Higher Education and Economic Growth in India: A Granger Causality Analysis

This study examines the causal relationship between higher education and economic growth in India as well as the degree to which these two variables are co-integrated. The analysis uses secondary data from the Central Statistical Office, the Ministry of Education, and the RBI statistical bulletin, which covers the years 2002–2022. For the period under examination, data on GDP, higher education spending, and student enrolment for the 18–23 year age range were gathered. This study examines the long-term relationship and possible causal relationships between higher education and economic growth in India using Granger causality analysis and Johansen co-integration. The relationship between higher education and economic growth has been a topic of significant interest and debate among policymakers, researchers, and economists. In the context of India, a country experiencing rapid economic development, understanding the dynamics between higher education and economic growth becomes crucial for informed policy decisions. By identifying the key variables and employing rigorous statistical techniques, this study seeks to provide empirical evidence on the impact of higher education on India’s economic growth, shedding light on the importance of investing in education for sustainable development.