Key facts Year of establishment: 2009 Size of campus: 75 acres Location: Sonepat, Haryana
Institution vision
The vision is to impart globalized education with a view to producing world-class professionals, scholars, business leaders and academics in various disciplines
Key entry parameters Course offerings (current and planned) JGU offers courses in 4 disciplines: Law, Business, International Affairs, and Government and HmZda[ Hgda[q jkl af[geaf_ ZYl[` in 2012) The university launched with the law school with one school being added in every subsequent year
Target audience and positioning JGU focuses on students with a global orientation It has been successful in attracting students from 25 states in India as well as diplomats and NRIs
Scale and capacity Capacity: 2,500 students Starting with 100 students in 2009-10, it currently has 600 students enrolled for the 2011-12 session It plans to add about 500 students every year, reaching full capacity by the sixth year of operations
Value proposition Global orientation in terms of students, faculty, and curriculum Inter-disciplinary: Students can select electives for multiple schools High quality teaching: More than 50% faculty from abroad, student teacher ratio of 12:1 Research focus: Planning to set up 40 research centres
Collaborations JGU has collaborations with prestigious foreign universities including Yale, Harvard, and Cambridge in areas such as research, conferences and exchange programmes It collaborates with industry for visiting faculty, conferences and placements
Marketing and brand building Events: Seminars and talks by JGU faculty in undergraduate institutions on the need for quality higher education, focus on research and emphasis of global orientation JGU strongly positions the reputation of its faculty
Future plans
JGU plans to consolidate and further expand the four schools with a focus on furthering its research agenda
47
Market leaders
Case study Manipal Education Group
Forms of presence: Deemed University; State Private University; international campuses Year of establishment: 1953 Key facts Number of campuses: 9 (Manipal, Mangalore, Bangalore, Goa, Sikkim, Malaysia, Nepal, UAE and Antigua) Scale: Caters to over 1,20,000 students across its campus and distance education programmes; has an alumni base of 3,00,000 from more than 52 countries Courses: Over 300 courses offered across 14 professional streams
Institution vision
=p[]dd]f[] af ]\m[Ylagf lg ]klYZdak` l`] f]kl ]\m[YlagfYd afklalmlagfk ogjd\oa\] Yf\ Z] l`] hj]^]jj]\ choice for students, industry and faculty.
Value proposition The Manipal Education Group has maintained a high degree of academic rigour and excellence across its institutions It offers locally-relevant education in its international campuses
Collaborations Viewing collaborations as fundamental to excellence, Manipal has entered multiple collaborations with industry and academia It has a strong collaborative network with companies like Intel and Phillips as well as with foreign universities such as Edinburgh Napier University
Marketing and brand building Brand communication is considered critical Extensively uses the online medium for marketing to keep the costs low
Growth drivers and key success factors
Growth drivers Manipal leveraged its brand and content to grow aggressively through distance education The group has entered international markets and related businesses through acquisitions and collaborations, enabling it to cut down on lead time
Critical Success Factors Innovation in course offerings and pedagogy has enabled it to improve the quality of education delivered A highly scalable and robust technology platform for distance education delivery, assessment, and support Local partnerships in international locations
Future plans
Manipal Group plans to establish 5 new universities in India and further expand its presence in countries such as Malaysia, USA and Dubai.
