I Would to express my special thanks of gratitude to my

economics teacher Mr. Anmol sir for their able guidance

and support in completing our project.
I come to know about so many thing I am really thankful
to them . Secondly I would also like to thank my friend
who helped me a lot in finalizing the project within the
limited framework.
RS HAMSEN
CLASS-11 B
Just as a country can turn physical resources like land
into physical capital like factories, similarly it can also
turn human resources like students into engineers and
doctors.
Societies need sufficient human capital in the first place-
In the form of competent people who have themselves
been educated and trained as professors and other
professionals. This means that we need investment in
human capital out of human resources.
Education
Health
On-the-Job-Training
Migration
Information
Spending on education by individuals
is similar to spending on capital
goods by companies with the
objective of increasing future profits
over a period of time.
Likewise, individuals invest in
education with the objective of
increasing their future income.
Health is important for the development of an
individual.
Medicines, provision for clean drinking water and
good sanitation are various forms of health
expenditures.
Health expenditure directly increases the supply of
healthy labour force and is, thus, a source of
human capital formation
Firms spend on giving on-the job-training to their
workers. This may take different forms:

The workers may be trained in the firm itself

under the supervision of a skilled worker.
The workers may be sent for off-campus training.

In both these cases firms incur some expenses. Thus

they insist that the workers should work for a specific
period of time, after their on-the-job training, during
which it can recover the benefits of the enhanced
productivity owing to the training.
People migrate in search of jobs that fetch them
higher salaries than what they may get in their
native places.
Unemployment is the reason for the rural-urban
migration in India. Technically qualified persons,
like engineers and doctors, migrate to other
countries because of higher salaries that they may
get in such countries.
Migration in both these cases involves cost of
transport, higher cost of living in the migrated places
and psychic costs of living in a strange socio-cultural
setup.
People spend to acquire information relating to
the Labour market and other markets like
education and health.
This information is necessary to make decisions
regarding investments in human capital as well as
for efficient utilisation of the acquired human capital
stock.
Expenditure incurred for acquiring information
relating to the labour market and other markets is
also a source of human capital formation.
 HEALTH AS A HUMAN RESOURCE

We should try our best to improve the health

standards of the citizens eradicate diseases such as
malaria, smallpox, polio, tetanus etc.
Illness is a part of human life so there should be
sufficient number of hospitals and dispensaries to
cure ailing patients.
Health helps indirectly the economic development
by supplying active, energetic and healthy working
force, which activates the entire production process.
 EDUCATIONAL SECTOR IN INDIA

Primary education
1) The Indian government lays emphasis to primary education up to
the
age of fourteen years.

2) 80% of all recognized schools at the Elementary Stage are

government run or supported, making it the largest provider of
education in the Country.

2) Figures released by the Indian government in 2011 show that there

were 5,816,673 elementary school teachers in India.

4) Education has also been made free for children for 6 to 14 years of
age or up to class VIII under the Right of Children to Free and
Compulsory Education Act 2009.
EDUCATIONAL SECTOR IN INDIA

Secondary education
 EDUCATIONAL SECTOR IN INDIA

➢ India's higher education system is the third largest in the world,

after China and the United States.

➢ The main governing body at the tertiary level is the University

Grants Commission (India), which enforces its standards,
advises the government, and helps coordinate between the
centre and the state.

➢ Some institutions of India, such as the Indian Institutes of

Technology (IITs), have been globally acclaimed for their
standard of undergraduate education in engineering.
Human Capital is undoubtedly superb biological
computer . It enables thinking process . Man
has head start over other species . Men are
rational their decision making . It requires that
the people must be literate , educated and
skilled .
In order to become more efficient and
productive people should be trained , skilled and
professionally qualified .
It is rightly said that the average overall lifetime
earning of a graduate is more than a matriculate.
Human Resource refers to the population of a
country and the efficiency, productivity, skill and
farsightedness of its inhabitants. Education is an
important factor for the development of human
resources:
Education improves upon the level of understanding.
It increases the capacity and mental efficiency of
people to produce more.
Technical education develops the efficiency among
the laborers to use highly advanced techniques of
production.
Education modernizes the attitudes and behaviors of
the people which is important for rapid growth of the
economy.
➢ Increases production - Knowledgeable , skilled ,
qualified persons can contribute their maximum to
the economy . They can increase production through
optimum utilization of resources .
➢ Increases productivity – It promotes innovations ,
creativity and new technology so that maximum
possible time and cost.
➢ Improve quality of life – Human capital formation
focuses on quality of population , better the quality
of population more will be the economic growth and
development .
➢ Creates positive attributes – People with
positive attributes are more open to creativity
and innovations and are rational in their
decision making .
➢ Life expectancy – Human capital formation
increases the life expectancy of people.
➢ Rising Population-Large size of population adversely
affects the quality of human capital formation.
Larger the population, more capital is required for
the purpose of investment in education and health.
➢ High level of Poverty-Major section of Indian
population living under poverty line finds it difficult
to arrange basic necessities of life. Hence, they
cannot afford quality education and health facilities.
➢ Brain drain-The migration of highly skilled workforce
to other countries for better jobs is known as brain
drain. Due to brain drain country loses it’s qualified
and skilled workforce affecting the process of
economic growth.
 Low academic formation- In our enthusiasm to
spread higher education we have opening many
universities unmindful of their academic standard.

 Insufficient of job -Primary sector is the bone of

indian economy but unfortunately has not received
due attention in the area of professional skills.
 HUMAN DEVOLOPMENT
INDEX

The Human Development Index (HDI) is a

composite statistic of life expectancy,
education, and income indices to rank countries
into four tiers of human development. It was
created by economist Mahbub ul Haq, followed
by economist Amartya Sen in 1990,and
published by the United Nations Development
Programme.
 Large number of illiterate-India harbours the large
number of illiterate in the world. Presently nearly 36
crore people are estimated to be illiterate.
 Inadequate vocationalisation- Education continues to
be largely degree oriented throwing millions of
education youth down to the corridor of employment
exchange.
 Gender bias- There is a significant gender bias in
offering opportunities of education to male and
female children. The enrolment ratio in relatively low
for the female candidate and their drop out ratio is
considerably high.
 Low rural access level-There is a high degree of
disparity in access to education. There access level
is considerably low for the rural population
compared to the education.

 Privatisation- There is a growing trend toward

privatisation of education. Being very expensive
private education has tended to widen gulf between
access level for the rich and the poor.