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Indian Ed Tech Industry
The Indian EdTech industry was valued at US$ 750 million in 2020 and is predicted to grow at a CAGR of 39.77 percent to US$ 4 billion by 2025. The need for non-academic courses from tier II and III cities, as well as the need for personalization in the EdTech field, are driving this expansion.
In 2020, Indian EdTech start-ups raised more than $1.43 billion in 100 agreements. Both parents and educational institutions were pushed to deploy tech-enabled learning solutions because of the COVID-19 pandemic interruptions and subsequent lockdowns, making EdTech the most well-funded sector in the country.
After-school tutoring has been infiltrated by ed-tech to supplement classroom instruction, competitive test preparation, and other skills-based/extra-curricular education. Whether it’s technical skills like coding or computer programming, abstract analytical abilities, or life skills like personal financial planning, parents prefer these services to augment their children’s official education with marketable, career-oriented talents. Schools and non-profit organisations are also using Ed-tech services to reach out to students during pandemic-related school closures and to provide a blended learning experience in general.
Need for regulation in Ed Tech sector
With a lack of innovation and development on the one hand, and commercialization on the other, the need for education sector regulation is a balancing act. On the other hand, there is a need to strengthen institutional autonomy while retaining basic control and widespread student access. However, the welfare of children cannot be compromised in any of these policy trade-offs. Online education and tuitions currently pose a number of concerns to youngsters.
Normally we don’t even realize that we need regulation in this industry until we see the aggrieved customers of various ed-tech service providers. They can’t file a complaint in the consumer forum because Education industry has never been included under the consumer protection act.
To begin with, storing personal information puts young children and students at greater danger. Home addresses, bank account details for billing purposes, personal phone numbers, and IP addresses are among the types of information shared with online sites and can be used to identify and locate youngsters. Children under the age of 13 may not understand the nature and severity of the dangers associated with exposing personal information online or accepting consent forms that may appear during their use of online services.
While the Personal Data Protection Bill of 2019 covers the protection of personal and sensitive data in its entirety, special rules may be required to account for the increased risk associated with teaching young students, especially since minors (under the age of 18) are unable to provide valid consent.
Second, ed-tech companies are prone to low-quality material and instruction due to private ownership and profit-driven structures. The regulations governing teacher qualifications and training in schools would not apply to such online education providers, which could result in poor or inconsistent teaching quality despite the high expense.
In a society where maintaining a healthy student-teacher ratio is difficult, ed-tech firms’ claims of exponentially increasing their teaching base without compromising quality are just unfeasible. Furthermore, dubious, and appealing false claims that prey on parents’ desire to offer a secure future for their children may allow such providers to operate with little or no responsibility.
Moreover, Education industry is also not covered under Consumer Protection Act,1986.
What can be done?
- Sections of state education acts have been cut out to enable for the establishment and operation of new formal education institutions. While the same restrictions cannot be imposed on private ed-tech service providers, these acts can be amended to include ed-tech companies and allow the state to create dedicated regulations and keep an eye on them.
- Many of the risks associated with ed-tech services can be mitigated by existing legislation. The Goa Coaching Classes (Regulation) Act, 2001, for example, regulates private tuition in the state and, among other things, prohibits marketing that rely on the quality of coaching and the test results of students who attended it. This specific component of online coaching and teaching services could be addressed by rules made under the Consumer Protection Act, like the Goa Coaching Classes Act.
- Children under the age of 18 are considered minors under the Personal Data Protection Bill, 2019, which will be submitted in the forthcoming budget session. Consent to collect, process, and keep data about minors must be obtained from their parents or guardians, according to the Bill. Special regulation with heightened security is necessary for online activities and services heavily accessible by pre-teens, which can improve the security of ed-tech solutions.
- Online courses can be managed by meeting specified criteria based on learning outcomes, teaching quality, personalization tools, and students’ experiences, like how consumer items adopt standards to represent quality.
With expectations of exponential growth in Ed-tech services, authorities must pay attention to the sector. To protect the interests of children and young adults, the government must take careful measures. Regulating online education providers can help governments achieve goals like improved vocational skill integration and teacher development without having to invest in the necessary infrastructure. The state’s role, however, does not end with the regulation of online education platforms. Driving high-quality, low-cost offline and/or online education is a right derived from the fundamental right to life that must be achieved first and foremost by the government, particularly in the aftermath of the pandemic.
One comment on “Need for regulatory laws in the Indian Ed-Tech space”
Arvind
This is really valuable!
I don’t think a majority of people in India would know about this.