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IIT JEE Coaching Industry

Kota widely known as IIT-JEE preparation hub is likely to expect a downfall in the number of IIT aspirants in the near future, because of this coaching industry is going to suffer a great deal and the analysts are expecting a blow to the extent of 15% in the revenues generated by these students during their stay in the city of Kota.

A lot of aspects have been considered as the reason for this downfall but the most practical and relevant
aspect being looked upon is the new government rule with regards to the IIT-JEE, according to this new rule any student is allowed to appear only two consecutive years.
The reason that this is taken so seriously by the state government is because the coaching industry accounts for a considerable contribution of 250 crores annually.
Most of the institutes are prepared to fight back with this recession in terms of the no of students coming to kota to prepare for IIT. Taking the example of Career Point – the leading coaching institute is in the process of launching an IPO in order to raise funds for their International educational programmes.
The number of students landing up in Kota with the dream of getting into IIT stands at 20,000 and out these only a one-third or 1500 students are able to fulfill their dreams. But due to this new government ruling the number of students coming to Kota is likely to drop considerably.

Looking at the trend of the overall number of student appearing for IIT-JEE each year, the future looks quiet dull for the coaching institutes. Around 3,00,000 students appeared for IIT-JEE in the year 2006 and this number dropped to 2.5 lakh in the year 2007. The coaching institutes are looking to take drastic steps in order to make up for the losses by increasing their fees and also by adding courses like AIEEE and state level engineering entrance exam.

The country’s top most engineering institute, ‘Bansal’ classes have been proactive to deal with this issue and have already included Pre-Medical coaching in their jaipur branch of the institute.
The effect of this new rule has not only been on the coaching institute but also on the side businesses that were thriving due to these coaching institutes like the hostels for the students staying in Kota.