Yojana Magazine May 2023 - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


19 May 2023
ince a decade, education Technology 
or edTech, as it is popularly known, 
and its potential to provide affordable 
learning at scale have been a matter 
of discussion in academic and policy circles. In 
recent years, news about edTech startups raising 
billions has hit the headlines. Hence, it is topical to 
understand its nuances, potential, challenges, and 
impact in nurturing the largest student base in the 
world during the Amrit Kaal. 
S
What is edtech?
edTech is the usage of technology – software 
and/or hardware, to enhance teaching and learning. 
Smartphones loaded with edTech apps have now 
become synonymous with education. Classrooms 
have now moved beyond bricks and mortar to 
clicks and portals. The potential for edTech to reach 
underprivileged students in areas far and wide has 
played and will continue to play a big role in the 
sector’s growth in the coming years. The needs of 
dr shashaNK shah rohit gupta the co-author is Senior Specialist (higher education), Niti aayog. email: shashank.shah@gov.in
the author is Programme director, atal innovation Mission (aiM). email: rohit.aim@nic.in
The emergence and rapid adoption of EdT ech can be attributed to the  
fast-paced digitalisation of India, the expansion of Information and 
Communication T echnology (ICT) infrastructure, and the accessibility of 
gadgets and data over the last two decades. India’s EdT ech sector is one of 
the largest in the world with about 400 startups operating across its various 
sub-sectors. These startups have cumulatively raised more than US$10 billion 
over the last decade. EdT ech will continue to play a complementary role to 
enhance the teaching-learning experience for students, and equip them with 
knowledge and future skills that are vital for success in the 21
st
 century .
TeCh foR DeVeL oPMeNT
PoTeNTIaL of INDIa’S eDTeCh SeCToR 
Page 2


19 May 2023
ince a decade, education Technology 
or edTech, as it is popularly known, 
and its potential to provide affordable 
learning at scale have been a matter 
of discussion in academic and policy circles. In 
recent years, news about edTech startups raising 
billions has hit the headlines. Hence, it is topical to 
understand its nuances, potential, challenges, and 
impact in nurturing the largest student base in the 
world during the Amrit Kaal. 
S
What is edtech?
edTech is the usage of technology – software 
and/or hardware, to enhance teaching and learning. 
Smartphones loaded with edTech apps have now 
become synonymous with education. Classrooms 
have now moved beyond bricks and mortar to 
clicks and portals. The potential for edTech to reach 
underprivileged students in areas far and wide has 
played and will continue to play a big role in the 
sector’s growth in the coming years. The needs of 
dr shashaNK shah rohit gupta the co-author is Senior Specialist (higher education), Niti aayog. email: shashank.shah@gov.in
the author is Programme director, atal innovation Mission (aiM). email: rohit.aim@nic.in
The emergence and rapid adoption of EdT ech can be attributed to the  
fast-paced digitalisation of India, the expansion of Information and 
Communication T echnology (ICT) infrastructure, and the accessibility of 
gadgets and data over the last two decades. India’s EdT ech sector is one of 
the largest in the world with about 400 startups operating across its various 
sub-sectors. These startups have cumulatively raised more than US$10 billion 
over the last decade. EdT ech will continue to play a complementary role to 
enhance the teaching-learning experience for students, and equip them with 
knowledge and future skills that are vital for success in the 21
st
 century .
TeCh foR DeVeL oPMeNT
PoTeNTIaL of INDIa’S eDTeCh SeCToR 
20 May 2023
each student are different, as are the pace and style 
with which they learn. edTech enables everyone 
to get a consistent quality of education, no matter 
their age or learning abilities. 
Given these advantages, why has edTech not 
been embraced in all these years? The answer 
to this question lies in the fact that for edTech to 
flourish, there is a need for the availability of and 
access to a robust Information and Communication 
Technology (ICT) ecosystem. Let us see the growth 
of this system in India over the last two decades.
india’s ict revolution
The Indian ICT industry has been growing 
rapidly over the last quarter century. In FY 2022, 
the industry crossed US$200 billion in total revenue 
and 5 million in total workforce. By the end of 2023, 
it is predicted to spend US$144 billion on ICT. The 
services segment is expected to make up about 
52% of this spending. edTech is an important sector 
in the industry’s transition from enterprise servicing 
to enterprise solution provision. 
The emergence and rapid adoption of edTech 
can also be attributed to the fast-paced digitalisation 
of India, the expansion of ICT infrastructure, and the 
accessibility of gadgets and data over the last two 
decades. Between 2010 and 2022, the number of 
internet users in India has increased by 10X, from 
92.5 million to 932.2 million. This is expected to rise 
to 1.53 billion by 2040. This could also be attributed 
to the fact that India has one of the cheapest mobile 
data rates globally, with 1 GB costing only Rs 14, a 
90% reduction from 2013. 
