Some key trends observed in a research by IBEF

It pays to invest in education: A review mission of the central department of education recently visited eight states where the Sarva Shiksha Abhiyan was implemented. The number of out-of-school children which was around 12 million in January 2003 (as per the household survey conducted by the states) had dramatically reduced to 3 million in two years time. More teachers had been recruited in all the states visited by the mission and in most states, the Pupil-Teacher ratios are approaching a manageable level of 40 students per teacher.

Investing in education—The Kerala effect: There is a strong relationship between economic growth and the level of education. Kerala is the most literate state in India. A 2002 survey showed Kerala as number 3 in affluence level, and number 5 in terms of infrastructure penetration and investment attractiveness. Because of the state’s ready supply of educated workers, big companies have started plugging in. General Electric has set up training centres in Kolkata for prospective call centre employees.

The state’s average per capita consumption between 1994 and 2000 grew at 19.6 per cent in rural areas and 18.2 per cent in urban areas, according to a study published in August 2002 by two economists, Angus Deaton and Jean Dreze. Today, the state’s domestic product (SDP) is growing at 7 per cent, and the state government’s finance department expects the SDP to grow at 7% in real terms, over the next three years.

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