New Delhi: India spends years preparing its young population for exams, degrees and professional courses. Families spend their savings, take loans and pay high coaching and education fees with the hope that a degree will open the door to a stable career.
However, students are asking whether the countrys education system is creating enough opportunities after years of study.
The National Education Policy (NEP) 2020 recommended increasing public spending on education to 6% of Indias GDP. However, government spending continues to fall short of that target. According to PRS Legislative Research, India spends around 4% of its GDP on education.
The need for higher public investment becomes more important because a large number of students depend on private institutions, where costs are much higher.
The Ministry of Educations Comprehensive Modular Survey shows that around 56% of students study in government schools, while nearly 44% are enrolled in private schools. The difference in expenses between the two sectors is wide.
According to the survey, the average annual cost of education for a student in a government school is around Rs 2,863. In private schools, the average cost rises to Rs 25,002 per student. This means private school education costs nearly nine times more than government school education.
The overall average spending on school education per student in India stands at Rs 7,111 per annum. Out of this, around Rs 2,002 goes towards books and stationery, while Rs 1,842 is spent on transportation.
The difference between urban and rural areas is also visible in education costs. In cities, the average annual cost of school education is around Rs 15,143 per student, while in rural areas it is about Rs 3,979.
Higher education comes with a bigger bill
The cost continues to rise after school. Professional courses such as medicine and engineering require families to spend much larger amounts.
The Azim Premji Universitys State of Working India 2026 report shows that professional degrees can cost lakhs of rupees every year. According to the report, medical education costs an average of Rs 97,400 annually, while engineering education costs around Rs 1.23 lakh per year. These numbers are based on data from 2017-18. It means that the present cost is likely higher.
Many families see higher education as an investment in their childrens future. Parents believe that a professional degree will improve employment chances and provide financial stability.
However, the job market has created a different challenge.
Expensive education, uncertain jobs
The World Banks Education Finance 2024 report found that Indian families spend more on their childrens education compared with many other countries in South Asia. Indian households spend around 2.8% of GDP on education, while in the United Kingdom, household spending on education is around 1.5% of GDP.
One reason for this difference is that countries with stronger public education systems carry a larger share of education costs, while Indian families pay from their own pockets for quality education.
Despite this spending, a degree does not guarantee employment.
The India Skills Report 2026 shows that Indias overall employability rate stands at 56.35%, improving from 54.81% in 2025. This means that out of every 100 students entering the workforce after education, around 56 are considered employable, while many others struggle to find suitable jobs.
MBA graduates have the highest employability rate, with more than 72% finding opportunities. However, this number has also declined from over 78% in 2025. Around 70% of B.E. and B.Tech graduates are considered employable, while the rate for students from polytechnic and ITI backgrounds is below 50%.
Graduate unemployment is a major challenge
Indian parents continue to place strong faith in education. The HSBC report tiled The Value of Education: Higher and higher found that 87% of Indian parents believe good education can secure a better future for their children, while 85% expect education to help them get good jobs.
These expectations are higher than in many developed countries. In France, only 42% of parents believe education will ensure a better future, while 36% expect it to lead to good employment opportunities.
But employment data tells a difficult story.
According to the Azim Premji Universitys State of Working India 2026 report, unemployment is highest among young graduates. Around 40% of graduates aged 15 to 25 years are unemployed, while the unemployment rate among graduates aged 25 to 29 years is around 20%.
The report estimates that by 2023, India had around 6.3 crore graduates between the ages of 20 and 29, of whom nearly 1.1 crore were unemployed.
The report also found that while around 49% of graduates find some form of employment within a year, only 6.7% get permanent salaried jobs and just 3.7% secure white-collar positions.
Government data presents a similar picture. The Periodic Labour Force Survey (PLFS) 2025 showed that unemployment among people with graduation or higher education is above 20%.
Experts cite two main reasons behind the high unemployment rate among educated youth. Many graduates wait for better opportunities or spend years preparing for competitive exams. At the same time, educated young people are more likely to enter the job market and actively search for employment, which makes unemployment among them more visible.
The challenge before Indias education system is now much bigger than increasing enrolment or producing more degrees. The need is to build an education system where learning translates into skills, opportunities and sustainable employment for millions of young Indians.