The Cost of Raising a Child in India

In this article, we explore the average cost of childcare, financial aspects, and the biggest expenses associated with raising a child in India.

What do you think is the cost of raising a child in India? Let us take you through it.

Bringing a child into the world is a joyous and transformative experience, but it also comes with significant financial responsibilities. As parents, we often wonder about the budget required to raise a child in India and how much it costs to provide them with a comfortable life. In this article, we explore the average cost of childcare, financial aspects, and the biggest expenses associated with cost of raising a child in India.

1. What is the budget for a baby in India?

The budget for raising a baby in India depends on various factors, including location, lifestyle, and individual choices. According to a recent study by The Logic Stick, the estimated cost of raising a child from birth to 18 years ranges from Rs. 30 lakhs to Rs. 1.2 crores, depending on urban or rural settings. This wide range reflects the diverse economic circumstances across the country.

2. What is the average cost of childcare in India?

Childcare costs in India can be a significant financial burden for parents. The expenses may vary based on factors such as daycare facilities, preschool fees, and after-school activities. On average, the cost of childcare for one child can range from Rs. 15,000 to Rs. 30,000 per month in metropolitan areas, while it may be relatively lower in smaller towns and rural areas.

3. How much does it cost to raise a child financially?

The financial obligations of raising a child go beyond just childcare expenses. It includes education, healthcare, clothing, food, and extracurricular activities. These expenses can increase with inflation and evolving lifestyle choices. The Logic Stick’s research indicates that education alone can account for 40-50% of the total cost of raising a child in India.

4. How much money is required to live a good life in India?

The cost of living a good life in India varies depending on the city, family size, and individual preferences. To ensure a decent standard of living for a family of four, an income of around Rs. 50,000 to Rs. 1,00,000 per month may be necessary, depending on the location. For families with children, this amount could be on the higher side, considering the additional financial requirements.

5. What is the biggest expense for babies?

Education emerges as the most substantial expense for parents raising a child. From pre-school to higher education, the cost of education has been consistently rising over the years. Quality education is often a top priority for Indian parents, leading them to allocate a significant portion of their income towards it.

6. What is the biggest expense of having a baby?

Apart from education, healthcare is another significant expense associated with having a baby. From prenatal care to vaccinations, medical expenses can be substantial during the early years of a child’s life. Health insurance coverage for the child and family becomes crucial to mitigate unexpected medical costs.

You can buy a high-end Mercedes or raise a child. That might sound cruel because raising a child is way more transformational, challenging, and rewarding than purchasing a luxury car. However, to reap those emotional returns you are required to build a financial plan that furnishes expenses from the time your child is conceived until he/she is on her own. It is always promising to have overall numbers in mind and then break them down into your monthly saving targets. That is what this blog is all about. Read on to get an estimate of how much money does it take to raise a child in India.

Insights into the Calculations

In the parental stage of life, special emphasis should be on taking care of the mother. Let us analyze a few key expenses:

  • Medical Expenses –

The average monthly medical expense for a mother to be is Rs. 2000 which comprises drugs, injections, vaccinations. That comes to be around Rs. 14,000 beginning from the date of pregnancy confirmation for up to the eighth month.

  • Doctor’s Visits:

This entails over 2 doctor visits each month, with every visit costing Rs. 1000.

  • Sonographies:

A single sonography costs over Rs. 2000 and it is advised to take a fortnightly scan which amounts to Rs. 20000 approximately for the entire period of the pregnancy.

The Cost of Child Delivery During Birth

Let’s take a look at a few key expenditures in this stage.

In this stage, the hospitalization charge is the major expenditure. This could extensively depend on the type of option being chosen by the parents as well as the doctor. The two options of child delivery are vaginal/normal or C-section delivery.

While normal delivery would cost between Rs. 40000 to Rs. 1 Lakh, a C-section delivery would cost anywhere between Rs. 60,000 to Rs. 1.5 Lacs depending on the type of hospital chosen or the locality you live in.

The Cost of Raising an Infant (0-2 Years)

In the primary years of a child’s life, the child demands extensive care, as newly born are more prone to infections.

Let’s analyze few key expenses.

  • Pediatrician Fees –

The average cost of visiting a pediatrician is estimated at Rs. 475 to Rs. 950 which is considered a recurring expense, once every three months, till the child reaches the age of 2. Therefore, you will be required to make a budget for over 4 such visits during the primary stage, which will bring down the total estimate to Rs. 3800.

  • Vaccination Costs –

The vaccination cost of every month for infants is. 1231, while growth supplements can charge up to Rs. 1105 per month and routine visits to the doctor can amount to Rs. 764 every month, giving rise to the monthly medical expenditure for the infant at Rs. 3000 per month which adds up to Rs. 72,000.

The Cost of Raising a Toddler (2-3 Years)

Let’s analyze a few key expenditures during this stage.

  • Pre-school fees –

It can cost you over Rs. 50,000 depending on the pre-school brand, your city, after-school care, conveyance charges, etc.

  • Vaccination and Medicine for routine Illnesses –

As the child is in the stage of building immunity, you will be required to be prepared for routine flu checkups with the doctor and also encompass periodical vaccinations. This will cost over Rs. 2000 per month or Rs. 24,000 in a year.

  • Special Nutrition Food –

Growing children need special nutrition value which can cost around Rs. 1000 per month or over Rs. 12,000 for the entire year.

The Costs of Raising A Child During Primary School (3 – 8 Years)

  • Education –

The estimated school fees computed based on the schools in metropolitan cities is around Rs. 3,48,775.

  • Uniforms and Textbooks –

The estimated cost computed based on the standard market rates is Rs. 10,000 per year.

  • Extracurricular activities –

Beginning around the age of 7 years, extracurricular activities will cost you over Rs. 3000 a month which will amount to Rs. 72000 for 2 years.

  • Medical Expenses –

Growth supplements amount to Rs. 1000 per month, cough and cold medicines and vaccination cost around Rs. 1000 every month, summing the medical expenditures up to Rs. 1,20,000.

Cost of Higher Education

A decent school may charge an annual fee of Rs. 50,000 to Rs. 2 lakhs. This means, your 12 years of education can cost you around Rs. 11 lakhs to Rs. 43 lakhs assuming annual education inflation of 10%. Moreover, this school education excludes the expenditures incurred on co-curricular activities, tuition fees, etc.

The biggest monetary outflow that parents bear is at this stage. So, what is the estimated cost of popular career courses and options like medical, engineering, etc? If you want your kid to pursue a career in engineering, you may have to spend Rs. 10 lakhs today, and the same can cost you over Rs. 40 lakhs to Rs. 50 lakhs in the coming 15 years. Similarly, for a medical degree, the costs can be over Rs. 25 lakhs today to above 1 crore in the next 15 years.


Raising a child in India is a beautiful journey filled with love and fulfillment. However, it is vital to be aware of the financial aspects and responsibilities that come with parenthood. From the budget for a baby to the average cost of childcare, parents must plan and prepare for the various expenses that arise as the child grows. Being financially prepared ensures a stable and secure future for both the child and the family as a whole.

We assume that the blog helped you get an idea about how much money does it take to raise a child in India. So, with the above outflows, you can comprehend that building a sound financial plan is crucial.

That can assist you to distinguish the different financial expenses at different stages of a child’s life and also assist you in managing them better. Moreover, financial planning can stave off you from being unprepared for your retirement, purchasing adequate insurance, or even formulating an emergency corpus.

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