Sources of Problems facing Human Capital Human Capital Formation intndia Concepts of : Human Resource, Human apt > Eticafon aan Human Capital Formation come ae Sotelo ‘and Human Development Economic Growth source Development FOCUS Human capital is different from physical capital. While physical capital refers to the stock of plant and machinery, human capital refers to the stock of ‘skill and expertise’ of human beings in a country. Human capital has emerged as an important driver of economic growth. Its as important as\ physical capital, if not more, Besides contributing to GDP growth, human capital also contributes to ‘human, development’: skill and expertise of a person enables him to enjoy a more satisfying life. ‘The chapter begins with the definition of three related concepts: human resource, human capital formation, and human development. It offers an elaborate distinction between physical capital and human capital Sources of human capital or the ways of adding to the stock of human capital are highlighted, along with the significance of human capital formation in the context ‘of economic growth. Problems facing human Capital formation are simultaneously highlighted. Finally. the chapter discusses how education Is an essential element of hurnan resource development, and brings Out te need for government intervention in education (and health). The chapter concludes by highlighting "educational achievements in India’ and ‘ts emerging challenges.1. CON TS OF HU HUMAN CAPITAL HUMAN DE\ EL in Resource lel source refers to abilities (skill and expertise) of human bein, a = Human re: eae te tothe process of value-addition in the economy. a er has the ability to grow food and an agricultural sci iy sive us HYV (high yielding variety seeds). Likewise, fs fs silty to cure patients while a pharmacist has the ability to res has the ‘medicines as prescribed by the doctor. Example: With equal size of land how is his yield greater than mine? Skill and Expertise—The Core Determinants of Growth Human Capital Formation @ Human capital refers to the stock of ‘skill and expertise’ of a nation atz Point of time. tis the sum total of skill and expertise of engineers, doctor, Professors and workers of all types who are engaged (or have the capaiy and expertise to be engaged) in the process of value-addition, fs Su Certeaton Sdiemeistenbie a Lege rrbet af on ys ‘beeps aeieg Dat hep ein scan a bene neood, el a ros earn erputece or sets aoe Sezscsesenscees "| Human capital formation is simply the process of adding to the stock of ‘under Recognition of Prior h it il ital is S a | } jam2n capital, While human capital is a stock concept, human cab Sentsosicononcines | formation is a flow* concept. Thus, human capital formation occurs whe" enivtianparen | More doctors are produced and when more & more engineers are added? Temamsssases |__ thelr existing stock inthe economy, peemee | a r_iuiia capital stock’ of » nation conslets of 40.000 ale! "amine | to rane aeeBIng of 2023, anditat the beginning of 2024 ities ooo tiled workers (implying an increase of neon capital stock" 2,0¢ Workes there Is human capital formation to the extet# Example: i Workers, 25% of materials o supoies that are”| £ “Human Capital Formation persons who have the ea economic and political developr me the process Human Capital Formation in india Of acquiring and increasing the number of ion and experi experience which are essential for the ment ofa country" mise —6.M. Meier F Py 7 * _ yuman Development r ; t and jeyt sq. Both human capital and ‘human development’ are related to abilities (sil bi ise, and expertise) of human beings. Yet, there is a clear distinction be stweer lity gS the two concepts. Huran capital is a means to an ends een ms Fa itis a means in processof value-addition in the economy. Human development onthe ther hand, is an end-result: ‘skill and expertise’ of human beings in itself is an achievement, irrespective ofits contribution in the process of value-addition, PHYSICAL CAPITAL AND HUMAN CAPITAL: THE DIFFERENCE ‘The students should also understand the distinction between human, ; highlighted in terms of the following observations: capital and physical capital which is . 