What is the best way for Indian school going children to spend free time?

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Learn as much as possible from a young age, not because of the competition involved but the more you learn, the better you keep getting. It could be anything, playing video games, sports, dancing, etc.

Something to improve team dynamics such as interpersonal skills involved in football, cricket.

Let them go out and play, any outdoor sport would do.

They could take up a hobby!