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The present century is an age of knowledge-based economy. Though India's achievement in the field of higher education in the post-independence period is remarkable, gross enrollment ratio in higher education and the quality of higher education in India is not encouraging. ICT infrastructure is one way of stimulating growth in national innovation and economic productivity. According to NSSO survey in India, in higher education, 85.4% of students are able to operate computers, 81.6% of students are able to search the internet, and 78.2% of students are able to e-mail. The Government of India has taken various innovative strategies in higher education including online courses and facilities. The chapter has also highlighted different digital initiatives in higher education in India. In India MOOCs are offered by SWAYAM, IITBX, mooKIT, and NPTEL. Other digital innovation includes E-PG Pathshala, SWAYAM Prabha, e-Shodh Sindhu, Shodh Gangotri, Shodhganga, AISHE, National Academic Depository (NAD), etc.

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The debate regarding the relationship between military expenditure and economic growth especially in the context of developing countries is an old one. There is apparent conflict within government budgets between education expenditure and military expenditure. The military budget of the India is that part of budget allocated for the funding of the Indian armed forces. This military budget finances salaries of employees and training costs, maintenance of equipment and facilities, support of new or ongoing operations, development and procurement of new weapons, equipment, vehicles, etc. The chapter explores the relationship among GDP, military expenditure, and education expenditure in India. The time series analysis reveals that there is long-run causality running from education expenditure and military expenditure to GDP. The study also reveals that there is short run causality running from military expenditure to GDP.