ABSTRACT
This chapter investigates the validity of the theory that English language affects the growth of India, and positively so. To start with, the theoretical dynamics that shape the language-growth relationship are discussed, and a theoretical conceptualisation of the relationship is proposed. The chapter then presents the review of a few pieces of global literature that highlight the positive relationship between the English language and economic indicators at individual, industrial and national levels. Subsequently, the quantification of the impact of the language on individual earnings and the relationship of the language with state growth in India is presented.
The chapter concludes that hourly wages are on an average 34%higher for individuals who speak fluent English and 7%higher for individuals who speak little English relative to those who speak no English. The returns on English are the most significant and greatest in service sector jobs – the sector that is predominantly responsible for the economic growth of India. The state-level growth in India is also affected by this language, as the response of the growth in gross state national product to physical capital investment is higher the larger the number of English speakers in the states.
