IMPORTANCE OF LITERACY IN INDIA’S ECONOMIC GROWTH

India today faces some grave challenges economically. Unemployment, underemployment, poverty and unequal distribution of wealth being few of them. Nothing other than rectifying the low literacy rate can present solutions to almost all these problems. Further literacy also reduces the economic inequality and reduces the income disparity, all of which India faces today. This paper attempts to study the impact of literacy on economic growth and population growth and also how all the three variables are related to each other. By doing so, there is an attempt made to understand the key challenges which India faces today and highlight the importance of addressing those challenges as they could potentially turbochange prosperity of the country. Literacy rate is one of the key indicators of the economic situation in a country as increased literacy rate leads to enhancement of a country’s human capital.. Literacy also provides better employment prospects and gives a higher socio-economic status. Increased literacy rate also leads to decreased population growth rate and thus a country’s resources better shared among less people. Thus literacy rate is given its due importance in this paper as a key to India’s prosperity