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Challenges to Human Capital Formation in India. What we can do?. What is Human Capital ?. Human capital refers to the stock of skills and knowledge gained by a worker through education and experience to perform labour so as to produce economic value. Human Capital : Sources.

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Challenges to Human Capital Formation in India

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Challenges to human capital formation in india l.jpg

Challenges to Human Capital Formation in India

What we can do?


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What is Human Capital ?

Human capital refers to the stock of skills and knowledge gained by a worker through education and experience to perform labour so as to produce economic value.


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Human Capital : Sources

Investment in:

  • Health

  • Education

  • On-the-job-training

  • Migration

  • information


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Human Capital and Economic Growth

  • Enhanced productivity of human capital contributes substantially not only towards increased labour productivity but also stimulate Economic Growth

  • Human capital formation and growth are positively correlated


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Human Capital Formation; Problems and Solutions: International Experience

Problems:

  • Lack of good health facilities

  • Poor quality of education

  • Educated unemployment

  • Lack of skilled manpower


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Problems in Human Capital Formation in India

  • Brain Drain

  • Poor quality of Health care

  • Poor investment in human capital

  • Migration

  • Lack of skilled manpower

  • Asymmetric information


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Measures taken for solve the problems in Human Capital formation in India

  • HRHM adopted

  • Made elementary education compulsory

  • Made on the job training and Vocationalisation compulsory elements of curriculum

  • Various employment exchanges opened throughout the country


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Critical Appraisal of the Measures taken to improve Human Capital Formation in India

  • Coverage of NRHM was not universal

  • Employment exchanges became outdated and was not catering the needs of the job seekers


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Imagine, 12 percent of all American scientists are of Indian origin; 38 percent of doctors in America are Indian; 36 percent of NASA scientists are Indians; 34 percent of Microsoft employees are Indians; and 28 percent of IBM employees are Indians.    For the record: Sabeer Bhatia created and founded Hotmail. Sun Microsystems was founded by Vinod Khosla. The Intel Pentium processor, that runs 90 percent of all computers, was fathered by Vinod Dham. Rajiv Gupta co-invented Hewlett Packard's E-speak project. Four out of ten Silicon Valley start-ups are run by Indians. Bolly wood produces 800 movies per year and s ix Indian ladies have won Miss Universe/Miss World titles over the past 10 years.    For the record: Azim Premji, the richest Muslim entrepreneur on the face of the planet, was born in Bombay and now lives in Bangalore.India now has more than three dozen billionaires; Pakistan has none (not a single dollar billionaire).

Amazing facts about Indian Human Capital


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What We Can Do?

  • The first step to solve this problem should come from our side

  • Serve our country first

  • Discourage Brain Drain

  • Free and Compulsory secondary education


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Thank You


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