The United Nations Educational, Scientific and Cultural Organisation (UNESCO) has drafted a definition of literacy as the "ability to identify, understand, interpret, create, communicate, compute and use printed and written materials associated with varying contexts. Literacy involves a continuum of learning in enabling individuals to achieve their goals, to develop their knowledge and potential, and to participate fully in their community and wider society."
The National Literacy Mission defines literacy as acquiring the skills of reading, writing and arithmetic and the ability to apply them to one's day-to-day life. The achievement of functional literacy implies (i) self-reliance in 3 R's, (ii) awareness of the causes of deprivation and the ability to move towards amelioration of their condition by participating in the process of development, (iii) acquiring skills to improve economic status and general well being, and (iv) imbibing values such as national integration, conservation of environment, women's equality, observance of small family norms.
The working definition of literacy in the Indian census since 1991 is as follows:
Literacy rate: The total percentage of the population of an area at a particular time aged seven years or above who can read and write with understanding. Here the denominator is the population aged seven years or more.
Crude literacy rate: The total percentage of the people of an area at a particular time who can read and write with understanding, taking the total population of the area (including below seven years of age) as the denominator.
Crude literacy rate = number of literate person divided by total population multiplied by 100
Effective literacy rate (or literacy rate) = number of literate persons aged 7 or above divided by population aged 7 and above multiplied by 100