Veranda Learning Solutions Ltd Management Discussions

Global Economy Review 2024-25

The global economic outlook for 2024-25 suggests a period of modest but steady growth, with varied performance across different regions. According to the International Monetary Fund (IMF), the global economy is expected to grow at a steady rate of 3.2% for 2024 and 2025. This growth rate, while stable, is lower than historical standards due to high borrowing costs, reduced fiscal support, continuing impact of the COVID-19 pandemic, geopolitical tensions, weak productivity growth, and increasing geoeconomic fragmentation.

Inflation is expected to decline gradually from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025. Advanced economies are expected to see a slight increase in growth from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025. In contrast. emerging markets and developing economies will see a slight slowdown from 4.3% in 2023 to 4.2% in the following two years.

Despite significant interest rate hikes by central banks aimed at stabilising prices, the global economy has shown unexpected resilience. Overall, the global economic outlook for 2024-25 presents a picture of cautious optimism, tempered by ongoing challenges such as inflation, geopolitical tensions, and structural frictions in labour and capital markets.

*Source: IMF

Indian Economy Review 2024-25

Indias economic outlook for 2024-25, as projected by Deloitte, indicates strong growth despite global economic challenges. The countrys GDP growth in the third quarter of fiscal year 2024 reached an impressive 8.4%, surpassing expectations leading to an upward revision of the annual growth forecast to a range of 7.6% to 7.8%.

The report highlights Indias resilience supported by robust performance in the services sector, particularly in financial, real estate, and business services, as well as strong growth in manufacturing and construction. The governments capital expenditure has played a significant role in maintaining investment momentum. The growth is also driven by strong domestic demand, particularly in private consumption and investment, despite global economic challenges and geopolitical uncertainties.

However, challenges remain, including global economic slowdowns, rising geopolitical tensions, and inflationary pressures. The tight monetary policy conditions and shifting energy landscape are expected to weigh on the outlook. Despite these headwinds, Indias favourable demographics and continued policy support are expected to sustain growth and investment in the medium term.

*Source: India economic outlook I Deloitte Insights

The global education market is projected to expand from US$6 trillion in 2022 to approximately US$8 trillion by 2030. This growth is expected to be significantly influenced by advancements in technology, which are anticipated to enhance efficiency and accessibility in education. As internet access improves and scalability increases, educational technology (edtech) is poised to become the fastest-growing segment in the market, reflecting the transformative impact of digital innovations on the education sector.

*Source: https://www.morganstanley.com/ideas/ education-system-technology-reboot

Global Higher Education Market

According to the Grandview research, the global market for higher education was valued at approximately US$ 736.80 billion in CY 2023 and is projected to expand at a CAGR of 12.1% from CY 2024 to CY 2030. Increasing populations in countries like the U.S., Canada, the UK, and India are fuelling demand for higher education institutions. There is a growing trend towards global connectivity in the higher education sector, prompting increased collaboration among institutions worldwide. The concept of lifelong learning is gaining traction as individuals seek to enhance their skills, driving demand for graduate degrees, career advancement opportunities, and short-term workshops.

*Source: Higher Education Market Size, Share & Trends Report, 2030 fgrandviewresearch.com)

Global K-12 Education Market

In CY 2023, the global K-12 education market was valued at US$ 2.50 trillion, with an anticipated compound annual growth rate (CAGR) of 12.5% from CY 2024 to CY 2030. This growth is largely driven by the increasing use of game-based learning, which not only boosts student engagement and motivation but also supports personalised learning experiences and the development of key skills like problem-solving and critical thinking. Additionally, the integration of advanced technologies, such as artificial intelligence for personalised tutoring and real-time feedback, and virtual/augmented reality for creating immersive learning environments, is playing a significant role. Moreover, there is a surge in government initiatives worldwide aimed at increasing funding for K-12 education, promoting STEM education, and implementing educational reforms to improve teaching methods and overall education quality.

*Source:https://www.grandviewresearch.com/industry-analysis/k-1?-education-marketreport#:~:text=K%?D1?%?0

Fducation%?0Market%?0Size%?0%?6%?0Trends.1?.5%?5%?0from%202024%20to%202030.

Indian Education Market

India holds a significant position in the global education sector, having worlds largest networks of higher learning institutions. With around 26% of its population aged between 0-14 years,

Indias education sector offers numerous growth opportunities. The number of colleges in India increased to 50,734 in FY 2023-24 (as of March 4, 2024) from 45,473 in FY 2021-22. Similarly, the number of universities rose to 1,265 in FY 2023-24 (as of March 4, 2024) from 1,014 in FY 2021-22.

