Introduction to the Pre-School Market

Pre-school is an early childhood program in which children combine learning with play in a program run by professionally trained adults. Children are most commonly enrolled in pre-school between the ages of three and five, though those as young as two can also attend.

Pre-schools generally provide early education and care for children. They are warm and welcoming community hubs, where connections are made and relationships are built.

Facts about the Market (From CRISIL)

  • Pre-schooling is one of the fastest-growing segments within India's educational services industry owing to a lack of regulations and growing demand.
  • CRISIL RESEARCH expects the pre-school market to grow at a CAGR of 20% to reach Rs 165 billion in 2017-18 from Rs 80 billion in 2013-14.
  • The pre-school industry is expected to record revenue of Rs 220 billion by 2019-20 from Rs 99 billion in 2014-15, at a CAGR of 17%.
  • Prominent players' revenue is growing even faster, at 30-40% annually.
  • Over the past decade, the annual government spending on early childhood care and education (ECCE) has recorded a CAGR of 22% as against a 18.96% rise in overall spends on education.
  • Population of 0-5yrs in India is approx. 1.41,134,427, which comprises 11.42% of the total population.
  • India's Gross Enrollment Ratio in the pre-primary level in urban cities is much lower than 58%


  • The pre-school industry is reckoned as a sunrise industry. Increasing awareness among parents about the benefits of a quality pre-school education has been a major driving force for the growth of this industry.
  • This segment is growing by leaps and bounds as a large no of people are investing. It is observed that due to initial investments being minimal, expansion though the franchisee route offers easy growth opportunities.

Hence in India, the pre-school segment has a lot of scope to expand in the coming years and it is expected that the pre-school market potential in India is very huge.