CERTIFICATE

This is to certify that Ms.Shatakshi Singh, Ms.Prachi Kunnure, Ms.Anaisha Chauhan,

Ms.Prakriti Navalakha of MIT WPU School of Economics and Commerce have successfully
completed the Summer Project Report in partial fulfillment of requirement for the award of B.Sc.
Economics(Hons.) prescribed by the MIT World Peace University, Pune.

This project is the record of authentic work carried out during the academic year 2022-23.

Faculty Co-ordinator Programme Director -Prof. Gopal Dr Anjali Sane, Dean,

Wamane, Dept of Economics and School of Economics
Public Policy , SOEC 3 and Commerce
 School of Economics and Commerce

Department of Economics and Public Policy

Title: Impact of women education on a key aspect

of economic growth in India: GDP

Semester III

Summer Project SY. B.Sc. Economics (Hons)

Group Members PRN

1. Shatakshi Singh 1212220056

2. Prachi Kunnure 1212220057
3. Anaisha Chauhan 1212220095
4. Prakriti Navalakha 1212220115
 DECLARATION
We (Shatakshi Singh,Prachi Kunnure,Anaisha Chauhan and Prakriti Navalakha) hereby declare
that this project is the record of authentic work carried out by us during the academic year 2023-
24. This project is plagiarism free and has not been submitted to any other University or Institute
towards the award of any degree.

Group Members Signatures

Shatakshi Singh 1212220056

Prachi Kunnure 1212220057

Anaisha Chauhan 1212220095

Prakriti Navalakha 1212220115

 Abstract
Education in many cases is the key factor affecting economic growth and overall societal
progress. This study focuses on investigation the relationship between women's education and
India's economic development by comparing female literacy rates and GDP contribution across
four major Indian states taking into account two states with the highest contribution to GDP and
two states with the lowest contribution to GDP - Maharashtra, Tamil Nadu, Bihar and Rajasthan.
Quantitative analysis of three National Sample Survey rounds from 2004-2012 reveals a robust
positive correlation between female literacy rates and state GDP contribution. High GDP states
like Maharashtra and Tamil Nadu had markedly higher female literacy, nearing 75%, compared
to low GDP states like Bihar and Rajasthan where literacy rate was comparatively much lower.
Beyond literacy enabling workforce participation, educated women engage in more productive
and skilled work - catalyzing incomes, consumption and economic growth. However, persisting
gender disparities in literacy and employment underscore the need for targeted interventions
promoting inclusive development. Tackling constraints like social taboos, early marriage and
inadequate infrastructure remain imperative to women's empowerment. This comparative
analysis of literacy rates and GDP contribution across high and low income states provides data-
driven insights on the pivotal role of female education in propelling India's continued growth
story. Focused policy initiatives addressing gender gaps and boosting literacy are still critical.

SCOPE OF THE STUDY

This study investigates the correlation between female education levels, measured by literacy
rates, and economic growth across four major Indian states over three survey periods from 2004-
2012. Specifically, it compares two high GDP contributors (Maharashtra and Tamil Nadu) and
two low GDP contributors (Bihar and Rajasthan) to assess differences in female literacy rates
and workforce participation. Through quantitative analysis of National Sample Survey data, it
aims to demonstrate the linkage between women's educational attainment and states' economic
outcomes. However, the scope is limited to literacy rate as the sole metric of educational
attainment and state GDP as the economic indicator. Broader generalizability is restricted by the
small sample size and dated secondary datasets from a decade ago.
 ACKNOWLEDGEMENT
We would like to express our gratitude to our guides and mentors, Professor Kavita Ingale and
Professor Sashmita Behera for their invaluable guidance, feedback, and constant encouragement
throughout this project. Their insights and direction have been pivotal in shaping our research
and analysis.

We are thankful to Dr Anjali Sane Associate Dean, School of Economics and Commerce and Dr
Gunjeet Kaur Dean, School of Economics and Commerce for giving us this opportunity to go in
depth into a topic of national importance and woman education. We would also like to thank the
University library for providing access to the resources utilized in this study.

The data and statistics we relied upon were made accessible due to various government
institutions and survey agencies. We acknowledge the National Sample Survey Office for
conducting the employment surveys that served as our dataset.

Finally, we would like to thank our parents and family members for their unwavering support
and motivation. This work would not have come to fruition without the support and
encouragement of all our professors and the faculty involved.
Table of Contents:
Introduction ..................................................................................................................................... 1
Research Questions ..................................................................................................................... 5
Research Objectives ................................................................................................................ 6
Literature Review............................................................................................................................ 7
Research Gap : .......................................................................................................................... 12
Methodology ................................................................................................................................. 13
Data Analysis ................................................................................................................................ 17
Findings......................................................................................................................................... 30
Implications................................................................................................................................... 34
Conclusion .................................................................................................................................... 37
Limitations .................................................................................................................................... 38
References ..................................................................................................................................... 39

Tables and Figures:

Table 1:Literate population according to 2011 Census ................................................................ 17
Table 2: Literacy rates in 61st,66th and 68th rounds .................................................................... 19
Table 3: GDP contribution and female literacy rate in 61st round ............................................... 21
Table 4: GDP contribution and female literacy rate in the 66th round ......................................... 22
Table 5: GDP contribution and female literacy rate in the 68th round ......................................... 23
Table 6: Female Labor Force Participation .................................................................................. 24
Table 7: Female workforce participation in 66th round ............................................................... 26
Table 8: Female workforce participation in the 68th round ......................................................... 27

Figure 1:Trend of Women Literacy Rate in India with homogeneous year differences................. 3
Figure 2:Male to Female Ratio ..................................................................................................... 18
Figure 3: GDP contribution and female literacy rate in 61st round .............................................. 21
Figure 4: GDP contribution and female literacy rate in the 66th round ....................................... 22
Figure 5: GDP contribution and female literacy rate in 68th round ............................................. 23
Figure 6: Female workforce participation in 61st round .............................................................. 25
Figure 7: Female workforce participation in 66th round .............................................................. 26
Figure 8: Female workforce participation in the 68th round ........................................................ 28
 Introduction

As Kofi Annan said, “Literacy unlocks the door to learning throughout life, is essential
to development and health and opens the way for democratic participation and active citizenship”

Education stands at the core of economic growth and societal progress, serving as the foundational
catalyst for a brighter future. The significance of women's education resonates profoundly, with
its effects reverberating through society, manifesting as heightened productivity, enhanced
healthcare, and a notable reduction in poverty. For India to fully unlock its economic potential,
nurturing its greatest asset, its people, is paramount. In this journey, the education of women plays

a pivotal role, empowering individuals and uplifting communities. This study compares variations
among Indian states to investigate the connection between women's education and India's
economic development.

