Literacy in India is a key for socio-economic progress, and the Indian literacy rate has grown to 74.04% (2011 figure) from 12% at the end of British rule in 1947. Although this was a greater than sixfold improvement, the level is well below the world average literacy rate of 84%, and of all nations, India currently has the largest illiterate population. Despite government programmes, India's literacy rate increased only "sluggishly", and a 1990 study estimated that it would take until 2060 for India to achieve universal literacy at then-current rate of progress. The 2011 census, however, indicated a 2001–2011 decadal literacy growth of 9.2%, which is slower than the growth seen during the previous decade.
There is a wide gender disparity in the literacy rate in India: effective literacy rates (age 7 and above) in 2011 were 82.14% for men and 65.46% for women. The low female literacy rate has had a dramatically negative impact on family planning and population stabillisation efforts in India. Studies have indicated that female literacy is a strong predictor of the use of contraception among married Indian couples, even when women do not otherwise have economic independence. The census provided a positive indication that growth in female literacy rates (11.8%) was substantially faster than in male literacy rates (6.9%) in the 2001–2011 decadal period, which means the gender gap appears to be narrowing.
The current literacy rate of India is 74.04%.
The table below shows the adult and youth literacy rates for India and some neighbouring countries in 2002. Adult literacy rate is based on the 15+ years age group, while the youth literacy rate is for the 15–24 years age group (i.e. youth is a subset of adults).
Now of the main factors contributing to this relatively low literacy rate is usefulness of education and availability of schools in vicinity in rural areas. There is a shortage of classrooms to accommodate all the students in 2006–2007. In addition, there is no proper sanitation in most schools. The study of 188 government-run primary schools in central and northern India revealed that 59% of the schools had no drinking water facility and 89% no toilets. In 600,000 villages and multiplying urban slum habitats, 'free and compulsory education' is the basic literacy instruction dispensed by barely qualified 'para teachers'. The average Pupil Teacher Ratio for All India is 42:1, implying teacher shortage. Such inadequacies resulted in a non-standardized school system where literacy rates may differ. Furthermore, the expenditure allocated to education was never above 4.3% of the GDP from 1951 to 2002 despite the target of 6% by the Kothari Commission. This further complicates the literacy problem in India.