India’s edtech market, valued at $7.5 billion in 2024, is expected to surge to $29 billion by 2030, according to a report by IAMAI and Grant Thornton Bharat. Despite setbacks like reduced funding after the COVID-19 surge and governance challenges, the sector continues to expand. Key growth drivers include improved digital infrastructure, changing cultural attitudes towards online education, and increased aspirations among middle-class families. These factors, coupled with a competitive job market and global educational awareness, have fueled the rise of interactive and personalized learning experiences offered by edtech platforms.
By 2029, the edtech sector is anticipated to contribute 0.4% to India’s GDP, a significant rise from 0.1% in 2020. Hybrid learning, localized content, and skill-based initiatives are expected to accelerate this progress. While funding in 2024 reached $608 million—three times higher than $207 million in 2023—it remains far below the $2.1 billion recorded in 2022. This decline reflects broader investment challenges caused by macroeconomic instability and cautious investor sentiment.
As of March 2024, India had 954.4 million internet subscriptions, allowing edtech companies to expand into smaller cities with affordable, tailored content. However, high GST rates continue to make services costly, affecting affordability. Emerging technologies like generative AI, gamification, and AR/VR present significant opportunities to personalize learning further, driving innovation and transformation in India’s education landscape.
