India’s higher education boom is widening access—but not opportunity. The latest findings from the Azim Premji University’s State of Working India 2026 report reveal a stark reality: professional degrees in medicine and engineering are increasingly becoming the preserve of the wealthy.

While more students are entering colleges than ever before, the path to high-value degrees remains sharply unequal. Limited seats in subsidized government institutions and soaring fees in private colleges are creating a financial wall that poorer families struggle to cross.

Rising costs, shrinking access

The report highlights that affordability—not availability—is now the biggest barrier. As far back as 2017–18, the average annual cost of a medical degree stood at ₹97,400, while engineering cost around ₹1,23,000 per year. These averages have since been eclipsed by significantly higher fees in private institutions, where most students end up due to limited public seats.

For low-income households, these costs are prohibitive. When measured against annual per capita expenditure, pursuing degrees in medicine or engineering often exceeds what poorer families can spend in an entire year.

Growth without equity

India’s higher education expansion has brought more students from disadvantaged backgrounds into colleges—but not into the same classrooms.

The share of students from the bottom two income groups rose from 22% in 2007 to 32% in 2017–18, signaling improved access. Yet, this progress masks a deeper divide. Wealthier students continue to dominate professional courses that offer stronger job prospects and income security.

In contrast, students from poorer families are more likely to enrol in commerce and humanities streams—courses that are less expensive but often yield lower economic returns.

The hidden price of ambition

The cost of professional education extends far beyond tuition. Coaching classes, entrance exams, travel, and accommodation add a substantial financial burden. For competitive exams alone, coaching expenses can run into tens of thousands of rupees annually.

These cumulative costs make entry into elite courses nearly impossible for many, reinforcing structural inequality.

A double disadvantage

The report underscores a compounding challenge for low-income students. First, they face barriers in accessing higher education itself. Second, even when they do make it to college, financial constraints push them away from high-cost professional degrees.

This double disadvantage limits their access to careers that offer stability and upward mobility, effectively locking in economic inequality across generations.

Unequal outcomes, unequal futures

By 2017–18, around 41% of graduate students still came from the richest households, even as their dominance slightly declined. Meanwhile, the share of students from the poorest quartile rose from 8% to 15%—a notable gain, but far from parity.

The imbalance is particularly troubling because professional degrees are closely tied to better-paying, stable jobs. When access to these pathways is dictated by income, the promise of education as an equalizer begins to erode.

Policy gap widens

The findings make one point clear: expansion alone cannot ensure equity. Without robust interventions—such as scholarships, fee regulation, and targeted financial aid—professional education risks becoming an exclusive domain of the affluent.

As India looks to harness its demographic dividend, the question is no longer about how many enter higher education—but who gets to pursue the degrees that shape the future.