Investor Aviral Bhatnagar has shared that his niece’s UKG fees are crossing ₹4 lakh a year. The IIT Bombay alumnus compared it to his college fees. Bhatnagar earned his Bachelor of Technology (B Tech) in Engineering Physics from IIT Bombay from 2010 to 2014.
“Cousin told me her daughter’s UKG fees is crossing 4L/yr in Mumbai. My fees at IIT Bombay was half that for the entirety of the 4 years. Education costs are the hidden inflation that no-one is talking about. Perhaps AI tutors will make it affordable again,” he wrote on Twitter (now X).
Social media users reacted enthusiastically.
“It’s not education cost inflation but Lifestyle Inflation costs, your cousin is rich already he want to send to top nursery school…Once we get money we no longer settle for cheap..Schools charge fees based on how much parents make… If school owners know I earn 1 cr per annum, they will charge me more….” wrote one of them.
“I got my daughter admitted recently for Prep (UKG) in Gurugram. They charged 1L admission fee, 70k refundable fee, 20k per month tuition fee and around 7k per month for bus. That’s around 5L and there will be uniform, books, activities, etc that, I think, will be over and above this,” wrote another user.
Another user commented, “Eduction, marriage, medical – most profitable business in India. Govt schools and hospitals are in worst conditions to boost private schools and hospitals. India is only for rich people.”
“Mine is 25% of it because of the COVID lockdown, almost three years of my graduation happened from home. I used to attend online classes,” came from another.
“Schools are glorified day care with some learning. AI tutors won’t solve the problem of day care, especially in grades K-5. K6-10 will be a bit useful, and great k11-12 AI tutors will end the coaching mafia,” another user wrote.
Another user wrote, “Just got my 4 year old daughter admitted to a decent school in Noida with a fees of around 2.75 Lacs a year. I did my whole engineering in 2 lacs.”
Education inflation in India
A recent Kotak Mutual Fund report highlights the sharp rise in education costs in India. For many years, families believed that spending on education would grow along with income. However, that balance is now changing.
Education costs are rising much faster than general inflation and salary growth. It creates financial pressure on households, the report says.
Education inflation in India is around 10-12% annually, compared to the overall inflation of 5-6%, according to the report. In cities, many parents have seen school fees rise by 50-80% in the past three years.
Annual costs per child in private schools often range from ₹2.5 lakh to ₹3.5 lakh. Some middle-class families now spend up to 40-80% of their income on one child’s education.
Professional degrees at private colleges cost two to three times as much as a decade ago. Studying abroad can cost between ₹30 lakh and ₹1 crore or more. Extra expenses like coaching, transport, and uniforms add to the burden of tuition fees.
