Investment in the Indian Education Sector Essay Example for Free

Investment in the Indian Education Sector Essay Education is the key to unlocking and building lasting value in a robust economy. For any country to grow and prosper, a well-positioned educated young population is the fundamental requirement to meet the demands of an increasingly global economy and productive value creation. India has amongst the largest student population in the world and a low literacy level of 74. 04% (2011)1. According to census 2011 figures, over 35. 3% of the 1. 21 billion people are between the age group 0-14 years. Additionally, there is shortage of employable manpower in various industry segments. In order to meet this existing and emergent demand, there is huge need of investments in the Indian education sector. Currently, education is primarily handled by the government through its infrastructure and budget outlays. But given the small budget outlays and complex regulatory structure, supply is lagging far behind the demand of education. Expenditure on Education as %age of GDP 6000 GDP in thousnad Crores 5000 3. 64 4000 3000 3. 36 2000 1000 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2,098 2,261 2,538 2,878 3,282 3,779 3. 51 3. 45 4,321 4,933 3. 81 3. 74 3. 80 3. 70 3. 60 3. 50 3. 40 % expendutire on education 3. 78 3. 78 3. 90 3. 30 3. 20 3. 10 Source: Ministry of Human resource and Development (MHRD), Government of India REGULATION India’s tightly controlled regulatory structure is the primary reason for shortage of quality education institutions. Being in â€Å"Concurrent list†, education is being governed by both Central and State government with huge variations amongst the state regulations. Currently, the government regulates who you can teach, what you can teach them and what you can charge them. Some of the key bodies regulating education in India are:? Schooling o Department of School Education and Literacy MHRD o Central Board of Secondary Education (CBSE) o Various State Boards o National Council of Educational Research and Training (NCERT) 1 Census of India, 2011 Page 3 A research report on Investment in Indian Education Sector ? Higher Education o Department of Higher Education MHRD o University Grants Commission( UGC) o All India Council of Technical Education (AICTE) o Statutory Councils ? Medical Council of India (MCI) ? Bar Council of India (BCI) ? National Council of Teacher Education (NCTE) Voluntary Education and Skill Development o National Council for Vocational Training (NCVT) o National Skill Development Corporation (NSDC) ? In order to overcome this overlapping nature of various governing bodies especially in higher education, government is planning to come up with National Commission for Higher Education and Research (NCHER). This commission would work as a single regulatory body which would determine, co-ordinate and maintain standards in promotion of higher education and research. It will subsume regulatory bodies such as UGC, NCTE and AICTE, thus making the process more streamlined. KEY POLICY/ACT ? Foreign Educational Institutions(FEIs) o Allows FEIs to setup multi-disciplinary campuses and award degrees o Mandates FEIs to reinvest surplus from Indian operations o Mandates FEIs to invest at least 51% of capital expenditure required o Regulates the admission process, fee structure, period of operation of FEIs Right to Education o Makes access to primary education a fundamental right o Mandates 25% reservation for underprivileged students in schools? BUDGET 2011 HIGHLIGHTS ? ? ? ? ? Allocated an amount of Rs 52,057 Crores for universalizing access to secondary education Allocated an amount of Rs 21,000 Crores for Sarva Shiksha Abhiyan Increased the total allocation by 24% over the previous year Lack in allocation of funds for Teacher improvement and training Lacked emphasis on the K-12 sector in terms of school improvement, quality control etc. EDUCATION IN INDIA Indian education sector has witnessed a series of changes in the last few years, which resulted in a significant increase in market size of the