Archive · 13 Jan 2026
India's education sector to grow 11-13%
Indian schools and colleges are expected to make more money in the next two years, with a growth of 11 to 13 percent.
This is because more students are enrolling and fees are increasing.
The report says that the money spent on teachers and buildings will go up, but the overall profit will stay the same.
Schools for younger kids (K-12) will grow a bit slower than colleges, especially those teaching engineering.
The report also says that these institutions won't need to borrow much money because they have enough cash.
However, education experts are urging the government to focus more on improving the quality of education, building better infrastructure like labs and hostels, and teaching skills that will be useful in the future, such as digital and multilingual education.
They want the government to spend more on these areas in the upcoming budget to prepare students for a knowledge-driven economy.
Indian educational institutions projected to grow income by 11-13% in FY26 and FY27.
Operating margins expected to remain steady at 27-28% despite higher staff salaries and costs.
Capital expenditure planned for capacity creation and infrastructure improvement.
Credit profiles to remain stable due to strong cash flows limiting external debt.
K-12 segment expected to grow 9-10%, while higher education enrolment growth varies by course.
- Who
- Indian educational institutions and government
- What
- Projected 11-13% income growth in FY26 and FY27, and calls for improved quality and infrastructure
- When
- FY26 and FY27, with Budget 2026 approaching
- Where
- India
- Why
- Due to rising enrolments, fee hikes, and the need for better infrastructure and skills
Government Focus
Education Experts
Budget Priorities
Government Focus
Expanding enrolment and increasing allocation to higher education
Education Experts
Improving quality, infrastructure, and future-ready skills
Infrastructure Development
Government Focus
General infrastructure improvements
Education Experts
Specific focus on labs, hostels, and student facilities
Curriculum Alignment
Government Focus
Maintaining current curriculum standards
Education Experts
Aligning curricula with emerging technologies like AI and machine learning
- Projected Income Growth
- 11-13% in FY26 and FY27
- Operating Margins
- 27-28%
- Total Income Analyzed
- Rs 26,000 crore
- K-12 Segment Growth
- 9-10%
- Higher Education Growth
- 3-4% for arts, science, commerce; higher for engineering
- Capital Expenditure
- For capacity creation and infrastructure improvement
- Credit Profiles
- Stable due to strong cash flows
- Budget Allocation for Education
- Rs 1.28 lakh crore in the last Budget
- Higher Education Allocation
- Rs 50,077.95 crore in the last Budget
- Gross Enrolment Ratio
- 28.4% (up from 23.7%)
Sources
India's educational institutions likely to peg 11-13 pc income growth in next 2 fiscals
India’s education sector to remain on double-digit growth trajectory—higher enrolments, fee hikes
Union Budget 2026: Education Experts Urge Govt To Prioritise Quality & Infrastructure