Crisis in India’s Coaching Industry: Salary Delays, Center Closures, and Declining Admissions

The turbulence in the coaching industry is no longer limited to UPSC preparation centers. FIITJEE, a leading institution for engineering aspirants, has shuttered eight centers across North India following mass resignations by hundreds of teachers over salary delays and pay cuts. The issues began surfacing last year with minor delays in payments, followed by salary reductions, and have now escalated into widespread discontent. A 30-year-old team leader from Noida, employed at a renowned UPSC coaching institute with branches in Karol Bagh and Mukherjee Nagar, is still awaiting his November salary. “We’re dealing with delays in salary payments, and on top of that, many are seeing a 20 to 25 percent salary cut,” he said, anxiously checking his phone for a salary notification. He received his October salary on December 7 but remains unpaid for November and December.

Delhi’s coaching hubs in Karol Bagh, Mukherjee Nagar, and Rajendra Nagar have struggled to recover from the tragedy in July 2024, when three UPSC aspirants drowned in the basement library of a coaching institute. This incident, combined with government crackdowns, overcrowded classrooms, poor infrastructure, exorbitant fees, and declining teaching quality, has led parents and students to reconsider enrolling in traditional coaching centers.

FIITJEE’s closures in cities such as Meerut, Ghaziabad, Lucknow, Varanasi, Bhopal, Patna, and Delhi’s Laxmi Nagar have left students and parents in turmoil. Many parents have filed complaints with local police, demanding refunds and accountability. While authorities have promised to address these grievances, tensions remain high.

“This issue has persisted for over a year. Last year, we were paid only 4–5 times, often with salary cuts. Some of us are now exploring legal options, while others have moved to different coaching institutes to survive,” said a former teacher at FIITJEE’s Gurgaon center.

The broader coaching industry is also feeling the strain. Top UPSC coaching institutes have reported a significant decline in admissions. “The industry is facing a serious slowdown. Informal discussions indicate a 40 to 50 percent drop in enrolments across nearly all institutions this financial year,” said Vivek Tiwari, CEO of Drishti IAS. The institute relocated to Noida in August 2024 after the Municipal Corporation of Delhi sealed its Karol Bagh center for operating classes in a basement.

“Our priority has been ensuring timely, full salary payments to employees without any cuts,” Tiwari added. Despite such assurances, the future of India’s once-thriving coaching industry appears increasingly uncertain.