education industry. With economic growth and enhanced technology it has become necessary to develop the Indian education sector. Funds are a major concern in the market to meet this demand. The government has taken many initiatives for the development of education infrastructure which needs to be supplemented led by private players. The government has also opened the doors for foreign universities by passing Foreign Educational Institution (Regulation of Entry and Operation) Bill, 2010, which will help in shaping the education industry structure specially pertaining of higher education in India. A research report on Investment in Indian Education Sector About 185,000 Indians study overseas and spend USD 4 billion annually. This is almost 10% of the private spend on education, coming from a very small 0. 001% segment of the student population. A number of these students are now returning to India after completing their studies, as job markets in India are more attractive, especially in contrast to weak macro scenarios in the western markets. Entry of leading foreign institutions will enable some of this USD 4 billion spend to stay in India, and also provide a much needed boost to quality. STRUCTURE Indian education system can be divided into formal and informal segments which are further divided into sub-segments. Formal education segment broadly comprises schools and higher education institutes. Schools often classified as K-12(Kindergarten to 12th) caters to ‘3-17 years’ age group. While higher education includes graduate, diploma, professional and post-graduation courses caters to ’18-22 years’ and above age group. On the other hand, informal education segment comprises of preschools, multimedia, ICT, vocational training, books and coaching classes. This segment is free from regulation as opposed to highly regulated formal education segment. Schools (K-12) Formal Higher Education Preschools Indian Education System Multimedia ICT Non-formal Vocational training Books Coaching classes Page 5 A research report on Investment in Indian Education Sector INTERNATIONAL SCHOOLS India is home to several well acclaimed International Schools and is increasing rapidly. This demand has been fuelled by parents looking for a new system of education which is more interesting and less stressful. Also, large number of NRIs resettling in India is also contributing to this demand. Being in India these schools have to adhere to certain requirements of the Indian national system irrespective of the examination system adopted by them. Most of the international schools opt for the International Baccalaureate (IB) Board. However, there are other examination systems like the General Certificate of Secondary Education (GCSE) and General Certificate of Education (GCE) examination systems which are also present. The IB is a recognized leader in the field of international education. It is a non-profit, mission-driven foundation that offers three programs for students aged 3 to 19. ? ? ? Primary Years Programme (PYP) Middle Years Programme (MYP) Diploma Programme -For students aged 3 to 12 -For students aged 11 to 16 -For students aged 16 to 19 In India, most international schools offer IB Diploma Programme. In this students study six courses at higher level or standard level. Students must choose one subject from each of groups 1 to 5, thus ensuring breadth of experience in languages, social studies, experimental sciences and mathematics. The sixth subject may be an arts subject chosen from group 6, or the student may choose another subject from groups 1 to 5. Additionally, the programme has three core requirements that are included to broaden the educational experience and challenge students to apply their knowledge and understanding. The â€Å"extended essay† is a requirement for students to engage in independent research through an in-depth study of a question relating to one of the subjects they are studying. â€Å"Theory of knowledge† is a course designed to encourage each student to reflect on the nature of knowledge by critically examining different ways of