Big Business Behind ‘Non – Profit’ Education


We usually talk about pressure on students forced by private schools. But no-one is talking about pressure on parents who need to carry heavy financial burden to provide good education to their children.

Education is considered as ‘Non – Profitable’ in India, but this is emerging as fastest growing business model. It is a clear reflection of failure of government’s education system. Parents are hopeless in front of monopoly of private schools.

Nowadays, school education is more expensive as compared to higher education or even many professional courses like engineering, management, pharmacy, mass communication, nursing etc. An average expenses in pre-primary is 30,000 to 60,000 per year and in higher classes its ranges 60,000 to 1,00,000 in many cities of India. It cost goes 1.5 times in metros like Delhi, Mumbai, Kolkata, Chennai, Bangalore etc. There is long queue for admissions in private schools while government schools not getting enough numbers.

Schools are running under ‘Non – Profit Organizations’, they are not supposed to make profit from running such institutes, schools, colleges but these organization making money by operating educational institutes. Schools are increasing their expenses on branding, promotions and advertising every year.

Besides these admission fees, tuition fees, transportation charges they are forcing parents to purchase books, stationary, uniforms etc. from specific vendors. In this schools are getting direct commission 25 to 30 percent. Average cost of books, stationary, uniforms 6000 – 10,000 per student. Suppose a school having 1000 students can create profit around 30 lakhs without doing anything. This commission will not be added in accounts; this is directly distributed among stakeholders or authorities.

Every year in metros thousands of students do struggle to take admission in some specific schools. School management demands 5-10 lakh as donation per admission to create seats which was initially not available. Parents are hopeless in front of obstinate behavior of private schools. Parents paying huge amount to such schools in the thought to better future of their child.

In present scenario every talks about pressure on children, cost of education, lack of knowledge, shortage of infrastructures, quality of education and dropouts from education. We usually talk about pressure on students due to such schools, but no-one is talking about pressure on parents to provide good education to their children. Parents are under huge pressure imposed by schools or colleges due to admission process and quality of education especially metro cities.

This way big business is operating by ‘Non – Profit Organizations’. Every year thousands of new schools, colleges, engineering institutes, medical colleges, hospitals are opening but instead providing services they making big profit from ‘Non – Profit’ Education.

Governments sometimes come up with few guidelines to private schools and colleges, But unfortunately those instruction remains only in files. Government’s guidelines were never followed by schools/colleges and even authorities not force to such institutes. At the end of the day that just a paper work or formality from government side, and no one took those seriously.

Day by day quality of education is reducing and students are not able to meet demands of employment markets. In India people believes in getting degrees not to achieve knowledge. We have to put more focus on skills instead of bookish knowledge.


About Devendra Singh 64 Articles
Post Graduate in Computer Science Engineering and MBA (HRM), associated with Technical Training, Higher Education & Social Development Sector. Authored Several Books, Research Papers and Editorial Director of The Analyzer.

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