New Delhi, 15 April 2022 – A recent survey*, conducted to analyse the spending of Indian parents on their children, has found huge gaps between the average educational expenditure of parents in tier-1 vs tier-2, tier-3, and tier-4 cities.
While the families residing in tier-1 cities spend as much as Rs. 43,000 on their wards, Tier-2 families spend almost 23% lesser, Tier-3 families spend more than 22% lesser, and Tier-4 city parents spend around 32% lesser than the Tier-1 city parents.
Talking about the national average, Indian parents spend Rs. 32,000 on their wards’ education yearly.
| Classification of Indian Cities | Average Amount Spent on Education Annually |
| Tier 1 | Rs. 43,000 |
| Tier 2 | Rs. 33,000 |
| Tier 3 | Rs. 34,000 |
| Tier 4 | Rs. 29,000 |
| Rs. 32,000 spent annually on children’s education nation-wide | |
*This survey titled ‘Understanding Indian School Education Spends Landscape’ has been conducted by Schoolnet India, an Indian EdTech service provider, providing digital and digitally-enabled services to K-12 schools and students. The study was conducted in collaboration with PGA Labs.
Gaps in Education Spendings: Further Findings
As per the Schoolnet survey, “As we move from Tier-1 to Tier-4, the average spend on education reduces, which influences the equitable access of education in the country.”
Here are a few more findings:
- Indian families, on average, spend Rs. 16,000 annually on after-school education (including tuition classes, personal tutors, and coaching classes).
- 41% of parents in Tier 4 cities spend less than Rs. 10,000 on after-school services, as compared to 32% of parents in Tier-1 cities
- At the same time, 18% of parents in Tier-4 cities spend less than Rs.10,000 on the schooling of their children, as compared to 7% in Tier-1 cities.
Sharing his insights on the survey, RCM Reddy, MD & CEO, Schoolnet India Ltd. & Learnnet Skills Ltd., said, “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,” he added.