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Literacy is the most important element which helps fostering development and improvement of living standards in a society. The higher literacy rate means that people in that country would be more aware and productive. It also means that government will create more jobs to utilize the skills of the literate people which would ultimately lead to the increase in output produced by the country. Hence, literacy overall affects the economic condition and is an important indicator for assessing the overall health of a country. The countries which are more developed have high literacy rates as compared to less developed countries which further describe the importance of literacy. Lower literacy rate means that greater proportion of a country's population is not capitalizing on its skills which could be utilized if the population would have been literate. This results in overall decline in national income and put a country into a bad condition.
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