Education
Investing in Education and Physical Development: India’s Key to Realising Its Demographic Dividend
As India strives to become a developed nation by 2047, investing in education and physical development is paramount. With the world’s largest youth population and a median age of 28, India is poised for a demographic dividend—a period where a large working-age population can significantly boost economic growth. However, failure to adequately educate, upskill, and ensure the well-being of this young population could lead to a crisis of underemployment and social instability, as highlighted by the World Bank and IMF.
A Missed Opportunity Without Education
India’s literacy rate currently stands at 74.5%, trailing the global average. The Annual Status of Education Report (ASER) 2024 revealed gaps in rural literacy and foundational skills, pointing to a need for immediate intervention. To meet the Sustainable Development Goals (SDGs), which include universal education by 2030, India must increase its education spending from 4.6% to at least 6% of GDP, as recommended by UNESCO.
India’s neighbouring nations have shown varying levels of investment in education, with some surpassing UNESCO’s recommended target of 4-6% of GDP. Bhutan leads the region by allocating 7.5% of its GDP to education, reflecting its strong commitment to human development. Nepal follows closely with 6%, aligning with Sustainable Development Goals (SDGs) and ensuring steady progress in literacy and quality education. In contrast, Pakistan significantly lags behind, investing only around 2% of its GDP in education, contributing to persistent challenges in literacy and educational access. India, currently allocating 4.6% of its GDP to education needs increased investment to bridge educational gaps and fully leverage its demographic advantage.
Experts argue that increasing funding for both formal education and vocational training is essential. According to the IMF, inadequate investment in education and health could result in India squandering its demographic dividend. By bridging the gap between current spending and SDG targets, India can provide access to quality education and skill-building initiatives, thereby empowering youth with future-ready skills.
Beyond Academics: The Case for Physical Education
Parallel to academic learning, physical education is vital in ensuring holistic development. According to a 2024 UNESCO report, more than two-thirds of secondary school students worldwide do not receive the minimum recommended hours of physical education. India is no exception, and the limited emphasis on physical education could hinder long-term benefits, including improved mental health, academic performance, and productivity.
UNESCO Director-General Audrey Azoulay stresses, “Physical education not only improves pupils’ health but also their academic performance and personal development. It should be treated as a core subject, not an extracurricular activity.”
UNESCO’s recommendations highlight five critical areas for member states:
- Improving the training of sports educators.
- Increasing investment in infrastructure.
- Developing inclusive physical education programs.
- Increasing allocated hours for physical education in school curricula.
- Integrating the values of sport into educational programs.
The benefits are evident: physical education can reduce student obesity rates by 30%, improve exam scores for 40% of students, and prevent anxiety and depression among youth. Schools that prioritise sports also report improved attendance and behaviour. However, India currently allocates less than 2% of its education budget to physical education, significantly below the recommended level.
Investing in Holistic Development
To fully harness its demographic advantage, India must adopt a holistic education policy that integrates physical education into the broader academic framework. The growing focus on sports through initiatives such as Khelo India needs to be complemented by increased funding for grassroots physical education in schools. Audrey Azoulay notes that integrating sports values into education builds empathy, teamwork, and resilience, which are essential for navigating the challenges of a rapidly changing world.
Closing the Gap with Public-Private Partnerships
Public-private partnerships (PPPs) have the potential to bridge funding gaps in both education and physical development. Private sector involvement can also ensure that physical education programs receive sustainable support. Initiatives such as specialised sports training academies and skill-based internships can enhance students’ employability and overall development.
India’s path to becoming a developed nation hinges on its investment in education and physical development. Allocating at least 6% of GDP to education and prioritising physical education will create a well-rounded workforce capable of driving economic growth. By bridging the gap between policy and practice, India can ensure that its youth are not just beneficiaries but active contributors to the nation’s progress.
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