INTRODUCTION

The Meaning of the Human Capital

The success depends in large part on the people with higher level of
competence. In response, the people are becoming valuable assets.
In the economic perspective, the capital refers to factors of
production used to create goods or services
The human is the subject to take charge of all economic activities
such as
production, consumption, and transaction.
Thus, it can be recognized that human capital means one of
production
elements which can generate added-values through inputting it.
Two Types of the Human Capital:
1. The first is to utilize human as labor force related to economic
added-value that is generated by the input of labor force as
other production factors such as financial capital, land,
machinery, and labor hours.
2. The other is that the human capital can be viewed as the target
of investment through education and training










1.CONCEPT ON HUMAN CAPITAL
Human capital refers to the stock of skill,ability,experise,education and
knowledge in the nation at a point of time.Human capital formation is the
process of adding to the stock of human capital overtime.
We need investment in human capital to produce more human capital out
of human resources.
1.1 Characteristics Of Human Capital

Indigenous Characteristics:

According to Crawford (1991), compared to physical labor, human
capital
includes expandable, self-generating, transportable, and shareable
characteristics.

To begin with, the expandable and self-generating characteristics of
human
capital are closely linked to the possibility that the stock of knowledge
increases individuals human capital.

Secondly, the transportable and shareable characteristics of human
capital
mean that the original holder of knowledge can distribute his/her
knowledge to others.

Impacts of Human Capital:
- Much possibility of increasing individual income, resulting from the
individual productivity (Becker, 1993; Denison, 1962; Schultz, 1961;
Schultz,
1971; Sidorkin, 2007)
- Workers possibility to move to higher level in the internal market
(Sicherman, 1991; Galor 1990)

Organization:- collective competences , organizational routines,
company culture; and relational capital (Edvison & Malone, 1997).
Society: The possibility of human capital for democracy, human
rights, and political stability on common consciousness of social
constituents (McMahon, 1999) Increase of social consciousness of
constituents within community (Beach, 2009).

1.2 Sources Of Human Capital Formation:

1. Expenditure on education.
2. Training.
3. Expenditure on health.
4. Migration.
5. Expenditure on information .

1.3 Role Of Human Capital Formation In Economic Growth:

1. Raise production.
2. Raises efficiency and productivity.
3. Brings positive changes in outlook and attitude.
4. Improve quality and life.
5. Raises life expectancy.
6. Raises social justice.
7. Innovative skills.
Problems Of Human Capital In India :
1.Rising population.
2.Long term process.
3.High regional and gender inequality.
4.Brain drain.
5.High povert levels.
6.Low academic standards.
7.Deficient manpower planning.
2. CONCEPT OF INDIAN ECONOMY.
2.1 economic system:
Economic system is defined as an arrangements by which the central
problems of an economy are solved .
2.1.1 types of economic system
The three main types of economic system are:
1. capitalist economy.
2. socialist economy.
3. mixed economy.
Capitalism : It is a system in which all basic problems of an economy i.e.
what, how,for whom to produce are solved by market forces.
Merits: the major merits of this system is that it encourages and fosters
self-interest and accelerate the pace of economic growth.
Demerits: the major drawback is that this sytem ignores the collective
interest of whole economy.
Socialism : it is a system in which all the basic problems of an economy
i.e.what,how and for whom to be produce are solved by economic planning
or the government.
Merits : collective interest of the society as a whole.
Demerits: consumer are free to consume what the governments offer.
Mixed economy : it is an economic system in which all basic or central
problems of an economy are solved by both government or central
planning authority and market mechanism or price mechanism.
Merits: it promotes self interest that triggers the pace of growth.

2.2 Feature Of Three Economis System:



2.3 ECONOMIC PLANNING:
Economic planning means planned co-ordiation and utilization of available
resources in an economy to achive certain pre-specified social and
economic objectives in a time bound programme .

2.3.1 Essential objectives of economic planning in India:


1.High Rate of Growth: Increase in national income as well as per
capita income, is the first and foremost aim of Indian planning. On looking
plan-wise objectives of various plans, it is evident that the First five year
plan had envisaged a target of 11 per cent increase in national income
while it rose by 18 per cent.

2. Raising Investment Income Ratio: Achieving a planned rate of
investment within a given period to bring the actual investment as
proportion of national income to a higher level has been regarded
significant due to two reasons.
Firstly, such an increase in output capacity is deemed to be needed to
increase the output. Secondly it is needed to bring the capital stock of the
economy to ensure the growth of future output capacity.
3. Social Justice: Another major objective of Indian Five Year Plans is
to provide social justice to the common folks and weaker sections of the
society. However, this social justice implies reducing the income
inequalities and removal of poverty. These two aspects have been well
dealt in various drafts of five year plans in our country.

4. Removal of Poverty: Up to the end of the Fourth Five Year Plan, it
was felt that the benefits of development have received a raw deal to tackle
the problem of poverty. In the Fifth Plan, there was a visible shift in the
approach which resulted in the Minimum Needs Programme.

5. Full Employment: Unemployment problem is a chronic problem in
undeveloped countries. Though, India has emerged as a new developing
country, yet it is in the grip of acute problem of disguised unemployment.

