Literacy is a reasonably good indicator of development in a society. Spread and diffusion of literacy is generally associated with essential trait of today's civilization such as modernization, urbanization, industrialization, communication and commerce.
According to census of India 2011, the total population of India is 1.21 billion. There is an increase of 181 million people in the last 10 years to add up to 1.21 billion.
India’s literacy level has increased by 9.21% in the past 10 years to reach 74.04%, according to provisional data of the 2011 census
According to the data, literates constitute 74% of the total population, aged seven and above, and illiterates form 26%.

The literacy rate went up from 64.83% in 2001 to 74.04% in 2011 showing an increase of 9.21%.
Interestingly, females literacy level saw a significant jump as compared to males between 2001-2011.
While female literacy in 2001 stood at 53.67%, it has gone up to 65.46% in 2011. The male literacy in comparison rose from 75.26 to 82.14%.
Kerala with 93.91% continues to occupy the top position among states in the field of literacy while Mizoram’s Serchhip (98.76%) and Aizawl (98.50%) recorded highest literacy rates among districts.
Lakshadweep followed Kerala with a literacy level of 92.28%, while Bihar remained at the bottom of the ladder with a literacy rate of 63.82% followed by Arunachal Pradesh at 66.95%.
Ten states and UTs viz. Kerala, Lakshadweep, Mizoram, Tripura, Goa, Daman and Diu, Puducherry, Chandigarh, NCT of Delhi and Andaman and Nicobar Islands achieved literacy rate of above 85%, the target set by the Planning Commission to be achieved by 2011-12.
The gap of 21.59 percentage points recorded between male and female literacy rates in 2001 census has reduced to 16.68 percentage points in 2011. Planning Commission has set up target of reducing this gap to 10 percentage points by 2011-12.
List of Steps taken by Government of India to improve Literacy Rate in India:
Free education programs to poor people living in villages and towns.
Setting up of new school and colleges at district and state levels.
Several committees have been formed to ensure proper utilization of funds allotted to improve literacy rate.
With the advancement and increase in the literacy rate India will surely shine in almost all the fronts. The recent moment of India winning the world cup is an example of the same. Improved literacy rate will positively impact the employment rate- That is a higher literacy rate will certainly decrease unemployment. With more education, people will be more confident, aware and can think of more opportunities and further will realise that there are many areas for self employment or for development of entrepreneurs. Service or a job alone is not the only source of employment. True and worthwhile Education will lead to more self employment ventures and also the prevalent notion that only white collar jobs are the only source for gainful employment.
Lack of literacy skills and a good general education amongst the population has a significant impact on employment. Take for example, all those social workers, fraud benefit officers, post office workers, police, health visitors, Sure start workers, prison and probation officers and migrant workers who would be out of a job if everyone suddenly had improved skills. Well, that and the right attitude, but attitudes come from parents and communities.