NSO Data Shows Indian Education Spending Behaves Like a Luxury Good

Data from the National Statistical Office's Modular Survey indicates that education spending in India has an expenditure elasticity of 1.42, classifying it alongside luxury goods.

Across 137.9 million households with school-going children, average annual outlays for schooling, coaching, and hostel fees amount to ₹26,615 per household.

School fees show the highest income sensitivity with an elasticity of 3.34, accounting for 63% of the ₹55,553 spending gap between the richest and poorest tenths of households.