Relationship between GDP contribution and literacy:

Economic growth finds its primary impetus in literacy, with a discernible link between a nation's
GDP and its literacy rates. Robust literacy among the workforce empowers individuals to engage
in a diverse spectrum of economic pursuits. It acts as a magnet, drawing talent from various sectors,
spanning services, industries, and agriculture. Furthermore, it provides fertile ground for
innovation, entrepreneurship, and the seamless adoption of emerging technologies, propelling
economic advancement. Economic growth is fueled by the improved overall productivity and
efficiency that result from this increased competence. Additionally, literacy empowers people by
giving them the ability to access a variety of work possibilities, make educated decisions, and
actively support the economic progress of their nation.

The Indian Aspect:

India, with a population nearing 1.3 billion, finds itself in the midst of a transformative period
characterized by a substantial demographic transition. A pivotal milestone was reached in 2011
when India attained an overall literacy rate of 74.04%, signifying remarkable advancements in
elevating literacy levels throughout the nation. Notably, within the same timeframe, female literacy

1
surged to 65.46%, underscoring India's persistent commitment to expanding women's educational
horizons. However, India's economic landscape, expected to rank fifth globally in 2020 with a
GDP exceeding $2.87 trillion, remains marred by gender disparities and regional imbalances.
2These hurdles hinder the country's development and the untapped potential of its educated female
workforce. To unleash India's full potential, it is imperative to dismantle gender-based barriers and
ensure equitable educational access for all. Such a strategy holds the promise of nurturing
innovation, bolstering competitiveness, and ultimately propelling economic growth and progress.

The intricate correlation between GDP and literacy underscores the pivotal function that education
serves in promoting economic expansion, rendering it a fundamental constituent of India's
continuous progress narrative.

Female literacy rate in India:

The course of India's GDP and its broader economic expansion is undeniably influenced by the
educational attainment of women. Women who achieve higher levels of education are more likely
to engage in the workforce, secure elevated income, and place a premium on the welfare of their
children.

This encourages an economic growth positive feedback loop. According to the World Bank,
closing the gender pay and educational gap in India has the potential to contribute $700 Billion to
India’s GDP by the year 2025. Indian women’s contribution to the female labor participation is a
46.4%. Their contribution to entrepreneurship has helped India lead the world in female
entrepreneurship. Additionally, women's consumption power significantly influences economic
growth, controlling about 50% of household spending.

2
 Figure 1:Trend of Women Literacy Rate in India with homogeneous year differences

The graph illustrates the progression of female literacy rates in India over time. Female literacy in
India has seen a noteworthy upswing, registering a surge of more than 34 percentage points. We
have witnessed a significant increase in the female literacy rate which has risen from a 29.8% in
1981 to a 64.6% in 2015, this increase in the female literacy rate is truly remarkable. There have
been significant shifts between the years 2006 and 2011 and between the years 1991 and 2001
with 11.9% and 8.7% gains respectively. These shifts were a result of the government policies,
societal environment, and economic conditions. The Sarva Shiksha Abhiyaan(SSA) acted as a key
driver for the increase in female literacy rate from the year 1991 to 2001. The SSA project was an
initiative taken to ensure and promote global access to basic education. The SSA project greatly
contributed to lowering the gender gap in education and helped increase the amount of female
enrollment in schools. Nonetheless, differences still exist between various categories of women:
women from scheduled castes and scheduled tribes have lower literacy rates, while rural areas lag
behind metropolitan areas. The Indian government has launched initiatives like Saakshar Bharat,
which aims to give adult women from underprivileged communities functional literacy, to alleviate
these discrepancies. The shifting trends of female literacy in India are a reflection of the complex
interactions between political, social, and economic influences. Even while government initiatives
have greatly increased female literacy, efforts to close these gaps must continue.

3
India has substantial disparities between states in terms of GDP contribution and socioeconomic
indicators like literacy rates. This study compares women's education levels and economic
indicators between two states with that have consistently ranked highest in terms of GDP
contribution, Maharashtra and Tamil Nadu, and two states which have consistently been ranked
the lowest in terms of their share in contributing to India’s GDP, Bihar and Rajasthan. The
percentage of literate women is used as the key indicator of women's educational attainment taking
the data on the percentage of educated women in each state from the three years that the National
Sample Survey Office (NSSO) conducted its Employment and Unemployment Surveys:

● 61st round - July 2004 - June 2005

● 66th round - July 2009 - June 2010
● 68th round - July 2011 - June 2012

4
 Research Questions
1. Is there a correlation between women's literacy rates and GDP across Indian states?
2. Do high GDP states like Maharashtra and Tamil Nadu have significantly higher female
literacy than low GDP states such as Bihar and Rajasthan?
3. How does women's workforce participation compare between literate and illiterate groups
and across the four sample states?

5
 Research Objectives
1. To statistically analyze if higher women's literacy is positively associated with greater GDP
contribution across the four states.
2. To document and contrast the status of female literacy rates and economic indicators between
the high and low GDP states.

This comparative analysis aims to provide data-driven insights into the linkage between women's
education levels and economic growth across Indian states. The findings can help inform policies
to encourage female education for India's continued economic development.

6
 Literature Review
In the heart of India's vision for progress, lies the profound belief that women's empowerment and
education are not just aspirations but the very bedrock of our society's advancement. In our journey
towards gender equality and economic prosperity, it becomes ever more vital to truly grasp the
intricate web that connects women's education, economic growth, and active participation in the
workforce. These are not just policies and statistics; they are the stories of countless women
striving for a brighter future. By incorporating the findings of other research papers, this review of
the literature aims to investigate this complex relationship. This review’s primary objective is to
provide a thorough understanding of the following:

1. Status of women's education in India with the main goals of examining the relationship between
women's literacy rates and GDP across Indian states,

2. Analyzing regional differences in women's education and economic development.

3.Assessing the connection between women's engagement in the workforce and literacy,

The purpose of this study is to shed light on the opportunities and challenges that impede women's
increased engagement in India's development.

