Abstract. The main factors behind modern education system are, subjects taught from primary schools to universities. Information, theories, concepts, ideas, life stories – everything is western. Today it is known by English medium education. Someone rightly said that “If we want to destroy any people or nation without any blood transfusion and without zipping a bomb then it is necessary to separate the person from his religion, culture and language”.

Hence these three parameters (religion, culture and language) play a significant role in nation transformation but we will consider only one parameter in this paper i.e. language. To find out the effect of medium of instruction in education on social and economic aspects, the researcher will select all the countries having developed, developing and miserable economy of the world.

Further, this paper had discussed about the effect of English medium education in higher education on economic development. “Till date, as far as I know no study in economic growth has investigated the effect of English on growth either empirically or theoretically. A small number of studies have considered the importance of language for spillovers”. So, researcher is curious to know the spillover effect of English language on the economic development.

Keywords: education and human development, economic thought, human growth and development, India.