48
Market leaders
Case study BITS Pilani
Forms of presence: Deemed University; International campus Year of establishment: 1929 Key facts Number of campuses: 4 (Pilani, Hyderabad, Goa, Dubai) Scale: Enrollment has expanded threefold in the last decade from about 3,500 students in 2000 to more than 10,500 students at present Courses: Undergraduate, Postgraduate and Ph.D. programmes in disciplines such as engineering, science, humanities and management
Institution vision
To transform into a research-focused academic institution with strong industry and foreign academia linkages
Value proposition Provides a high standard of education at all levels with quality faculty engaged in both teaching and research Has been a pioneer in course design and pedagogy including the use of the semester system, credits system and grading system (as opposed to marks)
Collaborations The deep collaboration with MIT and Ford Foundation in the 1960s helped shape its view on collaborations Has more than 50 collaborations with FEIs and intends to further strengthen the network Strong industry linkages Workintegrated learning programme, Practice School Programmes
Marketing and brand building Branding for BITS is largely based on meaningful industry relationships, the quality of its research publications and the success of its alumni Quality teaching and research are considered essential for the sustenance of the brand Advertising is largely limited to faculty and student recruitment
Growth drivers Huge demand-supply gap for quality education in India As the pioneer in industry-integrated programmes, BITS `Yk _Yaf]\ ka_fa[Yfl ljY[lagf af l`Yl Yj]Y
Critical Success Factors High quality faculty that is engaged in locally-relevant research Ka_fa[Yfl hjghgjlagf g^ l`] ^Y[mdlq `Yk afl]jfYlagfYd ]phgkmj] af l`] ^gje g^ j]k]Yj[` Yf\'gj ljYafaf_ Strong association with the alumni base
Future plans
BITS plans to aggressively expand its post graduate and PhD programmes in the years to come in line with its research-orientation
49
Market leaders
Case study Narsee Monjee Institute of Management Studies (NMIMS)
Form of presence: Granted Deemed University status in 2003 Year of establishment: 1981 Key facts Number of campuses: 3 (Mumbai, Bengaluru, Shirpur) Scale: About 10,000 students, primarily in the management and engineering disciplines Courses: 8 schools in professional and general disciplines such as management, engineering, architecture, pharmacy, science, commerce, economics, and distance learning
Institution vision
Lg \]f] *)st century technological, management and organisational research and educate with a view to impact global developments and develop a cadre of employable individuals
Value proposition NMIMS has a market driven approach to designing courses. For instance, it pioneered the PGDM programmes in advertising and rural marketing as early as 1994 in response to changing industry needs The institute has innovative MBA programmes in disciplines such as technology and pharmacy
Collaborations NMIMS has collaborations with several schools in USA, Europe and Australia for joint research, faculty, and student exchange It has collaborations with players from various industries in the areas of faculty research, executive programmes and skill development. E.g. BSE, Trade Associations, etc.
Marketing and brand building Brand is believed to be built on the strength of word-of-mouth; the institute considers its students and faculty as its biggest brand ambassadors
Growth drivers Strong brand in business management Growing market need for business and commerce students Going forward, the distance education school would enable the institute to gain scale and widen its reach
Critical Success Factors First-mover: Pioneered the PGDM programme in Mumbai; pioneer in domain MBAs L][`fgdg_q%\jan]f2 Oal` Y ka_fa[Yfl l][`fgdg_q budget, NMIMS has leveraged ICT for learning and administration
Future plans
NMIMS is establishing two new campuses in Hyderabad and Chandigarh. It also plans to expand its continuing education portfolio, set up a school for law and public policy, and establish a skill \]n]dghe]fl []flj] af kap a\]fla]\ af\mklja]k
50
Market leaders
Case study Symbiosis International University (SIU)
Form of presence: Granted Deemed University status in 2002 Year of establishment: 1971 Key facts Number of campuses: 4 currently (Pune, Nasik, Bangalore, Noida) Scale: Has about 30,000 students enrolled across its campuses including 3,000 foreign students Courses: 25 institutions across 7 faculties (Management, Law, Engineering, Computer Science, Health Science, Media, and Humanities)
Institution vision
To make Symbiosis International University the preferred destination for all who aspire to excel
