India's edtech sector is projected to grow from $7.5 billion today to $29 billion by 2030, according to a report by IAMAI and Grant Thornton Bharat. Despite challenges like decreased funding and corporate governance issues, the sector has shown resilience, driven by rising aspirations and a shift towards online learning. By 2029, edtech is expected to contribute 0.4% to India’s GDP. With increasing internet access, companies are expanding into tier-II and III cities, offering affordable, tailored content.
India's education technology (edtech) sector is on an impressive trajectory, with projections indicating a rise to $29 billion by 2030, up from $7.5 billion today. This optimistic forecast comes from a recent report by the Internet and Mobile Association of India (IAMAI) and Grant Thornton Bharat.
Despite facing some challenges, such as a decrease in funding following the pandemic's peak and corporate governance hurdles, the edtech landscape has shown resilience over the past decade. Growth has been driven by increasing aspirations, enhanced digital infrastructure, and a cultural shift towards online learning, according to the report released on Friday.
“The changing aspirations among middle-class families, a competitive job market and growing awareness of global education standards have pushed stakeholders to embrace alternative learning methods,” the report states. “Edtech platforms have capitalised on this shift by offering interactive, engaging and personalised learning experiences tailored to the needs of individual students.”
By 2029, the sector is expected to contribute 0.4% to India’s GDP, a significant increase from 0.1% in 2020. This growth is anticipated to be fueled by a focus on hybrid learning models, regional content customization, and skill development initiatives.
Funding in the edtech space saw a notable increase, nearly tripling to $608 million in 2024 from $207 million in the previous year, according to data from Venture Intelligence. While this figure is still below the $2.1 billion raised in 2022, it reflects a positive momentum amidst a broader decline in investments across various sectors due to challenging macroeconomic conditions.
Earlier this month, it was noted that 2025 could be a pivotal year for the sector, as it seeks to overcome the repercussions of Byju’s challenges by adopting sustainable business practices and focusing on delivering meaningful outcomes.
As of March 2024, India boasted 954.4 million internet subscriptions, with ongoing growth in rural areas enabling edtech companies to extend their reach into tier-II and III cities. They are doing so by providing affordable and tailored content that meets local needs.
The report highlights that 86% of respondents consider edtech platforms to be economically viable, marking a shift towards these platforms as a cost-effective alternative to traditional education. However, the high GST rates pose a challenge, raising the cost of these services and impacting their affordability.
In summary, India's edtech sector is poised for significant advancement, driven by innovation and a commitment to meeting the evolving educational demands of its diverse population.
Comments