Trying to understand what it realistically costs to raise a child in India today? Read on…

When parents begin thinking about raising a child, they usually focus on near-term expenses such as delivery costs or early childcare. What often gets overlooked is the cumulative cost over the entire childhood period. Most parents realise the real scale of expenses only when multiple bills start arriving at once.

Two recent analyses in major Indian publications, the Economic Times and India Today, have brought attention to this topic. According to these reports, the cost of raising a child in urban India can run into the range of about ₹40 lakh to ₹45 lakh by the time they reach adulthood, depending on lifestyle, city of residence, schooling choices, and healthcare needs. These estimates include not only education but everyday living costs, healthcare, activities, and higher education. While these figures are not universal, they provide a reality check and help frame discussions about long-term planning.

The phrase ‘cost of raising a child in India’ refers to the sum of recurring expenses that accumulate over time. It includes daily living costs, education at different stages, healthcare needs, lifestyle and extracurricular activities, and unexpected expenses that are difficult to predict.

Many parents ask, “How much does it really cost to raise a child in India?” and “Is there an average cost that can guide planning?” The honest answer is that despite the studies, there is no one fixed number for every family. Costs vary based on city, schooling choices, family lifestyle, and personal priorities. However, having a realistic range based on observed patterns helps parents plan better and avoid financial surprises.

Relying on rough guesses or outdated figures can be risky. Education fees continue to rise, healthcare expenses are increasing faster than general inflation, and today’s lifestyle expectations differ significantly from a decade ago. Parents who understand the long-term cost picture early can plan steadily and adjust over time.

In this article, we break down the cost of raising a child in India in clear, practical terms, highlighting what major categories of spending entail and how parents can approach planning in a structured way.

So, How Much Does It Really Cost to Raise a Child in India?

To discuss the cost of raising a child in India in practical terms, it helps to first understand what these expenses actually include.

At a basic level, costs fall into several recurring categories:

• Food and nutrition: Day-to-day meals, snacks, and changing dietary needs as the child grows.

• Clothing and essentials: Regular clothing, footwear, school bags, and periodic replacements.

• Healthcare: Routine doctor visits, vaccinations, medicines, and occasional medical check-ups or treatments.

• Education: School fees, books, uniforms, transport, school-linked activities, and, at later stages, coaching and supplementary learning.

• Transport and activities: Daily commuting, extracurricular classes, hobby courses, sports, and other organised activities.

These are not one-time expenses. They recur every year and typically increase as the child grows. While each category may seem manageable in isolation, the combined cost over 18 to 20 years can be substantial.

There is no single fixed number for child-raising costs because they vary widely based on context and choices. For example, education costs differ significantly depending on the school board and system chosen. International boards such as IB or Cambridge tend to be far more expensive than CBSE, ICSE, or regional state boards. Even within the same city, the difference in annual school fees between these systems can be substantial. Location also matters. Schooling and related expenses in metro cities like Mumbai or Delhi are generally higher than in non-metro cities. Family priorities, such as the extent of extracurricular activities or travel, further influence overall costs.

When publications like Economic Times and India Today estimate figures such as ₹45 lakh, they typically assume urban living, private schooling, and a moderate lifestyle through childhood and adolescence. These figures are best viewed as reference ranges rather than guaranteed outcomes.

The key is to treat any “average cost” as a planning benchmark, not a fixed target. It offers perspective on scale, while recognising that individual family choices ultimately shape actual spending.

Where Does the Money Go as Your Child Grows? (Age-wise Breakdown)

Birth to 2 Years – Early Medical and Care Costs

In the first two years of a child’s life, medical and care-related expenses form the largest share of spending. Regular paediatric consultations, vaccinations, medicines, and nutrition supplements are unavoidable and often recurring. These costs tend to be front-loaded, especially in the first year, when doctor visits are more frequent and immunisation schedules are dense.

Daily care essentials such as diapers, baby food, feeding accessories, skincare products, and clothing add to monthly expenses. Babies also outgrow clothing and basic equipment quickly, leading to frequent replacements. For working parents, daycare or caregiver costs can significantly increase overall spending during this phase. Even families relying on extended family support often incur additional care-related expenses.

While formal education costs are minimal at this stage, the combination of healthcare, nutrition, and caregiving expenses is often underestimated because these costs feel fragmented rather than planned.

Ages 3 to 5 – Preschool and Day-to-Day Spending

Between the ages of three and five, preschool or daycare becomes a regular line item in the household budget. Fees vary widely depending on the city, school system, and hours of care required. In metro cities, preschool costs can form a substantial monthly expense, particularly for private institutions.

Beyond schooling, routine spending continues to rise. Children require frequent clothing replacements, higher food intake, and basic learning materials. Transport costs increase if the preschool is not within walking distance. Many parents also introduce early activity classes such as dance, sports, or language learning, which add to annual expenses.

Although these costs may appear manageable individually, they begin to establish a pattern of recurring education-related spending.

Ages 6 to 10 – Schooling Becomes a Major Expense

Once formal schooling begins, education becomes a central cost driver. School fees, books, uniforms, transport, and annual charges add up consistently each year. Even schools with relatively modest fee structures involve recurring expenses that increase periodically.

Extracurricular activities become more structured during this phase. Music lessons, sports coaching, art classes, and academic enrichment programmes are common. While each activity may seem affordable, the cumulative cost over several years becomes significant.

