The importance of basic educational skills for better GDP in India
According to a study that was carried out by the National Bureau of Economic Research (NBER), nearly two-thirds of the youth in 159 nations, which account for 98.1% of the world’s population and 99.4% of the world’s Gross Domestic Product (GDP), do not possess the fundamental skills that are required to be internationally competitive. According to the study, the economic cost of these deficits would therefore exceed $700 trillion over the remainder of the century or 11% of discounted GDP.
According to the study’s estimate, 85.1% of Indian students lack basic skills. According to the study, the country’s economic performance is reflected in this skill gap. Every child’s basic skill level is directly correlated with a nation’s economic development. According to the NBER working paper series, “people will not be able to contribute to and participate in fiscal development if they lack the necessary skills in the modern world economy.”
To live a better life and increase productivity overall, adapting to changing times necessitates different skill sets and the use of novel approaches. This is true for every industry. This knowledge sector ought to be the first to adopt new techniques and skills because education is the fundamental component of creating a worthwhile life. The pandemic, which we are just emerging from, emphasizes the need for education reform. Students were required to master new digital and interpersonal skills with unprecedented agility when the pandemic struck, forcing education to rapidly adopt new pedagogical methods.
If current students acquire at least basic educational skills, South Asia, which includes India, will see an economic gain of $97.8 billion and an 821 percent increase in GDP. Furthermore, if all children acquire the fundamental skills, the gains could increase to 2,176%, or $259.5 billion. The NBER study added, “These educational reforms in line with the UN’s Sustainable Development Goals can greatly contribute to a nation’s economic gains.”
In the meantime, India’s implementation of the National Education Policy (NEP) 2020 has already begun batting for the skill development of its youth. To produce an industry-ready workforce, the new education policy places a greater emphasis on skill-based learning. The document recommends starting vocational education in the sixth grade. In higher education institutions, these courses will now be given equal weight. India’s education reforms are closing the skill development gap, paving the way for improved economic performance. Madhu Batta, an associate professor at Delhi University, stated, “It is certainly going to be a game changer for the education system as well as the economy.”
For the best learning outcomes, it is essential to strike a balance between the best aspects of both the physical and virtual worlds as we once again move toward complete physical learning. We can keep recording the lectures and making them available to everyone so that people who are slow learners can learn and review their preparations multiple times. Online internships and part-time or temporary jobs should also be encouraged, as they provide students with hands-on experience and the confidence to perform from day one in permanent jobs and entrepreneurial opportunities.
In addition, universities should support incubation labs for the development of various startup concepts and serve as mentors and catalysts for the transformation of these concepts into successful businesses. When they result in numerous job opportunities, wealth creation, alternatives to imports, and advancement for the nation, these efforts are successful.
