On April 12, Noida headquartered Schoolnet – one of India’s largest and oldest edtech service providers – announced the findings of its survey titled, ‘Understanding Indian School Education Spends Landscape’. The study was conducted in collaboration with PGA Labs on the overall spending on a child’s schooling and education in India among those in affordable private and government schools.

The survey found that parents in India spend an average of Rs 32,000 annually on their children’s education. 

Tier I	INR 43,000
Tier II	INR 33,000
Tier III	INR 34,000
Tier IV	INR 29,000

Further findings suggest that 7 percent of families in Tier I cities spend less than Rs 10,000 on their children’s schooling, as compared to 18 percent of parents in Tier IV cities in the country. The data shows large gaps exist in education spending across the country, owing to factors such as expensive options for supplementary education, varying availability of resources, and levels of education of the parents. As we move from Tier I to Tier IV, the average spend on education decreases which influences the equitable access of education in the country. 

In tandem with school education, after-school education provides students with added academic advantages. At the same time, various factors such as tuition fees, laptops, textbooks and even subscriptions to online educational applications form important components of its accessibility and delivery. According to the study, on average, Indian families spend Rs 16,000 annually on after-school education including personal tutors, tuition classes, and coaching classes.

Tier I	INR 19,000
Tier II	INR 18,000
Tier III	INR 14,000
Tier IV	INR 14,000

Overall, 32 percent of families in Tier I cities spend less than Rs 10,000 on after-school services, as compared to 41 percent of parents in Tier IV cities.

Key findings of the survey

• Families in Tier I cities spend on an average of Rs 43,000 on their child’s schooling, as compared to an average of Rs 29,000 annually in Tier IV cities. 

• Parents in India spend Rs 16,000 annually on after-school education. 

Comments RCM Reddy, MD & CEO, Schoolnet, “India has one of the largest K-12 schooling systems in the world, with 1.5 million schools and 250 million students. As seen in our survey conducted among children studying in affordable private and government schools, families are willing to spend increasingly on education, as they understand the importance of in-school as well as after-school education. At the same time, there still exists a vast gap in the facilities available across the country, which impact the spending on education. Through this survey, we wanted to understand the spending habits of India’s average family when it comes to school education in India. This would help us work towards sustainably bridging the supply and demand gap that exists currently.”

Arindam Ghosh, head of strategy, Schoolnet said, “This study has generated deep insights for us at Schoolnet and for the larger education and edtech ecosystems. It has shown that decisive impact cannot be made by eclipsing the families in the middle and bottom of the economic pyramid. The findings have thrown light on some of the strategic areas that require sharper focus to make the dream of quality education for all into a reality.” 

The study – which sought to understand the educational spending and purchasing capacity for supplementary education, particularly online, in India – involved a cross-sectional survey of 1,174 parents across 91 cities (Tiers I, II, III, and IV) in the country. Conducted between November 2021 and February 2022, it focused on the educational spend and preferences for the youngest child (Grades 3-12) of middle and low income families. 

Schoolnet India Ltd is a leading edtech service provider in India that impacts 40,000 schools and 15 million learners. To learn more, visit www.schoolnetindia.com. 

Delhi based PGA Labs is a technology-enabled business research and intelligence services firm that specialises in driving decisions from on-ground insights. To learn more, visit https://www.pgalabs.in/. 

Also read: 40% parents struggle to pay schools fees post lockdown: Survey