For the economic development of India, there is a need to conceptualize human investment in the education system. India is an agriculture-driven economy where agriculture sector and the industrial sector are the major contributors. Considering this the education system requires investment in such a way that both the government and private institutions receive the desired technical assistance.  Simultaneously new process and equipment can be utilized in the agricultural sector enabling the creation of knowledge and expertise based professionals.


Funds should be utilized in such a way that the income supersedes the expenses incurred and that is in actual sense termed as investment.  Normally an individual returns on investing in any industry or business depends on the funds poured into it with a certain degree of risk as well. On the similar lines more the educated individuals are, more are the chances of their success in the respective fields. In other words, education enables the individuals to properly utilize and allocate their talents and skills. Investment in education gives rewards in terms of better knowledge, better productivity, and a better economy.


Investing funds in business and investing in education both are more or less similar as they contribute towards the betterment of society and economic development of the nation. Money is more of an external thing whereas education develops intrinsic qualities. This is the prime reason why education is termed as a human investment in education economics.


To conclude, education is a pivotal factor in the growth of Indian economy. Many startups are coming up, new entrepreneurs, new technologies, and new process are the outcome of investment in education. The spending on education as a percentage of GDP (an indicator of economic growth) has also increased over the years.


The focus on investment in education will remain a major growth driver for the nation.