Scope of Tutoring Business in India
This is the highly competitive world for students. Everyone requires a good score to make a career in the profession they want to be a part of. This desire has resulted in numbers of students to go for private tuitions. Till the June 2013, private tutorial was 1.5 lakh crore business in India.
From Parent’s Point of View
In the study done by (ASSOCHAM) Associated Chambers of Commerce and Industry of India more than 86% of parents had said that they enroll children to the coaching classes and home tuition due to lack of time or they are not aware of the contents of the subjects. Approx. 85% of working parents had said that they cannot pay attention to their child’s education as sometimes they are away from home for the whole day.
The survey had revealed that parents feel teachers in schools have too many classes and students to handle in a short period. The tuition classes give the extra push to their ward for performing well academically.
Percentage of school students taking private tuitions:
- Primary school students: 87percent
- Secondary and higher secondary school students: 95 percent.
From Tutor’s Point of View
Many school and college teachers have left their job to take a private tutoring job. They can take two or three tuitions at a time and earn more than what they are getting in schools or colleges. In the one-to-one system of home tuition, tutors charge Rs.700 to Rs.4000 and in group coaching they get Rs.1000 to Rs.4000 per month. Hourly or monthly based income depends on class, syllabus and subjects of the students.
In the mega cities, per month parents spend:
- Rs.1000 to Rs.3000 on every primary level child.
- Rs.5000 or more on every secondary level child.
Business Overview
The Study says this industry is growing at the rate of 35% per year. The growth rate is evident in the ASSOCHAM’s publication “Business of Private Coaching Centres in India”.
Parents spend nearly one-third of the income in private tuitions of their child. The common intentions of parents in doing so include:
- Better performance of student in examination, and
- Preparing the student for entrance exam of professional courses.
According to the survey, in this year the private coaching industry of India which includes home tutoring and group coaching would likely to reach $40 billion.
Even in the IInd and IIIrd tier cities, the trend of private tutoring is increasing rapidly. For being a profitable business, the private tuition service providers are mushrooming in every location of major Indian cities like Bangalore, Hyderabad, Chennai, Delhi, Chandigarh, Mumbai, Pune etc.
Although Private touring is a lucrative business yet it is still in an unorganized state in India. We need a model like Tutoring Association Consultation of Uk to create an accreditation and industry standards for tuition providers, tutors and as well as coming out with guidance for parents who are looking for private tutors.
2 Comments
Thanks for the information.
Hello Samriddhi,
I partially agree with your post as we also running coaching institute and we are focused more on quality education rather than money making business.