Examine the role of education in the economic development of a nation.

In economic development, growth in education and health are the important parameters.

Investment in education converts human beings into human capital that provides the way for increase in future productivity. The spread of education ensures simultaneous growth in economic development, equitable distribution of resources and an even growth of every sector of the society. Two independent reports on the

Indian economy have proved that investment in education leads to higher human capital formation and thus, consequent increase in economic development.

1. Deutsche Bank, a German Bank, in its report on 'Global Growth Centre's (Published on 1.7.05) identified that India will emerge as one among four major growth centres in the world by the year 2020. The reason behind this success in increasing awareness towards education (Primarily elementary education) and growth in human capital.

2. World Bank, in its recent report 'India and the knowledge Economy - beveraging Strengths and Opportunities' states that India should make a transition to the knowledge economy and it should use its knowledge as much as Ireland does (as Ireland uses its knowledge very effectively), the per capita income of India will increase from a little over US $ 1000 in 2002 to US $ 3000 in 2020. It further states that the Indian economy has all the key ingredients for making this transition as she has a critical mass of skilled workers, a well functioning democracy and a diversified science and technology infrastructure.

This clearly shows the role of education in the economic development of a nation.