In the academic year 2021-22, India had 43.3 Mn students enrolled in higher education, comprising 22.6 Mn males and 20.7 Mn females, compared to 41.3 Mn students in 2020-21, with 21.2 Mn males and 20.1 Mn females. The Gross Enrolment Ratio (GER) in higher education was 28.4% in FY22.The Indian education sector was valued at US$ 117 billion in FY 2019-20 and is projected to reach US$ 225 billion by FY 2024-25. The edtech market in India is expected to grow from US$ 700-800 Mn in CY 2021 to US$ 30 billion by CY 2031.

The online education sector in India is expanding rapidly, with an anticipated growth of US$ 2.28 billion during CY 2021 to CY 2025, at a CAGR of nearly 20%. Higher education institutions in India are increasingly developing online programs to meet the rising consumer demand.

*Source: https://www.ibef.org/industry/education- presentation

India boasts one of the worlds largest higher education systems, ranking second globally in terms of higher education networks. "Higher education" in India refers to tertiary-level education provided after 12 years of schooling (10 years of primary education and 2 years of secondary education).

The system has grown significantly, with over 1,000 universities and more than 42,000 colleges offering high-quality education. As the third-largest higher education system globally, it provides education and training in nearly every discipline. Student enrolment in higher education rose from 3.85 Crores in CY 2019-20 to about 4.14 Crores in FY 2020-21.

Since FY 2014-15, the number of enrolled students has increased by approximately 72 lakhs (21%).

The top six states for student enrolment are Uttar Pradesh, Maharashtra, Tamil Nadu, Madhya Pradesh, Karnataka, and Rajasthan. Additionally, the number of graduates increased from 94 lakhs in FY 2019-20 to 95.4 lakhs in FY 2020-21.

However, the pandemic in CY 2020 disrupted traditional learning methods, including in-person instruction, leading to fundamental changes in the higher education sector. Additionally, existing trends in the education industry accelerated, such as changing student preferences, a greater demand for digital skills, the growth of the educational technology (EdTech) sector, and an expanding digital divide.

Enrolments in Higher Education, by course type, (2018-20, in million)

Indian K-12 Education Market

India holds an important place in the global education industry with around 1.55 Mn K-12 schools and a student base of 218 Mn. The Indian K-12 market segment is valued at US$ 48.9 billion in CY 2023 and is projected to grow to US$ 125.8 billion by CY 2032, with a market growth rate of 10.7% for the period from CY 2024 to CY 2032.The Indian school system can be segmented in various categories according to the level of education provided such as preschool, primary, middle, secondary and higher secondary. Based on ownership, it can be segmented into government, local bodies, private aided or unaided institution and based on affiliation, it can be segmented into having Indian or international board affiliations. The school education in India has traditionally been characterised by overcrowding of classes and ineffective learning for students. However, because of infrastructure growth, increasing private and public investments and technological advancements, the school infrastructure in the country has witnessed significant growth with the mode of teaching also shifting to digital learning and smart class formats. This has assisted the students in improving their academic performance significantly and made teaching more effective.

*Source: https://www.imarcgroup.com/india-school- market

The Test Prep segment in India is quite dynamic and significant, reflecting the countrys emphasis on education and competitive exams. In recent years, this sector has seen considerable growth driven by increasing disposable incomes, awareness about quality education, and the competitive nature of exams like JEE, NEET, and others. Many companies, both traditional and edtech startups, are actively participating in this space, offering online and offline learning solutions, adaptive learning platforms, and test preparation services to cater to students needs.

The India test preparation market is expected to grow significantly, with a projected increase of US$ 9.20 billion and a compound annual growth rate (CAGR) of 13.9% from CY 2022 to CY 2027.

This growth is supported by factors such as rising enrolments in test preparation courses, the proliferation of Ed-tech startups, and government initiatives aimed at enhancing educational outcomes. These dynamics underscore a growing emphasis on educational advancement and skill development among individuals seeking to improve academic performance and career opportunities through standardised testing.

*Source: https://www.technavio.com/report/test-preparation-marketin-india-industry-si7e-analysis

Reskilling and Upskilling Market

Upskilling remains a primary focus as job roles continue to evolve, and its importance is anticipated to increase in CY 2024. The global educational services market experienced a significant growth last year due to the availability of accessible online education, numerous programs and certifications, and flexible learning options. Moreover, the widespread adoption of technology across various industries has driven demand for programs in Data Science, Technology, Management, and related fields. The top five sectors for upskilling in CY 2024 are IT, Banking, Manufacturing, Education/Training, and Healthcare & Pharma.

