Financial Problems Faced by Private  Unaided Educational Institutions and  Scope for Private Equity Participation

Anil P. Gaikwad; Megha A. Jain; Bhagyashri R. More

Volume : II, Issue : II, February - 2013

Financial Problems Faced by Private Unaided Educational Institutions and Scope for Private Equity Participation

Anil P. Gaikwad, Megha A. Jain, Bhagyashri R. More

Abstract :

Indian education sector has witnessed a series of changes in the last few years, which resulted in a significant increase in market size of the education industry. With economic growth and enhanced technology it has become necessary to develop the Indian education sector. Funds are a major concern in the market to meet this demand. Education in India is financed through 3 primary sources - Government, Charity and Private Funding. Over the last two decades or so, participation of private sector in higher and technical education has increased tremendously. In fact major share in the total colleges is of the private unaided segment. The way these colleges and institutions arrange for their finances has implications on the fees paid by the students studying in these colleges. Private equity is emerging as a new funding avenue for these institutions. This paper gives emphasis on private equity participation can help for funding educational institutions in India.