The Rising Cost of Children’s Education in India: A Deep Dive into Spending Patterns
Education has always been seen as the cornerstone of opportunity in India, but the financial burden of schooling is increasingly becoming a pressing concern for families across the country. A new set of government statistics from the Comprehensive Modular Survey on Education (CMS: E), conducted in April–June 2025, paints a stark picture of how much households are spending on children’s education—and the sharp divide between rural and urban India, as well as government and private schools.
A Wide Cost Gap Between Government and Private Schools
At the national level, the contrast is startling. Families with children in government schools spend an average of ₹2,863 per student annually, while those opting for non-government (private) schools face an average outlay of ₹25,002 per student. The nearly ten-fold difference underscores how expensive private education has become in India, despite government efforts to strengthen the public school system.
Course fees remain the single largest component of these costs. The survey found that the average annual course fee stands at ₹7,111 per student, though this masks huge differences: urban households spend an average of ₹15,143, while rural households pay only ₹3,979.
Urban vs. Rural: A Nine-Fold Divide
The survey highlights the deepening urban-rural gap in educational spending. Urban families who send their children to private schools are paying nine times more than rural families whose children attend government schools. These costs include not just tuition fees, but also expenditures on uniforms, books, transportation, and additional learning resources.
Such disparities not only reflect differences in cost of living and access to institutions but also hint at broader inequalities in educational opportunities. Families in rural areas often rely on underfunded public schools, while urban families, pressured by competitive environments, are increasingly drawn toward private education.
The Coaching Phenomenon: Learning Beyond Classrooms
One of the most significant trends uncovered by the CMS: E is the growing reliance on private coaching. The data shows that nearly 30% of students across India now depend on coaching outside of school.
This trend is particularly strong in urban areas, where competitive exams and the race for admissions into prestigious institutions drive demand for supplementary education. The rising popularity of coaching suggests a lack of confidence in regular classroom instruction and raises questions about the effectiveness of the formal school system.
Regional Disparities: The Case of Chandigarh
The regional differences are equally striking. Chandigarh, for example, records the highest per-student spending in the country at ₹49,711 annually—almost five times the national average of ₹12,616.
A closer look at Chandigarh reveals the magnitude of the gap:
- Government school students: ₹5,480 per student (well above the national average of ₹2,863).
- Private unaided schools: ₹79,006 per student.
- Private aided schools: a staggering ₹1,13,464 per student.
- Coaching costs: ₹17,196 per student, the second-highest in the country.
Neighbouring states such as Punjab, Haryana, and Himachal Pradesh also report above-average levels of spending, reflecting both economic prosperity and the heightened pressure for educational achievement in northern India.
Education as a Growing Share of Household Income
The financial squeeze is not just visible in absolute numbers. The survey found that Indian households have increased the share of their income devoted to education by four percentage points in just one year. This means that, despite inflationary pressures and rising living costs, families are prioritizing children’s schooling, often at the cost of other essentials.
For middle-class and lower-income families, this rising financial burden can create stress, debt, and reduced spending on healthcare or nutrition—ironically undermining the very developmental outcomes that education is supposed to improve.
What the Numbers Reveal
The CMS: E survey covered 52,085 households and collected data from 57,742 students across the country, providing one of the most detailed snapshots yet of India’s education economy.
Its findings highlight three core realities:
- Private education is rapidly outpacing public schooling in both costs and demand, creating massive inequalities.
- Urban families are bearing a disproportionate burden, paying nearly nine times more than their rural counterparts.
- Private coaching has become mainstream, signaling gaps in school quality and an increasing dependence on parallel systems of education.
Implications for the Future
These figures raise important questions about the sustainability and equity of India’s education system. If costs continue to rise unchecked, access to quality education may become a privilege rather than a right, deepening socio-economic divides. The reliance on coaching also calls for a rethink of classroom teaching methods and investment in public education infrastructure.
For policymakers, the challenge lies in ensuring that affordable quality education is not out of reach for the average Indian family. Strengthening government schools, regulating private institutions, and curbing the mushrooming of expensive coaching centers may be necessary steps.
Education in India remains a double-edged sword: it is seen as the ultimate pathway to opportunity, but the financial burden it places on families is becoming overwhelming. From the ten-fold gap between government and private schooling costs, to the explosive rise of coaching expenses, the CMS: E survey reveals a system under immense pressure.
As households continue to sacrifice larger shares of their income for their children’s future, the pressing question is whether India’s education system will adapt to deliver on its promise—or whether it will remain a costly race that only the privileged can afford to run.
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