There has also been a 27X increase in the number 
of smartphone users in India, from 34 million in 
2010 to 931 million in 2022. This is expected to rise 
to 1.53 billion by 2040. This could also be attributed 
to the fact that over the last 10 years, there has 
been a significant drop in smartphone prices in 
India, with the average selling price decreasing by 
around 12%. 
The development of these factors and the 
tangible benefits that edTech provides in the 
teaching-learning process have presented a 
significant opportunity 
for the edTech sector 
and its diverse 
players to expand 
their presence and 
adaptability.
How does edtech 
help students?
Technology has 
made education 
inclusive and affordable 
for all strata of students 
and learners. Catalysed 
by India’s digital 
revolution, edTech has 
enabled accessibility 
by reaching the 
remotest parts of India. 
Three major benefits 
of edTech for students 
include: 
i. Learning while 
playing: Gamified 
techniques used in 
edTech, especially 
K-6, make concepts 
easier for students to 
Page 3


19 May 2023
ince a decade, education Technology 
or edTech, as it is popularly known, 
and its potential to provide affordable 
learning at scale have been a matter 
of discussion in academic and policy circles. In 
recent years, news about edTech startups raising 
billions has hit the headlines. Hence, it is topical to 
understand its nuances, potential, challenges, and 
impact in nurturing the largest student base in the 
world during the Amrit Kaal. 
S
What is edtech?
edTech is the usage of technology – software 
and/or hardware, to enhance teaching and learning. 
Smartphones loaded with edTech apps have now 
become synonymous with education. Classrooms 
have now moved beyond bricks and mortar to 
clicks and portals. The potential for edTech to reach 
underprivileged students in areas far and wide has 
played and will continue to play a big role in the 
sector’s growth in the coming years. The needs of 
dr shashaNK shah rohit gupta the co-author is Senior Specialist (higher education), Niti aayog. email: shashank.shah@gov.in
the author is Programme director, atal innovation Mission (aiM). email: rohit.aim@nic.in
The emergence and rapid adoption of EdT ech can be attributed to the  
fast-paced digitalisation of India, the expansion of Information and 
Communication T echnology (ICT) infrastructure, and the accessibility of 
gadgets and data over the last two decades. India’s EdT ech sector is one of 
the largest in the world with about 400 startups operating across its various 
sub-sectors. These startups have cumulatively raised more than US$10 billion 
over the last decade. EdT ech will continue to play a complementary role to 
enhance the teaching-learning experience for students, and equip them with 
knowledge and future skills that are vital for success in the 21
st
 century .
TeCh foR DeVeL oPMeNT
PoTeNTIaL of INDIa’S eDTeCh SeCToR 
20 May 2023
each student are different, as are the pace and style 
with which they learn. edTech enables everyone 
to get a consistent quality of education, no matter 
their age or learning abilities. 
Given these advantages, why has edTech not 
been embraced in all these years? The answer 
to this question lies in the fact that for edTech to 
flourish, there is a need for the availability of and 
access to a robust Information and Communication 
Technology (ICT) ecosystem. Let us see the growth 
of this system in India over the last two decades.
india’s ict revolution
The Indian ICT industry has been growing 
rapidly over the last quarter century. In FY 2022, 
the industry crossed US$200 billion in total revenue 
and 5 million in total workforce. By the end of 2023, 
it is predicted to spend US$144 billion on ICT. The 
services segment is expected to make up about 
52% of this spending. edTech is an important sector 
in the industry’s transition from enterprise servicing 
to enterprise solution provision. 
The emergence and rapid adoption of edTech 
can also be attributed to the fast-paced digitalisation 
of India, the expansion of ICT infrastructure, and the 
accessibility of gadgets and data over the last two 
decades. Between 2010 and 2022, the number of 
internet users in India has increased by 10X, from 
92.5 million to 932.2 million. This is expected to rise 
to 1.53 billion by 2040. This could also be attributed 
to the fact that India has one of the cheapest mobile 
data rates globally, with 1 GB costing only Rs 14, a 
90% reduction from 2013. 
There has also been a 27X increase in the number 
of smartphone users in India, from 34 million in 
2010 to 931 million in 2022. This is expected to rise 
to 1.53 billion by 2040. This could also be attributed 
to the fact that over the last 10 years, there has 
been a significant drop in smartphone prices in 
India, with the average selling price decreasing by 
around 12%. 
The development of these factors and the 
tangible benefits that edTech provides in the 
teaching-learning process have presented a 
significant opportunity 
for the edTech sector 
and its diverse 
players to expand 
their presence and 
adaptability.
How does edtech 
help students?
Technology has 
made education 
inclusive and affordable 
for all strata of students 
and learners. Catalysed 
by India’s digital 
revolution, edTech has 
enabled accessibility 
by reaching the 
remotest parts of India. 
