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Why is there a Growing Need to Invest in Edtech Industry?

In coming days, Edtech would be the key to success
BY Jaspreet Kaur
Feature Writer, BusinessEx
Oct 10,2018

Years ago, the untapped Indian market was sparked after the inception of technology. Ever since then, the Indian market is flourishing in almost every sphere including investment, manufacturing and banking. Owing to which, the countrys GDP and employment rate have incremented by manifold juxtaposed to what it was in the past.

To support this vast market, human resource or say education is the main tool of investment. The underdeveloped nation tag associated with India can only be removed if the natives take rigorous steps to utilize education as a medium to resolve all economic and societal problems.

An investment in knowledge pays the best. The words of Benjamin Franklin truly describe the importance of education and knowledge in the human life. After witnessing dearth in the deliverance of education to children who reside in remote corners or are underprivileged, the government of Indian has initiated a program namely, SWAYAM.

Under the initiative SWAYAM, the Indian government collaborates with prominent educational institutes and thus, tries to deliver education to disadvantaged students through the medium of technology. Besides this, an enormous part of the private and semi-private sector is focusing on the education sector and seeks to merge education with technology. The amalgamation of both things builds Edtech, which is altogether a distinct field as it assists in making the knowledge-rendering process faster and quicker. Furthermore, it facilitates the students to gather more knowledge besides school textbooks and classroom interactions, in the form of online courses and customized learning modules.

According to the NASSCOM report, the Indian Edtech sector is receiving a substantial amount of funding over the past five years. The report shows the nascent Edtech field can offer great prosperity and growth to the nation:

  • More than 3000 startups are incorporated in the Edtech sector in past 5 years.
  • Funding in the Edtech sector has increased by 5 times from 2013-16.
  • Assessing the global contribution, in the past 5 years, more than 20 active investors and approximately 600 million USD have invested in the sector.
  • The main segments of funding are
  1. Online courses -42% funding
  2. Technology- 23% funding
  3. Tutoring- 18 % funding

(Source: NASSCOM)

Why should we Focus on Indian Edtech Sector?

To embrace Edtech, it is incredibly eminent to focus and invest in that. The various ways how Edtech sector can thrive:

  1. Inception of Smartphone

Now, smartphones are essentially harnessed in all fields. The gadget eases the struggle of collecting information and also serves as a mobile tool. As a result, the Edtech firms are targeting the gadget to reach masses and disperse education amongst disadvantaged groups.

  1. Virtual Reality

With the help of the internet, people are experiencing the virtual reality which is altogether distinct from the physical world. The VR fosters social interaction and also, caters to emotional and psychological needs of the people. Owing to which, it is an evident instrument to deliver as well as gather knowledge in the form of online classes and learning modules.

  1. Ease of learning through AI

In the physical classrooms, it becomes a daunting task to teach students of different intellectual levels at the same pace. A few students perceive lessons easily whilst others often face difficulties in some portions or lessons. After noticing this problem, AI should be harnessed in the field to adjust the deliverance of education accord to the ability and interest of the students.

All these factors state that investing in Edutech is important so as to see the economic, social and cultural growth of the country.

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