"This is a welcome step," said Avinash Kumar, a campaigner with Oxfam aid group. "But often if you can write your name, you're considered literate. Many can't write one complete sentence in their mother tongue."
Despite a pledge to spend 6% of its budget on education, the government has spent only 3.1%, analysts said, and many eighth-grade students can't read or do math at first-grade levels. And many teachers can't pass eighth-grade level exams.
"There's a lot of talk of the population dividend of a young population," Kumar said. "If they're not employed usefully, how are you going to compete on the global stage vis-a-vis China? Obviously you don't have the productive muscle."
Conducting the census was a mammoth task in its own right. Training manuals were published in 18 languages as 2.5 million census workers fanned out to 640,000 villages and 7,300 towns and cities. The 10-month exercise grappled with millions of homeless people, Maoist insurgencies and extremely remote locations. Full results are expected in 2012.
A major debate centered on whether to ask for information on castes, which hadn't been done since the 1930s.
According to Hindu teachings, people are born into the caste of their parents, which assigns them a position in the social hierarchy for life. The four broad groupings, in order of status, are: Brahmins, or priests; Kshatriyas, or warriors; Vaisyas, merchants and farmers; and Sudras, manual workers. About 6,000 subcastes are delineated, made even more complicated by regional variations.
Critics feared that census questions about caste would increase caste-based discrimination, which is illegal under the constitution but nevertheless widespread. Newspapers carry pages of classified matrimonial advertisements each weekend listed by caste and sub-caste, often with the not-so-subtle message that so-called lower castes need not apply.
Supporters countered that a mapping of the caste landscape would give a more accurate picture of Indian society and help deliver aid to those most in need, including dalits, or so-called untouchables who fall outside the caste system, and tribal groups.
The governing Congress Party, which for decades had resisted the idea, reversed its position in an apparent bid to placate the many caste-based parties that wield growing clout in national and regional politics, and it was included.
During the last caste-based census, conducted under British rule, respondents tended to inflate their caste in an effort to improve their social status. With so many social programs now aimed at lower castes, experts fear the opposite, namely that people will understate their position to qualify for government benefits.
Source http://www.latimes.com/news/nationworld/world/la-fg-india-census-20110401,0,1602856.story

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