knowing (perception, emotion, language and reason) and different kinds of knowledge (scientific, artistic, mathematical and historical). â€Å"Creativity, action, service† requires that students actively learn from the experience of doing real tasks beyond the classroom. Students can combine all three components or do activities related to each one of them separately. Some of the International Schools in India:? ? ? ? ? ? ? ? ? ? ? ? Aditya Birla World Academy-Mumbai American Embassy School- New Delhi Amity Global School-New Delhi D Y Patil International School-Mumbai and Nagpur Dhirubhai Ambani International SchoolMumbai GD Goenka World School-Gurgoan Indus International School-Bangalore, Hyderabad and Pune KiiT International School-Bhubaneswar Pathways School-Gurgoan, Noida and NewDelhi Stonehill International School-Bangalore Sharad Pawar International School-Pune Doon School -Dehradun Page 6 A research report on Investment in Indian Education Sector ANALYSIS OF VARIOUS SEGMENTS BASED ON KEY PARAMETERS. Growth Prospect Yes Yes Yes Yes Yes Yes Yes No Regulated No Yes Yes No No No No No Scalable Yes Yes Yes Yes Yes No No No Possibility to Create Value Yes Yes Yes Yes No No No No Preschool Schools(K-12) Higher Education Multimedia ICT Coaching Classes Vocational Training Books GROWTH DRIVERS ? ? Demographic advantage o As per Census 2011 ,35. 3% of the Indian population is under the age of 14 Increasing awareness o Increase in awareness towards education as a priority and essential tool for career growth o Increase in job opportunities and salaries offered making investment in education prudent Human Resource driven economy o Increase in  the demand for an educated skilled workforce by services sector o Share of service sector in GDP increased from 30% in 1950 to 55% in 2007. Technology aided delivery o Increase in penetration of technology resulting in virtual learning and education delivery New employment avenues o Newer employment avenues such as KPO, LPO, retail, aviation, animation etc. demanding highly skilled manpower ? ? ? INDUSTRY FORECAST SCHOOLING. Segment Pre-School K-12 Tutorial Books Stationery Education CD-ROMs Multimedia in School Total 2008 1,200 21,000 5,000 1,700 1,380 120 25 30,425 CAGR 20%-25% 5%-10% 8%-13% 5%-10% 5%-10% 25%-30% 60%-70% 2013 3,500 30,800 8,000 2,400 2,000 390 320 47,410 CAGR 10%-15% 5%-10% 5%-10% 3%-8% 3%-8% 20%-25% 50%-60% 2018 5,800 43,200 11,800 3,000 2,600 1,100 3,300 70,800 (Figures in USD million) Page 7 A research report on Investment in Indian Education Sector HIGHER EDUCATION. Segment Higher Education Preparatory Total 2008 6,700 1,600 30,425 CAGR 8%-13% 13%-18% 2013 11,200 3,200 47,410 CAGR 7%-12% 10%-15% 2018 18,100 5,900 70,800 (Figures in USD million) VOCATIONAL EDUCATION AND SKILL DEVELOPMENT Segment Child skill enhancement IT training E-learning Finishing school Vocational Teacher training Total 2008 740 195 45 25 1,500 15 2,520 CAGR 20%-25% 35%-45% 35%-45% 50%-60% 15%-20% 50%-60% 2013 2,200 1,050 240 235 3,100 140 6,965 CAGR 17%-22% 33%-38% 33%-38% 45%-55% 10%-15% 45%-55% 2018 5,600 4,700 1,100 1,800 6,200 1,100 20,500 (Figures in USD million) Source: Technopak report on India Education Sector INVESTMENT SCENARIO With an education network of more than one million schools and 20,000 higher-education institutes, the market size of the Indian education system is estimated at more than US$40 billion2 (2009). However, inadequate infrastructure has placed pressure on the sector’s overall development. Education sector is unable to cope with growing market demand and global competition due to constrained investments. Increased private investment is imperative to expand infrastructure and provide greater access to quality education. Also, Government is planning to set up an education ? nance corporation with an investment of around US$4–5 billion, which aims to provide the education sector with long-term, low-cost ? nancing. PUBLIC PRIVATE PARTNERSHIP (PPP) PPP can provide the much needed finance to the education sector while serving as an efficient operating model. Establishing strong partnerships