Abstract: The importance of the early years of life is increasingly being recognised not only in the field of education but also in discussions of economic development and human capital. The period from birth to eight years is a stage of rapid development, during which children gradually develop the cognitive, language, physical, social and emotional abilities that support later learning and participation in society. This paper examines Early Childhood Education (ECE) from an economic perspective, focusing on the idea that investment in young children can contribute to the formation of human capital. The study examines why birth to eight years of age require special attention , how early life experiences can impact later academic and economic prospects and why disparities in access to quality early learning services can lead to broader educational and economic and social disparities . The Indian setting is evaluated using specific reference to the National educational policy (NEP) 2020 and  Early childhood care and education (ECCE). The study  also explores the challenges connected with investment in early childhood, including disparities in domestic resources, limited availability of quality services, poor infrastructure, insufficient trained staff, difference between rural and urban areas and limited awareness among parents.The discussion indicates that investment in ECE should not be seen merely as pre-school expenditure , but should be viewed from a wider perspective of a human capital investment. To provide children with good foundation and development , it is essential to have stronger coordination between wellness, education, nutritional well-being, supportive social network together with focus on equality and quality.

Keywords: Early Childhood Education, Early Childhood Care and Education, human capital, economic investment, birth to eight years, India, NEP 2020, educational inequality.