The Economic Case for Investing in India’s Children

Context:

The necessity of economic investment in India’s children may appear self-evident, given the nation’s emphasis on the demographic dividend, education, and employment. However, the realm of early childhood education has persistently suffered from inadequate investment and exploration over the years. With the government’s growing emphasis on women-led development, as exemplified by a recent survey conducted by the Ministries of Women and Child Development and Labour on working women, care work, and early childhood is finally gaining recognition as integral to the essential functions of governing a country.

Relevance:

GS2- Education

Mains Question:

Has India seen an increased investment in terms of new policies and finances in early childhood care and education over the years? How can this propel India towards its goal of becoming ‘Viksit Bharat’? (15 Marks, 250 Words).

Initiatives Targeting Early Childhood Care and Education (ECCE):

• Shifting the focus earlier in the life cycle, the rationale for increased investment in Early Childhood Care and Education (ECCE) is fundamental—a nation’s human resources are built on the foundation of a human being’s early childhood.
• Over time, the developmental state in India has responded to parental aspirations for education, initially targeting first access, surpassing a 100% gross enrollment ratio at the primary level.
• The focus has now shifted towards ensuring quality education, with an increased emphasis on evaluating learning outcomes.
• Recognizing the challenges faced by India’s young learners, particularly a significant number of Standard three students struggling with basic reading and arithmetic skills, there has been a redirection of attention to an even earlier stage in the life cycle—children under six.
• This has given rise to endeavors like the Ministry of Education’s National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN) Bharat, which targets foundational literacy and numeracy. Additionally, the Ministry of Women and Child Development’s (MWCD) Poshan Bhi Padhai Bhi focuses on enhancing Early Childhood Care and Education (ECCE) quality through the Anganwadi system.
• The commendable commitment in the interim Budget 2024 includes expediting the upgrade of Saksham Anganwadis and extending Ayushman Bharat services to Anganwadi workers, Accredited Social Health Activists (ASHA), and helpers.
• In 2023, there was a notable increase in the allocation for teaching-learning materials, with the budget tripling from approximately ₹140 crore to ₹420 crore per annum.
• This assumption is based on the presence of 14 lakh Anganwadi centers serving India’s poorest eight crore children under the age of six.

The Anganwadi system:

• To provide context, the budgeted expenditure for centrally sponsored schemes in 2024-25, a substantial component of Centre-State fiscal transfers, is ₹5.01 lakh crore.
• Within this, the Anganwadi system is allocated about ₹21,200 crore, surpassing allocations for rural roads (₹12,000 crore) and irrigation (₹11,391 crore), but falling short of the National Education Mission (₹37,500 crore) and the National Health Mission (₹38,183 crore).
• In contrast, the Department of Higher Education receives approximately ₹47,619 crore, catering to around four crore enrolled learners, predominantly from the more privileged sections of Indian society.
• The Anganwadi system merits increased allocation and expenditure from both the Central and State governments, as supported by recent research.
• Quasi-experimental impact evaluations utilizing existing survey data have demonstrated notable enhancements in cognitive and motor skills among children attending Anganwadi centers compared to their counterparts, particularly narrowing gender and income-related disparities.
• A 2020 study indicates that children exposed to the Anganwadi system from ages zero to three tend to complete 0.1-0.3 more grades of school. While evidence at the individual level is accumulating, the broader macroeconomic implications are yet to be fully explored.
• To make informed decisions regarding expenditure on infrastructure, capacity building, materials, and staffing, it is crucial to align micro-level data with macro-level considerations, converting amounts from paise to lakh and crore.
• Estimates are essential to gauge the potential contributions to GDP resulting from the proven individual benefits of robust Early Childhood Care and Education (ECCE).
• These benefits include improvements in women’s physical and mental health, lifespan, public health expenditure, children’s educational attainment, as well as their physical and mental well-being, and the potential to mitigate social unrest.
• The renowned Perry Preschool study by Nobel Laureate Heckman revealed that children who received high-quality ECCE grew into less violent adults.
• The early development of robust socio-emotional skills may even play a role in preventing student suicides later in life.

Need for research in India:

• There is a pressing need for systematic and rigorous research in the Indian context, building upon the contributions of eminent scholars who have explored the macroeconomic and social implications of early childhood development.
• To formulate policies grounded in evidence, it is imperative to comprehend the opportunity cost associated with insufficient allocation of material resources, funds, and top-tier talent to the early childhood sector.
• While international researchers, such as those at the University of Chicago and Yale University, have indicated a 13% annual return on investment for every dollar spent on early childhood in the American context, similar longitudinal studies are crucial for India.
• These studies should investigate the impact of early childhood care, including the Anganwadi system, which stands as the world’s largest public provisioning system for Early Childhood Care and Education (ECCE).

Conclusion:

Considering that children born in 2024 will reach adulthood by 2047, India’s 100th year of independence and the targeted year for Viksit Bharat, it becomes evident that the trajectory from developing to developed nations, akin to the Asian Tigers, necessitates investments in human development. The earlier these investments are made, the more advantageous the outcomes. If the goal is to enable women to actively participate in the workforce and ensure the flourishing of India’s children, then investing in ECCE is undeniably the forward path. It is not merely child’s play; it is a strategic imperative.