The Dark Side of India's Coaching Industry: Are We Failing Our Students
- BerryBeat Team
- Jun 26
- 4 min read
In 1983, Vinod Kumar Bansal started teaching eight children at his dining table in Kota. Today, that small classroom has grown into a ₹58,000 crore industry enrolling over 7.1 crore students across India. This coaching economy India unregulated has expanded rapidly, projected to cross ₹1.5 lakh crore by 2030. Yet, despite its size and influence, the Kota coaching industry regulation remains minimal. This lack of oversight has serious consequences for the students and families who invest heavily in these institutes, chasing dreams of IIT and AIIMS seats.
The Scale and Stakes of the Coaching Industry
Kota alone attracts over 1.5 lakh students every year, mostly teenagers from states like Uttar Pradesh, Bihar, and Madhya Pradesh. These students often come from families that take on significant debt to afford coaching fees, which can reach ₹2 lakh for a two-year program. The stakes are high because the acceptance rate for top engineering and medical colleges is extremely low:
JEE acceptance rate for premier institutions is roughly 1 percent.
Effective success rate for elite medical colleges among Kota students is only 2 to 3 percent.
Despite these odds, no coaching centre is legally required to disclose their success rates or failure statistics to the families paying large sums. This opacity is a key feature of the coaching economy India unregulated, where fear is the product and aspiration the packaging.
The Business Model Behind the Silence
The coaching industry thrives on a model that highlights the top 5 percent of students who receive full scholarships. These toppers become the face of every billboard, advertisement, and topper list. Their success stories fuel the marketing machine and attract thousands of paying students.
Meanwhile, the remaining 95 percent of students pay full fees, effectively financing the scholarships and promotional campaigns. This creates a cycle where the majority fund the minority’s success stories, while the pressure mounts on all students to perform.
The industry’s silence on failure rates and mental health challenges keeps families in the dark. This lack of transparency is a major concern for parents and education policy researchers who seek to understand the true impact of this coaching culture.
Mental Health Crisis in Coaching Hubs
The intense pressure to succeed in JEE and NEET exams has led to a worrying rise in mental health issues among students. The JEE NEET coaching mental health crisis is evident in the increasing number of student suicides reported in coaching hubs like Kota.
Between 2023 and 2025, Kota recorded 28, 17, and at least 7 student suicides annually. These tragic numbers reflect the extreme stress and anxiety faced by young aspirants. In 2024, three students drowned in a flooded basement of an institute operating without a fire NOC, highlighting the unsafe conditions in some coaching centres.
The Rajasthan coaching bill 2025 aims to address some of these issues by introducing regulations to improve safety and transparency. However, critics argue that enforcement remains weak and the bill does not go far enough to protect students’ mental health.
Lack of Regulation and Its Consequences
Despite generating ₹5,500 crore in GST revenue in 2023-24, more than double the amount collected in 2019-20, the government has barely regulated the coaching industry. The absence of strict rules means:
No mandatory disclosure of success rates or student outcomes.
Unsafe infrastructure and lack of emergency preparedness.
No formal mental health support or counseling services.
Exploitative fee structures without accountability.
This regulatory gap leaves students vulnerable to exploitation and neglect. Parents often rely on marketing claims and anecdotal success stories, unaware of the real risks their children face.
What Needs to Change
To protect students and families, the following steps are crucial:
Transparent Reporting: Coaching centres should be required to publish accurate success and failure rates, helping families make informed decisions.
Safety Standards: Institutes must comply with fire safety and building regulations, with regular inspections.
Mental Health Support: Counseling services and stress management programs should be mandatory.
Fee Regulation: Clear guidelines on fee structures and refund policies to prevent financial exploitation.
Enforcement of Rajasthan Coaching Bill 2025: Strong implementation and monitoring to ensure compliance.
Parents and students must also be encouraged to seek balanced preparation strategies that prioritize well-being alongside academic success.
The Road Ahead for India’s Coaching Industry
India’s coaching industry has become a powerful force shaping the futures of millions of students. Yet, without proper regulation, it risks harming the very children it aims to help. The Kota coaching industry regulation and Rajasthan coaching bill 2025 represent steps toward accountability, but much more is needed.
Families, educators, and policymakers must work together to create an environment where aspiration does not come at the cost of mental health and safety. The coaching economy India unregulated cannot continue to thrive on fear and silence. Protecting students means demanding transparency, safety, and support.