6. Alleviating Three Main Bottlenecks:
Another objective of planning is the adoption of various measures to
alleviate the three 'bottlenecks' viz., agricultural production, the
manufacturing capacity for producer goods and the balance of payments.
The various plans have in one way or other been concerned with the
removal of these three principal barriers for achieving stability-both internal
and external-in the economy.
7. Self-Reliance:
Another objective of Indian Plans is self-reliance. The earlier two plans
could not give emphasis to it because they were formulated for
rehabilitating and establishing basic key industries in the country.
Thus in the Third Five Year Plan, for the first time, the idea of self-reliance
was clearly mentioned, " dependence on foreign aid, will be greatly
reduced in the course of the Fourth Plan.
It was planned to do away with confessional imports of food grains under
PL-480. Foreign aid, net of debt charges and interest-payments will be
reduced to about half by the end of the Fourth Plan compared to the
current level".
8. Modernization:
For the First time, the idea of modernization was floated in the Sixth Five
Year Plan. In a common sense, it implies up-to dating the technology.
But Sixth Plan draft denotes the term modernization, a change in the
structural and institutional set up of an economic activity, shift in the
sectoral composition of production, diversification of farm activities, an
advancement of technology and innovations are the part and parcel to a
change from feudal system into a modern independent entity. In agricultural
sector, considerable achievement has been made.
The total area under high yielding varieties has been raised from 5.6 million
hectares to 27.4 million hectares during the period of 1970-71 to 1990-91. It
further increased to 32.6 million hectares in 2000-01.
Total area under food grains was 115.6 million hectares in 1960-61 which
increased to 121.9 million hectares in 2001-02.The consumption of
chemical fertilizer also rose from 2.18 million tonnes to 17.3 million tonnes
from 1970-71 to 2000-01. Similarly, irrigated area rose from 38million
hectares in 1970-71 to 84.7 million hectares in 2000-01.
2.4 PROBLEMS OF INDIAN AGRICULTURE:

1. General problems.
2. Institutional problems.
3. Technical problems.

GENERAL PROBLEM:

SOCIAL ENVIRONMENT.
LAND DEGRADATION.
SUBSISTENCE FARMING.
CROP LOSSES.

INSTITUTIONAL PROBLEMS:
DEFECTIVE TENANCY REFORMS:
LACK OF CREDIT AND MARKETING FACILITIES:
SIZE OF HOLDINGS


TECHNICAL PROBLEM :
a. OBSOLETE TECHNIQUES OF PRODUCTION
b. LACK OF IRRIGATION FACILITIES.
c. CROPPING PATTERNS.


3. STUDIES INCLUDE IN INDIA:
3.1 Human Development Index: The Human Development Index
(HDI) is a statistical tool used to measure a country's overall achievement
in its social and economic dimensions. The social and economic
dimensions of a country are based on the health of people, their level of
education attainment and their standard of living.

Description: Pakistani economist Mahbub ul Haq created HDI in 1990
which was further used to measure the country's development by the
United Nations Development Program (UNDP). Calculation of the index
combines four major indicators: life expectancy for health, expected years
of schooling, mean of years of schooling for education and Gross National
Income per capita for standard of living.

Every year UNDP ranks countries based on the HDI report released in their
annual report. HDI is one of the best tools to keep track of the level of
development of a country, as it combines all major social and economic
indicators that are responsible for economic development.



3.2. Primary Education Schemes:
3.2 .1 Sarva Shiksha Abhiyan or Right To Education.


3.2.2 National Programme For Education Of Girls At
Elementary Level:
The National Programme for Education of Girls at Elementary Level
(NPEGEL), is a focussed intervention of Government of India, to reach the
Hardest to Reach girls, especially those not in school. Launched in July
2003, it is an important component of SSA, which provides additional
support for enhancing girls education over and above the investments for
girls education through normal SSA interventions. The programme
provides for development of a model school in every cluster with more
intense community mobilization and supervision of girls enrolment in
schools. Gender sensitisation of teachers, development of gender-sensitive
learning materials, and provision of need-based incentives like escorts,
stationery, workbooks and uniforms are some of the endeavours under the
programme.
3.2.3 Kasturba Gandhi Balika Vidyalaya:
The Kasturba Gandhi Balika Vidyalaya scheme was introduced by
the Government of India in August 2004, then integrated in the Sarva
Shiksha Abhiyan program, to provide educational facilities for girls
belonging to Scheduled Castes, Scheduled Tribes, Other Backward
Classes, minority communities and families below the poverty line in
Educationally Backward Blocks.
4 POLPULATION AND SAMPLE

4.1 POPULATION:
A research population is also known as a well-defined collection of
individuals or objects known to have similar characteristics. All individuals
or objects within a certain population usually have a common, binding
characteristic or trait.
4.1.1 Two Types of Population in Research:
Target Population
Target population refers to the ENTIRE group of individuals or objects to
which researchers are interested in generalizing the conclusions. The
target population usually has varying characteristics and it is also known as
the theoretical population.

Accessible Population
The accessible population is the population in research to which the
researchers can apply their conclusions. This population is a subset of the
target population and is also known as the study population. It is from the
accessible population that researchers draw their samples.
4.2 Sampling
Sampling is the process of selecting a group of subjects for a study in such
a waythat the individuals represent the larger group from which they were
selected. Thisrepresentative portion of a population is called a sample.
4.3 Steps in Sampling
1 .Identify the Target Population.
2. Identify the Accessible Population.
3. Determine the Size of the Sample.


4.4 Types of Sampling:
1. Simple Random Sampling.
2. Systematic Sampling.
3. Stratified Sampling.
4. Cluster sampling.

5. JUSTIFICATION OF THE STUDY :
In this chapter we have learned about sample techniques that allow you to
select and study a small representative group of subjects and infer findings
to the larger group .To know about the detail of economic system ,
economic planning, objective of planning in india .