Suitable for ISC Students

1. Challenges to Human
Capital Formation in
India
What we can do?

2. What is Human Capital ?
Human capital refers to the stock of
skills and knowledge gained by a worker
through education and experience to
perform labour so as to produce
economic value.

3. Human Capital : Sources
Investment in:
• Health
• Education
• On-the-job-training
• Migration
• information

4. Human Capital and Economic
Growth
• Enhanced productivity of human
capital contributes substantially not
only towards increased labour
productivity but also stimulate
Economic Growth
• Human capital formation and growth
are positively correlated

5. Human Capital Formation; Problems
and Solutions: International
Experience
Problems:
• Lack of good health facilities
• Poor quality of education
• Educated unemployment
• Lack of skilled manpower

6. Problems in Human Capital
Formation in India
• Brain Drain
• Poor quality of Health care
• Poor investment in human capital
• Migration
• Lack of skilled manpower
• Asymmetric information

7. Measures taken for solve the
problems in Human Capital
formation in India
• HRHM adopted
• Made elementary education compulsory
• Made on the job training and
Vocationalisation compulsory elements of
curriculum
• Various employment exchanges opened
throughout the country

8. Critical Appraisal of the
Measures taken to improve
Human Capital Formation in
India
• Coverage of NRHM was not universal
• Employment exchanges became
outdated and was not catering the
needs of the job seekers

9. Amazing facts about Indian Human
Capital
• Imagine, 12 percent of all American scientists are of Indian
origin; 38 percent of doctors in America are Indian; 36
percent of NASA scientists are Indians; 34 percent of
Microsoft employees are Indians; and 28 percent of IBM
employees are Indians.
For the record: Sabeer Bhatia created and founded
Hotmail. Sun Microsystems was founded by Vinod Khosla.
The Intel Pentium processor, that runs 90 percent of all
computers, was fathered by Vinod Dham. Rajiv Gupta co-
invented Hewlett Packard's E-speak project. Four out of
ten Silicon Valley start-ups are run by Indians. Bolly wood
produces 800 movies per year and s ix Indian ladies have
won Miss Universe/Miss World titles over the past 10
years.
For the record: Azim Premji, the richest Muslim
entrepreneur on the face of the planet, was born in Bombay
and now lives in Bangalore.India now has more than three
dozen billionaires; Pakistan has none (not a single dollar
billionaire).

10. What We Can Do?
• The first step to solve this problem
should come from our side
• Serve our country first
• Discourage Brain Drain
• Free and Compulsory secondary
education

11. Thank You