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What does India’s ELT market look like?

Despite its colonial history and fluent-in-English upper class, India's ELT prowess overall is patchy. A number of recent studies confirm that the country is not improving its English fast enough to support its economic growth and there is a shortage of quality English language training in the country. Dan Thomas investigates.
November 21 2011
6 Min Read

With its colonial history, global-facing services industry and prize-winning authors (writing in English), India appears at first glance to be fairly proficient in English when compared with other developing countries. However, a number of recent studies confirm a different picture: that overall, India is not improving its English fast enough to support its economic growth and there is a shortage of quality English language training in the country.

Drawing light on this was EF’s English Proficiency Index launched this year – the first index of its kind to give standardised, country by country measures of proficiency in the working population. It ranked India 30th among 44 countries from Asia, Latin America and Europe and placed it in the ‘low proficiency’ category. Among 13 Asia category countries, India came eighth – just in front of Russia and surprisingly behind China which is now believed to have a greater number of English learners and speakers.

In the English Next India report, published by the British Council in 2010, linguist David Graddol made similar observations, going further by suggesting that the country was at a crisis point in terms of proficiency with much of the world catching it up and in some cases leaving it behind.

There are no firm figures for how many of India’s 1.21 billion population speak English, which has traditionally served as a bridge between the country’s 22 native languages, and estimates vary widely. The commonly held perception is somewhere between 5% and 10%, which would make India the second-largest speaking English country after the United States.

However, the fact proficiency remains so low is a worry on a number of levels. Firstly it will affect the country’s higher education system, which needs students to have better levels of English if it is to achieve international levels of excellence in its universities. While many institutions teach in English, Graddol found that most students were below the Ielts level 6 required for effective academic study, and that undergraduates in the neighbouring Philippines are already more proficient.

Poor student English is also having a direct effect on the economy. India requires millions more skilled, English-speaking graduates to enter its global-facing services industries in the next decade if it is to continue on its current growth trajectory.

Students in India studying at the British Council offices

However, many graduates lack the skills required by multinational companies, and a report from the Confederation of Indian Industry in 2009 found that only 39.5% were considered employable in the telecoms, healthcare, IT, banking and retail sectors. 

It’s not only aspiring middle class professionals who stand to lose out, but also the country’s poor who are hoping to improve their lot on the back of the country’s boom.

English has always facilitated social mobility in India, but despite the growing demand from all sections of society, strong proficiency remains the preserve of the few. “An elite minority educated in English medium in school are being better prepared for the challenge of university courses taught through English, and provides the main source of students on postgraduate degrees, such as the MBA, which lead to the best-paid careers,” wrote Graddol.

So why is a country that has such a long history with English lagging behind Asian countries that do not? Much is owed to the fundamental problems in Indian education. Children have an average of just five years’ schooling – among the lowest on the EPI report – and universal elementary and secondary education is still elusive. The drive for English as a second language has until now taken a back seat, and the subject is only now becoming mandatory in primary schools – a key driver for adult proficiency.

English-medium education has overtaken Bengali and Marathi to be second only to Hindi

Perhaps understandably, public demand for better English is growing fast. English-medium education, delivered via a growing number of private schools, has overtaken Bengali and Marathi to be second only to Hindi. Middle class demand for university education is also increasing and the government wants to see 800 to 1,000 new universities by 2020 – all of which will drive standards and expectations of English up.

“The young and middle class feel that English language skills are very important to survive in the competitive job market and therefore learning English is very important factor. Resistance for English in India is a very marginal percentage now,” says Mr Sudhakaraiah Yeddula, CEO and Director of education agency Edu Channel, and a former Head of Education UK, South India, for the British Council.

This leaves a lot of room for expansion of the private English language training, which in 2010 the British Council called a ‘large and growing market’, estimated to be worth $450million. It has identified significant opportunities for foreign organisations in the creation of new ELT institutions and through joint ventures (JVs) with schools. JVs with big businesses must also be added to the list.

“There is a definite market for foreign ELT providers in India whether they come alone or via joint ventures with local parties,” says Arun Jacob, Managing Director of Array Globe, a pan-Indian education agency. He addd that at present, English teachers are “a scarce resource”. He predicts that English will become a high priority for the government in the next decade and says interest from the young middle class is already huge and growing by the day.

Parul Khuruna, the marketing manager at education agency VIEC, feels only 50 per cent of Indians leave education with English adequate for their careers. He concurs, saying that ELT is a “huge and untapped market. It’s growing each day, especially where there are fewer schools.”

At present most Indians study English within India, with few choosing to travel abroad solely to learn English, traditionally for reasons of cost, and more recently because of the visa restrictions introduced by the UK and Australia. While bigger Indian cities are fairly well covered – though by no means saturated – demand is growing fast in smaller towns and rural areas.

The domestic ELT market is fragmented with numerous smaller operators. Many of these, according to Chris Brandwood, the British Council’s Business Development Manager in India, “may not meet quality levels that would be the norm in Europe or East Asia.” The bigger established players include Indian companies the British School of Languages and Veta, and the British Council, all of which offer a range of courses to cater to higher education seekers, those working in corporate sector and even children.

Launched in 1975, the British School of Languages runs 30 centres and claims to have trained 1.6 million students, while Veta English Language Training, which has 250 study centres, has trained more than 2.2 million. Both have also teamed with businesses to provide training.

The British Council leads the way in terms of reputation

The British Council meanwhile offers ELT courses in its Delhi, Kolkata, Hyderabad and Chennai centres, and runs major teacher education initiatives in ELT with state governments, NGOs and other partners. While smaller, it leads the way in terms of brand reputation. Says Khuruna, “There are a lot of such centres which keep mushrooming up and shutting down, hence, centres which are tied with the British Council or a renowned British University will stand apart and look more credible.”

That may be true, but according to Yeddula, there is “scope for more players in this vast market.”

Interest from major international providers has been slow off the mark but is growing. Pearson, in partnership with Indian provider Educomp, launched IndiaCan in late 2009 which now has 67 centres, while Inlingua have 10 centres across the country. Navitas started offering Ielts, GRE, GMAT and Toefl provision through its Study Overseas Global subsidiary in 2010 and covers seven cities. However, others global operators are yet to offer provision.

Some, like Wall Street Institute, state the need to find suitable partners who will help them navigate India’s complex and highly regionalised market. Chris Eden, Senior Vice President International Development at Wall Street, says the Indian market is of “enormous interest” but also that it “is large, well established and complex and as such requires deep local knowledge”.

“large, well established, complex and as such requires deep local knowledge”

Others say India’s working practices and changing economic conditions can pose challenges. “Some of the primary key issues that India is facing which I suspect will become greater over time, is its lack of good infrastructure in both its developed and developing cities,” says Scott Jones, Executive General Manager Student Recruitment at Navitas. “This creates an issue when looking for suitable premises to expand and puts considerable pressure on rents charged by landlords as demand far outstrips supply.

Whatever the challenges, India remains a fertile market for ELT that will continue to grow in the coming decade. Demand exists across the entire sector, counting the corporate space, higher education, government and schools projects, and smaller towns and villages with poor English penetration.

Government will is also strengthening by the day, and business laws for foreign providers are becoming less restrictive in many sectors.

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