In CY 2023, amid an already challenging job markets, professionals globally continued to invest in skill development programs to maintain job security and advance their careers, particularly in Management, Digital Marketing, Data Science and Analytics, and Software Development. This trend benefits organisations currently experiencing a shortage of high-quality talent in these fields.

*Source:https://www.mygreatlearning.com/blog/upskilling-

trends-in-india/

The reskilling and upskilling market is rapidly evolving, driven by technological advancements, automation, and the changing nature of work. Reports from the World Economic Forum (wef) paint a clear picture: automation and technological advancements are rapidly changing the job landscape. The Future of Jobs Report CY 2023 estimates that by CY 2025, up to 50% of employees will need reskilling. It also highlights that a significant portion of the essential skills in CY 2025 will involve new technological competencies not yet crucial today. Studies show that investment in reskilling and upskilling can significantly boost the global economy. WEF estimates this investment could generate an additional US$6.5 trillion in GDP by CY 2030.

*Source: https://www3.weforum.org/docs/WEF Future of Jobs 2023.pdf

*Source: https://www.weforum.org/impact/reskilling- revolution-reaching-600-million-people-by-2030/

Budget allocation to Indias education sector

Indin, with its extensive education system encompassing over 1.4 Mn schools and approximately 414 Mn students, plays a crucial role in advocating for educational accessibility and encouraging greater global investment in education. The Indian government increased the budget allocation for the education sector by 10% year-over-year, reaching Rs. 1,24,638 Crores (US$ 15 billion) in the FY 2024-25 Interim Budget which has been further increased to Rs. 1.48 lakhs Crores in the FY 2024-25 full year budget with increasing focus towards skilling and employability.

The government has introduced several programs aimed at expanding educational access and enhancing quality. These initiatives include: Rashtriya Madhyamik Shiksha Abhiyan (RMSA), Samagra Shiksha Abhiyan, Sarva Shiksha Abhiyan. These efforts have been further bolstered by financial assistance and manpower support from private entities, international organisations, and civil society.

Overall, the NEP 2020 aims to achieve universal access, enhanced quality, and a focus on lifelong learning. Initiatives like the RTF Act and Samagra Shiksha address access challenges while NEP emphasises foundational literacy, multilingualism, and skill development for a comprehensive education. Technological innovations such as DIKSHA and NDFAR help bridge the digital divide,

and the Skill India Mission enhances employability. India aims for a 100% Gross Enrolment Ratio (ger) from pre-school to secondary level by CY 2030 and 50% in higher education by CY 2035, aspiring to equip its citizens with the knowledge and skills needed for a brighter future.

Read more at:

https://economictimes.indintimes.com/news/how-to/ national-education-policy-what-does-nep-truly-mean- for-students-in-india/articleshow/101402955.cms?utm source=contentofinterest&utm medium=text&utm campaign=cppst

Source: Education for Al/

*Source: https://www.ibef.org/blogs/education-for-all-

initiatives-to-improve-access-and-quality-of-education-

in-india

National Education Policy

The National Education Policy (NEP) 2024 in India focuses on revolutionising the education system to create well-rounded individuals equipped for the 21st century. If implemented with commitment and consistency, the NEP could significantly reform how the younger generation perceives and experiences education. Its key principles and initiatives are:

Focus on Holistic Development:

NEP 2024 goes beyond academics, emphasising physical, emotional, and social well-being of students.

It encourages activities like sports, arts, and critical thinking for holistic growth.

Strengthening Foundational Learning:

The policy prioritises strong foundational skills in literacy and numeracy from a young age.

This is achieved through Early Childhood Care and Education (ECCE) programs, ensuring a solid base for further learning.

Curriculum Revamp:

A new 5+3+3+4 curricular structure is introduced, offering flexibility, and reducing content overload.

Students have greater choice in selecting subjects based on their interests, fostering a more engaging learning experience.

Emphasis on Skill Development:

NEP 2024 integrates vocational training within the academic curriculum by 2025.

The goal is to equip students with practical skills relevant to the job market, preparing them for future careers.

Promoting Multilinguality:

The policy encourages instruction in regional or home languages at least up to Grade 5.

This helps students build a strong foundation in their mother tongue while also offering exposure to additional languages.

> Technology Integration:

NEP 2024 recognises the importance of technology in education.

It promotes the use of digital tools and resources to enhance learning experiences and bridge the digital divide.

Teacher Training and Upgradation:

The policy emphasises continuous professional development for teachers, equipping them with the latest pedagogical approaches.

This ensures teachers are well-prepared to implement the new curriculum and effectively guide students.

