Indian Education Market Analysis

Indian Education Market AnalysisIntroduction simulation of International Business in overseas market.Higher development these days has become a profitable business collectible to high demand of prime(a) education worldwide. This has given rise to worldwide branch campuses all around the world. These campuses ope value in host country and provide awards and qualifications with a brand happen upon of home university.An Analysis of why University of Wollongong expand to IndiaUOW has already established a very strong partnership with Indian academic institutes in the areas of mining technology, renewable energy and logistics. UOW also have strong links with major Indian IT companies like Infosys. The cost of markting up a campus in India will be less because UOW has very strong local ties which will be helpful in raising the capital. University is also popular among Indian students and over ane thou Indian students are currently enrolled in UOWs Australian and Dubai campuses. Ind ian education sector is viewed as very lucrative as the country want to ruin skills of around 400 million people by 2022(Munro, 2017). It is highly anticipated that UOW would make profit by extending its overseas market to India. There is no doubt that every business venture has some risks associated with it. In this case, major risk would be that students may prefer to study in universitys Australian campus instead of Indian campus. This risk can be minimised by offering less tuition fees at Indian campus. Another solution is to offer twinning arrangements to students which would involve survival of the fittest of partial study in Indian campus followed by study in Australian campus.PESTLE Analysis of Indian Education MarketIndian education sector has recently been identified as a lucrative market for investment due to low literacy rate, growing urban population and recent increase in per capita income. Indias education sector does offer many profitable business opportunities f or outside universities like UOW(Tohmatsu, October 2012). Indias higher education market has grown significantly in the bypast ten years as shown in the fig below.More students are enrolling in higher educational institutes after leaving school and will to pay more for quality education. There are opportunities for foreign universities to establish an international branch campus in India independently or in collaboration with nonpublic sector. A detailed analysis of Indian market in terms of political, environmental, social, technological and legal factors can be discussed as followsPolitical Environment India is a democratic country and current regime was elected in May 2014 under the huntership of Prime Minister Narendra Modi. Current government is very perpetual and strongly support foreign investment in education sector. A legislation is currently underway to allow foreign universities to setup international campuses in India. The proposal is to allow foreign universities to operate independently, award degrees and repatriate all profits which is strongly supported by many state governments as well. Governments counselling is on providing opportunities for millions of young Indians to receive quality education and employment skills. Government is committed to skill development of half a billion people by 2022(Export.gov, 2017).Government strongly support collaboration between foreign universities and Indian universities in research and development. Government focus is on developing partnership with foreign universities in the field of mining technology, software development, pharmaceuticals and nanotechnology. UOW has recently joined hands with Indian state government of Gujarat to support Centre of Mining Excellence due to the universitys expertise in mining technology. Current political environment in India is very favourable for UOW to setup an international campus in India.Economic Environment India is the third gear largest economy by purchasi ng power parity and seventh largest in the world in terms of nominal Gross Domestic Product (GDP). India is considered as one of the major economy in G-20 nations. During the last five years, Indian economy has experienced a growth rate of 7-8% per annum and it is expected to grow at the same rate for at least next five years. The driver behind countrys economic expansion is its service sector which comprised of retail, telecommunications and information technology.India is emerging as a very strong market for higher education and vocational training due to its service sector driven economy. The number of enrolments at educational institutes in India is the third largest in the world only behind China and the US. Education sector in India has witnessed a strong growth in the past 20 years and it continues to grow which gave rise to strong demand for higher education. Higher education sector in the past was dominated by government institutes, however admissions in private institutes have suddenly increased recently due to higher demand supply gap. It is estimated that education market in India will worth billions of dollars in upcoming years. Education market in India is becoming very lucrative and this is the best time for UOW to setup an international campus in India(Deloitte, family 2013).Social and Cultural Environment India is considered one of the youngest countries in the world with a median age of around 24 years. Indias potential workforce is estimated to reach one billion by 2025. Indian literacy rate is 74.04 % as compared to world literacy rate of 86.3%. Indian society is very diverse with many cultures, languages and religions. In India, religion plays an all-important(prenominal) role and people are very much influenced by it. Culture and Religion also have implications on education(Andy Bertsch, 2013). In the past, most of the students were only provoke in engineering and medicine courses due to the influence of their family and friends. Nowada ys students have started showing interest in variety of other courses such as journalism, hospitality, jurisprudence and management. There is a golden opportunity in India for UOW to offer specialised courses and quality education to millions of aspiring students.Technological EnvironmentTechnological changes can lead to innovation, better quality and less costs for the organisations. Internet and telecommunication technology is evolving very fast in India. Most of the country is served with 3G and 4G networks to support businesses. India has a mesomorphic information technology sector which constantly provides new computer constitutions, software and technological advancements. India has all the infrastructure in place to provide world twelvemonth teaching facilities like smart lecture theatres with audio video connectivity, e-learning and fast internet connection for the proposed international campus(Scholar, January 2016).Legal Environment Indian legal system is well develope d and based on the Common law of England. Judicial system is fair, accountable and transparent. Taxation policies support foreign direct investment and international trade is governed by flexible regulations. Indian companies pay flat tax rate of 30%, however foreign companies pay flat tax rate of 40%. The government has started projects like E-Biz and Invest India with an aim to facilitate investments from global investment community. Now only single application is required for multiple clearances to set up a new business in India. This is the best time for a foreign university like UOW to establish an Indian campus.ConclusionThere is no doubt that international branch campus can be a financial risk for the Universities however, UOW is already running a very successful campus in Dubai. moneymaking Indian education market, favourable economic conditions, strong partnership with local IT industry and research collaboration with academic institutes are some of the potential success factors for UOW to open a campus in India.ReferencesANDY BERTSCH, J. O., M.SAEED, SONNIE BATES AND ABM ABDULLAH 2013. Business Environment in India An International Perspective Business Environment in India An International Perspective Dhaka.DELOITTE kinsfolk 2013. Deloitte Foreign Universities in India. Touche Tohmatsu India Private Limited.EXPORT.GOV. 2017. India Education Service Online. International trade administration. Available https//www.export.gov/article?id=India-Education-Services Accessed 25 March 2017.HEALEY, N. October 19, 2015 The Conversation Academic rigour journalistic flair Universities that set up branch campuses in other countries are not colonisers Online. The Conversation Media Group Ltd. Available http//theconversation.com/universities-that-set-up-branch-campuses-in-other-countries-are-not-colonisers-46289 Accessed 22 March 2017.MUNRO, K. 2017. Could building campuses inshore be the future for Australias universities? Online. Faltex Media. Available http// www.smh.com.au/nsw/could-building-campuses-offshore-be-the-future-for-australias-universities-20160719-gq8wsv.html Accessed 27 March 2017.SCHOLAR, M. R. R. January 2016. MAKE IN INDIA PROSPECTS AND CHALLENGES International Journal of Business Quantitative Economics and Applied Management Research, 2, 60.TOHMATSU, D. T. October 2012. Indian Higher Education Sector Opportunities aplenty, growth unlimited 2012 Deloitte Touche Tohmatsu India Private Limited.