Inside India’s Rs 1 Lakh Crore Private Coaching Market: The Explosive Rise And Mounting Backlash

Inside India’s Rs 1 Lakh Crore Private Coaching Market: The Explosive Rise And Mounting Backlash



More than 22.79 lakh students will appear for the NEET-UG 2026 re-examination on June 21, weeks after the original test was cancelled following one of the biggest exam controversies in recent years.

What started as a paper leak investigation has now triggered a wider debate about India’s booming coaching industry, rising education costs and the pressure faced by students preparing for competitive exams.

Coaching Industry Under Spotlight

The scandal has put India’s coaching industry under intense scrutiny. Currently valued at more than Rs 58,000 crore and expected to cross Rs 1 lakh crore in the coming years, the sector serves over seven crore students across the country.

The sector’s growth has continued despite an 18% GST. Government data shows GST collections from coaching services jumped from Rs 2,240 crore in 2019-20 to Rs 5,517 crore in 2023-24, a rise of 146% in just four years.

Cities such as Kota, Hyderabad, Delhi and Pune have become major coaching hubs, while online learning platforms have expanded the industry’s reach. Families often spend between Rs 80,000 and Rs 2 lakh annually on coaching classes, study material and test series.

Critics argue that success in competitive exams increasingly depends on access to expensive coaching rather than merit alone. The cancellation of NEET-UG 2026 further intensified student frustration. Media reports claimed that at least three students died by suicide following the uncertainty created by the controversy.

How NEET Controversy Unfolded?

The controversy began after the May 3 NEET-UG exam, when investigators found that a question bank allegedly circulated through coaching networks closely matched the actual paper. Reports suggested that between 120 and 140 questions, particularly in Biology and Chemistry, overlapped with the final examination.

ALSO READ: NEET Re-Exam: GPS Tracking To Police Escorts — NTA Details High-Security Plan For Sunday

The allegations first emerged from Rajasthan’s coaching hub of Sikar before expanding into a multi-state investigation. On May 12, the National Testing Agency (NTA) cancelled the exam and later announced a re-test for June 21.

The case is now being investigated by the CBI, which has arrested several people, including coaching institute operators, teachers, doctors and individuals linked to the examination process. Investigators claim leaked questions were shared through special coaching sessions and private networks, with some families allegedly paying between Rs 2 lakh and Rs 10 lakh for access.

Ahead of the re-test, Leader of the Opposition Rahul Gandhi addressed more than 4,000 students in Kota and questioned the financial burden of India’s competitive exam culture. He said many families spend nearly Rs 4 lakh preparing for multiple entrance tests while competing against the “best minds in the country.” Gandhi described the situation as “an insult to every single young person in this country.”

Security Tightened For Re-Test

With the re-test now just hours away, authorities have introduced extensive security measures, including nationwide mock drills, Air Force-assisted paper transportation and restrictions on Telegram, which was temporarily blocked until June 22.

The Delhi High Court later upheld the government’s decision. Paper setters, translators and moderators have been kept at secure locations under supervision, while digital access has been restricted.

ALSO READ: ‘Ensure Necessary Measures Are In Place’: Dharmendra Pradhan Reviews Preparedness For NEET UG Re-Exam

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