Hiring education sector workers in India

India is the world’s seventh largest country and boasts the largest population of any nation. A staggering 1,450,935,791 people call India home. This figure accounts for almost 18% of the total population on Earth. India has a fast-growing economy and rapidly expanding education system.

The Harvard Business Review notes that India’s booming economy grew 7.8% in the 2023–24 fiscal year. This figure surpasses G20 countries’ average 3.4% growth rate and the average 4.1% growth rate of all emerging markets. In addition, 2021 and 2022 saw nearly 2,400 higher education institutions established.

India has the world’s largest and youngest workforce. It also has a growing education sector. Despite this, the country is facing an employment crisis and serious skills gaps. Less than half of working-aged people in India hold jobs.

Education presents many pathways to solving these issues. Using education to enhance the labour supply and build skillsets can help to tackle India’s labour shortage. Therefore, investing in India’s education sector is crucial for both India and the international community.

India’s education sector

India’s fast-growing education sector is a hub for internationalisation. One of the largest in the world, it has over 58,000 higher education institutions.

However, as outlined in our article ‘The why, where, and how of internationalisation in education,’ the country faces issues such as growing skills gaps, lack of funding, and outdated curricula.

Alliance University highlights Deloitte’s report which found that 64% of educators in India feel that one of the major challenges is a stale curriculum. Only 28% of educators believe that graduates are prepared to enter their chosen industries.

Alliance University also notes the economic benefits of the internationalisation of education, as well as updating the technology used within the educational space. Internationalisation drives innovation. It also allows students to secure degrees associated with foreign universities, improving their chances of success.

Benefits of expanding into India’s education sector

The benefits to expanding into India’s education sector are manifold.

National Education Policy (NEP) 2020

The Government of India has committed to revamping its education sector. It has introduced its National Education Policy in 2020. This policy aims to address the issues of outdated courses and modernise the education system. The NEP will see the restructuring of governance and regulatory architecture and the introduction of multidisciplinary curricula.

Government investment and policies

The Indian government is now raising its education budget to 6% of the GDP.

India’s foreign direct investment (FDI) policy allows up to 100% foreign investment in the education sector, without prior government approval being required.

This new era in Indian education brings increased opportunities for international investment, connection, and hiring.

Market opportunities

Demand for courses and degrees in certain areas is increasing, as India’s higher education system continues to grow. These sectors include technology and healthcare. These are sectors which are currently experiencing serious skills shortages. This means there is a gap in the market for educators and educational institutions specialising in these areas.

Students and educational institutions are also eager to be affiliated with international institutions. This presents excellent opportunities for foreign colleges and universities to expand into India and create connections with Indian institutions.

Hiring in India’s education sector

When hiring in India’s education sector, you should consider a number of factors.

Compliance

Hiring talent overseas requires you to comply with all local laws and regulations. If your organisation fails to do this, you run the risk of serious penalties for non-compliance.

Ensure that your employees are engaged compliantly when hiring in India’s education sector. It doesn't matter whether short-term staff, tenured professor, or researcher. Compliance is paramount.

Laws that must be complied with include the Payment of Wages Act, 1936, Gratuity Act, 1972, Maternity Benefit Act, 1961, and the Equal Remuneration Act, 1976.

You must also ensure that your employees are adhering to all local tax regulations. For example, India’s domestic tax law dictates that any organisation paying employees in India must obtain a Tax Deduction Account Number (TAN).

Engaging the services of a global employment solutions provider like Mauve Group will help to mitigate the risk of non-compliance. This will also help you to navigate what can be complex laws around employment in India.

Accreditation bodies

In India, several organisations are responsible for ranking and accrediting higher education institutions. These include the NAAC (National Assessment and Accreditation Council) and NIRF (National Institutional Ranking Framework). Your staff will be obliged to contribute to meeting these standards. It is, therefore, important that you are aware of these organisations.

Diversity and inclusion

As an employer in India’s education sector, you will need to be conscious of ensuring equity in your hiring practices. While more women than ever are enrolling in higher education in India, with the enrolment figures surpassing 20 million, there is still a lack of gender diversity in the educational sector. Few women remain in academia for their careers.

It has been argued that boosting the numbers of women in India’s workforce will help the country with solving its skills gaps and labour shortages.

Cultural sensitivity

It is vital to be aware of the cultural differences between your country of origin and the new country when hiring abroad. If you are deploying staff from your home country abroad, you will need to ensure they are properly briefed on the local cultural traditions and expectations.

As an employer hiring local talent in-country, you must be aware of the local culture and societal norms. This will ensure seamless communication and integration between you and your team.

For example, in corporate India, there is great emphasis placed on authority. Whereas in the U.K., corporate culture, in some instances, tends to be less hierarchical.

How Mauve Group can help

Mauve Group has extensive experience supporting educational institutions the world over. As an award-winning global employment solutions provider, with over 28 years of experience, Mauve Group has a number of strong relationships with leading educational organisations and universities globally. These include with NACUBO (National Association of College and University Business Officers) and NAFSA (Association of International Educators) in the U.S., as well as a number of Ivy League universities.

Our suite of global employment services is available in India. From our pioneering Employer of Record service to Independent Contractor solutions, Global Business Expansion, Global Payroll, and more, Mauve can support your educational institution with hiring in India’s education sector.

Contact our team today, to find out which of our solutions is right for your organisation's global expansion journey.