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2025-26 has been a defining year for the Indian education sector.
Internationalisation, adoption of artificial intelligence, and announcement of reformatory measures to reduce complexity in institutional operations have been some of the key focus areas. In terms of size, the sector is currently valued at over US $200 bn with projections to achieve over 50% growth over the course of the next 5 years. EdTech, after witnessing a series of headwinds, is once again becoming the key growth driver.
Roll out of the red carpet by Indian leadership, compounded with budgetary, visa, and immigration related issues in host countries have led to a series of announcements by eminent foreign universities to establish campuses in the country, including University of Southampton, University of Liverpool, Illinois Institute of Technology, amongst others.
Similarly, in the K-12 segment, flexibility provided in setting up international board-affiliated schools by certain states has led to the entry of premium international school chains such as King’s College, Shrewsbury International School & Harrow International School. We expect all major international school chains to have a deep presence in the Indian market over the course of the next 3 years.
Taken together, these recent developments showcase the unprecedented rise of India as a destination for global education & research, driven largely by:
- Expansion of premium international school chains
- Entry of top foreign universities across the country with a high focus on research & innovation
- New regulatory pathways enabling international participation, such as GIFT City’s IFSCA framework for International Branch Campuses and Offshore Education Centres
- Emergence of planned education cities and knowledge clusters that co-locate academic institutions, research and industry.
Realignment of domestic regulations
The introduction of the Viksit Bharat Shiksha Adhishthan (VBSA) Bill, 2025, in Parliament marks an important moment in the evolution of higher education governance. If enacted, the Bill has the potential to reshape the regulatory architecture by consolidating oversight and bringing greater consistency to how higher educational institutions are governed, assessed and held accountable. Additionally, ongoing reforms around NTA processes, accreditation and evaluation frameworks are altering how institutions prepare for quality assurance and regulatory scrutiny.
To gear up for the digital-first world, the Government has also initiated steps to integrate technology in the school curriculum, Skilling for AI Readiness (SOAR), which targets school students from classes 6–12. Furthermore, last year’s budget allocated INR 500 crore to establish a Centre of Excellence for AI in education.
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