Needless to say, Indian Education needs a lot of work. There are problems aplenty and these are clearly visible. On the other hand, there is already lot of work undergoing – new schools, engineering colleges, MBA colleges, eLearning companies coming up every day… hard to believe that it is not a bubble. In addition, it appears there is a terrible mismatch between the excitement in this sector and the problems that plague currently.
If we list down some of the problems –
– Lack of schools offering quality education at less than Rs 100/month
– Lack of teachers in schools
– Students passing out of engineering schools/ MBA schools are not employable
– Divide between urban and rural India
While, most of the investments we are seeing today, for instance, are in –
– Test prep, coaching classes, JEE and other entrance exams: more than $billion market catering to just around a million students
– eLearning companies making sub-standard content to crack K-12 exams (sometimes, in the name of animated content, it is just set of Powerpoint slides with a voiceover)
– Opening of schools in cities (charging more than Rs 1000/month)
– Opening of b-schools in India (now there are around 3000 B-schools in India)
And the reason for the above pattern is simple – making money is easy for these businesses. Parents are shit-scared to lose out not sending their kids to IIT coaching classes. Schools need to tick-mark if they support Audio-Visuals in their premises. People need B-school tag to get a job. What appears is that these businesses are built around opportunities that take advantage of the problems. However, in no way, they are solving the real problems. To be fair, making money in solving the education problems in India holistically is very difficult. How many people in India will pay in the name of learning? It has to be some entrance exam or some degree or certification when people pay. Why does someone have to consider opening a school providing low-cost education when there’s already huge demand in upmarket? And probably I would do the same thing – exploit the system unless you find a sustainable model. You need to survive and only then you can make a difference. Again to be fair, some people/companies are actually trying to solve real problems and have come with successful business models.
So what is the way forward? In the long-term, market is a weighing machine. Supply and demand keep swinging but converge in long-term. And if the current investment is not solving the real problem, the bubble will burst. But it can also become bigger than what it is now. It is also possible that I am terrible wrong here. Only time will tell.