India’s education sector, once flourishing with offline coaching centers and a vast network of higher education institutions, has seen a significant downturn. Prior to the COVID-19 pandemic, India was a global leader in education. However, when the pandemic struck in 2020 and a nationwide lockdown ensued, schools and universities had to rapidly transition to online learning. At first, the shift seemed revolutionary, with the promise of breaking down barriers to education and providing easy access to quality learning at the click of a button. Professors recorded lessons, and students learned at their convenience.
But this once-thriving sector has since faced a sharp decline.
Factors Behind the Collapse of EdTech
Several key issues, including financial instability, reduced operational costs, and legal concerns over fraudulent registrations, have contributed to the downfall of India’s edtech landscape.
The Struggles of Online EdTech
After years of online education, many parents have chosen to send their children back to traditional, offline classrooms. This trend can largely be attributed to a lack of motivation among students, as reported by various sources. EdTech platforms like Coursera, Udemy, and Byju’s offer online courses where lessons are recorded or live discussions are scheduled. However, a study by Udemy revealed that most students only complete 30% of their course content, with some even paying for the classes but never engaging with them.
Byju’s, which rose to prominence during the pandemic, has faced its own financial turmoil. Once valued at $22 billion in 2022, Byju’s has since struggled with funding issues, accusations of financial mismanagement, and legal claims, including a $1 billion debt dispute. The company has also faced insolvency concerns following complaints from US lenders.
Offline Coaching Centers Face Their Own Set of Challenges
Offline education providers, too, have encountered serious difficulties. The financial crisis and safety concerns have significantly impacted the stability of many coaching institutes.
FIITJEE’s Troubles
FIITJEE, one of India’s leading coaching institutions for entrance exams, has been hit by a financial crisis, exacerbated by administrative and safety violations at its branches. In recent weeks, several FIITJEE centers in North India were forced to close abruptly, leaving students and parents in distress just before key exams. Reports indicate that unpaid salaries led to the mass resignation of teachers, and parents have filed complaints regarding the lack of refunds and prior notice about the closures.
Safety Accidents and Regulatory Crackdowns
The offline sector has also been plagued by safety concerns. In 2023, a devastating fire at a coaching center in Mukherjee Nagar, Delhi, left more than 60 students injured. The following year, three civil services aspirants tragically lost their lives when a basement coaching center in Old Rajinder Nagar flooded after heavy rainfall. The Delhi government responded by closing over 20 coaching centers for violating safety protocols and engaging in illegal practices.
This crackdown has led to the sealing of several institutions that lacked proper registration or compliance with local regulations. Additionally, authorities took action against encroachments that worsened the city’s waterlogging and drainage problems.
Conclusion
The once-thriving edtech and offline coaching sectors in India now face a multitude of challenges. From financial mismanagement to safety concerns and regulatory scrutiny, the landscape has dramatically shifted. What was initially seen as the future of education is now grappling with a series of crises that have left students, parents, and educators alike searching for solutions.