Value proposition Research and innovation focus: SIU has three research clusters; it has also started an innovation centre called Spring Board. The course curriculum includes a compulsory credit programme in entrepreneurship and innovation Internationalisation: Study abroad programmes, faculty exchange, international students, etc
Collaborations SIU has collaborations with about 25 FEIs in the USA and Europe, primarily for student and faculty exchange and research projects It has industry collaborations for curriculum development, corporate education and visiting faculty; moreover, SIU leadership is represented in various industry and government bodies
Marketing and brand building SIU considers its students to be its brand ambassadors Al \g]k fgl kh]f\ Y ka_fa[Yfl amount on traditional marketing
Growth drivers The Deemed University status granted to Symbiosis in 2002 gave a huge impetus to the universitys growth Widening demand-supply gap for quality education: The fmeZ]j g^ klm\]flk Yhh]Yjaf_ ^gj KF9H ak ka_fa[Yfldq greater than the number of seats available
Critical Success Factors Delivering a consistently high standard of education has enabled SIU to recruit students and faculty, and has also induced invitations from various states for establishing campuses
Future plans
SIU plans to start 2 campuses in Hyderabad and Ahmedabad; it also has plans to develop an integrated medical school and commence executive development programmes for corporates overseas
51
Key takeaways for potential entrants
Key decision points for establishment of institutions Players looking to attain scale have adopted the university route to establish themselves in the k]_e]fl _an]f l`Yl mfan]jkala]k ]fbgq Y à_` \]_j]] g^ Ymlgfgeq Yf\ ]paZadalq State Private University is the preferred form of presence Universities are aspiring to position themselves as institutions of international stature to attract students not only from across the country but also from neighboring countries and other emerging markets The capacities of single-campus universities range from 2,500 to 25,000 depending on the positioning of the university and the land area available Players are focusing on professional disciplines such as engineering, management, and law given the increasing demand for such programmes both from the student-side as well as industry Course offerings At the same time, institutions are striving to be more multi- and inter-disciplinary, offering students the choice of opting for electives from across faculties to foster holistic learning and to prepare them for the dynamic job market Institutions prefer to locate in or near big cities given the access to a large customer base and faculty, and access to industry Location is also a function of the regulatory environment as not all states allow the setting up of State Private Universities
Form of presence
Target audience and desired scale
Location
Value proposition and challenges Reputed higher education players in India aspire to be world-class in all aspects of their functioning: students, faculty, infrastructure, and curriculum. They have a strong research focus and offer inter and multi-disciplinary courses In line with their global aspirations and mindset, they have entered collaborations with prestigious international institutions; they also have deep industry linkages to ensure that students are af\mkljq%j]Y\q gf _jY\mYlagf While advertising is considered important at the time of establishment, institutions believe that over time word-of-mouth is the most potent form of brand building Recruitment of quality faculty has been the biggest challenge for higher education institutions in India. Players are therefore scouting for talent outside the country and employing visiting faculty from industry Gl`]j [`Ydd]f_]k af[dm\] Y klaaf_ j]_mdYlgjq ]fnajgfe]fl Yf\ ^mf\af_ [gfkljYaflk
Value proposition and communication
Challenges in setting up
52
Key takeaways for existing higher education players
Growth modes and drivers Multiple campuses The more established higher education players such as BITS and Manipal `Yn] k[Yd]\ mh Zq klYjlaf_ Y\\alagfYd [Yehmk]k Y^l]j ]klYZdakàf_ l`] j]hmlYlagf g^ l`]aj Y_kàh campuses Modes adopted for scaling up International expansion They have also expanded internationally, especially to cater to the growing demand for quality higher education in emerging markets as well as to cater to the Indian diaspora Distance education Established players have forayed into distance education; Sikkim Manipal University, for instance, is the leading private player in the space L`] \]eYf\%kmhhdq _Yh ^gj imYdalq à_`]j ]\m[Ylagf `Yk [j]Yl]\ ka_fa[Yfl _jgol` ghhgjlmfala]k for established private institutions that offer high standards of excellence Growth drivers and critical success factors A reputation for quality, a consistently strong track record, and a well-known brand are the key drivers of growth EYfahYd$ kh][a[Yddq$ `Yk Y\ghl]\ l`] afgj_Yfa[ jgml] lg ^gjYq YZjgY\$ ]fYZdaf_ al lg [ml \gof d]Y\ time and be more locally relevant, while harnessing its expertise in medical education Several well-established players have announced plans to further expand their presence in India and abroad through more campuses Future plans Players with a management focus are looking at expanding their continuing education portfolio as corporates increase outsourced training spends across the world Some others, who are relatively new in the segment, plan to consolidate their position in the af\mkljq Yf\ ^g[mk gf ]f`Yf[af_ imYdalq g^ l`]aj Y_kàh [Yehmk]k