2, Process of Formation 3. Tangibilty |4.Separabilty from Owner 5. Mobility | |6. Depreciation® 7. Benefits Created ‘The decision to invest in physical capital is taken by the owner after considering the expected rate of returns from the investment. Thus, itis an economic and {technical process. Physical capital is tangible, and can be sold in the market like any commodity. Physical capital is separable from owner, ‘meaning presence of owner is not essential in the place of production. ‘Mobility of physical capital across borders is restricted mainly due to trade barriers: otherwise, it is completely mobile. Depreciation cannot be avoided, ‘continuous use of physical capital leads to depreciation: innovation may also lead to obsolescence of physical capital. ‘The benefits of physical capital flow from the buyer to producer; thus, only private benefits are created. ‘enhance their qualit 4, Human development - refers to ‘skill and 5. Depreciation - a reduction in the value of an asset over time, Basis of Difference e Physical Capital ‘Human Capital 4 | [2 Meaning Physical capital refers to the produced — |Human capital refers to skill and expertise ‘means of production. acquired by man over time. |The decision to invest in human capital is not taken after calculating the returns on investment. It is taken due to influences of peers, educators and society. Thus, its largely a social process. Human capita is intangible, it cannot be sold in the market like a commodity. Only the services are sold. Human capital is inseparable from its owner; therefore, itis essential that the owner be present at the place where the services are being sold. Movement of human capitals restricted by nationality and culture; itis not perfectly mobile. Depreciation occurs with ageing, but can be avoided with continuous investment in [education, training and health. investment in regular training to keep up with innovations helps human capital avoid depreciation. Human capital creates private as well as, social benefits (or external benefits). Human capital not only creates economic benefits for the owner, but also leads to socio-economic benefit of society at large. ity of life. due to wear and tear. expertise’ of human beings as their achievement, enabling them to BIed man (with skil and expertise) leads a more meanings, sm Thus, an educate fife than the one who is not. An educated man en | ‘and more satisfying tend to enhance his welfare) yr the one who is not. atte irked wale lhe eans to an end, human capital is linked with value-addiign ve result itself, human development is an index of hy ution in the process of value-addition, | im Briefly, as a me fd 26 39 : etre, respective ofits cont 2. SOURCES OF HUMAN CAPITAL sources of human capital alo called determinants of human capital refer. the ways of adding to the stock of human capital in the economy. Some of thy important ways of adding to the stock of human capital are as under: (1) Expenditure on Education: Expenditure on education is the most effective Way of rang a productive workforce® in the country. itis, therefore, 2 very important determinant of human capita formation, = Most families decide to incur huge expenditure on education, even when they have to raise loans. Reason: Returns on Education: Raises Productive Workforce in the Country such expenditures are substantially large '= Education enables an individual to make a good living throughout hs lite, His total earnings during his life span would far exceed his initial expenditure on education, |= Monetary benefits of education (in terms of earnings of the educated person during his lifetime) far exceed the cost of education. IB The diference between benefit and cos is an approximate market value of human capital formation. (2) Expenditure on Health: Expenditure on health productive. His contrib He adds more to GD¥ on health in the forr determinant of hum: "A sound mind in a sound body" is an old saying, makes a man more efficient and, therefore, more ution in the value-addition process tends to rise. of the nation than a sick person. Expenditure ™ of the below listed components is an importatt 'an capital formation. Forms of Expenditure on Health Social Medicines Provisions of Hyer | Health expendit force ng entre directly increases the supply of heathy lout is, thus, a source of human capital formation. country or or “sion who are physically abe todo.ajoband are avilable fr wo ‘neue Medias cal interventions 2ttheume tilinessre | ghetob Training: On-the-job-training err workers tO hone/sharpen their alized skill. It enables them toraise the ‘Pej of thei eficiency/ productivity, fms are always inclined to undertake ithe job-trining’ programmes”. Because, ims (on account of enhanced productivity) feexceed te cost of such programmes, benefits of higher productivity. human capital formation. (5) Migration: Migration® contributes to human capital formation as it facilitates utilisation of (otherwise) inactive skills of the people, or it facilitates fuller/ better utilisation of the skills. Migration involves a cost yet people migrate in search of better job opportunities. Because: Gains Of migration (in terms of higher salaries) are greater than the cost of migration. 