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• Education is one of the main reasons behind institutionalisation of the vulnerable children and most of the children attend school only after joining the care institution in India. • In low-income countries, the care system ensures better outcomes by providing opportunities to the children and fulfilling their basic needs which couldn't have been otherwise possible. • Lack of financial resources is one of the main factors responsible for staffing the institutions with personnel not having required skills and training needed to care for the special needs of the vulnerable children. A large number of children in India are exposed to vulnerabilities and difficult circumstances for the sake of their survival. A total of 1.8 lakh children are residing in child care institutions in India as their parents were found incapable to fulfill their basic necessities like food, shelter and clothing (Jena Committee Report, 2017). In low-income countries, a very little is known about the caregivers who work in child care institutions and play a significant role in the lives of institutionalised children. The study aims to unravel the role of the institutional care system through in-depth semi structured interviews with 20 caregivers working in four different child care institutions in two regions of Northern India. The present study found out that due to poverty, lack of access to education and other basic necessities, children in care have better opportunities for their future than living with their biological parents. The study also highlights the financial issues and the problems faced by children with disabilities living in care institutions. Therefore, the findings of the study focus on the significance of the institutional care system in the lives of vulnerable children in India. [ABSTRACT FROM AUTHOR]