Value proposition and challenges Reputed private players have positioned themselves as centres of excellence, stressing a high degree of academic rigour They view collaborations with industry and academia as fundamental to success and imperative to stay relevant and up-to-date While the marketing efforts of market leaders are largely limited to student and faculty recruitment, the relatively newer players market extensively through multiple media. Faculty reputation, industry relationships, and placements are considered powerful positioning themes Recruitment and retention of quality faculty are considered the biggest impediments to scaling up L`] [gehd]p Yf\ af]paZd] j]_mdYlgjq ^jYe]ogjc ^gj hjanYl] à_`]j ]\m[Ylagf Yf\ [YhalYd constraints are considered some of the other challenges
Value proposition and communication
Challenges in scaling up
53
Agenda for the government to promote private sector participation
The Government has already expressed its intent to improve quality and transparency in the higher education system by introducing several bills (1/2)
National Council for Higher Education and Research Bill, 2010 Overview: The NCHER Bill has the objective of consolidating multiple regulations and improving transparency by creation of a single super regulator over existing regulators such as UGC and AICTE. Key features: Specifying norms and standards and requirements for academic quality Authorizing institutions to confer awards 9\nakaf_ ;]fljYd'KlYl] _gn]jfe]flk Impact analysis: Would simplify regulatory environment and allow for stability of policy. Political consensus to pass the bill will be a key challenge
Foreign Educational Institutions Bill, 2010 Overview: The Foreign Education Institutions Bill has the objective of regulating the entry and operation of foreign institutes in India. The bill is a key legislation to encourage private sector participation in India given the absence of any regulatory framework for FEIs. Key features: Regulation of own campuses as well as the collaborations of FEIs with Indian institutes. Prior track record of 20 years in home country required with a minimum corpus of INR 500 million. <]lYad]\ hjg[]kk g^ hjagj YhhjgnYd Yf\ Yhhda[Ylagf g^ M?;'9A;L= j]_mdYlagf ^gj afklalmlagf af Af\aY& Impact analysis: Mechanism to ensure that only reputed institutes operate in India. ;gmd\ `]dh j]\m[] gmloYj\ egZadalq g^ klm\]fl ljY^[ lg ^gj]a_f [gmflja]k& Ka_fa[Yfl imYdalq aehjgn]e]fl \m] lg [geh]lalagf Yk o]dd Yk hYjlf]jkàhk Yf\ [gddYZgjYlagfk&
The Educational Tribunal Bill, 2010 Overview: The Educational Tribunal Bill aims at expediting and making more effective litigations involving students, teachers, employees and managements of institutions. Key features: Establishment of Education Tribunals at national (National Education Tribunal: NET) and state level (State Education Tribunal, SET) =Lk oal` bmjak\a[lagf gn]j eYll]jk g^ Y^daYlagf oal` Y mfan]jkalq$ eYll]jk j]dYlaf_ lg mf^Yaj hjY[la[]k$ k]jna[] eYll]jk g^ l]Y[`]jk']ehdgq]]k Yf\ \akhml]k g^ afklalmlagfk oal` j]_mdYlgjk& Impact analysis: Ease for settlement of disputes in a sector that suffers from complex and multiple laws. Klm\]flk _ja]nYf[]k fgl kh][a[Yddq [gn]j]\ mf\]j l`] Zadd&
Source: The National Council for Higher Education and Research Bill 2010; Foreign Educational Institutions Bill, 2010; The Educational Tribunal Bill, 2010;
55
The Government has already expressed its intent to improve quality and transparency in the higher education system by introducing several bills (2/2)
The National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 Overview: The National Accreditation Regulatory Authority for Higher Educational Institutions Bill aims at making the accreditation and rating of all higher education institutions mandatory in India. Key features: Establishment of National Accreditation Regulatory Authority for accrediting and rating all higher education institutes in the country. Central and State universities, deemed universities, colleges and polytechnics under the purview of the bill. Impact analysis: The compulsory accreditation would establish unifying standards and norms across institutions and thus enhance quality of higher education in the country.
