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The Indian education industry is poised for growth. This sector is changing rapidly with more private players entering the field. The government is also taking many measures to improve the quality of education in India. This industry is going to achieve its peak as the idea of business via education catches up.

Fifty percent of India's population is the youth. This means that the Indian education sector is huge with a population of 1.13 billion. India has around 367 universities, 18,000 colleges, about half a million teachers, and 11 million pupils. The private education industry is estimated to be between 20,000–25,000 crores. There are about 1,500 management institutes, 3,500 engineering institutes, and 1,200 medical colleges in the country.

With an increase in the average Indian household, more money is being kept aside for education purposes. Also, because of the initiatives of the government, more students are enrolling themselves for higher education. This means that more colleges are needed to cater to these students. Also, the demand for education is inflexible; that is, no matter what, the education sector is not going to collapse.

Primary education is expanding. Many foreign schools are making their presence felt in India. Parents are enrolling their kids into international schools for better education directly from the primary level.

Technology-oriented courses are gaining in popularity due to the rising demand in these industries. The medical industry is also revamping itself. There is a need for more doctors and skilled professionals in this area. Thus, engineering and medical colleges are going to be in demand. The demand for management education is also rising. Many international management institutes are creating ties with Indian colleges or setting up their own centers in India.

Specialized courses, such as aeronautics and biotechnology, are also popular. There is immense scope in India for universities offering specialized courses and research potential. The R&D sector requires more expertise and quality professionals to cater to its design and needs.

Many foreign universities operate via the twinning mode as of now. This essentially means the collaborating institution can offer the curriculum of the other university in its first half. These students thus gain credits, which are transferable to the foreign university. This helps the students choose from an array of subjects and also complete a year in India itself. Thus, these programs are successful and present a good opportunity for investment.

E-learning and Distance learning programs are also gaining popularity. Many students and working professionals are taking these courses to get a quality education. The drawing factors for these programs are the world-class curriculum, comfort, and low costs.

As many Indians go to foreign shores for quality education, the market for foreign universities is very present in India. The government is also encouraging FDI in this sector to improve the quality of education in the country. 100% FDI is allowed in this sector as long as the rules and regulations are met.

Thus, this sector offers multiple benefits and is becoming a favorable area for investment.