Building and Managing a Knowledge-Based Society in India

One of the most important factors of human capital formation is higher education. When studied in the Indian context it is found that states with more colleges and professional institutes showed greater increase in per capita net state domestic product than states with fewer such colleges and institutes. This reinstates the new endogenous growth theory in the context of states implying that states with more emphasis on higher and professional education will have higher growth. Also poverty prone states can prosper if they give proper emphasis on higher and technical institutions. Given the financial implication we may not be able to rejuvenate the entire educational system but if we need to maintain and sustain our knowledge boom we should go for small changes like common entrance tests, common syllabus and common examinations.