Prohibition of Unfair Practices in Technical, Medical Educational Institutions and Universities Bill, 2010 Overview: The bill aims at prohibiting unfair practices undertaken by higher educational institutes. Kew features: Prohibits payment of fee and other charges other than the those declared in prospectus. Prohibits capitation fee directly or indirectly and acceptance of any fee without receipt. Provision for refund of fee in case of withdrawal from institute. Impact analysis: The bill would help in making the operations of colleges and universities more transparent and simplifying processes for students.
Source: The National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010; Prohibition of Unfair Practices in Technical, Medical Educational Institutions and Universities Bill, 2010
56
However, the regulatory environment still curtails private sector participation
Challenge
Description
Complex and multiple regulations
L`] Af\aYf à_`]j ]\m[Ylagf kqkl]e ak kla]\ Zq Y hd]l`gjY g^ j]_mdYlgjk Yf\ j]_mdYlagfk& While the UGC is the principal regulatory body for higher education, numerous other bodies at the central (such as the AICTE, the Medical Council and the Bar Council) and state levels coexist in the regulatory framework. Multiplicity of regulators result in complex regulations and overlapping mandates Hjgnakagfk g^ 9[lk \]faf_ j]khgfkaZadala]k g^ l`] _gn]jfaf_ [gmf[adk g^l]f a_fgj] l`] context of the overall regulatory system and roles of other bodies. This has rendered the sector over-regulated but under-governed The higher education system is characterised by a plethora of regulations that have been established to ensure minimum input norms and standards, thus adversely affecting operational autonomy of institutions
Input-based regulations [mjlYad gh]jYlagfYd ]paZadalq
Restrictions have been placed on various aspects such as the establishment of institutions, infrastructure and faculty requirements, curriculum design, intake capacities, collaborations, etc. For instance, it is mandatory for a management institute to have computer labs even though most students use laptops in these institutes
The current regulations lack a comprehensive policy framework for foreign players to establish and operate institutes in the country Barriers to foreign university participation Oàd] l`] >gj]a_f =\m[YlagfYd Afklalmlagfk :add oYk jkl lYZd]\ Yk ]Yjdq Yk *((/$ al `Yk q]l not been passed The regulatory uncertainty has had the consequence of limiting activity by globally renowned universities in the Indian higher education sector despite increasing outward mobility of Indian students seeking foreign education
Fgl%^gj%hjgl klYlmk
The current regulatory framework allows for higher educational institutions to operate gfdq Yk fgl%^gj%hjgl ]flala]k& L`] j]klja[lagf gf jmffaf_ ^gj%hjgl afklalml]k aehda]k that institutions can be established only in three forms: trusts, societies and Section 25 companies Internationally, many countries have permitted institutes to be operated on a forhjgl eg\]d kmhhd]e]fl]\ oal` Y jgZmkl j]_mdYlgjq ^jYe]ogjc$ l`mk Zggklaf_ hjanYl] investment in higher education while keeping a check on transparency and quality
Source: CABE Committee 2005: Report on Autonomy of Higher Education Institutions; FICCI Recommendations on the Regulatory Framework for Technical Education, 29 February 2008, Higher education in India: Need for change 2006; The National Council for Higher Education and Research Bill 2010; Foreign Educational Institutions Bill, 2010; Indian Express,
57
The government should consider some potential measures for enabling greater private sector participation in setting up high quality institutions
Potential government measure
Description
Simplify regulations by reducing input-based constraints
