Education can be made a business, but with the following rider.
The fees charged by institutions should be in the same proportion as the salary that is offered to students in the placements. So if an institution can land students jobs average salary of 12 lakhs p.a., there is in principle nothing wrong with them charging fees of 6 lakhs for the course.
The problem in India has been two fold.
1. Fees as well as faculty to student ratios are controlled by many states. This is a stupid policy, since cost of education keeps increasing with increases in salaries and student intake cannot be increased without jeopardising the faculty-student ratio. Therefore colleges have to resort to illegal ways of recovering costs. Or they are compelled to provide low quality education.
2. The other problem is that there are colleges some colleges whose fees are very high, but they are only a money making business. Colleges that charge high fees must also produce good enough jobs for students.