Three major benefits 
of edTech for students 
include: 
i. Learning while 
playing: Gamified 
techniques used in 
edTech, especially 
K-6, make concepts 
easier for students to 
21 May 2023
understand and make learning a fun activity. 
ii. classes anywhere and anytime: edTech 
makes learning inclusive by reaching the remotest 
parts of India. Students can access these classes at 
their convenience and pace. Working professionals 
can devote their free time to learning a new skill.
iii. access to quality teachers: According to 
the Annual Status of education Report (ASeR) 2019, 
around 30% of all schools in India are privately 
managed. In urban areas, the percentage of private 
schools is higher, and in some cities, it is nearly 70%. 
Most good-quality teachers are available in these 
schools, but they charge fees ranging from several 
thousand rupees to a few lakhs per year, depending 
on the school and the grade level, making them 
unaffordable for the masses. e dTech facilitates 
access to quality teachers in every town and village 
in India, at the push of a few buttons in a mobile 
app.  
How does edtech help teachers? 
edTech not only benefits students but also 
teachers by providing engaging pedagogical 
practices to complement their teaching. This can 
include interactive whiteboards, educational videos, 
VR/AR simulations, and other digital resources 
that can help engage students and enhance their 
learning experience. edTech can also help in the 
process of academic administration through 
automated grading, classroom management tools, 
paperless classrooms, and eliminating guesswork. 
Automated grading through AI tools saves 
teachers’ time in grading objective assignments. 
Classroom management tools help create a less 
chaotic, more collaborative environment. Paperless 
classrooms reduce printing budgets and promote 
greener policies. edTech can assess student skills 
and needs in real time, leading to proactive plans 
to help struggling students, thereby eliminating 
guesswork.
Offline vs Online e ducation
In a traditional offline classroom setting, 
the cost structure includes rentals, utilities, and 
maintenance on the property, as well as the cost 
of the teacher’s time. Several inefficiencies are 
apparent:  the accessibility factor with the classroom 
being physically accessible to students living in the 
vicinity; the quality and time factor, with the best 
teachers not being available to all students all the 
time. The brunt of these costs and inefficiencies are 
eventually borne by students (and parents). 
edTech theoretically takes away all of that. 
Lower infrastructure costs and a larger student 
base help leverage economies of scale. This 
ultimately leads to lower costs for the end user. 
Moreover, the best teachers can be made available 
to students living in the remotest parts of India. 
The primary requirements are a simple smartphone 
or a tablet and a data connection that can be 
accessed at their convenience. When compared 
with traditional textbooks, edTech provides a more 
engaging learning experience for students with 
interactive elements built into the curriculum and 
easier navigation through graphic tools for easier 
understanding.
Key Growth d rivers
The growth of edTech in India has been driven 
by five key factors that are essential for its expansion 
and success. These include:
i. demographic dividend: There is a huge 
room for edTech to grow in India. There are about 
300 million kids in K-12, out of whom 85-90 million 
have internet access. The current penetration of 
edTech among kids with internet access stands at 
just 5%. The population aged between 15 and 34 
years in India is around 463 million, which is almost 
35% of the country’s total population. Currently, 
nearly 40 million students are part of the Indian 
higher education system. As envisaged in the 
National education Policy (NeP) 2020, when the 
Gross enrollment Ratio (GeR) increases to 50% in 
2035, this number will double to 80 million. Hence, 
The government’s initiatives to 
expand digital infrastructure, 
such as the National 
Broadband Mission, Digital 
India, and BharatNet, along 
with the telco-led digital 
revolution, have made it easier 
for EdTech to reach out to 
remote areas.
Page 4


19 May 2023
ince a decade, education Technology 
or edTech, as it is popularly known, 
and its potential to provide affordable 
learning at scale have been a matter 
of discussion in academic and policy circles. In 
recent years, news about edTech startups raising 
billions has hit the headlines. Hence, it is topical to 
understand its nuances, potential, challenges, and 
impact in nurturing the largest student base in the 
world during the Amrit Kaal. 
S
What is edtech?
edTech is the usage of technology – software 
and/or hardware, to enhance teaching and learning. 
Smartphones loaded with edTech apps have now 
become synonymous with education. Classrooms 
have now moved beyond bricks and mortar to 
clicks and portals. The potential for edTech to reach 
underprivileged students in areas far and wide has 
played and will continue to play a big role in the 
sector’s growth in the coming years. The needs of 
dr shashaNK shah rohit gupta the co-author is Senior Specialist (higher education), Niti aayog. email: shashank.shah@gov.in
the author is Programme director, atal innovation Mission (aiM). email: rohit.aim@nic.in
The emergence and rapid adoption of EdT ech can be attributed to the  
fast-paced digitalisation of India, the expansion of Information and 
Communication T echnology (ICT) infrastructure, and the accessibility of 
gadgets and data over the last two decades. India’s EdT ech sector is one of 
the largest in the world with about 400 startups operating across its various 
sub-sectors. These startups have cumulatively raised more than US$10 billion 
over the last decade. EdT ech will continue to play a complementary role to 
enhance the teaching-learning experience for students, and equip them with 
knowledge and future skills that are vital for success in the 21
st
 century .
