Kota, Rajasthan, a city renowned as the nerve center of India’s entrance exam preparation industry, is facing a profound crisis. Just two years ago, Shanu Ali, an auto-rickshaw driver, earned a substantial income ferrying students and securing hostel placements. Today, his earnings have plummeted drastically, reflecting the city’s dwindling student population. The decline in student numbers is attributed to several factors, primarily the expansion of coaching centers across India and the negative perception of Kota as a ‘suicide and party’ hub.
Coaching institutes like Allen Career Institute, Unacademy, and Physics Wallah have established numerous centers in various cities, bringing education closer to students’ homes. This has significantly reduced the need for students to relocate to Kota, impacting the city’s economy. The convenience of learning closer to home, along with the financial burden associated with relocation, has lured students away from Kota.
Furthermore, Kota has been plagued by a growing number of student suicides, tarnishing its reputation. The city has become synonymous with intense pressure and unhealthy competition, leading many parents to reconsider sending their children to Kota for exam preparation.
The consequences of this decline are far-reaching, impacting not only students but also local businesses, hostel owners, and teachers. Vacant classrooms, loan defaults, a property price crash, and unemployed taxi/auto-rickshaw drivers are now commonplace in Kota.
The decline in student numbers has forced coaching institutes to adapt their strategies. Unacademy, which had poached teachers from Kota with lucrative salaries in 2022, has now slashed salaries and implemented layoffs due to the reduced student intake. Physics Wallah, on the other hand, has maintained its faculty salaries despite a projected decline in admissions.
Allen Career Institute, once a major player in the coaching industry, has faced significant challenges, including a reduction in teacher salaries and a decline in staff numbers. The institute, which was once known for its high salaries and poaching wars, is now struggling to retain its workforce.
The impact of Kota’s decline extends beyond the coaching industry, affecting various sectors. Hostels, once at full capacity, are now grappling with low occupancy rates, forcing them to lower prices and renegotiate leases. Local businesses, such as grocery and stationery stores, are also suffering from reduced customer traffic.
Despite the gloomy outlook, some believe that Kota will eventually rebound. Sameer Bansal of Bansal Classes, a prominent coaching institute, is optimistic about the city’s future, suggesting that Kota is undergoing a course correction. However, the road to recovery is expected to be long and arduous.
The once bustling city of Kota now faces a period of uncertainty. The decline in student numbers has had a profound impact on the city’s economy, livelihood of its residents, and the future of the coaching industry. Whether Kota can regain its former glory remains to be seen, but the challenges ahead are immense.