Some of the important aspects covered in previous academic research are:

1.Women’s education and economic growth:

At the core of this project lies the quest to unveil the intricate connection between women's literacy
rates and the economic pulse of different Indian states. As we navigate through the diverse
landscape of India, marked by significant variations in economic growth and educational
achievements, our ultimate goal is to unravel whether states boasting higher female literacy rates
wield a more substantial impact on the country's GDP. The pages of research point to promising
signs: educated women might be linked to lower mortality rates, enhanced per capita income, and
reduced fertility (Sheetal, 2019). But in our journey, we delve deeper to understand how this
translates to the lives of countless women across the nation. In this complex connection, multiple
mechanisms are involved. First off, higher educated women tend to marry later and have lower
fertility rates, which leads to smaller family sizes. Smaller families are linked to higher rates of

7
female labor force participation and decreased economic dependency. Women's higher labor force
involvement raises national economic productivity, which raises GDP.

The economic growth of a state is closely associated with the level of literacy among its female
populace. In India, the national education strategy usually prioritizes basic education above higher
education, according to Azra Khan et al. (2020).

The conceptual analysis finds differences in educational results between the northern and southern
states. Due to their higher emphasis on education, southern states typically do better than northern
states and make a larger contribution to India's GDP overall.

2. Women's Participation in the Workforce and Literacy:

As Dr. Biplab Tripathy and Subhechya Raha investigated in 2019, the complex relationship
between women's literacy and their labor force involvement shows that the relationship is not as
simple as first thought. While an increase in female literacy rates does give women the information
and abilities they need to engage in the business and economic worlds, there are other factors that
may outweigh this advantage.

Without a doubt, greater literacy rates among women enable them to assist economic growth by
entering the labor. As stressed by Sheetal (2019), educated women are more likely to land skilled
professions and make money, which translates into increased financial independence and
empowerment. The positive side of the equation is formed by this factor. However, as Dr. Biplab
Tripathy and Subhechya Raha note, a comparative examination of female workforce participation
from several Indian states shows a relative drop in workforce involvement over time.

Several factors influence this relationship's complexity:

• Economic possibilities:

One important factor is the presence of economic possibilities. Sheetal (2019) emphasizes that
even highly knowledgeable women may find it difficult to locate acceptable employment in areas
with restricted job opportunities. Despite high literacy rates, this may result in a relative fall in
workforce participation.

8
• Social Norms:

There is a staggering influence of deeply entrenched gender norms and societal standards can cast
formidable barriers for individuals seeking entry into the workforce. These age-old customs and
expectations don't discriminate based on education but on gender; even highly educated Indian
women may find themselves dissuaded from pursuing careers in certain fields that are believed yo
be more ideal for men. In our exploration of these issues, we aim to shed light on the very real
challenges that people, especially women, face as they navigate the complex intersection of
education and societal expectations. According to Dr. Biplab Tripathy and Subhechya Raha, there
may be a relative drop in participation as a result of this resistance to women entering the
workforce.

• Workplace Conditions:

A woman's job status and the type of her workplace might be important determinants. Workplace
safety, job flexibility, and supporting legislation are some of the issues that might either attract or
discourage women from entering the workforce.

• Regional Disparities:

Azra Khan et al. (2020) pointed out that regional differences are significant. Increases in
employment engagement and rising rates of literacy are more likely to occur in states or regions
with better economic growth and educational infrastructure. Even while literacy rates are rising,
regions with poor access to high-quality education and economic hardships can see a proportionate
decrease in workforce participation.

The relationship between female literacy and labor force participation is slightly complex.
Although increased literacy gives women the information and ability to enter the workforce, the
result is influenced by a number of socioeconomic and cultural factors which play a role in the
corporate world as well. It will not be possible to achieve a significant rise in women's workforce
participation without addressing the larger socioeconomic situation in addition to literacy. This
entails encouraging gender parity, questioning established norms, enhancing working conditions,
and minimizing regional differences in order to enable women to reach their full potential in the
workforce and spur economic development.

9
3. Obstacles to Women's Empowerment and Education:

The perspective provided by Leonard in 1979 highlights the substantial obstacles that Indian
women still face, especially those residing in rural regions. One of the primary contrasts that is
highlighted is the one between urban and rural areas, particularly in terms of fertility rates and
marriageable age. The nation's overall demographic dynamics are significantly impacted by these
variances. Notably, Leonard's viewpoint highlights the negative correlation between educational
attainment and fertility rates. This emphasizes how important female literacy rates are to family
planning initiatives. Because education gives women the knowledge of their rights and highlights
their important role in society, it empowers them to achieve everything that they are meant to
achieve without bringing gender inequality barriers into the picture .There are still a number of
obstacles preventing women from living up to full potential, even with the Indian government's
efforts to bridge the orthodox mental gap in Indian soceity. The vast differences in the ability to
access resources for education, social standards, and the economy between rural and urban areas
is one of the main problems.

It becomes imperative to investigate these enduring obstacles in further detail. Comprehensive

solutions must be put forth and implemented in order to advance women's empowerment and
education in India. By tackling these issues, we can encourage the development of a more equitable
and diverse society where women have the authority and skills to significantly advance the nation.

The idea that women's empowerment and education are critical to socioeconomic success is
highlighted by the change from "women for development" to "women in development." Women
with formal education actively participate in their own development and significantly improve
society as a whole. The goals of gender equality and self-reliance are aligned with this change, as
Khushboo Singh (2016) has highlighted. It is evident that empowering women is a comprehensive
strategy that supports India's diverse progress rather than merely one singular goal

4. Women's Education: Gender Equality and Empowerment

Education is an important tool for eliminating gender stereotypes, , and increasing women's
freedom in society by making gender equality an obvious virtue. Education helps not only society
but women recognize themselves as individuals capable of incredible advancements in a variety

10
of fields, including the economy, healthcare, education, and sports. According to Khushboo
Singh's 2016 observations, achieving gender equality and independence requires a strong emphasis
on women's empowerment and education. Education for women is not just a stand-alone goal;
rather, it is a vital catalyst in shifting the conventional pattern from "women for development" to
"women in development." This pattern shift emphasizes the notion that women actively contribute
to the expansion and development of society rather than acting as passive beneficiaries.
Programmes like "Beti Bachao, Beti Padhao" are prime examples of this strategy because they
emphasize the social and economic empowerment of girls. These initiatives strive to ensure the
efficient delivery of social services while bringing attention to concerns such as female foeticide,
unequal access to education, and financial independence.

