The real returns on education: Why India must invest on human potential, not just degrees
Degrees matter, but they're not enough. India's future depends on how well it nurtures adaptable, real-world problem-solvers
Education doesn’t just raise incomes; it improves lives across generations.
Image: Xavier Galeana / AFP
India’s legacy of learning runs deep. From Vedic gurukuls to Nalanda and Takshashila, education was sacred: Rooted in inquiry, discipline, and public purpose. Learning wasn’t transactional, it was transformational.
That ethos shaped some of the world’s most influential thinkers. From Silicon Valley to the civil services, Indian-origin leaders have left their mark. But the model that powered their rise—content-heavy, exam-focussed learning—is losing relevance. In an age where technology can automate anything repeatable and AI takes on real-time decision-making, value lies in what machines and AI can’t mimic: Collaboration, adaptability, multi-disciplinary thinking and real-world problem-solving. Skills the current education system often sidelines.
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Today, with over 800 million Indians under the age of 35, and nearly 59,000 higher education institutions, India stands at a defining moment. Degrees may signal progress, but the true return on education lies in how well we unlock human potential.
Education doesn’t just raise incomes; it improves lives across generations. Each additional year of schooling boosts individual earnings by nearly 10 percent and national GDP by up to 18 percent. Girls with secondary education are three times less likely to marry early due to increased empowerment and knowledge. These are the real returns on investing in human potential.
Yet the system remains misaligned. Over 80 percent of Indian employers report difficulty finding skilled talent (Global Talent Shortage Survey, 2025; Manpower Group), even as most recruiters now prioritise skills over degrees, says the Unstop Talent Report 2025. At the same time, the Future of Jobs report estimates that 63 percentage of India’s workforce will need retraining by 2030.
