I would never suggest to anyone that they drop school for chess. First of all even if you can make it in chess, your social skills need to be developed there.
I feel that schools and corporates should help the government in popularising sports in the country. Blaming the government for every sporting debacle will not be fair.
My parents were very supportive of my chess. When I got home after a game of chess, having missed school or something, they always made me feel very welcome; I didn't feel guilty at all about pursuing chess with such fervour. They never, for instance, perceived sports as a rival to academics.