To achieve true gender equality, men and women must come together ro promote gender equality
.In order to achieve a goal like gender equality, the unity and ability to change must be instilled in
all sections of the soceity. The decision-making procedures and resources must be somewhat
equally distributed between men and women.

The studies that have been previously conducted show that there is a positive association
between women's educational attainment and the economic growth in India. Khan et al. (2020)
found a strong positive correlation between female literacy rates and state GDP, this in turn also
leads to the educated women of the particular state participating more in the workforce and
boosting overall productivity in the workplace.

However, Tripathy and Raha (2019) noted that increases in female literacy do not automatically
translate into greater labor force participation, due to mediating factors like social norms, regional
disparities, and limited economic opportunities.

Oztunc et al. (2015) examined female education impacts in Asia-Pacific countries including India.
Their analysis found positive effects of female primary education, but a negative relationship for
tertiary enrollment. They posit the female labor force structure in India may not effectively utilize
higher education.

11
Asadullah and Yeasmin (2022) highlighted obstacles like early marriage, urban-rural divides, and
inadequate school facilities that have constrained Indian women's empowerment through
education. Gender disparities in literacy and workforce engagement persist.

Research Gap :

While these studies have analyzed female literacy statistics and correlations to economic
indicators, there appears to be limited research contrasting women's education and workforce
participation specifically between high and low GDP states in India.

This research papers aims to fill this research gap by comparing female literacy rates and the
indicators of economic contribution between the two high contributors to GDP states (Maharashtra
and Tamil Nadu) and two low contributors to GDP states (Bihar and Rajasthan).

This comparative analysis of states that contribute different to GDP can provide greater clarity and
precision on the relationship between women's educational attainment and economic outcomes
based on the particular regional conditions.

The study aims to use more recent data from the 2000s decade, as opposed to relying solely on
historical statistics. Focusing on the 2004-2012 period will help capture the contemporary
relationship between women's education and economic growth across Indian states. The findings
can help identify targeted policy recommendations to boost female education and labor force
participation for equitable growth in India.

12
 Methodology
Education is one of the crucial foundations of economic development as it enhances talent and
raises the caliber of the labor force. Therefore from this perspective, we can determine the
relationship between GDP growth and women’s education. Four Indian states: Rajasthan, Tamil
Nadu, Maharashtra, and Bihar have been chosen for this study on the basis of easy access to
statistical information.

Research conducted shows that women's education significantly and favorably impacted these
states' GDP growth. Adopting suitable policies is therefore required for the development and
economic expansion of these states in light of the theoretical and statistical descriptions of this
study.

Quantitative approach:

The relationship between women's education and India's GDP is tested using a quantitative
methodology in this study. This method helps in effective analysis of the relationship between
women's education and GDP since it makes it possible to compare quantitative data about women's
literacy rates with a wide range of economic indicators.

The study uses quantitative methods such as correlation analysis and computation of correlation
coefficients in the research to understand the relationship between women's education and GDP.

Data Collection:

The sources of information used in this research is utilized from the Employment and
Unemployment Surveys conducted by the National Sample Survey Office (NSSO) over three
different time periods: the 61st round, which took place between July 2004 and June 2005; the
66th round, which took place between July 2009 and June 2010; and the 68th round, which took
place between July 2011 and June 2012. Data is systematically gathered during these survey

13
periods in order to thoroughly study the relationship between women's literacy rates in the chosen
states and their GDP contribution.

In order to obtain state-specific data on women's literacy rates, and their GDP
contribution, authoritative sources like the websites of Government of India and the Census of
India were accessed. These sources provide trustworthy data on female literacy rates for the
following three years: 2004, 2009, and 2011. The focus on using reliable and well-respected
sources guarantees the data's integrity and correctness, providing a strong basis for the examination
of the intricate relationship between women's literacy and economic contribution of these states.

Sample selection:

For the objective of this study, two states with comparably smaller Gross State Domestic Product
(GSDP) contributions—Bihar and Rajasthan—as well as two well-known for their significant
GSDP contributions—Tamil Nadu and Maharashtra—have been chosen.

The deliberate choice of states with varying economic characteristics offers a useful structure for
examining how women's education affects economic growth in a range of socioeconomic
environments. The study intends to identify potential relationships between women's education
and economic growth by looking at states with both high and low GDP contributions.

High GDP Contributing States:

Maharashtra: Maharashtra, home to over 112 million people and a major economic hub, contains
a diverse range of terrain from bustling cities to rural farmland. The state contributes greatly to
India on the national stage due to both its vast population as well as robust industries. It is the
highest GDP contributor with second largest population.

Tamil Nadu: Tamil Nadu is the sixth most populous state as well as the second richest state in
India.The state plays a pivotal role standing as one of the country's most prosperous regions,
demonstrating the considerable impact of population size and economic strength on the national
scale.

Low GDP Contributing States:

14
Bihar: Bihar, is considered a low GSDP contributor and is the third most populated state in India,
highlighting the complexity of its economic and demographic landscape despite its economic
struggles. The state is characterized by poverty and backwardness and is predominantly rural.

Rajasthan: Although Rajasthan is not one of the highest GDP contributors, it is India's seventh
most populous state. The state is varied, containing both urban and rural parts.

Data analysis:

Correlation Analysis:

The study evaluates the direction and strength of the relationship between women's education and
GDP using correlation analysis. By objectively examining the degree to which changes in one
variable match changes in the other, this statistical tool offers important insights on the nature of
their relationship.

Computation of Correlation Coefficients:

Computing correlation coefficients is a crucial component of the study. These coefficients function
as numerical indicators that measure the degree of correlation between changes in GDP and
variations in women's literacy and education rates. To provide a quantitative knowledge of these
variables' reciprocal influence, the research will produce reliable evaluations of their
interdependence.

Time series analysis:

Time series analysis can be used to compare women’s literacy rates and GDP over time by looking
at three rounds of surveys conducted by the NSSO (61st; 66th; and 68th).

