Role of Human Capital In development of Indian economy Power Point Presentation on Role of Human Capital This Power Point Presentation includes all thing one need in a complete and Proper Presentation This PPT includes all FDI,GDP PER CAPITA ©Copyright 2015 Ajay Pal

1. MADE BY – AJAY PAL, SAURAV
SHARMA,HIMLESH BISHT,PRANAV
UNIYAL,ARPIT RAI AND SHASHANK
DABRAL
CLASS - X-H
TEACHER – MISS NIDHI

4. 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.

5. Points of Difference Physical Capital Human Capital
Physical Construction It has physical construction.
It can be seen, touched and
easily sold.
It is intangible and it is not
sold. Only its services are
sold.
Separation It is separable from its
owners.
It cannot be separated from
its owners.
Building It can be built by imports
also.
It is built by conscious
policy formulation of state
and its expenditure.
Nature of Benefits It creates private benefit. It creates both private and
social benefits.
Mobility Completely mobile subject
to artificial trade restriction
placed at some places.
It is not perfectly mobile. It
is restricted by nationality
and culture.

6. Human Capital Human Development
Human capital consider education
and health as a means to increase
labour productivity.
Human development considers that
education and health are integral to
human well-being because only when
people have the ability to read and write
and the ability to lead a long and healthy
life, they will be able to make other
choices which they value.
Human capital treats human beings
as a means to an end; the end being
the increase in productivity. Any
investment in education and health
is unproductive if it does not
enhance output of goods and
services.
Human welfare should be increased
through investments in education and
health even if such investments do not
result in higher labour productivity.
Therefore, basic education and basic
health are important in themselves,
irrespective of their contribution to labour
productivity.

7.  Education
 Health
 On-the-Job-Training
 Migration
 Information

8. 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.

9.  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

11. •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.
•The enhanced earnings in the new place outweigh the
costs of migration; hence, expenditure on migration is
also a source of human capital formation.

12. •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 utilization 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.

13. The government of India has evolved a national
health policy, which lays down stress on the
preventive, promotive and rehabilitative aspects of
life. Healthy population helps indirectly in the
economic development of the country.
1) All machines, equipments and tools require men
to operate on them. Health is an essential
requirement for making an efficient, active and
competent working force.
2) There is always a sound mind in a sound body.

14.  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.

15. The Average standard of health in India was very
poor on the eve of adoption of planned
development:
 Death rate per year=27.4 per thousand
 Infant Mortality per year=183 per thousand
 Life expectancy=32.45 years(Males)
31.66(Females)
 There was one doctor for every6300 persons, one
nurse for every 4300 persons, one trained mid-
wife for every 60,000 persons.

16. Education as Human Resource
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.

17. 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.
3) 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.
5) The current scheme for universalization of Education for All is the Sarva
Shiksha Abhiyan which is one of the largest education initiatives in the world.

18. Secondary education
a) Secondary education covers children 14–18 which covers 88.5
million children according to the Census, 2001.
b) India's secondary school system is its emphasis on profession
based vocational training to help students attain skills for finding a
vocation of his/her choosing.
c) A special Integrated Education for Disabled Children (IEDC)
programme was started in 1974 with a focus on primary education.
The government started the Kendriya Vidyalaya project in 1965 to
provide uniform education in institutions following the same
syllabus at the same pace regardless of the location to which the
employee's family has been transferred.

19. Higher education
 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.
 Six Indian Institutes of Technology and the Birla Institute of Technology and
Science – Pilani were listed among the top 20 science and technology
schools in Asia by Asiaweek. The Indian School of Business situated in
Hyderabad was ranked number 12 in global MBA rankings by the Financial
Times of London in 2010 while the All India Institute of Medical Sciences
has been recognized as a global leader in medical research and treatment.

21.  We know that the labour skill of an educated person
is more than that of an uneducated person and that
the former generates more income than the latter.
 Economic growth means the increase in real
national income of a country; naturally, the
contribution of the educated person to economic
growth is more than that of an illiterate person.
 Education provides knowledge to understand
changes in society and scientific advancements,
thus, facilitate inventions and innovations.

22.  The enhanced productivity of human beings or
human capital contributes substantially not only
towards increasing labour productivity but also
stimulates innovations and creates ability to absorb
new technologies.
 The human capital growth in developing countries
has been faster but the growth of per capita real
income has not been that fast.
 There are reasons to believe that the causality
between human capital and economic growth flows in
either directions.

23.  The Seventh Five Year Plan of India says “Human
resources development has necessarily to be
assigned a key role in any development strategy,
particularly in a country with a large population.
 Trained and educated on sound lines, a large
population can itself become an asset in
accelerating economic growth and in ensuring
social change in desired directions.”

25. Human Capital is undoubtedly superb biological
computer . It enables thinking process . Man has
head start over other species . Men are rational in
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.

26.  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 .

27.  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.

28.  Rising Population-Large size of population adversely
effects 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.
 Braindrain-The migration of highly skilled work force to
other countries for better jobs is known as braindrain. Due
to braindrain country loses it’s qualified and skilled
workforce affecting the process of economic growth.

29. 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.

30.  Longevity-longevity here means life expectancy at birth. It
means the number of years a newly born baby is
expected to live. Life expectancy in India is 63 years.
 Educational attainment-It refers to the educational
attained by the people of the country on an average
basis. The constituents of educational attainment are the
following two variables:
1. Adult Literacy Rate-The rate of people aged 15 or
above who can understand, read and write a short and
simple statement in their everyday life is known as ALR.
2.Gross Enrolment Ratio-GLR is defined as the number of
students enrolled at different levels of education.

31.  Real GDP per capita-It is taken as a
measure of the standard of living of the
people of a country.

32. HDI=
Life expectancy index+ Educational attainment
index+ Real GDP per capita index
3

33. World map by quartiles of Human Development Index
Very High Low
High Data unavailable
Medium