How Indian Education Has Grown Because of Inter-sectorial Connectivity

India's higher education will be US$ 140 billion by 2030 and here's the time to make it scientific and rational

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By Sonia Dubey


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Education institutes in India and globally are moving to a higher level of collaboration between them and industries. This is critical for skills development through education & training, as well as the generation and adoption of knowledge, which can lead to innovation in industry and the promotion of entrepreneurship.

There are many benefits of a inter-sectorial connectivity they can help coordinate R&D agendas and avoid duplications, it can also foster the commercialization of public R&D outcomes, and increase the mobility of labor between public and private sectors.

In India there is a growing shortage of appropriately skilled labor across many industries and is a challenge for India's growth and future. According to NASSCOM, each year over 3 million graduates and post-graduates are added to the Indian workforce. However, of these only 25% of technical graduates and 10 % to 15% of other graduates are considered employable by the rapidly growing IT segments.

A great example of this kind of education & industry connectivity is seen here by Tata Trusts, headed by Ratan Tata, where they have partnered with the Massachusetts Institute of Technology (MIT) and the Tata Institute of Social Sciences to launch Clix (Connected Learning Initiative-X), an online learning initiative in government school classrooms across rural India.

Trends in Education Sector in Terms of Inter-sectorial Growth

India has moved up from a dismal rank of 81 reported in 2015 to 57 in the 2018 Global Innovation Index. Part of the reason for the improvement can be linked back to the increase of courses now available at the technical and vocational training institutes, which are more geared towards a start-up economy along with strong inter-sectorial connectivity.

In a recent trend, vocational training companies have entered into agreements with corporate houses to train their existing employees with the required skill sets. Also through corporate partnerships, vocational training companies are training college passouts with both soft and hard skills required by their corporate partners.

Private investments in the Indian education sector have also increased manifold over the past two decades. Indian education sector witnessed 18 merger and acquisition deals worth US$ 49 million in 2017. As of June 2018, the Ministry of Human Resource Development, Government of India is also planning to raise around US$ 15.52 billion from private companies and high net worth individuals to finance improvement of education infrastructure in the country. The funds will be mobilised by the Higher Education Funding Agency (HEFA).

New Sectors and Stakeholders That Have Contributed to Education

1) Technology Industry

The technology industry has probably made the biggest impact to the education sector over the last 2 decades. It started from the growth of the technology-outsourcing boom in India, which resulted into an unparalleled growth of computer engineers in the country to technology that is helping teachers to expand beyond linear, text-based learning and to engage students who learn best in other ways as well as the growth of e-learning solutions.

Recently Google announced to help build out AI capabilities it would be bringing its Machine Learning Crash Course to India. Such contributions made by the private sector industries will help boost the education sector.

2) Personal Transformation Industry

The rise of the higher disposable income of the Indian middle class has lead to tremendous growth in the personal transformation industry in India. The personal transformation industry includes everything from companies dealing in cosmetics &beauticians to Image Management / Consulting or Life Coaching.

With the support & backing of the private industry, education institutes such as Indian School of Image Management, Butic Institute of Beauty Therapy and Hair Dressing, Enrich Salon and Academy, etc. are now focusing on providing quality education in these specialized fields.

How Inter-sectoral Contribution Can Boost Education as a Business

It is estimated that India's higher education will be among the top 5 countries in the world in terms of research output with an annual R&D spent of US$ 140 billion by 2030 (Source: We firmly believe if this is to be achieved it has to be done with a clear & open focus towards building further inter-sectorial connectivity with not only local but also global companies.

Sonia Dubey

Image Consultant

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