In order to find underlying patterns, trends, and fluctuations, this analytical method evaluates data
points that are gathered on a regular basis. Through the use of this method, the study seeks to shed
light on how women's education dynamics have changed during the designated survey periods and
how this has affected GDP.

15
Operationalization:

Dependent Variable:

GSDP: The economic indicator, Gross State Domestic Product (GSDP), can be considered as the
dependent variable. The study aims to analyze how women's education, represented by literacy
rates, relate to variations in GDP contribution over time and across states.

Independent Variable:

Women's Literacy Rates: The primary independent variable of interest are the women’s literacy
rates. This variable is essential to comprehending the possible influence of female education on
economic growth.

Exogenous Variable:

State-Specific Features: Although they are not directly impacted by women's literacy rates a
number of state-specific features, including rates of urbanization, degree of industrialization, and
demographic variables, can be categorized as exogenous variables.

Policy Interventions: Exogenous variables include government initiatives and policies pertaining
to economic development and education. These laws are not related to the main link being studied,
although they could have an effect on women's economic and educational outcomes.

Control Variables:

Population Density: Considering its possible impact on women's economic and educational
indicators, population density can be taken into consideration as a control variable.

Infrastructure Development: Since it can have an impact on both economic and educational
outcomes, a state's degree of infrastructure development could be thought of as a control variable.

16
 Data Analysis
Literacy is usually believed to be the important factor for growth and development in society.
Human Resources make up a significant part of financial resources which determine the country’s
ability to succeed economically Increasing a population's literacy rate can improve all the
aforementioned aspects of human resources, which include the population, its growth rate, skills,
standard of living, and the labor force's working capability. Therefore, literacy level is important
in determining a rustic's economic development. Given that human capital is India's most valuable
resource and that effectively using it is critical to the its economic growth, literacy becomes even
greater crucial. Thus, a country's literacy charge has a large effect on its economic increase.

India conducted its fifteenth official census in 2011. In a country like India, literacy is the primary
pillar of social and economic development. After the British rule in 1947, slightly 12 percentage
of the human beings ought to examine and write. Over time, India has changed socially,
economically, and globally. For the 2011 Census, a person is deemed literate if they're seven years
of age or older and may read and write in any language with comprehension. A man or woman
who's limited to analyzing is taken into consideration non-literate. Prior to 1991, all youngsters
below the age of 5 had been robotically categorized as illiterate in censuses. India's literacy price
became determined to be 74.04% after the 2011 census. This area's youth literacy rate
approximately 9% greater than the adult literacy rate.

Table 1:Literate population according to 2011 Census

Literate Population
# Literacy Rate 2011
2011

Females 328,814,738 65.46 %

Males 434,683,779 82.14 %

Persons 763,498,517 74.04%

17
Information on the population's literacy rate and gender-specific and total literacy rates in 2011 is
included in this table. With 328,814,738 females (65.46 %) and 434,683,779 men (82.14 %)
making up the literate population, there were 763,498,517, as of 2011. 74.04% out of the entire
population people were literate.

Figure 2:Male to Female Ratio

According to the data, there is a gender difference in literacy, with men having a considerably
higher percentage of literacy (82.14%) than women (65.46%).The census revealed a 9.21%
ordinary improvement in literacy charges, with an improvement of 11.79% for ladies and 6.88%
for guys. Most notably, the 2011 census observed that the share of female literacy to male literacy
has progressed considerably.

This increases the opportunity that there's a gender gap in educational fulfillment, which may be
impacted by means of cultural norms, economic reputation, and the provision of assets for
education. Closing this gap is essential to promote gender equality and inclusive development. A
significant part of the population turned into literate in 2011, with a total of 74.04% literacy price.
This shows how important it is for us to continue advancing programmes for the betterment of
people of both the genders.

18
Three rounds of the National Sample Survey (NSS) were conducted in 2004-05, 2009-10, and
2011-12 .The literacy fees in every Indian kingdom are displayed inside the desk. Analysis of this
statistics can assist identify trends and differences in literacy prices among the states at some point
of the selected periods of time.

Table 2: Literacy rates in 61st,66th and 68th rounds

61st round 66th round 68th round

State
(2004-05) (2009-10) (2011-12)

Maharashtra 68.60% 72.50% 75.50%

Tamil Nadu 64.40% 73.40% 74.40%

Bihar 33.10% 37.50% 43.90%

Rajasthan 57.60% 60.40% 66.10%

Maharashtra:

● The three survey periods demonstrate a consistent upward trend in Maharashtra's literacy
rates. The literacy rate was 68.60% in 2004–05 which increased to a 72.50% in 2009–10,
and then to a 75.50% in 2011–12. This increasing pattern is a result of impactful
educational programmes and persistent literacy promotion in the state.
● This progress could be attributed to a number of causes, including as measures to reduce
gender inequities in education, expanded access to schools, and focused educational
programmes. Positive outcomes in women education are probably a result of state policies
and programmes aimed to improve female literacy, including awareness campaigns,
scholarships, and special provisions for the education of girls. The shrinking disparity in
literacy rates between males and females is evidence of Maharashtra's dedication to gender
equality.

19
Tamil Nadu:

● The literacy rate in Tamil Nadu has risen steadily over the length of the study. from 64.40%
in 2004–05 to 73 as the base rate. 40% in 2009–10 and 74.40% in 2011–12, this percent
stepped forward. The state's dedication to policy execution and education is demonstrated
by this continuous improvement.
● Education has always been a top priority for Tamil Nadu, as seen by programmes like the
midday meal programme and improvements to school facilities. Women's literacy rates are
on the rise due to factors like protecting girls' safety in schools, encouraging education for
girls, and offering incentives to female students. These actions may have helped the state's
literacy rates to rise steadily, especially when combined with an emphasis on inclusive
education.

Bihar:

● Bihar, which had a lower starting point of 33.10% in 2004–05, had significant
improvements in its literacy rates. The rate jumped to 37.50% in 2009-10, and in 2011–12,
it peaked even higher to 43.90%. Even while Bihar still has problems, the noticeable
improvement points to successful initiatives.
● The state has seen a rise in the focus on education, with initiatives to raise school
enrollment, raise educational standards, and address socioeconomic issues that affect
literacy. It's possible that efforts for awareness and community-based initiatives
contributed to the beneficial development. The good results in Bihar might be attributed to
programmes like the Kasturba Gandhi Balika Vidyalayas, which educate girls in rural
regions, and awareness campaigns that stress the value of women's education.

