The growth in the private school sector is driven by a significant push factor - the poor quality of the public education system. As a case in point, the private education sector in the state of Madhya Pradesh is significant and growing. A school survey indicated that private schools are generally urban and cater to middle to upper middle income students. Private schools were also found to offer students a choice in the curriculum and examinations, emphasized English medium instruction and computer literacy. Private schools were generally owned by societies or trusts and typically financed through equity and the reinvestment of profits, with further and faster expansion being constrained by lack of access to capital.
Schools typically charge a range of other fees in addition to admission and development fees.
A similar survey of universities, colleges and private training organizations indicated that higher educational institutions typically cater to a range of students from poor to rich, although the principal clientele appears to be the middle classes. All emphasize the provision of management and IT training and face a growing demand for these subjects. In order to attract good teachers, private higher institutions pay teachers higher salaries than those required by law. Private higher education institutions in Madhya Pradesh are typically financed by private investment, rely on fees as the primary source of revenue and offer students a range of financial support. The legal and regulatory framework for private education in India is fragmented and complex.