I am talking along lines of genuine free market competition (subject to anti-trust violation and implementation of good common sense standards set by govt), not oligarch vested interest BS you are quoting here (which is really extension of who you know in the same current ridiculous govt education apparatus) which is the current reality in India largely.
I seriously approached setting up a private technical based school in India with few other interested quarters (and we know no one special in govt etc), there are so many barriers to doing so and such a headache that we just gave up (and we also saw horror stories of ppl that went ahead anyway in other instances, given who they have to pay off, who they didnt and then got harrased by the "didnt" later on with all kinds of permit requirements you name it...and those they did pay off play tug of war politics with them too).
So its clear that those that do somehow get through and set up private education in India are almost running some level of a scam, its not always their fault though, its simply how the govt has messed up how people can enter and run things privately, like goonda-raj has shown time and time again esp the more important political optics etc are (you can imagine it for Education being so crucial).
Again its because thats the way the govt has set up the system. It has gamed the system to benefit its own badly run monopoly...big time. There is no genuine free market place in first place, so the discussion of what is viable for actual private sector cannot even be seriously discussed. So they are left competing only in the higher echelons of the pie, and even there its corrupt and skewed (esp compared to most of our competitors and developed world), just the ROI is lot higher so there is some permeation compared to base level primary and secondary etc (where again entry is restricted, you have to scam to get in, so you naturally will scam your clients to some level too to make the ROI).
India is long way away from full fettered level playing field for private and public debate in education.