'mplying that migration leads to human capital formation, through fuller/better utilisation of skills. {6 Bpenditure on information: Information relating ‘0 job markets and educational institutions offering ‘etialised skills is an important determinant of ‘kill formation. it enables people to actualise their Productive potential. Accordingly, expenditure on © Maton ‘unites in the receiving country. A The firms prefer to retain the trained workers with a view to enjoying the fapenditure on such training programmes, therefore, is yet another important determinant (and a source) of human capital formation. (@) Study Programmes for Adults: Other than formal education at the primary, secondary and university levels, the Government and NGOs organise study programmes for adults to make them proficient in their work areas. This enhances their productivity, serving as a source of = Cost of transportation from one place to another, 1@ Cost of living in a different social environment. Different Types of Migration ‘Internal Migration (Gon lagers migrating to itiesin search of work Noveent freee Cites (Urban area) villages (Rural Area) 2.External Migration Indians migrating to other countries of the world in search of a better standard of living ‘Other Countries Sea ofthe World India — ‘nlormation is another determinant of human capital formation. i iN 1 ahhetob taining programmes -a form of training provided atthe workeace, ~ the movement of people from one country to another in ‘order to gain benefit from greater economic 133 aaaIndian Economic Development ‘geen delon ae answer he ‘gnrion at lows Deen bl Upsctyy2 Gramentauhaya ona DovMasapetal te ‘Slings onpoon 7, Sepang sind Serer tne ete ‘nies bgt tga, Sat lasterees te ail, eens adulata te rete investment on educa wn is promoted bY an an capita format in programimes Investment on gh com the-job training” westmen ce oe valaity Of specialised sks and job art ation. vie, neath bess rt a formation lating ee bes to human cial f 3. HUMAN CAPITAL FORMATION AND ECONOMIC GROWTH OR SIGNIFICANCE OF HUMAN CAPITAL FORMATIgy Human capital has developed into a key determinant of economic grou, ‘This is proved through the following observations: (4) Change in Emotional and Material Environment of Growth: Humes capital formation generates a change in emotional and matey environment of growth. ‘ 1m Emotional environment becomes conducive to growth 35 peop tend to acquire growth-oriented attitude and aspirations, 1m Material environment becomes helpful to growth as the society noy possesses higher number of skilled and trained workers to implemen, the plans and programmes of economic growth. (2) Higher Productivity of Physical Capital: Human capital formaton increases productivity of physical capital (referring to output per unite capital). Specialised engineers and skilled workers can certainly hande ‘machines better than the others. Itenhances productivity and accelerates the pace of growth = Human capital formation gives birth to innovative skill which leads to innovations, inventions and technical improvements, the Undercurrent of growth and development, Larger the number of skilled and trained personnel, greater the Possibilities of innovations, inventions and technical improvements inthe area of production and related activities. These are thelifeire of growth, we all know, @ oe a Participation and Equality: By enhancing produtit © labour force, human capital formation induces res employment, Participation (percentage of labour fort 's of production or simply the percent#ét ting labour force). . tisher {he rate of participation, greater is the degree of econo and socal equality inthe society.Human Capital Formati : : ation in Indi itis very dificult to assess the impact of human capital a | ‘on economic govt? i st aus it's challenging {0 measure growth in hum ’ measured in terms of schooli forexample sielbae looling year, te eee enrolment rates™, but itis difficult to assess the qu ino aes ‘ lucation, Siar, itis possible to measure health services in monetary terms, but seifcul to assess the improvement in quality of heath services, a 4 nbecase ofthe poor quality of human capital formation, we find tha i oping countries human capitals growing at arate faster than the one ee eats erate why is there a cause and effect relationship between human capital and economic growth? f ruman capital formation stimulates the process of economic growth, and tconomic growth impacts human capital formation, : Growth implies increase in per capita real income (or increase in per | capita availability of goods and services). Higher income facilitates higher jqvestment on education and skills. Implying human capital formation. ‘Thus, human capital formation prompts the process