TeCh foR DeVeL oPMeNT
PoTeNTIaL of INDIa’S eDTeCh SeCToR 
20 May 2023
each student are different, as are the pace and style 
with which they learn. edTech enables everyone 
to get a consistent quality of education, no matter 
their age or learning abilities. 
Given these advantages, why has edTech not 
been embraced in all these years? The answer 
to this question lies in the fact that for edTech to 
flourish, there is a need for the availability of and 
access to a robust Information and Communication 
Technology (ICT) ecosystem. Let us see the growth 
of this system in India over the last two decades.
india’s ict revolution
The Indian ICT industry has been growing 
rapidly over the last quarter century. In FY 2022, 
the industry crossed US$200 billion in total revenue 
and 5 million in total workforce. By the end of 2023, 
it is predicted to spend US$144 billion on ICT. The 
services segment is expected to make up about 
52% of this spending. edTech is an important sector 
in the industry’s transition from enterprise servicing 
to enterprise solution provision. 
The emergence and rapid adoption of edTech 
can also be attributed to the fast-paced digitalisation 
of India, the expansion of ICT infrastructure, and the 
accessibility of gadgets and data over the last two 
decades. Between 2010 and 2022, the number of 
internet users in India has increased by 10X, from 
92.5 million to 932.2 million. This is expected to rise 
to 1.53 billion by 2040. This could also be attributed 
to the fact that India has one of the cheapest mobile 
data rates globally, with 1 GB costing only Rs 14, a 
90% reduction from 2013. 
There has also been a 27X increase in the number 
of smartphone users in India, from 34 million in 
2010 to 931 million in 2022. This is expected to rise 
to 1.53 billion by 2040. This could also be attributed 
to the fact that over the last 10 years, there has 
been a significant drop in smartphone prices in 
India, with the average selling price decreasing by 
around 12%. 
The development of these factors and the 
tangible benefits that edTech provides in the 
teaching-learning process have presented a 
significant opportunity 
for the edTech sector 
and its diverse 
players to expand 
their presence and 
adaptability.
How does edtech 
help students?
Technology has 
made education 
inclusive and affordable 
for all strata of students 
and learners. Catalysed 
by India’s digital 
revolution, edTech has 
enabled accessibility 
by reaching the 
remotest parts of India. 
Three major benefits 
of edTech for students 
include: 
i. Learning while 
playing: Gamified 
techniques used in 
edTech, especially 
K-6, make concepts 
easier for students to 
21 May 2023
understand and make learning a fun activity. 
ii. classes anywhere and anytime: edTech 
makes learning inclusive by reaching the remotest 
parts of India. Students can access these classes at 
their convenience and pace. Working professionals 
can devote their free time to learning a new skill.
iii. access to quality teachers: According to 
the Annual Status of education Report (ASeR) 2019, 
around 30% of all schools in India are privately 
managed. In urban areas, the percentage of private 
schools is higher, and in some cities, it is nearly 70%. 
Most good-quality teachers are available in these 
schools, but they charge fees ranging from several 
thousand rupees to a few lakhs per year, depending 
on the school and the grade level, making them 
unaffordable for the masses. e dTech facilitates 
access to quality teachers in every town and village 
in India, at the push of a few buttons in a mobile 
app.  
How does edtech help teachers? 
edTech not only benefits students but also 
teachers by providing engaging pedagogical 
practices to complement their teaching. This can 
include interactive whiteboards, educational videos, 
VR/AR simulations, and other digital resources 
that can help engage students and enhance their 
learning experience. edTech can also help in the 
process of academic administration through 
automated grading, classroom management tools, 
paperless classrooms, and eliminating guesswork. 
Automated grading through AI tools saves 
teachers’ time in grading objective assignments. 
Classroom management tools help create a less 
chaotic, more collaborative environment. Paperless 
classrooms reduce printing budgets and promote 
greener policies. edTech can assess student skills 
and needs in real time, leading to proactive plans 
to help struggling students, thereby eliminating 
guesswork.
Offline vs Online e ducation
In a traditional offline classroom setting, 
the cost structure includes rentals, utilities, and 
maintenance on the property, as well as the cost 
of the teacher’s time. Several inefficiencies are 
apparent:  the accessibility factor with the classroom 
being physically accessible to students living in the 
vicinity; the quality and time factor, with the best 
teachers not being available to all students all the 
time. The brunt of these costs and inefficiencies are 
eventually borne by students (and parents). 
edTech theoretically takes away all of that. 
Lower infrastructure costs and a larger student 
base help leverage economies of scale. This 
ultimately leads to lower costs for the end user. 
Moreover, the best teachers can be made available 
to students living in the remotest parts of India. 
The primary requirements are a simple smartphone 
or a tablet and a data connection that can be 
accessed at their convenience. When compared 
with traditional textbooks, edTech provides a more 
engaging learning experience for students with 
interactive elements built into the curriculum and 
easier navigation through graphic tools for easier 
understanding.
