What is a preschool?

A preschool is a form of early childcare and educational institution catering to young children. Preschools handle children in the age group of 3 to 5 years and offer to teach your child basic skills that are needed before the child joins the compulsory formal education system.

Preschools in India have recently observed a steady growth in their demand, and the preschool business since then has only expanded.

Research done by Businesswire has suggested that a child care business and preschool in India will undergo a CAGR growth of 9.57% in the upcoming years after the pandemic. Furthermore, the preschool market will also register a $957.86M profit or growth from 2022 through 2026.

Why is the preschool business booming in India?

Participation of women in the labor force

A primary reason for the growth of the preschool business in India is the evergrowing participation of women in the employment sector in the last two decades. Traditionally, Indian societies depended on women for early childcare and education before formal schooling began, but the scenario has changed.

With a rise in female education and empowerment and significantly higher education, women in India are increasingly joining the labor force. In such a situation, early childcare is becoming a concern. Due to a lack of time to look after young children, parents are demanding preschools take up the role of early childhood education and socialization.

Increasing population and favorable government policies

The population in India is growing, and there is an increasing demand for educational services. A report published by the United Nations claims that the number of children under age 5 in India is projected to grow by almost 50 million between 2015 and 2030.

This increase in the population of young children is one of the main drivers of the demand for preschool education in India. Moreover, the government is investing more money in early education and development, which has increased the number of private schools.

Kindergarten readiness is significant.

In an increasingly competitive world, parents focus on giving their children a head start. Preschools groom children to develop social and academic skills at a young age, and these skills are essential from the very beginning. Therefore, parents are willing to pay premium prices for quality preschools.

Indian society has been observing a growing awareness of the importance of early childhood education; coupled with this, there is a growing middle class with disposable income. These significant reasons contribute to the proliferation of the preschool business in India.

Dual income families

Middle-class families are bringing in higher incomes, so there is more disposable income to spend on things like preschool. Today tuition costs of private educational institutions are becoming affordable, and parents understand the value of early education.

The preschool business strives to perform better and serve India’s children with standard childhood care. Attending a top-notch preschool is advantageous in laying a solid foundation of social and academic skills; therefore, the demand for quality early education is rising. Added to this, there’s also the fact that competition for a spot in good preschools is becoming more intense.

Wrapping it up

The preschool business in India has excellent growth potential. With the right policies and investments, preschools can become the world’s leading quality education providers.

With a growing population, more families are moving to urban areas, and therefore, more children require early childhood education. Along with this, the government and private sectors are investing in the preschool business, adding to the boom in India’s preschool business.

Also See: The Benefits of Summer Camp for Kids


Is preschool business profitable in India?

Yes, the preschool business is extremely profitable in India. Due to a number of reasons such as the evergrowing participation of women in the workforce, the increasing population, and favorable government policies, the preschool business is booming in India.

Is pre school business profitable?

Yes, the preschool business is highly profitable. With the right policies and investments, it has the potential to become one of the world’s leading quality education providers.

What makes preschool successful in India?

A number of factors such as the increasing population, favorable government policies, and the growing middle class make the preschool business successful in India. Furthermore, the dual income families and the understanding of the importance of early childhood education add to its success.