Higher education and economic development in India-A state wise analysis

Education is one of the most important socio-economic factors influencing development of a society. The purpose of higher education is to meet the holistic development, socio-economic and cultural needs. No nation can progress without sufficient and sustained investment in higher education. The role of higher education as a major driver of economic development is well established, and this role will increase with further changes in technology, globalization and demographics in the country. The paper analyses the impact of higher education on economic development in India by using data on variables like; total enrolment in higher education, number of universities, number of colleges, and state gross domestic product for 20 selected states in India. The state gross domestic product is taken as a measure of economic development and the other variables represent the qualitative and quantitative aspects of higher education. The Thiel‘s Inequality Index is used, in order to measure the inequality among the different states with regard to the above mentioned variables. The data on the variables has been presented in a tabular form. Therefore, the paper tries to estimate the state wise variations in enrolment in higher education, find out the interstate variations in gross domestic product and its impact on higher education in India.