Rajasthan:

● The general trend in literacy rates for Rajasthan is satisfactory. Beginning in 2004–05 at
57.6%, the percentage rose to 60.4% in 2009–10 and 66.1% in 2011–12. The state's
progress suggests that attempts to overcome barriers and develop training were successful.

20
 ● Rajasthan, with a population that is primarily from rural areas, has issues with
socioeconomic concerns, infrastructure, and gender inequality. The state's increasing
trajectory in literacy rates has, however, been aided by focused interventions like the Sarva
Shiksha Abhiyan, which aims to provide elementary education to all. The effective
trajectory of ladies's literacy rates has been largely attributed to Rajasthan's initiatives,
which encompass community engagement, consciousness campaigns, and the grassroots
promoting of woman schooling.

Table 3: GDP contribution and female literacy rate in 61st round

61st round (2004- 61st round (2004-

State
05) 05)
% gdp contribution literacy rate
Maharashtra 13.9 68.60%
Tamil Nadu 7.3 64.40%
Rajasthan 4.2 57.60%
Bihar 2.61 33.10%

Figure 3: GDP contribution and female literacy rate in 61st round

21
The scatter plot shows that there is a positive correlation between literacy rate and GDP
contribution. This means that as literacy rate increases, GDP contribution also increases. The states
with the best literacy rates (Maharashtra and Tamil Nadu) additionally have the best GDP
contributions while the states with the low literacy rates (Rajasthan and Bihar) also have the lower
GDP contributions. A correlation coefficient of R=0.779 in which the x-axis has literacy rate and
the y-axis has GDP contribution suggests a robust tremendous correlation between literacy charge
and GDP contribution. This means that there may be a right away relationship between the two
variables, wherein a boom in literacy rate is associated with an boom in GDP contribution.

Table 4: GDP contribution and female literacy rate in the 66th round

66th round (2009-

State 66th round (2009-10)
10)
% gdp contribution literacy rate
Maharashtra 14 72.50%
Tamil Nadu 7.85 73.40%
Rajasthan 4.35 60.40%
Bihar 2.66 37.50%

Figure 4: GDP contribution and female literacy rate in the 66th round

22
The scatter plot shows that there is a positive correlation between female literacy rate and GDP
contribution in India. Maharashtra and Tamil Nadu have high female literacy and excessive GDP
contribution which shows and justifies the relationship between female training and GDP
contribution. A coefficient of R=0.774 indicates that there may be a giant fantastic correlation
between the 2 variables. This implies that raising the literacy rate can result in notable increases in
GDP contribution and total economic growth.

Table 5: GDP contribution and female literacy rate in the 68th round

68th round (2011- 68th round (2011-

State
12) 12)
% gdp contribution literacy rate
Maharashtra 13.94 75.50%
Tamil Nadu 7.95 74.40%
Rajasthan 4.93 66.10%

Bihar 2.89 43.90%

Figure 5: GDP contribution and female literacy rate in 68th round

23
The statistics offered shows that there's a high correlation (R=0.785) between India's GDP
contribution and literacy. This suggests a direct correlation among the two variables, with an
upward push inside the GDP contribution similar to a boom inside the literacy rates. The
importance of the correlation coefficient also suggests the degree of the link; values nearer 1.0
denote greater correlations. In this instance, a correlation coefficient of 0.785 points to a strong
positive association between GDP contribution and literacy rate.

There are a number of feasible causes for the correlation between literacy and GDP contribution.
One possibility is that states with higher GDP contributions can have enough money to make
investments greater in schooling, which results in better literacy. Another possibility is that states
with higher GDP contributions have more economic opportunities, which motivates people to get
educated. In the three scatter plots that we have seen above, a strong positive correlation between
female literacy rate and GDP contribution is witnessed. States with high literacy rates like
Maharashtra and Tamil Nadu also have high GSDP contribution which proves that having
educated females in the states leads to more female participation which in turn leads to higher
contribution by that state. We can also see that states with low female literacy rates have contribute
lesser GSDP as they have low female workforce participation.

Table 6: Female Labor Force Participation

State 61st round 2004-05

(2004-05)
literacy rate Female workforce participation
Maharashtra 68.60% 33.90%
Tamil Nadu 64.40% 49.60%
Rajasthan 57.60% 25.90%
Bihar 33.10% 24.90%

24
 Figure 6: Female workforce participation in 61st round

The figure shows the percentage of female labor force participation and the literacy rate in each
state. The data is collected from 61st National Sample Survey (2004-05).

There is a positive relationship between literacy level and female labor force participation rate
(R=0.597764). This means that as women’s education increases, so does their labor force
participation rate.

A correlation coefficient of R=0.597764 indicates a positive moderate relationship between

literacy rate and female labor force participation. This indicates that there is a comprehensible
relationship between the two variables.

25
Table 7: Female workforce participation in 66th round

State 66th round 2009-10

(2009-10)
LITERAC Female workforce
Y participation
RATE
Maharashtra 72.50% 31.80%
Tamil Nadu 73.40% 52.50%
Rajasthan 60.40% 26.80%
Bihar 37.50%
26.00%

Figure 7: Female workforce participation in 66th round

The graph illustrate-s an increasing link between the rate of literacy and the number of women
working. This suggests that nations with better educated populations se-e more women in jobs.
The upward line drawn on the chart adds weight to this impression.

26
correlation statistic (R) stands at 0.63653174. This implies a fairly strong tie between the two
elements. This could mean that female employment rates go hand in hand with the population's
literacy rates.

Various theories can explain this connection. Maybe learning makes room for women to create
businesses. Schooling can arm women with job skills and the insight to flourish at work.
Furthermore, education can help overcome social and cultural barriers to women’s employment.

Another thought is that better reading and writing skills can boost economic growth. This progress
can offer more chances for women to work. Increased business activity can also lead to more jobs
for women.