between private and public sector can achieve the growth. POSSIBLE PPP STRUCTURE The educational institute (special purpose vehicle) is set up as a Society or Trust, as per applicable guidelines. The UGC, AICTE or some other central regulatory body approves norms and standards of the institute. The state provides applicable administrative and financial support to the institute. Capital outlays are met by an educational services entity which 2 EY’s Private Equity Round Up April-June 2010 Page 8 A research report on Investment in Indian Education Sector provides infrastructure. The educational services entity charges a fee for use of facilities by the Society or Trust. Finally, the infrastructure facilities are transferred to the institute after a particular time period. Central Government State Government AICTE, UGC approvals Provision of grants Local approvals Land and utilities Trust/Society Service fees Infrastructure Service Provider Transfer of Infrastructure after prescribed time period Source:-2009 E Y – EDGE 2009 report on Private Enterprise in Indian Higher Education KEY PLAYERS GLOBAL ? ? ? ? ? ? ? ? ? ? ? ? ? ? Apollo Group (USA) Mcgraw-Hill (USA) Pearson Plc (England) Benesse Corp (Japan) Devry Inc (USA) ITT Educational (USA) Strayer Education (USA) New Oriental (China) Career Education (USA) Corinthian College (USA) Capella Education (USA) Raffles Education ( Singapore) Mega Study ( South Korea) SkillSoft ( USA) Page 9 A research report on Investment in Indian Education Sector INDIA FORMAL ? ? Preschool o Kidzee o Euro Kids Multimedia in private schools o Educomp o Everonn o NIIT Vocational Training o NIIT o Aptech o Frank Finn Coaching Classes o FIIT-JEE o TIME o Career Launcher Books o Tata Mcgraw Hill o John Wiley o Navneet Publications ? INFORMAL K -12 (School) o Millennium Schools (Part of EduComp) o Kids Zee High o Billabong High (Part of Kangaroo Kids) o GEMS ( Dubai based) Higher Education o Manipal Education o Amity o IIPM o ICFAI ? ? ? ? MAJOR DEALS INVESTMENTS ? ? ? ? Rs10 billion investment plan from educational institutes in Haryana’s Rajiv Gandhi Educational City ( January’11) RS 28. 08 billion investment for setting up 20 IIITs under PPP route ( January’11) Everonn Rs 36 billion investment plan to setup 300 K-12 schools by 2015 (July’10) Educomp Rs 510 million contract to provide computer education in Bihar’s schools (May’10). PRIVATE EQUITY DEALS Education sector has witnessed 29 PE deals (refer Exhibit 1), cumulatively worth US$381 million, between January 2006 and June 2010 (as per Private equity roundup April-June 2010 by Ernst and Young). The majority of these investments have been in for-pro? t corporate entities that are not subjected to any government regulations. In future, with increased government spending and expansion plans of private players, the potential for PE investments in the Indian education sector is significant. Additionally, sector’s less correlation with the broad economic growth makes it more attractive. Page 10 A research report on Investment in Indian Education Sector SEGEMENT WISE BREAKUP OF PE INVESTMENTS IN TERMS OF NUMBER OF DEALS 9 8 7 6 5 4 3 2 1 0 3 3 1 2 2 1 1 1 1 1 2 1 1 2 Vocational Preschool K12 Education technology 4 College/University 3 Coaching 2006 2007 2008 Number of Deals 2009 2010 SEGMENT WISE BREAKUP OF PE INVESTMENTS IN TERMS OF DEAL VALUE 160 140 120 100 80 60 40 20 0 2006 2007 83 30 74 1 2008 43 2009 2010 12 13 10 37 5 9 23 Vocational 39 Preschool K12 Education technology College/University Coaching 67. Deal Value ( US$ million) Sources: Asian Venture Capital Journal; Dow Jones Factiva; ISI Emerging Market MAJOR ISSUES ? ? ? ? ? Overregulated and under- governed Not for profit structure and all surplus needs to be reinvested High involvement of politicians in higher education industry with no willingness to change the existing structure High land prices and hoarding of land reserved for educational purposes for resale Fragmentation in the sector due to difficulties in achieving scale Page 11 A research report on Investment in Indian Education Sector.

