India’s edtech industry, currently valued at $7.5 billion in 2024, is on track to reach an impressive $29 billion by 2030, according to a new report. This rapid growth is expected to be driven by many factors, including the expansion of digital infrastructure, a cultural shift towards online learning, and the rising aspirations of students and families. The sector’s contribution to India’s GDP is anticipated to increase significantly, from 0.1% in 2020 to 0.4% by 2029.
The report, titled “Impact Study of EdTech in India: Driving Innovation & Creating Opportunities” was jointly prepared by the Internet and Mobile Association of India (IAMAI) and consultancy firm Grant Thornton Bharat. It highlights the transformative role of technology in reshaping education and learning across the country.
Over the past decade, despite facing challenges such as a decline in funding post-COVID-19 and corporate governance concerns, India’s edtech sector has demonstrated resilience. Factors such as the increasing competitiveness of the job market, growing awareness of global education standards, and an expanding middle class have spurred demand for alternative learning solutions. Edtech platforms have capitalized on these trends by offering more interactive, engaging, and personalized learning experiences that cater to the diverse needs of students.
The sector’s growth is also being supported by advancements in emerging technologies such as generative AI, gamification, and augmented/virtual reality, which are opening new avenues for personalised and immersive education. These technologies are expected to enhance the learning experience, helping students progress at their own pace while gaining access to high-quality educational resources.
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One of the key drivers of this growth is the continued expansion of internet connectivity, especially in rural areas. As of March 2024, India had 954.4 million internet subscriptions, and edtech companies are increasingly targeting tier II and tier III cities by offering affordable and region-specific content tailored to local needs. This broadens access to education across socio-economic backgrounds, making edtech platforms an economically viable alternative to traditional methods.
However, the report also notes that high GST rates have inflated the cost of these services, posing a challenge to their affordability. Despite this, 86% of respondents consider edtech platforms a cost-effective option compared to conventional education.