Focus on Equity and Inclusion:

NEP 2024 aims to make quality education accessible to all, regardless of socioeconomic background or disability.

This includes initiatives for students with special needs and strategies to bridge the educational gap in rural areas.

*Source: https://www.learningroutes.in/blog/ new-education-policy-2021-things-you-need-to- know#New System of Education 2024

Other Key Policy and Initiatives in India

Efforts are on to make India Viksit Bharat by 2047. (The term Viksit Bharat refers to the vision of a "Developed India," focusing on the nations progress in areas such as economy, infrastructure, technology, education, and overall quality of life)

The recent interim budget 2024-2025, highlighted, an unwavering commitment t< empowering the youth, notably the Amrit Peedhi - the Yuva.

Skill India Mission has successfully trained 1.4 Crores youth, upskilled and reskilled 54 lakhs individuals, and established 3,000 new ITIs.

Numerous institutions of higher learning, including 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMSs and 390 universities establishment also found a mention, marking a substantial stride in educational development.

A notable 28% increase in female enrolment in higher education was a moment of pride. In STEM courses, women now make up an impressive 43% of the total enrolment, marking one of the highest figures globally.

In the full year budget for FY 2024-25, governments allotted Rs. 1.48 lakhs Crores for education, employment, and skilling, including training 20 lakhs youth and upgrading 1000 institutes. In addition they also announced financial support for loans up to Rs. 10 lakhs for higher education in domestic institutions which will assist students and institutions.

*Source:https://timesofindia.indintimeR.com/bijRineRs/hudget/union-interim-hudget-9094-95-key highlights-for-the-education sector/articleshow/107312690.cms?utmsource=contentofinterest&utmmedium=text&utmcampaign=cppst

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2001706#:~:text=*%20

The%20Budget%20Allocation%20for%20the.25%20from%20RE%209093%9D94.

The above mentioned key policies in India would benefit the company in several ways, some of them are mentioned below:

Market Expansion and Demand:

As India focuses on becoming a developed nation ("Viksit Bharat"), there will likely be increased demand for quality education across all levels, including K-12 and higher education. Veranda Learning Solutions Ltd. can capitalise on this growing demand as it already provides end to end education offerings by expanding its educational offerings and services which can cater to the evolving needs of students and educational institutions.

Youth Empowerment:

The emphasis on empowering the youth through initiatives like the Amrit Peedhi and Skill India Mission presents opportunities forBrain4ce and Six Phrase to contribute to skill development programs. They can provide training and educational resources aligned with the skill sets demanded by various sectors, thereby enhancing their relevance and impact in the education ecosystem.

Expansion of Educational Infrastructure:

The establishment of new IITs, IIITs, IIMs, AIIMSs, and universities signifies a significant expansion in Indias educational infrastructure. Veranda HigherEd can collaborate with these institutions to provide supplementary educational services, technology solutions, or professional development programs for faculty and staff.

Gender Inclusivity and STEM Education:

The increase in female enrolment in higher education, particularly in STEM courses, presents an opportunity for Veranda Learning Solutions Ltd. to develop and offer specialised educational programs that cater to women and promote gender inclusivity in STEM fields. They can create targeted content and initiatives aimed at encouraging more women to pursue careers in STEM.

Partnerships and Collaborations:

These initiatives often involve partnerships between private organisations, educational institutions, and government bodies. Veranda Learning Solutions Ltd. can leverage these partnerships to enhance their reach, visibility, and impact in the education sector. Collaborative efforts can lead to innovative solutions and new opportunities for growth and development.

Skill Development:

NEP 2020 aims to enhance vocational education and skill development. Veranda Learning solutions Ltd. will expand its career coaching and skilling programs to align with these goals, potentially tapping into new markets and opportunities for collaboration with educational institutions. Veranda works with skill development Corporation of India of various state government which makes our students job ready off the campus.

Overall, by aligning the companys strategies with these key policies and initiatives, and by leveraging these aspects of National Education Policy, Veranda Learning Solutions Ltd. can expand its market presence, enhance its educational offerings, and contribute meaningfully to the educational landscape in India. Overall, Veranda, with its emphasis on comprehensive education solutions, skill development, and holistic learning, is ideally positioned to capitalise on key education policies in India as the company empowers students to transition seamlessly from acquiring knowledge to becoming leaders in their respective fields.

Summary

The education sector in India is set for substantial expansion, fuelled by government efforts, increasing middle-class ambitions, and technological progress. The allocation and initiatives in the Modi 3.0 budget represent a pivotal move to advance education, employment, and skill development. This investment will improve the quality of education and training by offering students access to better professors, facilities, and resources.