Economics of Education: Exploring the Indian Scenario

Abstract

Economics is a branch of social science that studies how society allocates its limited resources whereas education plays a crucial role in shaping individuals and societies, providing them with knowledge, skills, and values necessary for personal growth and societal progress. Education entails the transmission of knowledge, values, and skills from one generation to another, ensuring the continuity and advancement of civilizations. The economics of education studies return rates to education that's both social and private, human capital and signaling theories of education, non-financial benefits of education, education and economic development, the contribution of education to the economy, measuring educational expenditure, manpower planning, educational planning and human resource development, educational cost, educational production, educational effectiveness and efficiency, costs-efficiency and cost-effectiveness, cost-benefit analysis. The present study focuses on the Indian scenario of demand and supply of education, quality of education and economic development with enhancement of education in India. The study is primarily based on the existing secondary data. The investment on education should be increased by the government to impart quality education.