of growth, and growth prompts the process of human capital formation. [: Effect of Human Capital Formation 'an capital. Education, Human Capital Formation [increase in the stock of human capital] -> Better/Effcient utilisation of physical capital > Increase in productivity (output per unit of labour/capital) -> Increase in GDP growth along vith higher rate of participation/employment > Higher level of income of the individuals and households “Higher expenditure on education and health —> Increase in the stock of human capital (impiying human capital formation). & CHECK YOUR PROGRESS 4. How can we avoid depreciation of human capital? = . ‘ns. Investment in education, training and health can help avoid depreciation ‘of human capital. f | : a lucation? | a Weer Sane sr eveation| ee rain ‘of the educated person during his lifetime) | farexceed the cost of education. a Why are firms inclined to undertake ‘on-the | Ans. These programmes help in enhancing the prod 4. What isthe main reason for migration of labour? Ans. Search of better job opportunities. at? How does hurman capital formation facilitate growth and develop is the undercurrent of As. It promotes innovations, inventions and technical improvement growth and development. " in education divided by the total | ptlment rates - the number of students of @ particular | lation of people of that age group. 135 _job-training’ programmes? tuctivity of labour and pave way for increased output.Indian Economic Development ? ING HUMAN OBLEMS FACI * CAPITAL FORMATION IN INDIA ajo Problems facing Human C=pl2 Formation in india i r 9 ! in j en maar (a ¢ Deficient Omteob |] Academie | Manpower Taining in Les | fsa ning rary Sector L ad pay sete (1) Rising Population: Rapidly rsing population adversely affects the quay, an eo of hurnan capital. This Is because it reduces per head availability oft TEASER cuisines relating to housing sanitation, drainage, watersysten, enero xd hospitals, education, power supply, ete. eee Reduced availabilty of these facilities leads to a fall in the quality of ite, Sa end In turn, this leads to a fall in the capacity to acquire specialised skills ang } movi icrceas knowledge. evemswesencaren | (2) Brain Drain: Migration of persons Sweep mse! (born, educated and trained in india) Sconces to developed countries is a serious ert threat to the process of human capital ern formation in the country. estate Those who decide to migrate are sco orb plant persons ofhigh calibre suchas scientists, ea aes administrators, executives, engineers, > ome roth Physicians, educationists et. {Brain brains toss: This is described as the problem of brain drain. This slows down the process of human capital formation in the domestic economy. (3) Deficient Manpower Planning: Not enough efforts have been made to maintain the demand-supply balance of the everising labour force in the country. AS a result, India is facing an explosive Problem relating to graduate unemployment tis a sad reflection on the wastage of hua? Power and human skill aining in Primary Sector: Primary seco ) is the backbone of Indian econoh ct skis. Two notable pointe ee ane tention the ‘area of profession ‘1 Brain Orain - migration of skiled manpower to, ‘developed coun ries ofthe 86 f the world, >.ewe traditional wisdom predominates 4 Human Capital Formation in india y spat omneob traning Brogrammes’ are highy sen accordingly, there is a serious deficiency of hy coon primary sector of the economy, tow Academic Standards: In our enth ine have been opening many universities, vtandards. Consequently, we have a large ged postgraduates whose deficient ski he primary sector, and 7 ‘an capital formation in : ™ to spread higher education, unmindful of their acadk academic ~ army of half-baked graduates Is only lowers the level of 6 ticiency/productvity aly sis also impairs our competitiveness in the international market of ex te human capital. j en Measurement Problem 1x incase of physical capital formation, the change ean be measured in : Chopateteesiriarstig %€ measured in terms of units. But, it is tical in are 1m Thisis because, a large number of factors that impact productivity of human beings are non-quantifiable | 1x Further, itis difficult to identity a suitable scale of measuring human capital formation 5, EDUCATION AS AN ESSENTIAL ELEMENT i : | OF HUMAN RESOURCE DEVELOPMENT 1 Education is an essential element of human resource development. Education implies the process of teaching, training and learning, (especially in schools ‘or colleges). It improves knowledge and develops skills. Education is the under-current of economic and ae = * Gale = Compared to other countries of the world, spread of education in India has not been so encouraging. Even | social change. literacy rate in the country continues to be very low. | ne | According to the Census 2011, barely 74.04 per cent of o the population is literate as against 90 to 95 per cent iteracy in developed countries of the world. | Education and Literacy | Feist Diference Education iam | it jteracy refers to the f | ‘Definition Education encompassestivee [Utero reer | parameters, vz. primary al ‘education, secondary education | and tertiary or higher education. | scope. | [>See Ithas a wide scope. ithasa nae oi — All educated people are literate. | Alliterate Pure | | eee necessarily educa ~Indian Economic Development 1 Just because the absolute expenditure is higher in elementary expenditure and expenditure per student is higher in tertiary ‘education, it does not ‘mean that financial resources should be transferred from tertiary to elementary or from elementary to tertiary. 1 As the school education is expanded in india, there would be need for teachers at higher level of education, so ‘expenditure should be increased at all levels of education. 138 Importance and Objectives of Education Following points highlight the importance and objectives of education: {) Education produces responsible citizens. It develops science and technology. (ii) It facilitates use of natural and human. resources of all regions of the Country (iv) It expands mental horizon of the people. (v) It helps economic development through greater participation of the people in the process of growth and development. (vi) It promotes cultural standard of the citizens. (vil) tt develops human personality. Need for Government Intervention in Education (and Health) Need for government intervention in education and health arises primarily on account of the following facts: (1) Huge Investment: These sectors need huge investment with a very high fixed expenditure. (2) Act as mode of Investment: It is difficult to expect private investors to invest in health and education unless they are allowed to recover their hhuge costs through high price of these services. (3) Fac ite Affrodability: People in a poor country like ours cannot afford high price for education and health. (4) Facilitate Standardisation: Individual consumers of these services are unaware about the quality and costs of these services, which leads to the exploitative behaviour of private service provider. Government intervention is to ensure that these service providers adhere to stipulated standards. (5) Constitutional Right: When basic education and healthcare is considered as rights of citizens, the government needs to make provision for free of cost education and health services, at least for the backward sections of the society. In the end, it may be stated that these services would remain beyond the reach of most people unless these are subsidised or directly provided by the government. Government Expenditure on Education Expenditure incurred on education can be measured in two ways: as percentaee of total expenditure of the government and as percentage of GOP. The Education Commission (1964-66) had recommended that to make noticeable growth in educational achievements, the Government of Indi@ must spend around 6 per cent of GDP on. education.: Human Capital Formation in India 5 199, the Government of India appointed the Tapas Majumdar Committee, jen estimated thatthe government would need to incur an expenditure in 2009 the fe 137 lakh crore over a period of 10 years (1998-99 to 2006-07) to bring, Goverment of ia sr the children in the age group of 6-14 years under the education cover. lags Goma _ Ff fundamental right for 1 impact Comparedto the recommended evelof expenditure, inrecentyears, allen in the age the indian government has been spending alittle over 4 per cent of GDPon Be of 614 years bY ‘an, which has proven to quite inadequate to aci enacting the Right of ection wh quate to achieve the educational Children to Free and aspirations of the country. ‘Compulsory Education ss ata: The overall rend in the expenditure incurred on education in Indias ‘nck (popularly now : era : Right to Education At). ing a rise in so tuating, showing arse in some years and fallin some others. re ea Increase during 1952-2014 (in percentage) the Directive Principles of Indian Constitution Basis From To which state that the Zamation expenditure as percentage of total 7.92 157 soverment should ‘expenditure of the government es provide free anc i . ‘compulsory education Education expenditure as percentage of GDP 0.64 4.13 for all children up to: 1n 2016-17, the expenditure on education showed a miniscule increase to ORE 4,38 per cent. the commencement of Limitations of this Data: It is important to note that this data pertains only