HUMAN CAPITAL FORMATION IN INDIA

HUMAN CAPITAL FORMATION IN INDIA

After studying this chapter, the learners will understand the concepts of Human Resource, Human Capital Formation and Human Development the links between investment in human capital, economic growth and human development the need for government spending on education and health the state of India's educational attainment.

the wisdom of expending public and private funds on education is not to be measured by its direct fruits alone. It will be profitable as a mere investment, to give the masses of people much greater opportunities than they can generally avail themselves of. For by this means many, who would have died unknown, are enabled to get the start needed for bringing out their latent abilities.

Four point one. INTRODUCTION

Think of one factor that has made a great difference in the evolution of mankind. Perhaps it is human capacity to store and transmit knowledge which they have been doing through conversation, through songs and through elaborate lectures. But humans soon found out that we need a good deal of training and skill to do things efficiently. We know that the labour skill of an educated person is more than that of an uneducated person and hence the former is able to generate more income than the latter and his or her contribution to economic growth is, consequently, more.

Education is sought not only as it confers higher earning capacity on people but also for its other highly valued benefits: it gives one a better social standing and pride; it enables one to make better choices in life; it provides knowledge to understand the changes taking place in society; it also stimulates innovations. Moreover, the availability of educated labour force facilitates adaptation of new technologies. Economists have stressed the need for expanding educational opportunities in a nation as it accelerates the development process.