Neuroscience and longitudinal studies of early childhood development and education (ECDE) found that prenatal care and experiences from birth to the first six years (0-6), affect physical and brain development of children, and thereby the cognitive and socio-emotional development in subsequent stages of their lives. Lack of access to nutrition and health care, insufficient stimulating human interaction, and non-enrollment in pre-primary education are associated with lower educational attainment and achievement, which, in turn, reduce life-time earnings and potentially contribute to disruptive behavior to society. Investing in ECDE yields the highest economic returns because early learning and formation of good habits and social skills are far more productive than later, remedial education and training. The internal rates of return of rigorously evaluated ECDE programs range from 7 percent to 18 percent, which are higher than the rates of return to financial capital. Investments in ECDE are one of the most cost-effective strategies to break the inter-generational transmission of poverty, and to improve productivity and social cohesion in the long run. The report considers it highly desirable to universalize ECDE for the 0-6 age group in the long run because it equalizes opportunities and enhances the country's future competitiveness. But the report focuses on the medium term and advocates a two-pronged, pro-poor approach in the 12th Five Year Plan (2011-2015).