Behavioral Sink :: Sociology Psychology Essays

Behavioral Sink In the reading â€Å"O Rotten Gotham† it talks about behavioral sink and how New York had been thrown into state of behavioral sink. It was interesting how this author took the behavior of rats and compared it to humans. After reading what he wrote it sort of reminded me of the lifestyles that some New Yorkers live with in the projects. While reading this story it made me think about my parents and what they have said about living in New York and in the projects. Here are some opinions about behavioral sink and taken from two people that have lived in the projects in New York When talking with Alberto Velez, he said that there was a lot of over crowding in the projects because too dense of a population. There were also too many people with emotional problems, with less time to get over their problems. The result was more crime and violent activity. Mr. Velez also talked about how the behavioral sink in the projects made people go into depression and have increased anxiety. People began to react to each other much more. There was much higher incident of crime due to anxiety. Then he went into say that once these people went through depression and didn’t know how to handle their emotions they would begin to care less and less about the building and the surroundings. Eventually the projects decayed. Part of the problem he said was with so many people there was higher opportunity to run into more emotional events and these events kept building in each other. When talking to Jean Gee, she gave me the definition as â€Å"Behavioral sink - a psychological state characterized by gross distortion of behavior.† Then she went on to say that people living in city projects, which are crowded and likely to be in constant state of disrepair often cause the tenants to be belligerent, unhappy, violent and socially dysfunctional. Just the fact that people are living in subsidized housing causes some sort of anxiety and stress because these type of housing projects tend to be racially and socially segregated, for example the majority of tenants in New York City housing are minorities and very poor. There are many opportunities for criminal type behavior against the tenants in these projects which tend to be high rise and sometimes not very well secured.

Review

Here you have another twenty something ungrateful Hollywood raised female woman-child, in another typically ungrateful for celebrity-family with parents who are so self absorbed and ungrateful towards themselves, that you wonder how they can have time left to be ungrateful towards the children under their roof/in their lives. But oh, they find time. So what keeps you watching? The 15 minute ‘clinique' beauty of the twenty something self described â€Å"socialite†? The little â€Å"naughty-bits† they sneak in of T&A just under the radar of standards and practices?The self-absorption of the parents? The back-talk and snotty attitudes the children are allowed to give to these parents? The unruliness of a blended family? Or just the idea of taking a peek into the life of â€Å"folks with celebrity† and then taking a look at your own life and realizing that mom and dad †¦. maybe aren't SO bad. The beauty of freedom is that there will always be something for everyone. And in that freedom, you can take a look and decide if it's good or bad. For me, this show is bad, meaningless.This is not to say that all TV must be 20 hours of â€Å"Leave it to Beaver† or the â€Å"Brady Bunch†. That's unrealistic. We've got to be exposed to real family dysfunction to see that that the world isn't always sugary sweet and pristine perfect. Not parents, not kids, not even our pets. But programs like this are getting to be a standard. There isn't anything warm or exciting about viewing the life of a young woman who's already hit her peak – mentally, educationally, sexually – and is heading downward fast.Or her mother who IS allowing it – even if it is only due to her own self-absorption. And a father who couldn't care less because he ISN'T her father particularly, just another man in a long line of men that the mother has luckily hooked her claws into. And the household siblings – the siblings to whom you have a b et going that they will either run out of the home screaming for real love, acceptance, stability, boundaries – or end up just like their older sibling on a YouTube edited soft porn segment or even worse – a real one. Is this entertainment? Depends on you.It is a train wreck that you may stop to see for a minute or two – but there are so many OTHER train wrecks to see in â€Å"reality TV† these days from music television to classic television channels, why stick with this one? Even if its only for a minute? Well†¦ maybe to hug mom and dad and thank them that you're not ever going to end up as dull, lifeless, and boring as this family no matter how much money, TV cameras or publicity there is in the world. This shows that fame, money — the appearance of it or the chasing of it — isn't all it's cracked up to be, but obviously will crack those