FICCI School Education Conference EY-FICCI Report Private Sector’s Contribution to K12 Education in India

1. FICCI School Education ConferenceEY-FICCI ReportPrivate Sector’s Contribution to K12 Education in India

2. India has the largest K-12 system in the world

3. However, it serves from key challenges in terms of access and quality Enrolment / GER across levels All-India (Rural): reading level of children in different grades (%)

4. The private sector constitutes a key part of the Indian K12 system • Evidence of increasing enrolment in private schools in rural India- from 18.7% in 2006 to 25.6% in 2011 and declining enrolment in government schools

5. And the sector has played a significant role in terms of both access….. % enrolment all India K-12 schools in 2011: by level and management

6. … and quality Comparison between MCGM and private school SSC Results (Pass %)

7. Going forward 130,000 private schools would be required over the next 8-10 years Current state 2022 state Total projected enrolment 373 million students GER overall: 95% (projected)* Total current enrolment 253 million students GERoverall: ~69.3% Total number of private schools required to meet the requirements**: ~ 130,000 (Assuming current GER trends and shift to private schools trend)

8. However, the private sector is facing some severe challenges RTE IMPACT EXPANSION FINANCIAL • Inflexible input based norms: • Complex regulatory framework • Inadequate compensation by Govt. for 25% EWS: Schools facing closure • High capital cost • Inability to access equity funding • High upfront cost in the initial years

9. Recommendations to encourage private sector growth • Reduce input based norms – move to outcomes based system • Allow schools on short term leases/ rental model • Allow hub and spoke model – where neighbourhood schools are covered in main school’s ambit • Pooling of government and private resources • Reduce land area requirements/ provide flexibility in land ownership • Allow companies to set up schools across states

10. Recommendations to encourage private sector growth • Allow private schools flexibility on salaries in initial years • Provide single window clearance • Flexible norms for eligibility of private players • Limit regulation of fees • Greater independence in admission policies • Clarity on utilizing surpluses for new school set-up

11. DISCUSSION TOPICS • 01.Relevance of private schools in Indian context; their contribution to K-12 schooling in terms of: • Introducing modern pedagogy • Introducing new areas of study • ICT Innovations • Professional Development • 02.Bottlenecks in growth of K-12 Private Schools • Availability of land, specially in urban areas • Battery of Permissions required • Increasing interference of government driven by populist political motives • Fee control regulations in various states • Restrictions on making reasonable returns on investment • 03.Participation of Private Schools in Nation Building – Engagement with state schools and assisting them raise their standards