Education spending in India rises disproportionately as household income increases, according to data from the latest Comprehensive Modular Survey on Education conducted by the National Statistical Office between April and June 2025.
The data shows that a household that is 10% richer spends roughly 14% more on children’s schooling. Economists describe this through an expenditure elasticity of 1.42, meaning education spending increases faster than household consumption as income rises.
An elasticity above one is generally associated with spending on luxury goods. On this measure, education displays a similar pattern, with higher-income families allocating significantly more towards their children’s schooling.
The difference is particularly visible across income groups. Households in the richest 10% spend around ₹55,553 more per year on education than those in the poorest 10%.
School fees account for a substantial share of this gap. About ₹35,120, or 63% of the difference, comes from school fees alone.
Education is already one of the major expenses in household budgets. When compared with necessities such as food, rent and medicines, schooling can rank among the largest regular expenditures, particularly for families devoting a significant share of their total consumption to education.
The findings highlight how rising household incomes can translate into greater spending on schooling, while also showing the growing financial differences in access to educational opportunities.