Currently, higher education regulation in India is input-based. For example, players need to ensure a minimum amount of land, infrastructure, corpus, faculty, etc. At the same time, the focus is on inspection-based approvals which is characterised by subjectivity in decision-making The Government should consider following the example of several other countries and introduce output-based regulation by measuring outcomes such as knowledge, placements, etc. Làk oadd _an] hdYq]jk l`] ]paZadalq lg \]ka_f l`]aj hjg_jYee]k$ h]\Y_g_q$ Yf\ assessment methodologies Af\]h]f\]fl$ à_` imYdalq hjanYl] afklalmlagfk f\ al Y [`Ydd]f_] lg kmklYaf l`]aj gh]jYlagfk fYf[aYddq Yk Ydkg afn]kl af [j]Ylaf_ Y\\alagfYd [YhY[alq kaf[] l`] ?gn]jfe]fl kmZka\ak]k only public centres of excellence such as the IITs and NITs
Introduce student-side fYf[af_ lg ]fkmj] Y d]n]d% hdYqaf_ ]d\
L`]j]^gj] Y klm\]fl kh]f\k ka_fa[Yfldq à_`]j Yegmflk af YllYafaf_ Y hjanYl] ]\m[Ylagf$ resulting in an unfair advantage to public institutions The Government should therefore consider giving students the option of picking the afklalml] g^ l`]aj [`ga[] l`jgm_` klm\]fl%ka\] kmZka\a]k afkl]Y\ g^ afklalml]%ka\] ^mf\af_' grants
Currently, State Private Universities are concentrated in a handful of statesthe top 5 states account for about 65% of such universitiesgiven that they have put in place enabling regulatory environments and provide government support Encourage geographical spread of private universities The Central Government should work with other State Governments to create enabling regulations that encourage private players to set up universities in those states as well The Government should expedite the passage of the Innovation Universities Bill through oà[` al k`gmd\ ]f[gmjY_] à_` imYdalq hjanYl] hdYq]jk lg afn]kl ka_fa[Yfl Yegmflk to set up Innovation Universities which are governed by conducive regulation and are independent of geographical constraints >gj%hjgl à_`]j ]\m[Ylagf `Yk hdYq]\ Y ka_fa[Yfl jgd] af k]n]jYd [gmflja]k af[dm\af_ l`] US, Japan, and Malaysia 9ddgo ^gj%hjgl ]\m[Ylagf along with suitable safeguards L`] Af\aYf ?gn]jfe]fl k`gmd\ [gfka\]j Yddgoaf_ ^gj%hjgl ]\m[Ylagf oàd] hmllaf_ af hdY[] Y j]_mdYlgjq ^jYe]ogjc lg ]fkmj] l`Yl ^gj%hjgl hdYq]jk aehYjl Y []jlYaf klYf\Yj\ of education Làk oadd ]fYZd] _j]Yl]j hjanYl] [YhalYd afgo ^gj k]llaf_ mh f]o [YhY[alq Yf\ l`]j]^gj] assist in achieving the Governments GER targets This will also encourage transparency and entry of quality players while disincentivising l`gk] o`g mk] add]_alaeYl] e]Yfk g^ ]pljY[laf_ hjgl
Source: Interviews with higher education players
58
59
Glossary
AICTE BBA BCA BFSI BITS CAGR CBSE DE DEC FDI FEI FEP FICCI FY GDP GER HEI HMCT ICFAI ICT IFRS IGNOU IIM IIS IISER IIT INR ISB
All India Council for Technical Education Bachelor of Business Administration Bachelor of Computer Application :Yfcaf_ Yf\ fYf[aYd k]jna[]k Birla Institute of Technology and Sciences Compounded Annual Growth Rate Central Board of Secondary Education Distance Education Distance Education Foreign Direct Investment Foreign Education Institutes Foreign Education Providers Federation of Indian Chamber of Commerce and industry Financial Year Gross Domestic Product Gross Enrollment Ratio Higher Education Institute Hotel Management and Catering Technology The Institute of Chartered Financial Analysts of India Information and Communication Technology International Financial Reporting Standards Indira Gandhi National Open University Indian Institute of Management Indian Institute of Science Indian Institute of Science Education and Research Indian Institute of Technology Indian National Rupee Indian School of Business
IT ITI ISM JGU LC MBA MDI MHRD MIT NAAC NCHER NET NIIT NIT NMIMS NRI OBC OOH PG R&D SET SIU SNU UGC UKIERI UP VIT YOY
