Sunday, 23 Mar, 2025
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The Indian edtech sector is projected to grow significantly, increasing its contribution to GDP from 0.1% in 2020 to 0.4% by 2029. This expansion is fuelled by a focus on hybrid learning models, regional language content, and skill development, addressing the diverse educational needs of the country’s vast student base.
India’s edtech market, currently valued at $7.5 billion, stands on the cusp of an extraordinary change, with projections by the Internet and Mobile Association of India (IAMAI) and Grant Thornton Bharat predicting a fourfold expansion to $29 billion by 2030. This ambitious trajectory paints a picture of a sector that, despite its growing teething troubles, continues to thrive in an era marked by technological disruption and evolving learning paradigms.
The Covid pandemic-era boom, which catapulted edtech into the spotlight, has since given way to more tempered growth amid dwindling investor zeal and governance challenges. Yet, the resilience of this sector cannot be exaggerated. As the country’s digital infrastructure deepens and the appetite for accessible, quality education grows, edtech has emerged as a foundation of India’s aspirations for a knowledge-driven economy.
However, the journey ahead is not without hurdles. The sector must reckon with the dual imperatives of scaling sustainably and restoring public trust after high-profile missteps. For India’s edtech to fulfil its vast potential, it must balance innovation with accountability, ensuring it not only expands but endures as a credible agent of change in education.
Notably, the shift toward digital education in India is not only a story of technological progress but also one of pragmatic cost-effectiveness. The prohibitive costs of offline education—averaging Rs 36,000 annually in government secondary schools and soaring to Rs 3,96,000 in private institutions—highlight the economic barriers many families face. On the contrary, online education providers, unburdened by the expenses of physical infrastructure, are reshaping affordability, with skill-enhancement courses costing 53 per cent less than their offline counterparts. This democratisation of access is rewriting the narrative of educational inclusivity.
India’s rapidly expanding edtech sector, with more than 4,450 startups, highlights its rise as a global leader in online education. This massive growth goes beyond mere numbers, and it signifies a profound reimagining of how education is designed and delivered in one of the world’s most populous and diverse nations. Spearheaded by the National Education Policy (NEP) and a host of innovative digital initiatives, New Delhi has firmly positioned itself as a thought leader in the e-learning domain.
The edtech sector is poised for significant growth, with its contribution to the nation’s GDP (gross domestic product) projected to rise from 0.1 per cent in 2020 to 0.4 per cent by 2029. This expected surge reflects the sector’s evolving focus on hybrid learning models, regional language content, and skill development—all critical to meeting the diverse needs of the country’s vast student population.
Yet, the funding landscape paints a more nuanced picture. While investment in edtech nearly tripled to $608 million in 2024 from $207 million the previous year, it remains a shadow of the $2.1 billion raised in 2022. This decline emphasises the impact of global macroeconomic headwinds and a marked shift in investor sentiment, as cautious funding strategies replace the exuberance of earlier years.
Following a turbulent phase defined by the implosion of Byju’s, India’s edtech sector enters 2024 at a critical juncture. The industry is turning toward sustainable business practices and prioritising measurable outcomes as it seeks to rebuild trust and stabilize its growth trajectory. This year holds the potential to be a turning point for the sector.
Also, India’s digital revolution continues to expand the reach of edtech. By March 2024, the country recorded 954.4 million internet subscriptions, with rural connectivity on the rise. This growth has enabled edtech companies to penetrate tier II and tier III cities, offering affordable, regionally tailored content that addresses the unique needs of these communities. This digital inclusivity is a promising step toward narrowing educational divides across socioeconomic groups.
