25,000 Crores
Just a few weeks ago, I was discussing with friends in the ecosystem that digitizing India's tutor ecosystem is a venture scale problem and opportunity.
So I was glad to see these numbers in black and white and published by the Education Ministry of India. Let's take a close look:
- Indian families spend a whopping INR 25,000 crores on private tuitions for their kids.
- This amount is more than one third the central government’s total budget allocation of Rs 59,845 crore to the department of school education and literacy.
- The average spend on private tuitions for students in higher secondary level is INR 2,516. Slightly more than 25% of the students in higher secondary take private tuitions.
- The average spend on private tuitions for students in the secondary level is INR 1,632. Slightly more than 30% of the students in secondary take private tuitions.
- The average spend is INR 845 for upper primary and INR 502 for primary school.
- AND private tutors are hired at even the pre-primary level, where the average expenditure per student is INR 300.
- The overall expenditure incurred by parents for their child's education is estimated to be INR 1,90,000. 20% of expenses are for books and other materials. Private tuitions account for 13% of the overall spend.
These are incredible stats and something that is core to my conviction in building for the 1M+ tutors in our country - a number that continues to grow.