Ages 11 to 18 – Education, Coaching, and Lifestyle Costs

From age 11 onwards, education-related expenses rise sharply. School fees increase, and many families invest in coaching or supplementary learning to support competitive exams. Technology costs become more prominent, including laptops, tablets, smartphones, and online learning subscriptions.

Lifestyle expectations also evolve. Travel for competitions, school trips, and personal interests adds to spending. This phase often represents the most financially demanding period of child-rearing, requiring careful planning and prioritisation.

What Is the Average Cost of Raising a Child in India?

Estimating the average cost of raising a child in India depends on household income, city of residence, and lifestyle choices. There is no single number that applies to every family, but broad ranges help parents understand the scale of expenses and plan realistically.

For lower-income households, spending is usually focused on essentials. Education often involves government schools or low-fee private institutions, where annual school-related expenses in the early years may range from ₹20,000 to ₹60,000 and rise gradually over time. Healthcare costs are typically managed through public facilities or basic private care. Over an 18 to 20 year period, the total cost of raising a child in this segment is commonly estimated in the range of ₹10 lakh to ₹15 lakh. While expenses are relatively controlled, even small increases in education fees or medical costs can place pressure on household budgets.

In middle-income households, which represent a large share of Indian families, education becomes the most significant long-term cost driver. Private schooling, particularly in metro and Tier-1 cities, can cost between ₹1 lakh and ₹3 lakh per year during school years, with fees increasing in higher classes. Coaching, extracurricular activities, transport, and technology-related expenses add steadily over time. Healthcare spending is also higher as families rely more on private hospitals and diagnostics. Recent reporting by The Economic Times and India Today suggests that for urban, middle-income families, the total cost of raising a child through adulthood can reach approximately ₹40 lakh to ₹45 lakh, assuming private schooling and a moderate lifestyle.

For upper-middle-income households, spending tends to be higher across categories. Education may involve premium private schools, international boards, or specialised coaching, where annual school-related expenses can exceed ₹4 lakh to ₹6 lakh. Higher spending on technology, travel, healthcare, and overseas exposure further increases overall costs. In such cases, the total cost of raising a child can exceed ₹50 lakh over time, particularly if higher education includes private or international institutions.

Across all income groups, education remains the single largest and most consistent cost driver over the long term. It is also the expense category with the least flexibility once choices are made.

These figures should be viewed as indicative ranges, not fixed outcomes. They are informed by media reporting, including recent coverage by The Economic Times and India Today, along with observed trends in education fees, healthcare costs, and household spending patterns. Actual expenses vary widely based on location, schooling choices, and family priorities. The purpose of these ranges is to provide context and scale, helping parents plan with clarity rather than rely on rough estimates.

How Much Do Parents Spend Per Year on a Child?

Annual expenses increase as a child grows. In early childhood, yearly spending is moderate and focused on healthcare and daily needs. In primary school years, education costs begin to dominate. In teenage years, yearly spending rises further because of higher school fees, coaching, transport, technology, and extracurricular engagement.

Parents in metro cities generally spend more annually than those in Tier-2 or Tier-3 cities, particularly on education and activities. Over time, inflation adds to this increase.

Even modest annual increases, when accumulated over 18 years, result in a significant total.

Expenses Most Parents Don’t Think About Until Later

There are several expenses that often go unplanned:

• Medical emergencies: Unexpected treatments or specialised care can strain a planned budget.

• Coaching and exam preparation: Fees for competitive exam prep can arrive suddenly and add significant costs.

• Gadgets and technology: Smartphones, laptops, tablets, and software for learning become necessary at various stages.

• School-related add-ons: Field trips, events, uniforms, and activity fees may not be budgeted initially.

• Opportunity costs: Career breaks, reduced work hours, or relocations made for a child’s education can affect household income.

These costs catch many parents off guard because they are not part of early planning, yet they are common enough to deserve attention.

Both the Economic Times and India Today reports stress that ignoring these kinds of expenses early can lead to financial pressure later, even in families that start planning with the best intentions.

Why the Cost of Raising a Child Keeps Rising in India

Several factors contribute to rising costs:

• Education fee inflation: Schools and colleges revise fees regularly, often at rates higher than overall inflation.

• Healthcare cost trends: Medical expenses continue to rise faster than general living costs.

• Social and lifestyle pressures: Exposure to broader lifestyle aspirations increases discretionary spending.

• Longer dependency: Children remain financially dependent on parents for longer periods.

These are structural trends, not short-term fluctuations.

How Parents Can Prepare

Awareness is the first step to planning effectively.

Parents can prepare by budgeting realistically, tracking education-related costs early, and avoiding excessive dependence on loans for predictable expenses. Planning does not eliminate costs, but it reduces stress and improves flexibility.

Knowing what costs to expect and how they evolve over time helps parents make informed decisions without unnecessary anxiety.

Final Takeaway for Parents

Raising a child in India involves a sequence of expenses that evolve with age. Education, healthcare, and lifestyle costs will continue to rise over time.

Understanding the cost of raising a child in India early provides clarity. It allows parents to plan calmly, adjust as needed, and make better financial decisions. The goal is not to create fear, but to build a clear, realistic picture that supports steady and confident planning.

References

• https://economictimes.indiatimes.com/news/new-updates/how-much-does-it-cost-to-raise-a-child-in-india-the-expense-is-making-young-indians-rethink-parenthood/articleshow/122127026.cms?from=mdr

• https://www.indiatoday.in/business/personal-finance/story/rs-45-lakh-for-raising-a-child-why-parenting-feels-like-a-luxury-now-2747066-2025-06-27

ARN No.: Comp-January-2026_4524