Vidya was born in the Tamil-speaking Balan family on January 1, 1978 in Palghat, Kerala, India. She studied in St. Anthony's Convent School, and thereafter in St. Xavier's College from where she obtained a degree in Sociology. She then went on to obtain a Masters degree in Sociology from Bombay University. She also studied and performed in Prithvi Theaters' workshops. Due to tradition of most Tamil-Iyer families, Vidya and her sister Priya learned Carnatic dance form during their early childhood days, but Vidya opted out as the dance classes took place early on Sunday mornings and as she is not an early riser.