This study investigates the relationship between female literacy rate and economic growth in India, focusing on the period of 1991 to 2021, to show the importance of higher female education in impacting the economy of the country. The analysis employs secondary data sourced from authoritative institutions such as the Ministry of Statistics and Programme Implementation (MOSPI) and the World Bank’s World Development Indicators (WDI). The independent variable, the female literacy rate, measures the percentage of women aged 7 and above who can read and write with understanding. The female literacy rate is examined against the dependent variable, GDP growth rate (annual percentage change in gross domestic product). This research paper attempts to analyse inter-state disparities in India; it examines the connections between women's economic participation and literacy. The study shows that by improving the education rate of women in India, we are also improving not only the economic growth of the country but the social status of women in society as well. There is an increase in rural areas in the education of women. The government has introduced several schemes to increase the literacy rate of women as well. To promote inclusive and economic development, it is essential to implement policy measures that support gender equity in education, particularly in rural and marginalised areas. This paper suggests that a higher literacy rate not only drives economic growth but also improves work efficiency, productivity, and innovation among individuals, which are all necessary for national development.