The trade organization CTI has expressed deep concern over the continuously rising fees for professional courses—such as medicine, engineering, and MBA—in the country. They have written a letter to PM Modi regarding this issue.

The trade organization, Chamber of Trade and Industry (CTI), has alerted the central government about the rising cost of higher education in the country. In a letter to Prime Minister Narendra Modi, the organization has demanded a curb on the unchecked fees charged by private educational institutions, the provision of interest-free education loans, and an increase in the number of seats in government colleges. CTI explicitly states that the escalating costs of courses like medicine, engineering, and MBA are placing an unbearable financial burden on common and middle-class families; this not only jeopardizes the future of talented youth but also directly impacts the nation’s economy and employment landscape.

Rising cost of education increases financial pressure on the common and middle class

CTI Chairman Brijesh Goyal stated that fees for medicine, engineering, MBA, and other professional courses have currently reached the range of lakhs of rupees. Consequently, quality education is becoming nothing more than a dream for common and middle-class families. Many parents are compelled to take out massive education loans to secure their children’s future. Families spend years repaying these loan installments, which completely derails their household budgets.

Private college fees reach ₹10–20 lakh range

Based on feedback gathered from the market and parents, the organization claims that the annual fees for engineering, medical, and other professional courses in private colleges have reached between ₹10 lakh and ₹20 lakh. Bearing such a huge expense is completely beyond the means of low-income families, causing them to fall behind in the race for higher education. 

Rising Education Loan Burden Stifles Talent

According to the CTI, the unchecked fee structure forces parents to take out education loans at high interest rates, with repayment periods extending up to 10 years in many cases. The organization states that financial constraints prevent many talented students from enrolling in their preferred professional courses, thereby impacting the nation’s talent pool.

Impact on the MSME Sector and the Market

The adverse effects of expensive education extend beyond family finances to the broader economy. Due to the lack of accessible and affordable skill training, the Micro, Small, and Medium Enterprises (MSME) sector is struggling to find skilled manpower. Meanwhile, as a significant portion of household income is consumed by education costs, there is a decline in market purchasing and consumer demand.

Education as a Business: A Hurdle to the ‘Viksit Bharat’ (Developed India) Goal

Expressing concern, Brijesh Goyal noted that while education is a nation’s greatest asset, it has currently morphed into a commercial enterprise. It has become extremely difficult for the average person or an MSME entrepreneur to afford a medical or engineering education for their child. He warned the government that failing to reform this system in time would make achieving the national goal of a ‘Developed India’ by 2047 extremely challenging.

CTI’s Four Key Demands to the Government

Given the gravity of the situation, the CTI has written to the government, urging immediate action on four concrete measures:

Independent Fee Regulation Authority: A demand has been made to establish an independent fee regulation authority to curb the arbitrary fee practices of private universities and professional colleges. The organization advocates capping the annual fee hike at a maximum of 5 percent.

Interest-Free Education Loans: Education loans of up to ₹10 lakh should be made interest-free, with repayment commencing only after the student secures employment.

Expansion of government institutions: The number of government medical, engineering, and skill development colleges in the country should be increased to ensure students have access to quality education at affordable rates.

Establishment of an MSME Skill Fund: A subsidy-based fund should be created by the Central Government to provide subsidies for technical and skill-based courses for MSME employees and their children.