Economic development refers to an increase in the production levels of a country along with an improvement in the quality of life.
The following points explain the role of education in the economic development of a nation:

• Enhances Productivity: Education adds to the quality of labour by improving skills and knowledge. It enhances total productivity and growth in the economy. It enhances the income earning capabilities of the people. Education turns human resources into human capital like engineers, doctors, teachers etc.
• Expands mental horizon: Education helps people in making better and rational choices more intellectually. Education churns out good citizens by inculcating values in them.
• Develops science and technology: The availability of educated workforce facilitates adaptation and invention of new technologies. It facilitates the use and growth of innovative skills.
• Raises standard of living: Education induces greater employment and opens the doors to better jobs and salary. Thereby, raises the standard of living and improves quality of life.
• Increases participation rate: Education raises the rate of participating by making population capable of participation in economics, political and social activities of the nation.
• Provides solutions for socio-economic problems: High rate of participation induces greater degree of economic and social equality in the society which points towards economic development. An educated society can tackles its socio economic problems in a much better manner than an uneducated society.