Key Growth d rivers
The growth of edTech in India has been driven 
by five key factors that are essential for its expansion 
and success. These include:
i. demographic dividend: There is a huge 
room for edTech to grow in India. There are about 
300 million kids in K-12, out of whom 85-90 million 
have internet access. The current penetration of 
edTech among kids with internet access stands at 
just 5%. The population aged between 15 and 34 
years in India is around 463 million, which is almost 
35% of the country’s total population. Currently, 
nearly 40 million students are part of the Indian 
higher education system. As envisaged in the 
National education Policy (NeP) 2020, when the 
Gross enrollment Ratio (GeR) increases to 50% in 
2035, this number will double to 80 million. Hence, 
The government’s initiatives to 
expand digital infrastructure, 
such as the National 
Broadband Mission, Digital 
India, and BharatNet, along 
with the telco-led digital 
revolution, have made it easier 
for EdTech to reach out to 
remote areas.
22 May 2023
at school and higher education levels, the numbers 
are very promising for edTech to create impact 
at scale. Moreover, according to NSo estimates, 
India’s per capita net national income (at current 
prices) has doubled from Rs 86,647 in 2014-15, 
to Rs 172,000 in 2022-23, with a consequent rise 
in disposable income across strata. This creates 
a further demand for mid-career education, and 
lifelong learning, which can be effectively met by 
edTech through online platforms.
ii. technology infrastructure: The 
government’s initiatives to expand digital 
infrastructure, such as the National Broadband 
Mission, Digital India, and BharatNet, along with 
the telco-led digital revolution, have made it easier 
for edTech to reach out to remote areas. 
iii. Government initiatives: The government 
has launched various programmes and initiatives 
to promote digital education, such as SWAYAM, 
DIKSHA, and ePathshala. The latest announcement 
by the Finance Minister in the Union Budget 2022 
is of the National Digital University (NDU), a virtual 
university that will offer a wide range of courses 
across disciplines using digital technology. NDU 
will offer regular degrees and mid-career certificate 
courses that will be recognised by employers and 
other universities.
iv. pandemic-led Behavioural changes: 
The pandemic accelerated the adoption of online 
education in India and across the world. With 
schools and colleges shut down for several months, 
students and teachers turned to online platforms. 
This led to a massive surge in demand for edTech.
v. increased Funding: The sector has attracted 
significant investments from venture capitalists and 
private equity firms, which have enabled e dTech 
companies to expand their offerings and reach 
a larger user base. With the government’s focus 
on promoting digital education, it is expected 
that this sector will continue to attract significant 
investments in the years ahead. 
Financial potential 
edTech in India can be classified into six 
categories based on the target user it serves. 
Most users fall within the student demographic, 
ranging from preschoolers to college graduates 
and professionals. However, teachers, schools, and 
universities also make up a significant user segment 
for edTech B2B platforms.
The Indian edTech sector was valued at US$750 
million in 2020 and has grown to reach US$ 5.8 billion 
by early 2023, at a CAGR of 43%. Furthermore, the 
market size is estimated to grow 3.7X over the next 
five years, from the current levels to $10.4 billion. 
By 2027, the sector is expected to grow to US$10.1 
billion. This growth is driven by rising demand for 
non-academic courses from Tier II and III cities and 
the need for personalisation in the edTech space. 
out of the projected market value of US$4 billion, 
US$1.5 billion will focus on K–12, after-school 
foundational, and pre-preparational courses.
Funding Scenario
The edTech sector witnessed unprecedented 
growth and funding during the Covid-induced 
lockdown, when online education became 
a necessity instead of a luxury. Before Covid, 
technology was used to supplement education. 
Post-Covid, edTech has become central to the 
education process. The forecast for edTech 
spending worldwide in 2019 was estimated to be 
US$163 billion, growing at 13% CAGR. The number 
may seem large in isolation, but it was only about 
3% of the total spent on education worldwide. This 
was forecasted to grow to US$340 billion by 2025. 
Again, the number may seem large in isolation but 
is only about 4% of the total spent on education 
globally. Post-Covid, a significant uplift has been 
seen in edTech spending across countries, and the 
estimated CAGR now stands at upwards of 16%. 
This will lead to overall edTech spending globally 
reaching US$400 billion by 2025. However, this 
will still be only 5% of the overall money spent on 
education worldwide.
India’s edTech sector is one of the largest in 
the world, with about 400 startups operating 
across its various sub-sectors. These startups have 
cumulatively raised more than US$10 billion over 
the last decade. As of March 2023, 7 out of 30 
global edTech unicorns were from India. However, 
the funding in India slowed down considerably 
in 2022. Venture funding in India’s edTech sector 
went down to US$2.6 billion from a peak of US$4.7 
billion in 2021. This was a 44% YoY drop. While 
most of the media headlines are referring to it as 
a ‘Fall of edTech’, it is also believed to be a return 
to normalcy. The year 2021 needs to be looked at 
as an exception with the sudden rise of edTech 
Page 5


19 May 2023
ince a decade, education Technology 
or edTech, as it is popularly known, 
and its potential to provide affordable 
learning at scale have been a matter 
of discussion in academic and policy circles. In 
recent years, news about edTech startups raising 
billions has hit the headlines. Hence, it is topical to 
understand its nuances, potential, challenges, and 
impact in nurturing the largest student base in the 
world during the Amrit Kaal. 
