₹1.5 lakh for LKG? CA says middle-class parents are trapped and FDs won’t save them now
India’s education inflation is currently estimated at 8–12% annually, outpacing the national average inflation rate.
- Jul 18, 2025,
- Updated Jul 18, 2025 7:50 AM IST
India’s education system is pricing out its future, warns startup founder and chartered accountant Deepak Bhati, who calls out the skyrocketing costs of schooling — where even kindergarten comes with a corporate-sized bill.
In a sharply worded LinkedIn post, Bhati lays bare the reality many Indian parents face: ₹25,000 for bus fees, ₹7,000 for books, and ₹1.5 lakh in annual tuition — just to enroll a child in LKG. “This is not a B-school,” he writes. “It’s your child’s first step into the Indian education business.”
According to Bhati, education in India has shifted from a constitutional right to a subscription model, with families trapped in a system where school fees rise 10–30% every year. Citing recent data, he notes that 36% of parents have seen school costs jump by 50–80% over three years, while 8% have experienced hikes exceeding 80%.
Despite these figures, Bhati says most families remain financially unprepared. “No education fund. No SIPs,” he warns. With tuition for elite colleges in 2040 projected between ₹50 lakh to ₹1 crore, he urges parents to start planning now — because traditional savings options like fixed deposits won’t keep up with education inflation.
India’s education inflation is currently estimated at 8–12% annually, outpacing the national average inflation rate. The result: mounting pressure on middle-class and lower-income families, many of whom are forced to take loans, cut back essentials, or pull children out of private education altogether.
Beyond tuition, Bhati points to hidden costs — uniforms, transport, development fees — that pile up quickly. And with rising financial strain comes emotional stress. Parents worry about fee hikes and fear penalties for late payments, while children absorb that anxiety at home.
Bhati’s post ends with a blunt reality check: “Your regular FD won’t out-invest education inflation.”
India’s education system is pricing out its future, warns startup founder and chartered accountant Deepak Bhati, who calls out the skyrocketing costs of schooling — where even kindergarten comes with a corporate-sized bill.
In a sharply worded LinkedIn post, Bhati lays bare the reality many Indian parents face: ₹25,000 for bus fees, ₹7,000 for books, and ₹1.5 lakh in annual tuition — just to enroll a child in LKG. “This is not a B-school,” he writes. “It’s your child’s first step into the Indian education business.”
According to Bhati, education in India has shifted from a constitutional right to a subscription model, with families trapped in a system where school fees rise 10–30% every year. Citing recent data, he notes that 36% of parents have seen school costs jump by 50–80% over three years, while 8% have experienced hikes exceeding 80%.
Despite these figures, Bhati says most families remain financially unprepared. “No education fund. No SIPs,” he warns. With tuition for elite colleges in 2040 projected between ₹50 lakh to ₹1 crore, he urges parents to start planning now — because traditional savings options like fixed deposits won’t keep up with education inflation.
India’s education inflation is currently estimated at 8–12% annually, outpacing the national average inflation rate. The result: mounting pressure on middle-class and lower-income families, many of whom are forced to take loans, cut back essentials, or pull children out of private education altogether.
Beyond tuition, Bhati points to hidden costs — uniforms, transport, development fees — that pile up quickly. And with rising financial strain comes emotional stress. Parents worry about fee hikes and fear penalties for late payments, while children absorb that anxiety at home.
Bhati’s post ends with a blunt reality check: “Your regular FD won’t out-invest education inflation.”