Human Capital Formation in India — Part 2: Growth of the Education Sector: visual lesson, CBSE Class 12 Economics

Lesson

Growth of the Education Sector in India

Part 2: how India spends on education, what the right to education means, and how far we have come.

In this lesson you will

Explain why the government provides and regulates education and health
Interpret the two indicators of government spending on education and the 6 per cent goal
Explain the right to education under Article 21A and the RTE Act 2009
Evaluate the achievements and problems of the education sector in India

Part 2 at a glance

Concept

Education and health are not left only to the market, for four reasons.

Table of reasons for State provision of education and health: long gestation, social benefits, information gaps and equity, with what goes wrong without the State
Reason	What goes wrong without the State
Long gestation	Returns come years later; poor families cannot pay now
Social benefits	Private choices ignore benefits to others
Information gaps	Families cannot judge quality; some providers overcharge
Equity	The poor are shut out of schools and hospitals

Concept

Two indicators are used.

Table of the two indicators of education spending: share of total government expenditure shows priority; share of GDP shows how much of national income goes to education
Indicator	What it shows
Education spending as a share of total government expenditure	How high education ranks among the government's priorities
Education spending as a share of GDP	How much of the country's income goes to education