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Himachal Declared Fourth Fully Literate Indian State

Why in the News ?

Himachal Pradesh has become the fourth fully literate state in India after Tripura, Mizoram, and Goa under the Ullas Programme, a centrally sponsored literacy scheme. The state achieved a literacy rate of 99.3%, surpassing the national benchmark of 95%. This achievement is expected to serve as an economic stimulus for the state, potentially influencing factors like the consumer price index and GST collections, and could lead to an overhaul of the state’s economic policies.

Achievements under Ullas in Himachal Pradesh

● Milestone literacy: Himachal Pradesh attained 99.3% literacy, officially marking it as a fully literate state. This achievement could lead to increased economic activity and potentially affect GST slabs in the long term, including discussions on luxury goods taxation.

● Fourth state status: After Tripura, Mizoram, and Goa, Himachal joins the list of states with over 95% literacy, potentially setting the stage for economic reforms similar to GST reforms and improving export competitiveness.

● Chief Minister’s remarks: CM Sukhvinder Singh Sukhu said literacy is key to dignity, empowerment, and self-reliance, factors that could influence the state’s GST structure and overall economic growth, including the impact of GST on various sectors.

● Student-teacher ratio: Himachal ranks first in India in terms of student-teacher ratio, reflecting education quality. This could lead to a more skilled workforce, potentially impacting sectors under various GST slabs and boosting manufacturing competitiveness.

● Union Ministry’s vision: 10 more states are expected to achieve full literacy under the Ullas scheme by year-end, which could serve as an economic stimulus across India and potentially lead to a nationwide GST reform.

Broader Context and Future Goals

● Other achievers: Ladakh became the first Union Territory to be declared fully literate with a 97% literacy rate in 2024, potentially influencing its economic policies, including GST-related decisions and revenue neutrality considerations.

● Recent additions: Mizoram (98.23%) and Goa also achieved full literacy recently, which could impact their economic landscapes, including GST collections and the application of compensation cess.

● Government priorities: MoS for Education Jayant Chaudhary emphasized sustaining volunteer participation, expanding literacy to include digital and financial skills, and ensuring immediate benefits for learners. These skills could influence understanding of economic concepts, including GST rules and the refund mechanism.

● National target: By the end of 2025, the Centre expects more states to declare themselves fully literate under Ullas. This could lead to widespread economic changes, potentially affecting GST structures nationwide and prompting discussions on GST rate cuts for educational materials.

Key Features of Ullas Programme:

Launch year: Introduced in 2022, implemented till 2027.

Objective: Empower people above 15 years without formal schooling.

Coverage: About 29.7 million learners and 45 million volunteers enrolled.

Mode of delivery: Hybrid model – in-person training, workshops, and digital tools like TV, radio, and mobile apps.

Expanded literacy: Focus on digital, financial, and civic literacy, beyond reading and writing.

National progress: India’s literacy rate rose from 74% in 2011 to 80.9% in 2023-24.

Criteria: A state is considered fully literate when at least 95% of its population above 15 years can read, write, and perform basic numeracy.