EDUCATION AS AN ENGINE OF ECONOMIC GROWTH: AN ANALYTICAL STUDY OF PUBLIC SPENDING IN INDIA

This study examines the economic implications of public expenditure on education in India in the present - day
context. Drawing on recent data and policy frameworks such as the National Education Policy (NEP) 2020, it
explores the correlation between educational spending, GDP growth, human capital formation, and social equity.
Despite an upward trend in absolute spending, the proportion of expenditure relative to GDP remains below the
recommended 6%. The paper highlights persistent challenges including regional disparities, inefficiencies in fund
utilization, and quality deficits. Findings underscore that while education spending significantly enhances
productivity and reduces poverty, its economic potential remains under - realized due to structural bottlenecks.
Policy recommendations include reallocation toward foundational literacy, skill development, and equitable
regional funding.