How much do you think a household spends on education?

July 31, 2017
Godwin Vargheese
 Household spend on Education

Household spend on Education

The future of any nation lies in the holistic development of its demographic dividend and to ensure that this development is sustainable, quality education is the key. The Indian government realises this and so do the Indian households with their growing awareness and increasing average per capita income. The growth in household expenditure on all sections of the education sector: primary, secondary, higher secondary, and higher education, is proof of the huge opportunity of growth in this booming sector.

Household expenditure can be defined as the individual expenditure made by the parents of a student on acquiring education and as per data compiled by The Economist, this expenditure is quite sizeable even in the lower income groups of the society. As the table below depicts, the growth has been considerable in the past two decades since 1995-96, thus projecting an upward trend.


This data clearly indicates that the amount of money spent on education, and especially on quality primary education has shown a massive growth in Indian households and this number is even higher in urban areas, which therefore serves as a major investment opportunity for entrepreneurs looking to invest in the education sector. The supportive initiatives being taken by government institutions to ensure that the penetration of quality STEM education in underpenetrated regions of the country are yet another reason to make full use of the opportunities this sector is presenting.


The above data has been compiled to show the division of total annual household expenditure at different levels of education. Not only is this value high which goes on to prove the potential of growth in the overall education sector, but the trends in the data also show the higher expenditure in private coaching especially in the higher secondary and higher education levels because a lot of schools are unable to provide quality STEM education, either due to lack of a proper curriculum or trained staff or both, which is needed for the sustainable development of the sector. This thus concludes two things: awareness of Indian households towards providing their children high-quality education at all levels is growing, and focus on STEM education is increasing thereby creating a massive opportunity for investment and growth in the stated area.

So, in a nutshell, the continually increasing household expenditure in education shows that India is aiming for a holistic future marked by economic and social equality, first in the sector and then as a result, in the entire country and this is the best time to be investing in this sector because education is the central element to a great future that awaits our country.

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