In its report titled “The Rise of Premium Education in India,” the firm said the sector is undergoing a shift driven by rising household incomes, urbanisation, declining fertility rates and increasing preference for private and international education.
The report stated that India’s education ecosystem is transitioning from an access-led model to a premiumisation-led structure, with higher spending per child and expanding demand for private schooling and global curricula.
It highlighted demographic changes, including a growing middle class and increasing literacy levels, as key factors supporting long-term demand. It also noted that rising household expenditure on education has increased significantly over the past three decades.
According to the report, premium education demand is expanding beyond metro cities into Tier 2 and Tier 3 markets, supported by rising incomes and improved access to private institutions.
The study added that international curricula such as IB and Cambridge, along with private higher education institutions, have seen increased adoption in recent years. It also pointed to growing outbound student mobility, with more than 1.25 million Indian students studying abroad, as a contributing trend.
The report said India is now among the largest source countries for international students and noted that policy reforms, including provisions under the National Education Policy (NEP) 2020, could support the entry of foreign universities into India.
It also drew comparisons with education system transitions in countries such as South Korea, China and Japan during earlier phases of economic growth.
Along with macroeconomic trends, the report includes state-wise and city-level analysis of education demand patterns and profiles of more than 800 institutions across the K–12 and higher education segments.
The firm said the sector is likely to see sustained demand growth over the next 15–20 years, supported by structural economic and demographic changes.
