New Delhi [India], January 20 (ANI): The EdTech sector in India is witnessing unprecedented growth, with its contribution to the country's GDP projected to rise from 0.1 per cent in 2020 to 0.4 per cent by 2029, according to a joint report by the Internet and Mobile Association of India (IAMAI) and Grant Thornton Bharat.

The report highlighted that in 2020, India's GDP was valued at USD 2.67 trillion, with the EdTech market contributing USD 2.8 billion--equivalent to 0.1 per cent of GDP.

"The EdTech sector in India is rapidly growing, with its contribution to GDP expected to increase from 0.1 per cent in 2020 to 0.4 per cent by 2029, highlighting its expanding role in the economy and alignment with government initiatives".

It noted that with the sector's steady growth over the years, driven by increasing digital adoption, government support, and evolving consumer demand for online education, the sector is expected to reach valuation of USD 29 billion by 2030.

The Indian EdTech market is expected to grow at a compound annual growth rate (CAGR) of 25.8 per cent over the next few years. In 2024, the market is already valued at USD 7.5 billion, solidifying its position as the third-largest funded EdTech ecosystem globally, after the United States and China.

As of December 2024, India has over 17,000 EdTech companies, including seven unicorns. This number is second only to the United States, which boasts 13 EdTech unicorns.

However, the report also noted challenges in terms of funding. The Indian EdTech sector saw a peak in funding in 2021, securing USD 4.86 billion. Since then, investment in the sector has sharply declined, dropping to USD 2.88 billion in 2022 and further plummeting by 87 per cent to USD 535 million in 2023.

By the end of 2024, the sector managed to secure around USD 730 million. The funding downturn is attributed to broader macroeconomic conditions and cautious investor sentiment, which have impacted investment flows across industries.

Despite these hurdles, the Indian EdTech sector remains a promising and dynamic space. With a focus on innovation and scalability, it is poised to play a pivotal role in the country's economic growth and educational transformation. (ANI)