What factors contribute to the process of human capital formation? Explain the significance and success of educational programmes in India in the context of human capital formation.
Human capital refers to stock of ‘skill and expertise’ embodied in humans. Factors contributing human capital formation are: expenditure on education; vocational training of Individuals; expenditure on increasing skill, health and nutrition level; proper allocation of resources and allowing migration to individuals for changes of jobs etc.
Education includes teaching training and learning especially in school and colleges to enhance the skills. To enhance the human resource different educational programmes have played a vital role in achieving milestones:
- Expansion of general education for primary and middle school education has increased the number of people with basic elementary education required in the country.
- Establishment of Kendriya and Navodaya vidyalaya have increased the level of secondary education in the country.
- Since independence more than 400 central, state government and private universities have been set up to enhance higher education in India.
- Vocational training programme by government and private institutions along with financial assistance has helped to develop better skills in human resource.
- Technical medical and agricultural education has played a vital role in enhancing better technologies and innovative methods for growth in their sectors.