who have it.Here you have another twenty something ungrateful Hollywood raised female woman-child , in another typically ungrateful for celebrity-family with parents who are so self absorbed and ungrateful towards themselves, that you wonder how they can have time left to be ungrateful towards the children under their roof/in their lives. But oh, they find time. So what keeps you watching? The 15 minute ‘clinique' beauty of the twenty something self described â€Å"socialite†? The little â€Å"naughty-bits† they sneak in of T&A just under the radar of standards and practices?The self-absorption of the parents? The back-talk and snotty attitudes the children are allowed to give to these parents? The unruliness of a blended family? Or just the idea of taking a peek into the life of â€Å"folks with celebrity† and then taking a look at your own life and realizing that mom and dad †¦. maybe aren't SO bad. The beauty of freedom is that there will always be something for everyone. And in that freedom, you can take a look and decide if it's good or bad. For me, this show is bad, meaningless.This is not to say that all TV must be 20 hours of â€Å"Leave it to Beaver† or the â€Å"Brady Bunch†. That's unrealistic. We've got to be exposed to real family dysfunction to see that that the world isn't always sugary sweet and pristine perfect. Not parents, not kids, not even our pets. But programs like this are getting to be a standard. There isn't anything warm or exciting about viewing the life of a young woman who's already hit her peak – mentally, educationally, sexually – and is heading downward fast.Or her mother who IS allowing it – even if it is only due to her own self-absorption. And a father who couldn't care less because he ISN'T her father particularly, just another man in a long line of men that the mother has luckily hooked her claws into. And the household siblings – the siblings to whom you have a bet going that they will either run out of the home screaming for real love, acceptan ce, stability, boundaries – or end up just like their older sibling on a YouTube edited soft porn segment or even worse – a real one. Is this entertainment? Depends on you.It is a train wreck that you may stop to see for a minute or two – but there are so many OTHER train wrecks to see in â€Å"reality TV† these days from music television to classic television channels, why stick with this one? Even if its only for a minute? Well†¦ maybe to hug mom and dad and thank them that you're not ever going to end up as dull, lifeless, and boring as this family no matter how much money, TV cameras or publicity there is in the world. This shows that fame, money — the appearance of it or the chasing of it — isn't all it's cracked up to be, but obviously will crack those who have it.

How to Grow Aragonite Crystals

Its easy to grow aragonite crystals! These sparkly crystals only require vinegar and a rock. Growing crystals is a fun way to learn about geology and chemistry. Materials To Grow Aragonite Crystals You only need two materials for this project: Dolomite rocksHousehold vinegar Dolomite is a common mineral. It is the basis for dolomite clay, which should also work for crystals, but if you grow them on a rock you get a beautiful mineral specimen. If you use clay, you might want to include another rock or a sponge as a base or substrate to support crystal growth. You can find the rocks at a store or online or you can play rockhound and collect them yourself. How To Grow the Crystals This is one of the easiest crystal-growing projects. Basically, you just soak the rock in vinegar. However, here are a couple of tips for the best crystals: If your rock is dirty, rinse it off and let it dry.Place a rock in a small container. Ideally, it will be slightly bigger than the rock, so you dont have to use a lot of vinegar. Its okay if the rock sticks out of the top of the container.Pour vinegar around the rock. Make sure you leave an exposed space at the top. The crystals will start to grow at the liquid line.As the vinegar evaporates, aragonite crystals will start to grow. Youll start to see the first crystals in a day. Depending on temperature and humidity, you should start to see really good growth around 5 days. It may take up to 2 weeks for the vinegar to completely evaporate and produce crystals as big as possible.You can remove the rock from the liquid whenever you are satisfied with the appearance of the aragonite crystals. Handle them carefully, as they will be brittle and fragile. What Is Aragonite? Dolomite is the source of the minerals used to grow the aragonite crystals. Dolomite is a sedimentary rock often found along the shores of ancient oceans. Aragonite is a form of calcium carbonate. Aragonite is found in hot mineral springs and in some caves. Another calcium carbonate mineral is calcite. Aragonite sometimes crystallizes into calcite. Aragonite and calcite crystals are chemically identically, but aragonite forms orthorhombic crystals, while calcite displays trigonal crystals. Pearls and mother of pearl are other forms of calcium carbonate.