Human capital formation is the process of acquiring and increasing the number of skilled, educated, and experienced individuals necessary for economic and political development. It is determined by factors such as expenditure on education and health, study programs for adults, and migration. Migration leads to human capital formation by transferring skilled individuals between locations. Skill India and Startup India programs complement each other by developing vocational skills and entrepreneurship to increase human capital formation in India. Human capital formation helps reduce income inequality by providing more people with skills and qualifications to engage in higher paying jobs.

3. “Human Capital Formation is the process of
acquiring and increasing the number of persons
who have skill,education and experience which are
essential for the economic and political G.M.Meier

5. DETERMINANTS/
SOURCES OF
HUMAN CAPITAL
FORMATION

6. 1. Expenditure on EDUCATION

10. 1. Expenditure on HEALTH

14. 4.Study Programmes for Adults

15. 5.Migration

18. Q.“Migration leads
to Human Capital
Formation”.How?
Q.How Skill India and
Startup India
Programmes are
complementary to
each other?
Q.How is Human Capital
Formation helpful in
reducing Inequality of
Income?
GROUP 1
GROUP 3 GROUP 4
GROUP 2

19. TASK:
Each Group must prepare a question
based on the knowledge that they
have gained from today’s class.