Table 8: Female workforce participation in the 68th round

State 68th round 2011-12

(2011-12)
LITERAC Female workforce participation
Y
RATE
Maharashtra 75.50% 33.20%
Tamil Nadu 74.40% 53.70%
Rajasthan 66.10% 27.70%
Bihar 43.90%
27.00%

27
 Figure 8: Female workforce participation in the 68th round

Looking at the table-, we see Maharashtra le-ads with the most FWP at 33.20%, and its literacy
rate is also at the top - 75.50%. Following it is Tamil Nadu, scoring a 53.70% FWP and 74.40%
literacy rate. Lastly, we see Rajasthan and Bihar. Their figures are- lower. Rajasthan registers
27.70% in FWP and 66.10% in lite-racy rate. Bihar lands at the bottom with 27.00% FWP and a
literacy rate- of 43.90%.

The graph shows a positive correlation between literacy rate and FWP. This means that countries
with higher literacy rates have higher FWP rates. The linear regression line also shows a positive
downward trend, confirming this relationship.

Female participation in a work environment plays a vital role in boosting economic growth and
development. Increasing female labor force participation enhances the overall labor supply, which
leads to increase in productivity and innovation. Empowering women through economic
participation boosts their earning power, stimulating demand for goods and services and further
driving economic growth. Evidence suggests that high female labor force participation by 10
percentage points can translate into a substantial 3% boost in GDP growth. States with higher
female labor participation rates generally exhibit higher GDP per capita, demonstrating the

28
positive impact of women's economic involvement. This can be seen in the FLFPR of Maharashtra
and Tamil Nadu which are high contributors to GDP.

29
 Findings
Multiple survey rounds were used to acquire data on female labor force participation, GDP
contribution, and female literacy rates in different Indian states. The results of these surveys
provide an in-depth understanding of the complex relationship between gender, education and
economic development.

1. Strong Correlation Between Female Literacy and Economic Development:

The study re-veals a strong link betwee-n women's education levels and the Gross State Domestic
Product (GSDP). This emphasizes education's key part in boosting the economy. Both Tamil Nadu
and Maharashtra, states where more women can read and write, have seen better economic
progress thanks to high literacy. In addition to fostering social advancement, literacy produces a
skilled labor force that supports sustained economic expansion. These states' emphasis on
education has helped strengthen their economies, proving that literate people improve personal
well-being and stimulate regional economic growth. The concept that investing in education is an
investment and the significance of encouraging female literacy and education as necessary
components of sustained economic development are highlighted by the positive correlation
between the states under examination.

2. Persistent Gender Disparities in Literacy:

Men typically score higher than women on surveys, indicating a major cultural issue behind the
persisting gender differences in literacy rates. Beyond literacy rates, this problem is a reflection of
embedded sociocultural norms and institutional obstacles that prevent women from pursuing
higher education. The gender gap continues to be a major barrier, restricting the potential of
women to fully contribute to economic development and maintaining inequality even in the face
of rising literacy rates.

Concentrating on wiping out both institutional and societal hurdles is key to sealing education's
gender crack. The most effective methods to combat socio-cultural norms that could deter women
from pursuing higher education are through awareness campaigns and community engagement.
Deconstructing these systems also requires policies that provide equal access to educational
opportunities and resources for both genders.

30
3. State-wise Progress:

The states with the highest rates of women literacy include Maharashtra and Tamil Nadu, where
the difference between males and females is getting less. This demonstrates an ongoing
commitment to promoting inclusive education and guaranteeing fair access for all individuals,
irrespective of their gender. These states' success can be linked to their implementation of efficient
educational policies and programmes that target particular obstacles to higher education.

Despite starting with lower literacy levels, Bihar and Rajasthan have shown notable progress. This
inspiring shift highlights the requirement for active steps to enhance the education system, boost
public knowledge, and eliminate hurdles that block students from top notch education. The closing
gender disparity in these states showcases the importance of inclusive educational policies and sets
a positive precedent for other regions.

4. Effect of Women's Workforce Involvement on Economic Growth:

Consider states such as Maharashtra and Tamil Nadu. Here, a strong female workforce
significantly boosts the economy. With more women getting jobs, these states witness speedy
economic growth. This fact is clear when we look at the rise in both fe-male employment and
Gross State- Domestic Product (GSDP). Gaining economic independence and chances for personal
development are two ways that empowering women via education and economic engagement
improves individual well-being.

The demand for products and services is boosted by more women entering the workforce, which
boosts both production and consumption and promotes economic growth overall. The global
research showing that a higher rate of women entering the workforce can increase GDP complies
with this positive correlation. Hence, fostering a culture that is inclusive and supports women's
active engagement in the labor market is crucial for long-term and comprehensive growth.

5. Impact of Societal Taboos on Women's Education and Literacy Rates:

The study draws attention to how cultural norms and social taboos affect women's educational
opportunities, which in turn sustains gender differences in literacy rates. These taboos—which
include deep rooted customs, prejudices, and cultural biases—reduce girls' opportunity to pursue
education and consequently lower women's literacy rates. Improving the general literacy rate

31
requires addressing these deeply embedded cultural beliefs. Awareness campaigns, community
involvement programmes, and policies that support girls' education are examples of effective
measures to question and break down these taboos in states like Maharashtra and Tamil Nadu,
which have higher literacy rates.

States that struggle to break through these taboos, however, might witness a slower increase in
literacy rates since cultural barriers still stand in the way of women's educational growth.
Designing successful strategies and policies that particularly target the underlying causes of
gender-based educational gaps requires an understanding of the role that societal attitudes play in
influencing educational attainment.

6. Success of Government Initiatives:

The favorable rates of literacy and economic development in states like Maharashtra, Tamil Nadu,
Bihar, and Rajasthan have been greatly aided by government efforts. These initiatives concentrate
on specific educational policies and programmes that address gender inequality as well as the
advancement of literacy in general. The reduction of gender disparities in education, awareness
programmes, and scholarships are crucial in narrowing the literacy rates difference between males
and females in Bihar and Rajasthan.

The Kasturba Gandhi Balika Vidyalayas in Bihar, which focuses on teaching girls in rural regions,
have also helped to increase literacy rates more broadly. Initiatives such as the Sarva Shiksha
Abhiyan, which emphasizes delivering elementary education to everyone, especially in rural
regions, are credited for Rajasthan's rise in literacy rates. These illustrations show how crucial
strong policy frameworks and efficient governance are to improve women literacy.

