Human capital refers to the skills and expertise of a nation's people. Human capital formation is the process of acquiring and increasing people with skills, education, and experience needed for a country's economic and political development. Sources of human capital formation include education, health, on-the-job training, adult study programs, migration, and information. Human capital formation leads to higher productivity, innovative skills, greater participation and equality, and changes in the environment that allows growth. However, India faces problems with human capital formation such as rising population, brain drain, deficient manpower planning, insufficient on-the-job training in primary sectors, and low academic standards.

1. HUMAN CAPITAL
FORMATION

2. CONCEPT OF HUMAN
CAPITAL FORMATION
HUMANCAPITAL REFERS TO THE STOCKOF ‘SKILL AND EXPERTISE’ OF NATIONAND A
POINTOF TIME. IT IS THE SUM-TOTAL OF SKILL AND EXPERTISE OF ENGINEERS , DOCTORS
, PROFESSORSAND WORKERS OF ALL TYPES WHOARE ENGAGED(OR HAVE THE
CAPACITYAND EXPERTISETO BE ENGAGED)IN THE PROCESS OF PRODUCTION

3. WHAT IS HUMAN CAPITAL
FORMATION?
“HUMAN CAPITAL FORMATION IS THE PROCESS OF
ACQUIRING AND INCREASING THE NUMBER OF PERSON WHO
HAVE THE SKILL , EDUCATION AND EXPERIENCE WHICH ARE
ESSENTIAL FOR THE ECONOMIC AND POLITICAL
DEVELOPMENT OF A COUNTRY.’’
-G.M. MEIER

4. SOURCES OF HUMAN CAPITAL
FORMATION
1. EDUCATION
2. HEALTH
3.ON - THE – JOB TRAINING
4. STUDY PROGRAMMES FOR ADULTS
5. MIGRATION
6. INFORMATION

5. ROLE OF HUMAN CAPITAL
FORMATION
(I) CHANGE IN EMOTIONAL AND MATERIAL ENVIRONMENT OF
GROWTH
(II) HIGHER PRODUCTIVITY OF PHYSICAL CAPITAL
(III) INNOVATIVE SKILLS
(IV) HIGHER RATE OF PARTICIPATION AND EQUALITY

6. PROBLEMS FACING HUMAN
CAPITAL FORMATION IN
INDIA
(I) RISING POPULATION
(II) BRAIN-DRAIN
(III) DEFICIENT MANPOWER PLANNING
(IV) INSUFFICIENT ON-THE-JOB TRAINING IN PRIMARY
SECTOR
(V) LOW ACADEMIC STANDARDS

7. EDUCATION AS AN ESSENTIAL
ELEMENT OF HUMAN
RESOURCE DEVELOPMENT
EDUCATION IMPLIES THE PROCESS OF TEACHING ,
TRAINING
AND LEARNING , ESPECIALLY IN SCHOOLS OR
COLLEGES , TO IMPROVE KNOWLEDGE AND DEVELOP
SKILLS.

8. EDUCATION AS AN ESSENTIAL ELEMENT OF
HUMAN RESOURCE DEVELOPMENT
1. IMPORTANCE AND OBJECTIVES OF EDUCATION
2. NEED FOR GOVERNMENT INTERVENTION
IN EDUCATION AND HEALTH
3. GROWTH OF EDUCATION SECTOR IN INDIA
(A) EXPANSION OF EDUCATION
(B) PRIMARY EDUCATION
(C) SECONDARY EDUCATION
(D) HIGHER EDUCATION
(E) VOCATIONALISATION OF SECONDARY EDUCATION
(F) TECHNICAL , MEDICAL AND AGRICULTURAL EDUCATION
(G) RURAL EDUCATION
(H) ADULT AND FEMALE EDUCATION
(I) TOTAL LITERACY CAMPAIGN

9. EDUCATION STILL A
CHALLENGING
PROPOSITION
(1) LARGE NUMBER OF ILLITERATES
(2) INADEQUATE VOCATIONALISATION
(3) GENDER BIAS
(4) LOW RURAL ACCESS LEVEL
(5) PRIVATIZATION
(6) LOW GOVERNMENT EXPENDITURE ON
EDUCATION

10. THANK YOU