Information Technology Industrial training Institute Indian School of Mines O.P. Jindal Global University Learning Centres Masters of Business Administration Management Development Institute Ministry of Human Resource and Development Massachusetts Institute of Technology National Assessment and Accreditation Council National Council for Higher Education and Research National Education Tribunal National Institute for information Technology National Institute of Technology Narsee Monjee Institute of Management Studies Non Resident Indian Other Backward Classes Out-of home Postgraduate Research and Development State National Education Tribunal Symbiosis International University Shiv Nadar University University Grants Commission UK-India Education and Research Initiative Uttar Pradesh Vellore Institute of Technology Year-on-year
60
Acknowledgements
Anand Sudarshan, MD & CEO, Manipal Group Professor Bijendra Nath Jain, Chancellor, BITS Nikhil Sinha, Vice Chancellor, Shiv Nadar University Professor C. Raj Kumar, Vice Chancellor, O.P. Jindal Global University Dr. Vidya Yeravdekar, Principal Director, Symbiosis Dr. Rajan Saxena, Vice Chancellor, Narsee Monjee Institute of Management Studies
61
Team
Ernst & Young team

Bharat Gulia Keshav Kanoria Dhruv Gupta Aparna Kaicker
FICCI team
Shobha Mishra Ghosh Rajesh Pankaj Sunita Mohan
62
About FICCI
Established in 1927, FICCI is the largest and oldest apex business organization in India. A non-government, not-forhjgl gj_YfarYlagf$ >A;;A ak l`] nga[] g^ Af\aYk Zmkaf]kk and industry. FICCI has direct membership from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 83,000 companies from regional chambers of commerce. It works closely with the government gf hgda[q akkm]k$ ]f`Yf[af_ ]^[a]f[q$ [geh]lalan]f]kk Yf\ expanding business opportunities for industry through a range of specialised services and global linkages. It also provides a hdYl^gje ^gj k][lgj kh][a[ [gfk]fkmk Zmad\af_ Yf\ f]logjcaf_&
Partnerships with 77 countries across the world to carry forward our initiatives in inclusive development, which encompass health, education, livelihood, governance, skill \]n]dghe]fl$ ]l[& >A;;A k]jn]k Yk l`] jkl hgjl g^ [Ydd ^gj Af\aYf industry and the international business community. In keeping with its main objective, FICCI works across a range of industry sectors and has a FICCI-Higher Education Network (FICCI-HEN) and Committee on Higher Education to take this af\mkljq ^gjoYj\& >gj egj] af^gjeYlagf hd]Yk] dg_ gf lg `llh2'' ooo&[[a%`]f&[ge
63
About Ernst & Youngs education sector practice

Education is a focus sector for Ernst & Young. We provide strong capabilities as strategic consultants in this sector through a dedicated team of sector professionals. Our team combines deep insights with strong practical operational experience to provide implementable solutions the lead to tangible and sustained value creation. The Ernst & Young Strategic Consulting Group in Education has successfully completed numerous assignments over the last ^]o q]Yjk$ [gn]jaf_ Ydd Ykh][lk g^ l`] Af\aYf ]\m[Ylagf k][lgj& L`] jek [da]flk af[dm\] _gn]jfe]fl Zg\a]k$ j]hml]\ Af\aYf Yf\ international educational institutes, industry bodies, private equity funds as well as corporate houses interested in entering the education space. Ernst & Youngs education-centric research and analysis is encapsulated in a range of education thought leadership reports that are widely quoted by sector professionals.
Our services We provide end-to-end solutions to suit the requirements of clients from all segments of the industry. The following is a snapshot of our services: Pre-entry Market landscaping Entry strategy formulation Regulatory insight Establishment Business planning Marketing strategy Project management Growth Growth strategy International expansion strategy Standard operating procedures Expatriate taxation Representation before Af\aYf klYlmlgjq Yf\ k[Yd authorities Fund raising and M&A advisory Stability Business process improvement Strategic cost management
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64
Notes
65
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Private sector participation in Indian higher education

FICCI Higher Education Summit 2011