An analysis of India’s Economy and Education in the Context of the National Education Policy 2020

Education is a vital development accelerator. Economist Denison (1964) made first major attempts to measure the contribution of education in nation’s growth. Different endogenous and exogenous growth theories tried to advocate the contribution of education in economic development of a country. Thedore Schultz (1961) developed a full-fledged theory of human capital and contained that a nation must make large investments in human capital if it is to achieve sustainable economic growth. Therefore, in addition to the investment in physical capital (machinery and infrastructure), investment in human being (education, schooling, training, and health care) is needed for nation’s developments, and to increases people's productivity and creativity. It is because educated and skilled human being is a form of capital, human capital. Moreover, it is essential for promoting socio-economic progress through distribution of resources. The present study had expanded the knowledge regarding the investment in human capital and its wider-ranging effects in India in the context of NEP 2020. It tried to explore how the policy envisaged the development of human capital through education particularly through promotion of vocational education.