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Government's vision to increase number of IITs and IIMs to drive growth in Online Higher Education

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4 min read Last Updated : Apr 18 2025 | 12:09 PM IST

As India moves towards becoming a global hub for education and innovation, the online education sector has emerged as a transformative force in higher education and upskilling. With the government’s increasing focus on expanding educational opportunities, the Union Budget 2025-26 has prioritized initiatives aimed at reducing the skill gap and enhancing accessibility to quality education.
One of the key announcements in the budget was the addition of engineering seats at five IITs—Tirupati, Palakkad, Bhilai, Jammu, and Goa—which were established after 2014. This move highlights the government’s commitment to increasing capacity in technical education, ensuring that more students gain access to high-quality learning opportunities.
However, physical expansion alone is not enough to meet the growing demand for higher education and industry-relevant skills. The online education sector is playing a crucial role in addressing this challenge by offering flexible, scalable, and accessible learning options. Online learning companies have partnered with top IITs, IIMs, and global universities to deliver degree programs, certification courses, and professional upskilling programs in domains like management, finance, artificial intelligence, business analytics, and more.
Online Higher Education and Upskilling companies such as Jaro Education, Talent Edge, Imarticus, Eruditus and TimesProare partners to majority of IIMs and IITs in India to deliver both management and technical courses online as a part of their higher eduation offerings of these prestigious institutions in the country. These leading players are the biggest beneficiaries of adding more seats in existing IIMs and IITs and also adding more prestigious institutions across India as the need for these institues across India is the order of the day.
With India’s workforce evolving in response to technological advancements, the government has emphasized collaborations between academia and industry to make education more job-oriented. The establishment of a Centre of Excellence for AI in Education, as announced in the Union Budget, is a step towards integrating emerging technologies into learning models.
As industries seek candidates with specialized skills, blended learning approaches—combining online and in-person education—are gaining traction. Universities and corporates are now working together to co-design curriculum, ensuring that graduates are better prepared for real-world challenges.
The Expanding Reach of Online Education in India
India’s online education landscape has seen rapid growth, with universities across the country launching hybrid and digital-first programs. Historically, Western India has led the way in adopting online education, but now Northern, Southern, and Eastern regions are also witnessing a surge in enrollments.
With on-campus high-tech studios and online program management services, institutions are expanding their reach beyond traditional classroom settings. Students from Tier-2, Tier-3 cities  and even villages now have the opportunity to enroll in top-tier programs from IITs, IIMs, and Ivy League universities without relocating. 
Key reasons why online programs are significantly more affordable than full-time MBAs:
  1. A single faculty member can teach 800-900 students, reducing per-student instructional costs.
  2. No need for physical classrooms, air conditioning, lighting, or campus facilities.
  3. Reduced requirement for non-teaching staff, making online programs cost-effective.
For instance, while a full-time MBA costs around ₹12-13 lakh, an online MBA from the same institution is available for just ₹1.5 lakh—nearly 10-12% of the full-time fee—while being taught by the same faculty.
This democratization of education is expected to further drive India’s global positioning in digital learning.
As more institutions embrace technology-driven education, online and hybrid learning models will continue to dominate the future of education in India. With 91+ new programs launched in recent years, higher education institutions are curating affordable and customized programs to cater to a diverse student base, ensuring that India remains at the forefront of global education and workforce development.
By leveraging cutting-edge edtech platforms, strategic university partnerships, and government initiatives, India’s online education sector is set to play a pivotal role in shaping the future of learning, employment, and economic growth.

Disclaimer: No Business Standard Journalist was involved in creation of this content

First Published: Apr 18 2025 | 12:08 PM IST

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