New Delhi [India], India Ratings and Research (Ind-Ra) has maintained an improved outlook for the education sector for the financial year 2024-25, mainly on the back of rising tuition fees per student as well as steadily rising enrolments. reason. The rating agency expects that rising middle class incomes and increasing demand for quality education will encourage more spending on infrastructure development and state-of-the-art facilities in institutions, Ind-Ra believes that digitalisation, distance education mode and The emerging prominence of e-learning content will be key. Positive in the Indian education sector The rating agency is of the opinion that the growth and restructuring of group structures in the Indian education sector, increasing financing options in the form of private equity investments and various government initiatives will drive the growth of the sector during 2024-25 and 2025. -26 It believes that foreign direct investment by private equity and venture capital players has huge potential to stimulate the Indian education market. Despite the challenges and regulatory complexities in the Indian education sector, the sector has 2012-13-2022- 2 has attracted significant foreign investment. CAGR: 7.76 per cent) Ind-Ra expects the revenue base of educational institutions to increase due to the increase in per student tuition fees, which was not revised during COVID-19, however, some institutions have There has been no revision in fees after this.19 Because these are primarily run as not-for-profit institutions, Ind-Ra has revised the rating outlook for 2024-25 for the educational institutions in its portfolio to positive from stable, due to the demand for the courses. Enrollment is expected to increase. The number of these institutions is increasing. Most Ind-Ra-rated educational institutions have reported increasing student intake for 2023-24, which is likely to continue in 2024-25. Most of the rated educational institutions have crossed pre-Covid levels. Overall numbers As a result, their revenue base also improved in 2023-2 and is likely to grow further in 2024-25.