India's EdTech Surge: From Modest Beginnings to a Promising Future

India's EdTech sector is rapidly growing, forecasted to contribute significantly to GDP by 2029. Despite facing funding challenges, it remains crucial to economic and educational growth, reaching a USD 29 billion valuation by 2030.

The EdTech sector in India is experiencing remarkable growth, with its GDP contribution projected to climb from 0.1 percent in 2020 to 0.4 percent by 2029, as per a report by the Internet and Mobile Association of India and Grant Thornton Bharat. In 2020, India's GDP stood at USD 2.67 trillion, and the EdTech market contributed USD 2.8 billion.

The report underscores the sector's alignment with government initiatives and its increased role in the economy due to rising digital adoption, evolving consumer demand, and government backing. By 2030, the sector is anticipated to reach a valuation of USD 29 billion, reinforced by steady growth over the years.

The Indian EdTech industry is projected to grow at a CAGR of 25.8 percent, with a 2024 valuation of USD 7.5 billion, ranking it as the third-largest funded EdTech ecosystem globally. Despite challenges in securing funding after its 2021 peak, the sector continues to show potential with over 17,000 companies, including seven unicorns.

(With inputs from agencies.)