S
What is edtech?
edTech is the usage of technology – software 
and/or hardware, to enhance teaching and learning. 
Smartphones loaded with edTech apps have now 
become synonymous with education. Classrooms 
have now moved beyond bricks and mortar to 
clicks and portals. The potential for edTech to reach 
underprivileged students in areas far and wide has 
played and will continue to play a big role in the 
sector’s growth in the coming years. The needs of 
dr shashaNK shah rohit gupta the co-author is Senior Specialist (higher education), Niti aayog. email: shashank.shah@gov.in
the author is Programme director, atal innovation Mission (aiM). email: rohit.aim@nic.in
The emergence and rapid adoption of EdT ech can be attributed to the  
fast-paced digitalisation of India, the expansion of Information and 
Communication T echnology (ICT) infrastructure, and the accessibility of 
gadgets and data over the last two decades. India’s EdT ech sector is one of 
the largest in the world with about 400 startups operating across its various 
sub-sectors. These startups have cumulatively raised more than US$10 billion 
over the last decade. EdT ech will continue to play a complementary role to 
enhance the teaching-learning experience for students, and equip them with 
knowledge and future skills that are vital for success in the 21
st
 century .
TeCh foR DeVeL oPMeNT
PoTeNTIaL of INDIa’S eDTeCh SeCToR 
20 May 2023
each student are different, as are the pace and style 
with which they learn. edTech enables everyone 
to get a consistent quality of education, no matter 
their age or learning abilities. 
Given these advantages, why has edTech not 
been embraced in all these years? The answer 
to this question lies in the fact that for edTech to 
flourish, there is a need for the availability of and 
access to a robust Information and Communication 
Technology (ICT) ecosystem. Let us see the growth 
of this system in India over the last two decades.
india’s ict revolution
The Indian ICT industry has been growing 
rapidly over the last quarter century. In FY 2022, 
the industry crossed US$200 billion in total revenue 
and 5 million in total workforce. By the end of 2023, 
it is predicted to spend US$144 billion on ICT. The 
services segment is expected to make up about 
52% of this spending. edTech is an important sector 
in the industry’s transition from enterprise servicing 
to enterprise solution provision. 
The emergence and rapid adoption of edTech 
can also be attributed to the fast-paced digitalisation 
of India, the expansion of ICT infrastructure, and the 
accessibility of gadgets and data over the last two 
decades. Between 2010 and 2022, the number of 
internet users in India has increased by 10X, from 
92.5 million to 932.2 million. This is expected to rise 
to 1.53 billion by 2040. This could also be attributed 
to the fact that India has one of the cheapest mobile 
data rates globally, with 1 GB costing only Rs 14, a 
90% reduction from 2013. 
There has also been a 27X increase in the number 
of smartphone users in India, from 34 million in 
2010 to 931 million in 2022. This is expected to rise 
to 1.53 billion by 2040. This could also be attributed 
to the fact that over the last 10 years, there has 
been a significant drop in smartphone prices in 
India, with the average selling price decreasing by 
around 12%. 
The development of these factors and the 
tangible benefits that edTech provides in the 
teaching-learning process have presented a 
significant opportunity 
for the edTech sector 
and its diverse 
players to expand 
their presence and 
adaptability.
How does edtech 
help students?
Technology has 
made education 
inclusive and affordable 
for all strata of students 
and learners. Catalysed 
by India’s digital 
revolution, edTech has 
enabled accessibility 
by reaching the 
remotest parts of India. 
Three major benefits 
of edTech for students 
include: 
i. Learning while 
playing: Gamified 
techniques used in 
edTech, especially 
K-6, make concepts 
easier for students to 
21 May 2023
understand and make learning a fun activity. 
ii. classes anywhere and anytime: edTech 
makes learning inclusive by reaching the remotest 
parts of India. Students can access these classes at 
their convenience and pace. Working professionals 
can devote their free time to learning a new skill.
iii. access to quality teachers: According to 
the Annual Status of education Report (ASeR) 2019, 
around 30% of all schools in India are privately 
managed. In urban areas, the percentage of private 
schools is higher, and in some cities, it is nearly 70%. 
Most good-quality teachers are available in these 
schools, but they charge fees ranging from several 
thousand rupees to a few lakhs per year, depending 
on the school and the grade level, making them 
unaffordable for the masses. e dTech facilitates 
access to quality teachers in every town and village 
in India, at the push of a few buttons in a mobile 
app.  
