Education plays a vital role in human capital formation and economic growth. This study examines the relationship between educational investment, enrolment, and human capital development in India and Karnataka using data from 2000–2021 and a primary survey in Mysuru. Results show a strong positive correlation between government expenditure and enrolment, though gender and income disparities persist. Wealth and parental education significantly influence academic success. The study recommends increasing education spending, promoting gender equity, and enhancing quality through inclusive policies and public–private collaboration. Education must be treated as an investment for sustainable development.