Education is a crucial input for development as the labour skill of an educated person is more than that of an uneducated person. This enables them to generate more income, making their contribution to economic growth significantly higher.

Spending on education is similar to investing in capital goods. Individuals invest in education with the objective of increasing their future income, thereby enhancing the overall income-generating capacity of the nation's workforce.

Education is sought not just for higher earning capacity but also for other highly valued benefits. It gives one a better social standing and pride, enables one to make better choices in life, and provides knowledge to understand changes taking place in society.

Furthermore, education enhances the productivity of human beings and creates the ability to absorb new technologies. It provides knowledge to understand scientific advancements, which facilitates inventions and innovations. The availability of an educated labour force facilitates adaptation to new technologies.

A large population, when trained and educated on sound lines, becomes a valuable asset. As recognized in development strategies, human capital formation through education accelerates economic growth and ensures social change in desired directions.