The recent surge in education costs in India has sparked widespread concern, as highlighted by a parent’s recent outburst on X. The parent expressed outrage over the steep rise in fees for lower kindergarten in a Hyderabad school from Rs 2.3 lakh to Rs 3.7 lakh per year. While this may seem an isolated case at a top-tier institution, it underscores a broader, undeniable trend: India’s education costs have escalated sharply over the years.
Between 2014 and 2018, the cost of primary education in India increased 30.7 percent, while graduate and postgraduate courses saw hikes of 5.8 percent and 13.19 percent respectively. The National Sample Survey Office report from 2020 revealed the average expenditure on education had nearly doubled over the previous decade. In rural areas, the annual cost per student rose from Rs 5,856 in 2008 to Rs 12,345 in 2018, while in urban areas, it surged from Rs 12,000 to Rs 28,000. The All India Survey on Higher Education 2020-21 report further shows tuition fees for engineering courses in private institutions have increased by over 50 percent in the last decade. Education inflation, which briefly dipped to 0.63 percent during the pandemic in April 2021, climbed to 4.12 percent a year later. Now, it hovers around 11-12 percent.
The rise is attributed to various factors, including infrastructure development, higher faculty salaries, and technological advancements. Statistics indicate a rising burden on people due to increasing tuition fees and declining government funding. State-level disparities exacerbate this issue, creating inequality and limiting access to education for disadvantaged groups.
For instance, economically developed states like Maharashtra, Karnataka and Tamil Nadu have seen a sharper increase in costs compared to less developed states like Bihar, Uttar Pradesh and Odisha. Costs have skyrocketed in Maharashtra, particularly cities like Mumbai and Pune. According to a Tata Institute of Social Sciences study, the average tuition fee for engineering courses in Maharashtra has increased by 70 percent over the last decade. This trend is fueled by the state government’s emphasis on privatisation, leading to a proliferation of private institutions that charge exorbitant fees.
Karnataka, especially Bengaluru, has witnessed similar trends. A 2019 report by the Centre for Budget and Governance Accountability noted the average tuition fee for professional courses in Karnataka’s private institutions had increased by 60 percent over the past ten years. Meanwhile, states like Bihar and Uttar Pradesh, with lower per capita income, have not seen such dramatic hikes. However, their quality of education remains a concern, prompting many students to migrate to developed states, further widening the cost disparity.
These escalating costs are a significant barrier to upward mobility, especially for middle-class and low-income families. A 2021 survey by the National Council of Applied Economic Research revealed while most parents view education as a path to a better future, they are increasingly concerned about its affordability. Approximately 60 percent of respondents expressed dissatisfaction with the rising costs. Many felt the fees charged by private institutions were disproportionate to quality of education provided. Several students from rural areas and economically weaker sections often find themselves excluded due to the costs, a sentiment echoed in the Annual Status of Education Report 2021, which noted an increase in dropout rates in rural areas, partly due to rising education expenses.
This worsens the bleak job market. Recent events in Mumbai and Gujarat highlight fierce competition for limited jobs. In Mumbai, over 25,000 applicants, many with bachelor’s degrees, applied for 2,216 handyman positions at Air India Airport Services, leading to the recruitment being cancelled. In Ankleshwar, Gujarat, a job interview for ten vacancies at Thermax Company turned chaotic due to overwhelming applicants. As of June 2024, India’s unemployment rate was 9.2 percent, with 65.7 percent degree holders unemployed in 2022, up from 35.2 percent in 2000, according to the India Employment Report 2024.
The finance minister’s 2024-25 budget emphasising skill development and internships aligns with the 2024 World Economic Forum’s Future of Jobs report that stresses skills-first hiring. However, realising these objectives requires strong political will, decisive government intervention, and financial resources. India’s investment in education has been consistently low at 4.6 percent of its GDP. Despite calls to increase education funding to 6 percent, little progress has been made. In the latest budget, the allocation for education was Rs 1.2 lakh crore, with a 60.99 percent cut in funds for the University Grants Commission , the regulatory body responsible for maintaining the standards of higher education institutions.
Of course, the government has introduced schemes, including loans, to offset rising education costs and assist students, but concerns about increasing student debt persist. Similar schemes in advanced economies like the US have faced criticism. A 2023 Pew survey found 29 percent of four-year degree graduates felt it was not worth the cost. In India, scholars and students have advocated for more scholarships and reduced fees as a more sustainable solution. At this rate, achieving the National Education Policy 2020’s goal of a 50 percent Gross Enrolment Ratio by 2035 seems unlikely.
For India to become ‘Viksit Bharat’, a strong emphasis on affordable, inclusive education is crucial. Without urgent and holistic reforms, attaining it is unlikely. Otherwise, the ironic scenario in Fritz Karinthy’s play ‘Refund’, where a student demands his tuition fees back citing ineffective education, could become a reality.
(Views are personal)
(johnjken@gmail.com)
John J Kennedy | Professor and Dean, CHRIST (Deemed) University, Bengaluru