The economic case for investing in India’s children

• Despite India's emphasis on demographic dividends, education, and employment, early childhood education (ECE) has long been overlooked and underinvested.
• Often limited to the household domain, ECE is now gaining recognition as a critical component of national development, especially with the government's focus on women-led development.

Importance of Early Childhood Education

• ECE lays the foundation for human development, making it essential for the overall progress of a nation.
• While India has made strides in primary education, there is a growing realisation that addressing learning deficits must begin earlier, targeting children under six years old.

Government Initiatives and Budget Allocations

• The Indian government has introduced initiatives like NIPUN Bharat and Poshan Bhi Padhai Bhi to enhance foundational literacy, numeracy, and overall ECCE quality.
• The interim Budget 2024's commitment to upgrading Saksham Anganwadis and providing healthcare services for Anganwadi workers is a positive step.
• Budget allocations for teaching-learning materials have tripled, indicating increased investment in ECE.
• However, compared to other sectors, ECE funding remains relatively modest, highlighting the need for further investment.

Impact of the Anganwadi System

• Research shows that children attending Anganwadis demonstrate cognitive and motor skills improvement, reducing gender and income-related disparities.
  • According to a study in 2020, children exposed to the Anganwadi system from ages zero to three go on to complete 0.1-0.3 more grades of school.
• Nobel Laureate Heckman’s Perry Preschool study found that children who received high quality ECCE had improved socio-emotional development and grew into less violent adults.

Economic Implications and Research Needs

• Comprehensive research is needed to understand the macroeconomic implications of ECE investment, including its impact on GDP, public health expenditure, and social unrest.
• Longitudinal studies are essential to gauge the returns on investment in ECE, such as the Anganwadi system, on various outcomes.

Way Forward

• Investing in ECE is crucial for India's transition from a developing to a developed nation, mirroring the experiences of successful economies like the Asian Tigers.
• By prioritizing ECE, India can ensure the well-being of women and children and foster national progress.