Author: Keertana Deepak | St. Xavier’s College, Mumbai | Email: keertanadeepak@gmail.com

ABSTRACT

This research examines the structural transformation of India’s education sector from 1999 to 2025, focusing on the nexus between privatization, escalating costs, and labor market outcomes. Using a mixed-methods approach, the study finds a significant paradox: while primary private enrollment tripled to 45% and gender parity was achieved in secondary schooling, the qualitative dividend remains constrained. Econometric analysis reveals that while privatization correlates with higher test scores, it imposes severe affordability thresholds that limit advanced attainment for low-income households. Furthermore, a persistent education-employment mismatch results in high unemployment and a 7% wage penalty for overeducated workers, particularly women. The findings suggest that unchecked marketization has transitioned the system from an engine of mobility into a mechanism for reproducing privilege. We advocate for a shift toward outcome-oriented policies, rigorous private sector regulation, and reaching the 6% GDP public spending benchmark to secure India’s demographic dividend.