India’s EdTech sector is witnessing unprecedented growth, with a joint report by Internet and Mobile Association of India (IAMAI) and Internet Mobile Association of India (IAMAI) stating that the EdTech sector’s contribution to the country’s GDP will increase by 2020. It is projected to rise from 0.1% in 2019 to 0.4% by 2029. Grant Thornton Barratt.
The report highlighted that India’s GDP in 2020 was valued at $2.67 trillion and the EdTech market contributed $2.8 billion, equivalent to 0.1% of GDP. “India’s EdTech sector is growing rapidly and its contribution to GDP is expected to increase from 0.1% in 2020 to 0.4% by 2029, with the growing role of the EdTech sector in the economy and the There is an emphasis on collaboration with initiatives.”
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The sector has seen steady growth over the years due to increased digital adoption, government support and evolving consumer demand for online education, with the sector expected to be valued at $29 billion by 2030. It is expected that this will be reached. The Indian EdTech market is expected to grow at a compound annual growth rate (CAGR) of 25.8% over the next few years. It has already reached a market value of $7.5 billion in 2024, solidifying its position as the world’s third most funded EdTech ecosystem after the US and China.
As of December 2024, India has over 17,000 EdTech companies, including 7 unicorns. This number ranks second only to the United States, which boasts 13 EdTech unicorns.
However, the report also points out funding challenges. India’s EdTech sector reached a funding peak in 2021, securing $4.86 billion. Since then, investment in the sector has declined sharply, dropping to $2.88 billion in 2022 and plummeting further by 87% to $535 million in 2023.
By the end of 2024, the sector was able to secure approximately $730 million. The weak funding is due to broader macroeconomic conditions and cautious investor sentiment, which is impacting investment flows across the industry. Despite these hurdles, India’s EdTech sector remains a promising and dynamic space. With a focus on innovation and scalability, we are poised to play a pivotal role in the country’s economic growth and education transformation.
