India's Education Spending Rises But Still Trails Key BRICS Nations

India’s public spending on education has increased significantly over the years but continues to remain below the levels recorded by some other BRICS nations, according to the BRICS Joint Statistical Publication 2026 released last month. India’s public expenditure on education rose from 1.2% of GDP in 2016 to 4.1% in 2023. The figure was lower than South Africa’s 10.5% and Brazil’s 4.9%, while India’s spending was marginally higher than China’s 4.02%, Russia’s 3.5%, the UAE’s 3.8% and Indonesia’s 1.3%. The comparison, however, needs to be viewed alongside differences in the size of national economies and demographic structures.

The report also highlighted a rise in the share of household expenditure devoted to education in India. In urban areas, education accounted for 4.3% of household expenditure in 2000, increasing to 6% in 2025, a rise of 1.7 percentage points. In rural India, the share increased from 1.9% in 2000 to 3.2% in 2025, representing a rise of 1.3 percentage points. The figures indicate that education has become a larger component of household spending over the period. For comparison, education accounted for 3.7% of urban household expenditure and 2.1% of rural expenditure in Indonesia in 2025.

The report showed an even higher share for China when a broader category was considered. In 2025, “Education, cultural and recreation” accounted for 12% of urban household consumption and 11.5% of rural household consumption in China. The comparison is not directly equivalent because the Chinese figures cover a broader category than education alone. The BRICS publication also noted differences in demographic structures between countries. China has a considerably older population, with a median age of about 41 years compared with 29 years for India, according to United Nations World Population data, a factor that can influence the composition of public and household spending.

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Despite increased investment in education, India continues to face challenges in translating educational and training outcomes into employment in higher-productivity sectors. The BRICS Education Ministers’ Declaration adopted at the 13th BRICS Education Ministers’ Meeting in Bhubaneswar on August 7, 2026, highlighted the need for greater alignment between training programmes and changing market requirements. It also called for stronger links between Technical and Vocational Education and Training institutions and industries. The emphasis reflects concerns over the ability of education and skills systems to respond effectively to the requirements of evolving labour markets.

India’s employment structure also illustrates the challenge. In 2025, about 43% of the country’s employed population was engaged in the primary industry, which includes agriculture and allied activities. This was substantially higher than the corresponding shares reported for Indonesia at 29.3%, China at 22.2%, South Africa at 8% and Russia at 5.3%. India’s primary-sector employment share has declined only 1.6 percentage points from 44.6% in 2018. During 2025, industry accounted for 25.1% of employment in India, while services accounted for 31.9%, according to the BRICS publication.

The figures underline the broader challenge facing India as it seeks to convert higher educational investment into stronger economic opportunities. While public expenditure has increased and households are allocating a larger share of their spending to education, a substantial proportion of the workforce remains concentrated in the primary sector. Improving the connection between education, vocational training and industry could therefore become increasingly important for shifting workers towards higher-productivity activities. The BRICS data presents India’s progress in education spending alongside the continuing need to improve the effectiveness of investment and ensure that education and training are better aligned with employment opportunities.

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