Transforming Indian education infrastructure – Hindustan Times

India’s education sector, valued at ₹13.5-14.0 trillion in fiscal 2024, with the K-12 segment accounting for the largest share at 37%, is experiencing rapid growth. This growth is primarily driven by rising enrollments, policy initiatives by the government, adoption of technology by schools and more. Parents these days seek quality education and better facilities for their children. The shift towards technology-driven learning has created the need for investments in smart classrooms, STEM laboratories, and digital infrastructure. Furthermore, the push for holistic education has emphasised the importance of sports facilities, libraries, and performing arts spaces, which support overall student development.

To address growing competition and limited seats, educational institutions plan to acquire property or land to maintain optimal student-teacher ratios and provide dedicated facilities such as playgrounds, libraries, and laboratories for holistic student development. The National Education Policy also emphasises the importance of an advanced curriculum and a new-age pedagogical framework. This policy was designed to implement experiential learning in all stages where classroom transactions can shift towards competency-based learning and education. Education institutions should accommodate digital tools like virtual reality for immersive learning, Artificial Intelligence (AI) for personalised study plans, game-based quizzes, and blockchain for tracking academic records. Investments in ergonomic outdoor learning pods, advanced infrastructure, and sports facilities can further enhance the student experience. Additionally, bite-sized microlearning content is being developed to suit students’ shorter attention spans. Education institutions should consider some of these latest education trends when reconceptualising their infrastructure needs.

Identifying and categorising financial needs into capital expenditure (Capex) and operating expenditure (Opex) is essential. Capex includes long-term investments like purchasing property, major renovations of school premises, or maintaining long-term assets such as buildings and purchasing school buses. On the other hand, opex covers recurring costs like utilities, staff salaries, and overhead expenses (general and administrative). Several financial institutions, including new-age non-banking financial companies (NBFCs), have designed innovative and unique financing solutions to cater to the exact requirements for the growth and development of the education ecosystem.

Education institutions should collaborate with financial institutions that offer structured education infrastructure loans and patient capital to meet specific needs. The increasing demand has made modern infrastructure, advanced technology, and efficient operations indispensable for educational institutions. Many new-age education-focused financial institutions determined to cement the education ecosystem have the expertise to deliver best-in-class services. They are driving this transformation by providing tailored financing solutions that empower these educational institutions to meet the aspirations of students and their parents. With financing solutions more accessible than ever, institutions have the tools they need to scale their operations, enhance their offerings, and contribute to a brighter future for India’s next generation.

This article is authored by Vivek Kumar Baranwal, chief business officer, education loans, domestic business, Avanse Financial Services.