well known. The union and state governments in India have been earmarking substantial financial outlays for development of education and health sectors. The spread of education and health services across different sectors of society should be ensured so as to simultaneously attain economic growth and equity. India has a rich stock of scientific and technical manpower in the world.
The need of the hour is to better it qualitatively and provide such conditions so that they are utilised in our own country. Fig. . Higher Education: few takers Higher Education — a Few Takers: The Indian education pyramid is steep, indicating lesser and lesser number of people reaching the higher .
What are the two major sources of human capital in a country? . What are the indicators of educational achievement in a country? .
Why do we observe regional differences in educational attainment in India? . Bring out the differences between human capital and human development. .
How is human development a broader term as compared to human capital? . What factors contribute to human capital formation? Recap Ø Investments in education convert human beings into human capital; human capital represents enhanced labour productivity, which is an acquired ability and an outcome of deliberate investment decisions with an expectation that it will increase future income sources.
Ø Investments in education, on-the-job training, health, migration and information are the sources of human capital formation. Ø The concept of physical capital is the base for conceptualising human capital. There are some similarities as well as dissimilarities between the two forms of capital formation. Ø Investment in human capital formation is considered as efficient and growth enhancing.
Ø Human development is based on the idea 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, will they be able to make other choices which they value. Ø The percentage of expenditure on education of the total government expenditure indicates the importance of education in the scheme of things for the government.