THE VALUE OF AN EDUCATION IN THE ECONOMIC GROWTH OF AN UNDERDEVELOPED COUNTRY (INDIA) WAS INVESTIGATED USING THE CASE STUDY APPROACH. DATA WERE GATHERED AT BOTH THE CENTRAL GOVERNMENT AND VILLAGE LEVELS THROUGH INTERVIEWS WITH INDIAN GOVERNMENT OFFICIALS AND FROM OFFICIAL GOVERNMENT PUBLICATIONS CONCERNING THE NATION'S EDUCATIONAL EFFORTS, AS REFLECTED IN SUCH THINGS AS LITERACY RATES, SCHOOL ENROLLMENTS, SCHOOL DROPOUTS, AND MANPOWER. THE VILLAGE OF RAAJPUR IN UTTAR PRADESH PROVINCE WAS SELECTED FOR AN INTENSIVE LOCAL STUDY, PRIMARILY BECAUSE OF CONTACTS ESTABLISHED THERE DURING AN EARLIER STUDY OF THE EFFECT OF INDUSTRIALIZATION ON THE HINDU ETHIC AND SECONDLY BECAUSE OF ITS MODERN SUGAR FACTOR WHICH REPRESENTED A PROTOTYPE OF THE FUTURE DEVELOPMENT WHICH MANY INDIAN PLANNERS ENVISION. INTERVIEWS WITH OFFICIALS OF THE SUGAR MILL, SCHOOL ADMINISTRATORS AND TEACHERS, PUPILS, AND PARENTS WERE CONDUCTED OVER A 3-MONTH PERIOD. IN ADDITION, A QUESTIONNAIRE WAS ADMINISTERED TO 5TH, 6TH, 9TH, AND 11TH GRADE PUPILS. THE INTERVIEWS AND QUESTIONNAIRE WERE STRUCTURED TO ELICIT THE ATTITUDES HELD BY RESPONDENTS CONCERNING THE ECONOMIC RETURNS OF AN EDUCATION. EDUCATIONAL PROGRAMS IN INDIA ARE NOT CONDUCIVE TO THE DEVELOPMENT OF MARKETABLE SKILLS AND THAT MORE ATTENTION TO THIS AREA IS NEEDED IF EDUCATION IS TO ACHIEVE MAXIMUM UTILITY AS AN INSTRUMENT FOR ECONOMIC GROWTH. (JH)