Question

“Economists believe that India should spend atleast 6% of its GDP on Education for achieving desired results.” Justify the statement with a valid reason.

Answer 1

This is because education promotes economic growth in the following ways:

1. Reduces unequal income distribution: Education increases a person’s earning ability and also helps in reducing unequal distribution of income, thus contributing towards the formation of a more equal society.
2. Improves standard of living: Education enhances people’s capacity to earn, which raises their standard of living and improves their overall quality of life.
3. Helps solve other economic problems: The role of education is not limited to making people literate. It also helps an underdeveloped economy in solving several connected macroeconomic problems, such as poverty, income inequality, population growth, low investment, and underutilisation of resources.