How does edtech help teachers? 
edTech not only benefits students but also 
teachers by providing engaging pedagogical 
practices to complement their teaching. This can 
include interactive whiteboards, educational videos, 
VR/AR simulations, and other digital resources 
that can help engage students and enhance their 
learning experience. edTech can also help in the 
process of academic administration through 
automated grading, classroom management tools, 
paperless classrooms, and eliminating guesswork. 
Automated grading through AI tools saves 
teachers’ time in grading objective assignments. 
Classroom management tools help create a less 
chaotic, more collaborative environment. Paperless 
classrooms reduce printing budgets and promote 
greener policies. edTech can assess student skills 
and needs in real time, leading to proactive plans 
to help struggling students, thereby eliminating 
guesswork.
Offline vs Online e ducation
In a traditional offline classroom setting, 
the cost structure includes rentals, utilities, and 
maintenance on the property, as well as the cost 
of the teacher’s time. Several inefficiencies are 
apparent:  the accessibility factor with the classroom 
being physically accessible to students living in the 
vicinity; the quality and time factor, with the best 
teachers not being available to all students all the 
time. The brunt of these costs and inefficiencies are 
eventually borne by students (and parents). 
edTech theoretically takes away all of that. 
Lower infrastructure costs and a larger student 
base help leverage economies of scale. This 
ultimately leads to lower costs for the end user. 
Moreover, the best teachers can be made available 
to students living in the remotest parts of India. 
The primary requirements are a simple smartphone 
or a tablet and a data connection that can be 
accessed at their convenience. When compared 
with traditional textbooks, edTech provides a more 
engaging learning experience for students with 
interactive elements built into the curriculum and 
easier navigation through graphic tools for easier 
understanding.
Key Growth d rivers
The growth of edTech in India has been driven 
by five key factors that are essential for its expansion 
and success. These include:
i. demographic dividend: There is a huge 
room for edTech to grow in India. There are about 
300 million kids in K-12, out of whom 85-90 million 
have internet access. The current penetration of 
edTech among kids with internet access stands at 
just 5%. The population aged between 15 and 34 
years in India is around 463 million, which is almost 
35% of the country’s total population. Currently, 
nearly 40 million students are part of the Indian 
higher education system. As envisaged in the 
National education Policy (NeP) 2020, when the 
Gross enrollment Ratio (GeR) increases to 50% in 
2035, this number will double to 80 million. Hence, 
The government’s initiatives to 
expand digital infrastructure, 
such as the National 
Broadband Mission, Digital 
India, and BharatNet, along 
with the telco-led digital 
revolution, have made it easier 
for EdTech to reach out to 
remote areas.
22 May 2023
at school and higher education levels, the numbers 
are very promising for edTech to create impact 
at scale. Moreover, according to NSo estimates, 
India’s per capita net national income (at current 
prices) has doubled from Rs 86,647 in 2014-15, 
to Rs 172,000 in 2022-23, with a consequent rise 
in disposable income across strata. This creates 
a further demand for mid-career education, and 
lifelong learning, which can be effectively met by 
edTech through online platforms.
ii. technology infrastructure: The 
government’s initiatives to expand digital 
infrastructure, such as the National Broadband 
Mission, Digital India, and BharatNet, along with 
the telco-led digital revolution, have made it easier 
for edTech to reach out to remote areas. 
iii. Government initiatives: The government 
has launched various programmes and initiatives 
to promote digital education, such as SWAYAM, 
DIKSHA, and ePathshala. The latest announcement 
by the Finance Minister in the Union Budget 2022 
is of the National Digital University (NDU), a virtual 
university that will offer a wide range of courses 
across disciplines using digital technology. NDU 
will offer regular degrees and mid-career certificate 
courses that will be recognised by employers and 
other universities.
iv. pandemic-led Behavioural changes: 
The pandemic accelerated the adoption of online 
education in India and across the world. With 
schools and colleges shut down for several months, 
students and teachers turned to online platforms. 
This led to a massive surge in demand for edTech.
v. increased Funding: The sector has attracted 
significant investments from venture capitalists and 
private equity firms, which have enabled e dTech 
companies to expand their offerings and reach 
a larger user base. With the government’s focus 
on promoting digital education, it is expected 
that this sector will continue to attract significant 
investments in the years ahead. 
Financial potential 
edTech in India can be classified into six 
categories based on the target user it serves. 
Most users fall within the student demographic, 
ranging from preschoolers to college graduates 
and professionals. However, teachers, schools, and 
universities also make up a significant user segment 
for edTech B2B platforms.
The Indian edTech sector was valued at US$750 
million in 2020 and has grown to reach US$ 5.8 billion 
by early 2023, at a CAGR of 43%. Furthermore, the 
market size is estimated to grow 3.7X over the next 
five years, from the current levels to $10.4 billion. 
