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With one of the largest populations in the world, India is not able to support the quality of education needed for economic development.

"India has made a huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately two thirds of the population. India's improved education system is often cited as one of the main contributors to the economic rise of India. Much of the progress in education has been credited to various private institutions. The private education market in India is estimated to be worth $40 billion in 2008 and will increase to $68 billion by 2012. However, India continues to face challenges. Despite growing investment in education, 40% of the population is illiterate and only 15% of the students reach high school. As of 2008, India's post-secondary high schools offer only enough seats for 7% of India's college-age population, 25% of teaching positions nationwide are vacant, and 57% of college professors lack either a master's or PhD degree. There are 1,346 degree-granting engineering colleges in India with an annual student intake of 440,000, plus 1,244 polytechnics with an annual intake of 265,000. However, these institutions face shortage of faculty and concerns have been raised over the quality of education.

Without acquiring enough support to increase the quality of India's education, the economy will tend to suffer until educational assistance is obtained. Skilled jobs, which are higher paying, will leave India in search of better locations around the world. High paying jobs benefit the economy in multiple ways, from taxes to spending."

Source:http://en.wikipedia.org/wiki/Education_in_India