To sum up, the results of the data analysis reveal a thorough understanding of the complex
associations between economic development, female literacy, and female labor participation in
Indian states. These discoveries underline how important it is to address gender gaps in
employment and education, which has important policy consequences. Utilizing focused
interventions to promote inclusive development, India can fully use its populace as a resource,
guaranteeing future economic growth that is both equitable and sustainable.

32
33
 Implications
1. Investments in Education Shape Economic Prosperity:

It is obvious that there may be a strong fantastic affiliation between literacy rates and the Gross
State Domestic Product (GSDP) contribution. Education as a result performs a pivotal role in
determining a rustic's economic development. Higher literacy fees are related to regular financial
development; states like Maharashtra and Tamil Nadu are prime examples of this, highlighting the
important function that schooling performs in promoting economic increase and prosperity.
Investments in education ought to take delivery of top precedence by policymakers so as to develop
a workforce this is successful and educated enough to fulfil the needs of a fast converting global
economic system. States where GDP contribution and literacy rates are positively correlated
should think about increasing financing and resources for education as this will not only guarantee
continued economic growth but also put the state in a competitive position both nationally and
internationally.

2. Robust Gender Differences:

Because men continuously have greater literacy rates than women in all examined states and
survey periods, persistent gender disparities call for focused interventions. Targeted initiatives are
vital to fully utilize the population's capability to contribute to economic development. In order to
especially cope with barriers to female education, policymakers and educators must deal with
setting guidelines into vicinity that cope with socio-cultural norms that could stand within the
manner of lady training, encourage girls to attend faculty, and create a welcoming and safe
studying environment. State governments can unleash the potential in their girl population and
create a extra diverse and dynamic team of workers with the aid of tearing down gender-based
totally limitations to schooling.

3. State Commitment to Education Produces Outcomes:

The success stories of states such as Maharashtra and Tamil Nadu highlight the significant
influence of a robust state commitment to education. Over the course of the survey periods, the
literacy rates in these states have consistently increased, demonstrating the effectiveness of their
educational policies and programmes. Policymakers should emphasize the value of continuity in

34
educational programmes and replicate successful policies by taking cues from states that have
found success. A consistent dedication to learning, along with regular assessments and policy
modifications, guarantees a favorable atmosphere for learning.

4. Relationship between Female Literacy and Economic Growth:

The positive relationship between GDP contribution and female literacy rates highlights the
financial advantages of empowering women via education and employment. Legislators should
focus on programmes that especially advance women's education and employment, given their
capacity to make significant contributions to economic expansion. States can accelerate their
economic growth trajectory by creating an environment that promotes and supports female
participation in all economic sectors.

5. Success of Government efforts Shows Policy Efficacy:

Certain government efforts are responsible for the success seen in states like Rajasthan,
Maharashtra, Tamil Nadu, and Bihar. The implementation of gender-based totally education
policies and programmes has been important in raising literacy prices and creating an environment
this is useful to economic growth. Prioritizing evidence-based programmes will help policymakers
benefit from the experiences of governments that have successfully tackled similar problems. The
economic and educational environment of a state is greatly influenced by efficient governance and
thoughtfully crafted policy frameworks.

6. Addressing Taboos and Societal Norms is Vital:

It is imperative to tackle deeply rooted taboos and societal conventions, as they may be a
contributing factor to the low rates of female reading. Campaigns for awareness and educational
initiatives that question and alter these standards have to be given top priority by legislators and
activists in order to create an atmosphere that is more welcoming and encouraging of female
students. This entails altering attitudes regarding the importance of female education in addition
to offering educational opportunities.

These results highlight the necessity of focused, evidence-based interventions that go beyond
traditional methods, to sum up. The future of training and financial development is essentially

35
determined by way of policymakers, educators, and activists. By operating collectively, they can
create a society that is each wealthy and inclusive.

36
 Conclusion
This project analyzes the relationship between women's education using literacy rates as a metric
and economic growth, using GDP contribution as a metric, across four major Indian states -
Maharashtra, Tamil Nadu, Bihar, and Rajasthan taking their GSDP into account.

The comparative analysis of high GDP states like Maharashtra and Tamil Nadu versus low GDP
states like Bihar and Uttar Pradesh revealed a strong positive correlation between women's literacy
rates and GDP contribution. The high GDP states had significantly higher female literacy rates
across all survey periods from 2004-2012.

In addition to higher female literacy enabling greater female workforce participation, the research
indicates educated women are able to engage in more skilled and productive work. Hence resulting
in higher incomes and increased consumption which in turn boost the GDP contribution of that
particular state. Low literacy in states like Bihar and Rajasthan restricts women's ability to engage
equally and productively in the economy also leading to comparatively lower GDP contribution
by these states. This study shows the relationship between female literacy rates, their workforce
participation and how it affects regional GDP through correlation analysis.

Overall, the study affirms that prioritizing women's education and empowerment remains critical
for India's continued growth and equitable development. Targeted policy initiatives to boost
female literacy, addressing gender gaps, providing economic opportunities and combating social
taboos are some solutions that our government can employ in order to encourage female literacy
and workface participation which will eventually lead to economic development in various areas
especially in boosting the GSDP contribution of Indian states.

37
 Limitations
• The study relied solely on secondary data from the National Sample Survey Office (NSSO)
rounds. There is limitation on the availability of data and the data is from a decade ago. In the
following decade itself there has been immense economic and policy development in the respective
states of India. The impact of specific educational policies and programs was not analyzed.
Evaluating interventions could help formulate policy recommendations.

• Only four states were included in the analysis. With 28 states and 8 union territories, comparing
just four states limits generalizability of the findings. A more representative sample of states with
varying literacy rates and economic indicators like GDP contribution could improve the
generalizability of the findings.

• Causational relationships cannot be conclusively established through correlation analysis.

Experimental or econometric studies could better probe cause-and-effect.

• Only literacy rate was used to quantify women's educational attainment. Incorporating metrics
like female enrollment ratios, graduation rates, and achievement scores could provide a more
nuanced picture.

• The sole economic indicator used was GDP contribution. Adding data on employment, wages,
productivity, consumption, investments etc. could enrich understanding of the impact pathways.

• Administrative and governance factors like education budget allocations of the state were not
considered. The reason why some states have significantly higher GDP contributions may also be
because they have a significantly higher budget to spend on education. Understanding resource
utilization and systemic efficiencies could further optimize and structure our country’s policies.

38
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