Thread by @BiIndia

Indians are spending enormously on education even with few jobs in sight

businessinsider.in/education/news…

By @PrernaSindwani

@PrernaSindwani As per CARE rating agency, the unemployment rate in India may increase further as a high proportion of students enroll in engineering, vocational and information technology courses.

Per student, the average expenditure on education in India is ₹8,331.

@PrernaSindwani According to the report, the average expense for enrolling in a professional course can go as high as ₹72,000 per student.

Of the total expenses incurred on the education of every student, over half of the amount is spent on tuition and exam fees — and that excludes course material, books and uniform.

The unemployment rate in October stood at 8.5% — the highest in three years. According to a recent survey by trade body of IT and staffing TechServe Alliance, engineering employment is declining on a month-on-month basis.

Education is turning costlier in India. The average expenditure for professional course stood at ₹ 64,763 in urban areas — twice that of in rural India at ₹32,137. According to the report, it can go as high as ₹72,000 per student.

The chart below shows a significant rise in expenses as the education level increases. However, the education expenses for technical courses has declined due to higher subsidies, scholarships and growing number of institutes and the resultant competition.

The urban and rural divide

Students of general courses however are spending much less, at around ₹5,240 in rural areas. But those in urban areas spent three times more at ₹16,308.

“This could potentially act as a deterrent for economically weaker sections to continue being enrolled in schools. For this, government intervention needs to come in at the right levels for drop outs to reduce,” the report highlighted.

Of the total expenses incurred on the education of every student, over half of the amount is spent on tuition and exam fees — and that excludes course material, books and uniform.

Books, stationery and uniform cumulatively comprise 20% of the expense on education

Students are also having to fork out extra money for travelling and coaching — both make up for 12% each.

According to the rating agency, merely one in five students in the urban regions received free education. While over half of the students in the rural areas could benefit from subsidised cost of education.