The Exorbitant Rise of Educational Expenditure and Its Falling Impact on Economic Growth: An Underlying Cause of Economic Slow-Down.

Abstract

The aspirational middle class of India has tripled its proportion of expenditure on education in the last three decades hoping for gainful employment of their progeny. But our public and the private educational institutions have failed to create an equally rewarding skillful and innovative class of graduates. The mismatch between the extent of resources consumed by educational institutions and the final output has structurally resulted in a slow-down of economy witnessed in recent times. Inspired by this direction of search, we would present evidence in this article to the effect that the mismatch between the burgeoning educational expenditure and the lackluster outcome in terms of knowledge and skills has seriously punctured the India-shining growth story that had just begun to pick up in the first decade of the millennium.