By 2027, the sector is expected to grow to US$10.1 
billion. This growth is driven by rising demand for 
non-academic courses from Tier II and III cities and 
the need for personalisation in the edTech space. 
out of the projected market value of US$4 billion, 
US$1.5 billion will focus on K–12, after-school 
foundational, and pre-preparational courses.
Funding Scenario
The edTech sector witnessed unprecedented 
growth and funding during the Covid-induced 
lockdown, when online education became 
a necessity instead of a luxury. Before Covid, 
technology was used to supplement education. 
Post-Covid, edTech has become central to the 
education process. The forecast for edTech 
spending worldwide in 2019 was estimated to be 
US$163 billion, growing at 13% CAGR. The number 
may seem large in isolation, but it was only about 
3% of the total spent on education worldwide. This 
was forecasted to grow to US$340 billion by 2025. 
Again, the number may seem large in isolation but 
is only about 4% of the total spent on education 
globally. Post-Covid, a significant uplift has been 
seen in edTech spending across countries, and the 
estimated CAGR now stands at upwards of 16%. 
This will lead to overall edTech spending globally 
reaching US$400 billion by 2025. However, this 
will still be only 5% of the overall money spent on 
education worldwide.
India’s edTech sector is one of the largest in 
the world, with about 400 startups operating 
across its various sub-sectors. These startups have 
cumulatively raised more than US$10 billion over 
the last decade. As of March 2023, 7 out of 30 
global edTech unicorns were from India. However, 
the funding in India slowed down considerably 
in 2022. Venture funding in India’s edTech sector 
went down to US$2.6 billion from a peak of US$4.7 
billion in 2021. This was a 44% YoY drop. While 
most of the media headlines are referring to it as 
a ‘Fall of edTech’, it is also believed to be a return 
to normalcy. The year 2021 needs to be looked at 
as an exception with the sudden rise of edTech 
23 May 2023
because of the lockdown. Another lesser known yet 
extremely powerful catalyst was the sudden and 
overnight shutdown of the private edTech sector in 
China, which lead to a huge influx of venture capital 
to India’s edTech sector. Despite all the doom and 
gloom reports of the fall in edTech, the funding 
to the sector doubled in 2022 when compared to 
2020.
c hallenges
While edTech conveys high potential, massive 
opportunities, and the ability to transform 
education at various levels, it also presents several 
challenges that need to be considered as we 
embrace edTech products, platforms, and services. 
Three major challenges include:
i. psychological and Social effects of Online 
digital education: Online digital education can 
have psychological and social effects on students. 
Lack of face-to-face interaction and socialisation 
opportunities can affect their mental health and 
social skills. It is important to consider these effects 
when designing online education programmes and 
to provide students with opportunities for social 
interaction and emotional support.
ii. perception of parents: Parents may have 
reservations about the effectiveness of EdTech and 
may prefer traditional classroom-based education for 
their wards. It is important to address the concerns 
of parents and provide them with information about 
the benefits and effectiveness of online education to 
increase acceptance.
iii. pupil-teacher ratio: It is important to 
maintain a low pupil-teacher ratio in online 
education programmes to ensure that students 
receive personalised attention, support, and 
mentorship from teachers.
c ritical Success Factors
The use of education Technology in India can 
be traced back to the 1980s when computer-aided 
learning was introduced in some schools. During 
the pandemic, the importance of using digital tools 
such as networks, platforms, and apps for education 
was accentuated. While students are gradually 
returning to face-to-face learning, these elements 
of edTech will continue to be used in education as 
complementary approaches. The focus is now on 
the supply side of edTech to provide useful tools 
for students, as their demand has already been 
established. As long as the digital aids are deemed 
useful by students, the supply of edTech will 
continue to create its own demand. 
However, to ensure the holistic impact of 
edTech, it is important to strike a balance between 
technology and traditional education methods. 
The use of technology should not compromise the 
quality of education, but rather enhance it. Three 
critical success factors that can enhance this impact 
of edTech include:
i. integrate practical Work: edTech 
programmes must integrate internships/
apprenticeships as part of the curriculum design. 
This will help students develop group dynamics, 
team building, and interpersonal skills that are vital 
at the workplace. This will also enable them to test 
the knowledge and technical skills gained online 
on the field and thereby enhance their confidence 
and self-esteem when they enter the workforce.
ii. create Multilingual content: According to 
the last Census, only 10% of the Indian population 
speaks english and 45% speaks Hindi. This means 
that nearly 45% of the Indian population is not 
conversant with Hindi and/or english. Hence, 
edTech platforms need to focus on content creation 
in regional languages to ensure wider reach, usage, 
and relevance. 
iii. Focus on Holistic education: Providing 
holistic education is one of the key objectives of 
NeP 2020. edTech programmes must ensure that 
the core elements of holistic education that include 
environmental responsibility and sustainable 
development at the planet level, self-reliance 
and patriotism at the national level, community 
To ensure the holistic impact of 
EdTech, it is important to strike 
a balance between technology 
and traditional education 
methods. The use of technology 
should not compromise the 
quality of education, but rather 
enhance it.