International Schools Flourish in India’s Tier-II & Tier-III Cities, Driven by Aspiring Families

A new wave of education is sweeping across India, reaching beyond the bustling metropolises and into the heart of its tier-II and tier-III cities. International schools, known for their rigorous curricula and world-class facilities, are experiencing a surge in popularity, attracting students from aspirational families with growing disposable incomes.

These schools, charging annual tuition fees upwards of 7-9 lakh, are becoming the preferred choice for second and third-generation business owners and professionals who seek the best educational opportunities for their children. They offer specially trained teachers, some recruited from overseas, and infrastructure that rivals their counterparts in major cities. Cities like Coimbatore, Ooty, Kodaikanal, Pune, Amaravati, Bhopal, and Surat have become hubs for these international schools, drawing students from surrounding areas.

“Most of our students come from Coimbatore, and our tuition fees for junior classes are 2-3 lakh,” says Meera Bhalla, Head of School Ruh Continuum K5 Campus in Coimbatore. The K12 school, part of the Shree Saraswathi Vidya Mandira (SSVM) Institutions, incorporates the International Baccalaureate (IB) program into its curriculum.

Shrewsbury International School India, a co-educational boarding school in Bhopal, will welcome its first batch of students in August 2025. This school, offering boarding facilities, charges a hefty 22 lakh per annum.

The appeal of these schools extends beyond the academic offerings. “The ratio of teachers from abroad to those in India is 80:20, and the kind of infrastructure and greenery that smaller cities offer is not there in cities,” says Abhishek Mohan Gupta, founder and president of the Board of Management at Shrewsbury International School India.

The school has just begun its admissions process for classes 6-12.

These international schools are attracting top talent, offering competitive compensation packages that range from 15-40 lakh. Many teachers are lured from metropolitan areas by these lucrative salaries, and further incentives are offered to those whose students excel in competitions.

“International schools have grown at a high CAGR of 40%, especially in tier-II and tier-III cities,” says Narayanan Ramaswamy, partner and head of the education and skill development practice for consulting firm KPMG, India. “The increased disposable income and aspirational value attached to education in these cities have been the key drivers.”

KPMG, a consulting and audit firm, has established educational institutions in major cities and is now expanding into smaller cities, offering courses based on international board curriculum.

Several types of educational boards operate in India, including state boards, the Central Board of Secondary Education (CBSE), and the Indian Certificate of Secondary Education (ICSE), which have traditionally been the most common choices. However, international curriculum-based boards like the International General Certificate of Secondary Education (IGCSE) and the International Baccalaureate (IB) are gaining traction.

“There are a lot of third-generation businessmen emerging in tier-II cities. Many of them have been educated outside India. When they return to take over or establish businesses, one of their main concerns is the type of education they can provide to their children,” says Loluck Baby, senior director of academic excellence for South India at school edtech startup LEAD.

LEAD, a unicorn startup, caters to large school groups, providing assistance with running schools affiliated with state boards, CBSE, and international curricula like the IB.

This boom in international schools comes on the heels of the COVID-19 pandemic, which has left many schools across India in a precarious financial state. Media reports indicate that the education ministry recorded the closure of nearly 20,000 schools in India in 2021-22 due to the pandemic’s impact.

The declining quality and stability of many schools have left parents searching for a better curriculum and infrastructure for their children.

Beyond academics, international schools are also becoming hubs for networking from a young age. “This is also a relatively closed community, where only a certain segment of affluent individuals can access these opportunities. The average fees are around 7 lakh, so only elite kids attend. The school is becoming more than just a place of education—it’s also a networking hub for the kids,” says Baby of LEAD.

The rise of international schools in India’s smaller cities reflects a significant shift in the educational landscape. As these schools continue to expand, they are shaping the future of education, catering to the aspirations of a new generation of learners and families.

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