The study said that only 25 per cent of children enrolled in Class V could read simple English sentences and around 26 per cent of Class III students could do a two-digit subtraction.
The Annual Status of Education Report-2014 by Pratham, widely followed by policy makers and educationists, covered more than 15,000 government schools of which 8,844 were primary schools and 6,362 were upper primary schools.
The report said that the percentage of children in Class II who still cannot recognize numbers up to 9 has increased from 11.3 per cent in 2009 to 19.5 per cent in 2014.
Similarly, the ability to do division among class VIII students has been dropping since 2010. The proportion of Class VIII students who could correctly do a three digit by one digit division problem was 68.3 per cent in 2010 and the number has dropped to 44.1 per cent in 2014.
Talking about English, it said that children's ability to read the languages is relatively unchanged in lower primary grades.
In 2014, 25 per cent of the children enrolled in class V could read simple English sentences and this number is virtually unchanged since 2009.