Based on my observation of booming education industry in India, I propose the following business model framework for any entrepreneur interested in this industry:
Open any kind of school - Kindergarten, Nursery, High school, Engineering, Medical or MBA. Price its fees very high compared to local existing Government and private schools. Since there already exists a pent-up demand for education in India not being fulfilled by existing market, students will definitely join, or middle class parents clamouring for big-life dreams will forcefully send their children to fulfill their own dreams which they couldn't achieve themselves. Teachers are one of the worst paid jobs in India and hardly get any respect from society, hence they'll join the school for money -- leaving Government and low-paying private schools in shambles. It's alright even if your institute does not have proper licenses or approval of AICTE, some under-the-table-cash would do, or the cries of middle class parents to the court would get you a temporary injunction. Remember power's law always, which is -- "Power is the Law".
Now, since the fees is very high, three sets of students will join. One will comprise of sons and daughters of rich Indians who've made their money from black-economy in India by evading taxes and corruption. These kids will hardly care about education and will live a happy-go-f**king life within a closed cluster of each other, while the rest of poor lot looks on at fair-skinned chicas and lusts on hopefully. After finishing their education, these kids get into best jobs on the basis of their excellent communication skills and their high-class networks or contacts. Or, their parents help them open some business that helps them make loads and loads of money based on strong growth of Indian Economy for past 10 years.
The other set will comprise children of middle class Indians. Middle class Indians who've toiled hard all their life and still haven't been able to save enough to let their children get spoiled. They'll take loans to fund their kids' studies and will put enough pressure on them, so that they cram all the subjects properly and get good grades in class. In case of higher education, such as MBA, the kid will take an educational loan himself, will slog hard for two years as he has to land on a good job after 2 years. If male, he risks losing prestige in society and circle of friends, if he lands on a low-paying job. If female, she risks being married to a traditional-caste based match as soon as she graduates; hence she gives her education her best shot so that she's able to escape the confines of her parents and her social relations as long as she can.
The third lot, i.e. the poor continue to live their wretched lives with no access to clean water, hygiene, electricity and sometimes roads. They have the clout of numbers, and hence the kids of richest of their tribe get entry to all the elite institutions through Reservations and continue to rule their tribes.
The manager running Educational Business school need not worry about any of above complexities, as the Indian Economy is anyways on a high, and therefore based on past records of students getting good grades/placments, students keep joining as they have no other better choice.
In the end, it becomes a safe business model... just like a Real Estate boom based business model in all Indian cities. And so, the system drags on.. with more mediocre education being provided, and brilliant students made brilliant by their self-efforts and hard work. Money flows on, Life goes on.