An Extra Year of Education in India Increases Monthly Income by 7.02% – NGO Study

New Delhi, 17 November 2021 – As per a study conducted by the NGO, Population Foundation of India, every extra year invested in a person’s education in India increases their monthly income by about 7.02%, while the overall return from education is around 6.7% on average. The study also notes that this return is higher for girls than boys and stresses that the government needs to invest in young people’s health, education, and well-being.

The NGO study titled, ‘Investing in Adolescent Development: A Case for India’, explores several key areas like secondary education, nutrition, unmet needs for family planning, mental health, and the issue of child marriage. It focuses on the need to invest further in each of these areas to ensure the well-being of adolescents in India.  

NGO Study

The study also found that every rupee invested towards the completion of school education brings an economic benefit ranging from INR 4.5 to INR 8.2 in terms of future earnings. It notes, “This return is higher for girls than boys. Each additional year of education yields an 8.6% increase in women’s monthly wages, while for men the number stands at 6.1%.

What are the Key Findings of the NGO Study?

  • An additional year of education in India increases an individual’s monthly income by about 7.02% on average.
  • The returns on education are higher for females than males. So, the return on investment in the education of adolescent girls will be the highest. 
  • There is a need to focus on educating adolescents from vulnerable sections, as most of them quit school early.
  • The returns on education are lower for individuals from lower caste and poorer households. This means that education is not equally available across the country and if a targeted approach is not taken, it might lead to a further educational divide. 
  • The total expenditure per student beyond primary education is between INR 1.82 lakh and 3.31 lakh. For this, the increase in lifetime wages is INR 14.94 lakh.
  • The benefit-to-cost ratio of investing in adolescent education is within the range of 4.51-8.21. Thus, for every 1 rupee spent on education, there’s an economic benefit between INR 4.5 and INR 8.2. 

What is the Population Foundation of India?

The Population Foundation of India is a national non-governmental organisation (NGO), which promotes the implementation of gender-related, health-related, and development-related strategies and policies in India. 

It works with the government, both at the national and state levels, in the areas of family planning, reproductive & sexual health, community action, social change, and behavioural communication.