BIJU P M PGT ECONOMICS KV

2 ,KOCHI
 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.
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 :