Pre-school fees rose 120 percent in last five years

NEW DELHI - Branded pre-schools across the country increased their fees 120 percent between 2005 and 2010, a survey has found.

The average fees for the kindergarten segment have gone up from Rs.1,500 to over 3,500 per month, the survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) showed.

The survey also found an increase of 150 percent in security deposit which is paid at the time of admission which it says has gone up from Rs.10,000 in 2005 to over Rs.25,000 at the beginning of academic session in 2010.

According to the study, close to 70 percent from over 6,000 parents who were surveyed demanded a regulation from district education departments to stop the soaring fee structure.

The survey also showed that branded pre-schools were concentrated in the metro cities and that parents with high disposable income, nuclear families and population growth were the reasons for this phenomenon.

It said that the pre-school industry in India is worth over Rs.4,000 crore and is expected to grow up to Rs.8,000 crore by 2013. The industry is dominated by the unorganised sector, including small neighbourhood schools which accounts for over 75 percent of the market.