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India’s spending on education has declined to 0.37% of GDP in FY25 from 0.63% in FY14, while spending on roads and highways has increased to 3.4% of GDP.
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Health spending remains constant at 0.3% of GDP, despite experts calling for increased allocations to address gaps in health and educational attainment.
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Economists argue that spending on health and education is crucial for job creation and addressing income inequality.
The Indian government’s spending priorities have shifted towards infrastructure development, with a significant increase in allocation for roads and highways. However, this has come at the cost of education and health spending, which have seen a decline or remained stagnant. Education spending, in particular, has decreased from 0.63% of GDP in FY14 to 0.37% in FY25. Health spending, on the other hand, has remained constant at 0.3% of GDP.
Experts argue that this trend is concerning, as education and health are critical sectors that require increased investment to address income inequality and create jobs. They suggest that the government should allocate more funds to these sectors to ensure sustainable economic development. Additionally, the decline in education spending is alarming, as it may impact India’s human capital development and future economic growth.
Despite the decline in education spending, India has made significant gains in educational attainment, with a decrease in the percentage of people with below six years of schooling. However, significant gaps remain between states and along rural-urban and gender lines. The government must prioritize education and health spending to address these disparities and ensure inclusive economic development.
