Introduction : A professor earns am higher wage

than a peon in the college Why?

Because a professor has the skill to produce more
professors .The peon in the college does not have this
skill therfore,he is paid much less, skill is valued,
because it contribute to the process of production
 What is human capital & Human
capital formation
Human capital refers to the stock of skill ,ability
expertise, education and knowledge
in a nation at a point of time.
Human capital formation is the process of adding to
the stock of human capital overtime.

Physical Capital Human Capital

(Production goods related) It can not be sold in the market
It can be sold in the market. only the services of human
capital are sold.
It can be built through imports. It can be built through policy
formulation.
Sources of Human capital
formation
 1. Expenditure on education :
 2. On the job Training :
 3.Expenditure on health :
 4. Migration : (for Job- rural to urban –country to abroad.)
 5. Expenditure on information : People seek information
regarding salaries and other facilities available in different

labour markets ,so that they can choose the right job.
1. Raises Production :
2.Raises efficiency and productivity :
3.Brings positive changes in outlook and attitudes :
4.Improves quality of life :
5.Raises life expectancy :
6Raises social Justice :
Thus human capital formation raises the process of
economic growth and economic growth raises the
process of human capital formation.
 Problems facing Human capital formation in
India :
1. Rising population
2. Brain Drain :
3. Insufficient manpower planning :
4. Insufficient on the –Job Training in primary
sector:
5. Low academic standards :
 Education refers to the process of teaching ,training,
and learning especially in schools or colleges to
improve knowledge and develop skills.
 Objectives of Education :
 1.Education produce good citizens :
 2. It develops science & technology :
 3. It facilitates efficient use of natural and human
resources :
4. It helps economic development :
 1.Primary education : (Universalization of primary
education)
 2. Secondary education :(NCERT,CBSE-KVS.JNV)
 3. Higher Education: (UGC, IGNOU-Indira Gandhi open
university)
 4. Total Literacy campaign :
 Education for all : Still a distant Dream-
Gender equity : (Male & Female)
Better than before .
Higher education – A few takers :

Conclusion :