India is urbanising faster than its childcare system

India's urban population is growing fast. More than 35% now live in urban areas and 41.2 million children under six call these cities home. But the childcare system has not kept pace.

India’s government-run no-fee childcare platform - the Anganwadi - was conceptualised primarily as a rural intervention in 1975. Today, less than 10% of Anganwadi centres are located in urban areas. Private childcare typically costs f ₹4,000 a month - roughly seven to eight times what low-income families say they can afford. The result is that the urban women's workforce participation stands at just 28%, compared with 48% in rural areas.

A new report from UNDP India and Genesis identifies three barriers holding back access: trust, affordability and service delivery.

Parents want centre-based childcare: 69% of parents not currently using childcare services say they would opt-in if their quality and safety concerns were addressed. Despite the affordability constraints, reported concerns around safety and quality outweigh cost. Parents are clear that they value centre-based childcare not only for the time it frees up to work, but also for the developmental benefits it provides their children.

The affordability gap is wide and structural: Quality care costs multiple times what families can pay. User fees cover at most 10-15% of operating costs, meaning sustained external co-financing from the government and private sector is essential.  

Affordable space is hard to find: 39% of providers had to turn children away in the past year. The median centre has space for three more. Providers struggle to offer the care families expect close to home.

The report maps clear solutions. These include creating a tiered, accessible quality framework for non-government providers, unlocking under-utilised public buildings, and mobilising private CSR funding through innovative partnerships. 

Implementing these recommendations would expand women’s choices , unlock economic opportunity at scale, and ensure children from the most vulnerable communities are able to afford quality childcare in their formative years. 

You can read the full report here