Role of Education, Health, and Employment in India’s Economic Prosperity

The impact of education, health, and employment on India’s economy is substantial, influencing various aspects of the nation’s Economic Prosperity, productivity, and human capital development.

The quality of a population, which hinges on literacy rates, health (indicated by life expectancy), and skill acquisition, significantly influences a nation’s growth trajectory. 

A well-educated and healthy populace is considered an asset.

Impact of Education on Economic Prosperity social aspirations

• Education’s Transformative Role: Education plays a pivotal role in opening up new vistas, nurturing aspirations, and instilling life values, thereby contributing to individual and societal growth.
• Government Initiatives:  The government has made strides in ensuring universal access to elementary education, with a focus on girls’ education, through initiatives like “Sarva Siksha Abhiyan”.
  • Investment in education has seen an uptick from Rs 151 crore in the first plan to Rs 3766.90 crore in the eleventh plan.
  • However, literacy rates, although improving (from 18% in 1951 to 74% in 2010-11), reveal disparities across gender and urban-rural divides.
• India’s Higher Education Expansion Strategy: The goal to improve the Gross Enrolment Ratio (GER) in higher education to 30% by 2020-21 aims to align India with global averages.
  • It emphasizes a strategic focus on vocational training, distance education, and IT-enabled learning.
• Impact of Education on Economic Prosperity: Beyond its role in individual and societal development, education serves as a powerful catalyst for Economic Prosperity. A well-educated population enhances the quality and productivity of the workforce, leading to increased innovation and technological advancements.

Health: A Cornerstone for National Prosperity

• Health a Key Driver: Health is a cornerstone for optimising an individual’s potential and productivity. 
  • It  is also crucial for an efficient workforce.
• India’s Comprehensive Healthcare Infrastructure: India has developed a substantial health infrastructure over the decades, catering to primary, secondary, and tertiary healthcare needs.
• Persisting Challenges in Healthcare Infrastructure: However, challenges persist with inadequate healthcare facilities in certain regions and a disparity in the distribution of medical and dental colleges across states (Refer to Table).

• Employment: It is defined as a paid mutual work arrangement between a recruiter and an employee. 
• Unemployment: It is when someone is actively looking for work but is unable to find it.
• Employment Dynamics in India: These are influenced by various factors, including age, willingness to work, and the sectoral distribution of jobs.
  • Unemployment is prevalent in both urban and rural areas, albeit with different characteristics:
    • Rural areas: Experience seasonal and disguised unemployment, largely tied to agricultural cycles.
    • Urban areas: Face educated unemployment, with a notable mismatch between education levels and job availability.

• Impacts of Unemployment: Unemployment leads to social and economic repercussions, including a decline in living standards, 
  • An increased economic burden on the working population, and
  • A detrimental impact on overall Economic Prosperity.
• Underemployment in India:
  • Underemployment: Despite a statistically low unemployment rate, many individuals in India are engaged in low-income, low-productivity jobs, essentially representing underemployment.
  • Disguised Unemployment: The employment structure, particularly in the agricultural sector, often masks the true extent of unemployment or underemployment, known as disguised unemployment.
• Changing Employment Patterns: Migration trends from rural to urban areas and from agriculture to secondary and tertiary sectors highlight an ongoing shift in employment patterns.

Exploring India’s Sectoral Employment Evolution

• Persistent Importance of Employment in Agriculture: Agriculture remains a significant employer, although there’s a discernible migration of surplus labour to secondary and tertiary sectors.
• Diversification of Employment Opportunities: The secondary sector, with small-scale manufacturing, and the tertiary sector, with emerging fields like biotechnology and information technology, offer alternative employment avenues.

Future Prospects

A reflective assessment of the educational landscape in India projects certain future prospects that need to be addressed to enhance literacy and employability, especially among the youth.

Educational Equality : Bridging the Gap in India’s Literacy 

• Persistence of Significant Illiterate Population in India: Despite an increase in literacy rates among adults and youth, the absolute number of illiterates remains stark, equal to India’s population at the time of independence.
• Unfulfilled Vision: The Directive Principles of the Constitution in 1950 envisioned free and compulsory education for all children up to age 14 within a decade, a goal yet to be fully realised. 
  • Achieving this would have propelled India towards cent per cent literacy.

Exploring the Soaring Educated Youth Unemployment Crisis in India

• High Unemployment Rates: Among educated youth are alarmingly high, with National Sample Survey Office (NSSO) data from 2011-12 showing:
  • 19% unemployment among rural male graduates.
  • 16% unemployment among urban male graduates.
  • There is a staggering 30% unemployment among young rural female graduates.
• Low Unemployment Rates among Primary Educated: 
  • In contrast, only about 3-6% of primary-level educated youth in rural and urban areas were unemployed. 
• The Periodic Labour Force Survey 2017-18 indicates the situation hasn’t improved significantly.

Urgent Need for Higher Education Reforms

• Increasing allocation for higher education is crucial.
• Improving the standard of higher education institutions to ensure the impartation of employable skills is paramount.
• Addressing the paradox of higher unemployment rates among the educated necessitates re-evaluating and reforming the higher education system to better align with employment opportunities.

Advancements in Gender Equity

• Closing Gender Disparity in Literacy: A notable positive trend is the narrowing gap in literacy rates between males and females, reflecting progress in gender equity.
• Women Empowerment Through Education: 
  • However, promoting education for women remains a priority to foster economic prosperity & independence, improve social status, and positively impact fertility rates and healthcare for women and children.
  • Despite the upward trend in literacy rates, achieving cent per cent adult literacy, especially among women, remains a significant challenge.

Conclusion

• Education and health are important in enhancing human development, enriching the quality of life, and propelling Economic Prosperity. 
• They equip individuals with essential skills and a healthier life, enabling them to contribute significantly to society. 
• By investing in education and health, a nation not only fosters economic prosperity but also cultivates a well-rounded, informed, and healthier populace, thereby accelerating holistic human development.