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Human Capital Formation in India
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This is the fifth lesson in the course which focuses on the concept of human resources, human development and human capital formation. it also looks into the links between investments in human capital and economic growth. Government spending on education and health is also discussed in this lesson. The last part of this chapter is India's educational attainment

Apurva Jha
B.Sc (EMS), MA(Applied Economics), Public speaker, nail art designer. Reading books, listening music, singing and watching movies.

U
Unacademy user
The report on global growth centres...there will be an incrrase in 40% in average years of schooling of world...or of India only??
mam first of all u have to start lesson by defining the human capital
Before proceeding to any topic it is important to explain its meaning. You started explaining about 'Sources of Human Capital' but you didn't tell what is 'Human Capital'.
When compared to less educated , a large portion of educated persons are unemployed.WHY?
thnku so much mam😊
  1. ABOUT ME NAME- APURVA JHA GRADUATED IN ECONOMICS. MATHS AND STATISTICS MASTERS IN APPLIED ECONOMICS FROM CHRIST UNIVERSITY BANGALORE HOBBIES- WATCHING MOVIES, READING BO0KS, COOKING RATE, REVIEW AND RECOMMEND


  2. CHAPTER 5 HUMAN CAPITAL FORMA TION IN INDIA


  3. OBJECTIVES . Human resource, Human capital formation and Human Development Links between investment in human capital, economic growth and human development Government spending on education and health . India's educational attainment


  4. SOURCES OF HUMAN CAPITAL 1) Education 2) Health- . Preventive medicine (vaccination) Curative medicine (medical intervention) Social medicine (spread of health literacy) 3) On the Job Training . Expenses incurred by firm 4) Migration . Unemployment causes rural-urban migration Technically qualified persons migrate to other countries High cost of living, psychic cost of living 5) Information- Expenses incurred to gather information about labour market, education and health


  5. DIFFERENCES IN HUMAN AND PHYSICAL CAPITAL BASIS PHYSICAL CAPITAL HUMAN CAPITAL Based on one's knowledge Investment is done when one is unableto decide INVESTMENT DECISION Owner of physical capital need not be present PRESENCE Owner needs to be present Completely mobile Restricted by nationality and culture MOBILITY DEPRECIATION Use and change of technology Ageing BENEFITS Mostly to the owner External Benefit


  6. HUMAN CAPITAL AND ECONOMIC GROWTH Factors of economic growth- Education, health, on the job training, migration, job market information They increase both labour productivity and leads to innovation Studies shows that human capital growth in developing countries is faster but the growth in per capita income is not that fast Higher income Higher human capital Difficult to establish a cause and effect relationship, but both of them have grown simultaneously


  7. REPORT ON HUMAN CAPITAL AND ECONOMIC GROWTH Report on Global Growth Centres- Report on India and the Knowledge Economy- Leveraging Strength and Opportunities If India uses its knowledge economythen the per capita income will increase from $1000(2002)-$3000(2020) India will emerge as one among 4 major growth centres by 2020 . Between 2005-2020, 40% rise in average years of education


  8. HUMAN CAPITAL AND HUMAN DEVELOPMENT . HUMAN CAPITAL- Human beings are a mean to a END (increase in productivity) Investment in health and education is unproductive if it doesn't enhance the output . HUMAN DEVELOPMENT- Human beings are an end in themselves Every individual have a right to be literate and lead a healthy life


  9. EDUCATION SECTOR IN INDIA Government Expenditure on Education % of total government expenditure Represents importance of education 1952-2012(7.92%-11.7%) % of GDP How much income is committed to education * (0.64%-3.31%) RECOMMENDATIONS BY VARIOUS COMMITTEE . Education Commission (1964-66) > 6% of the GDP e Tapas Majumdar Committee (1988)> 1.37 Lakhs Crore over 10 years (1998-99 to 2006-07) . Right of Education Act> Free education rights to the children between the age 6-14 . Education Cess-2% on all union taxes


  10. STATE OF HUMAN CAPITAL FORMATION IN INDIA e Existence of both private and public institutions in education and health service Government- Private providers adhere to the standards stipulated by the government and charge the correct price . Education Sector-ministries of education and various organisation like NCERT, UGC and AICTE Medical Sector-Indian Council of Medical Research (IMCR)