Seas to the expenditure undertaken by the public sector, and not the private a tunceaiane sector. If the expenditure incurred by the private sector is considered, the expenditure, the total expenditure on education in Indian economy would be ‘much higher. eto 1a Most of the expenditure undertaken on education goes to elementary education cess onal ‘education™®, In 2016-17, elementary education accounted for 49.68 per union taxes. It was ‘ent of the total expenditure on education while the share of tertiary eee ‘education®® (Colleges and Universities) was 12.74 per cent. However, from ‘the cess would expenditure per student in tertiary education is higher as compared to be utilised for incurring that in elementary education. Based on the current trends on expenditure ae and the recommendations, itis clear that the Indian government needs to increase expenditure on all levels of education. 18 Thestates of india show variation in the expenditure incurred on education. In 2014-15, Himachal Pradesh incurred highest expenditure on education {amounting to % 34,651 per capita) while the lowest expenditure was incurred by Bihar (amounting to 4,088 per capita). AS a result, great variations are observed in educational opportunities and attainments across the states. Need of the Hour The National Education Policy 2020 underlines the change in the: knowledge landscape of the world today. With dramatic scientific and technological advancement, such as the rise of ig data, machine learning and artificial intelligence, many unskilled sector jobs have been ‘consumed by machines in the world, There is a dire need for skilled workforce, i.e., one involving multidisciplinary abilities across various domains like sciences, social sciences, and humanities. fe Elementary education - primary and middle school education together i called ‘elementary education. Tertiary education - educational evel following the completion of secondary education. 39Indian Economic Development EDUCATIONAL FINANCE: {i) The State Governments: A state gover budget". State government budget for indi. (i) The Central Government: £45,000 (ii) Total Percentage Expenditure by (iv) The Parents (by way of fees) for ON EDUCATION AND HOW MUCH? Ho SPENDS ON 8 10-30 per cent of its total annuat ing between is spending cent of the total education en az it to approximately 74 per t budgets amount ofits total annual budget) ually (nearly 3 per cent sitesi sIL as the centre): 80-90 per cent. (states as wel the Governments heir children: 4-5 per cent (v) The Private Trusts: 7 per cent. Pala opti tea significant trend towards privatisation of education, ‘Abroad conclusion thus emerges that i the bulk of spending is done by the cen '= Knowledge economy isan economy where growths driven by the ‘quantity, quality and accessibility’ of information, more than the means of production. '= Expanding I information technology) in india isa critical sign of India emerging as a knowledge economy. 1 Use of internet and digitisation of exchange {is penetrating even inrural areas of the country. in india, despit tral and the state governments. Educational Achievements in India ‘There has been an expansion of general education during the period of Five Year Plans, as indicated by Table 1. ‘Table 1, Expansion of General Education tem 195051 | 2015-16 | Tnttutions () Primary and Middle Schools 2.23lakh | 12.701akh (i) Secondary and Senior (Higher) Secondary Schools | 7.4 thousand | 2.52!akh i) Colleges (General) sve | spon Cw) Universities (including Deemed Universities) a 19 1 Number of students () Primary and Miele aoasiakh | 17100 (ii) High and Higher Secondary Schools: 15.0 lakh 3.2 crore, i) Higher Education aiblakh | 346 ahh Source: Statistical Outline of india 2012-13, Economic Survey 2018-19 ‘and wwww.ncert ncn Observations '™ Substantial progress has been made in the field of education. = During the plans, the number of educational institutions providing elementary education has increased roughly by five times and the number of students has increased ten-fold. In 9: a 1, hardly 18.33 per cent of the total population was literate. In 201! Percentage of literates increased to 74.04 per cent. Table 2 shows the details of litera Tale for primary ear teBer Fats (adult and youth) as wells completion 14, Budget - a statement of estimated receipts and expe 140—— — _ — - Human Capital Formation in India \ able 2. Educational Attainment in india ‘dering the importance i oa [ame [wat Tomera8] rcs ren Rate capital formation, the dtr ponl 28154) ‘Government of India tries (bea 619 68.4 79 82 to regulate education @) wale 379 45a 59 66 sector thro ant misations. Importan ieeortion tat” eae comple : pier a eo ae (vere 8 85 92 93 ‘Council of Educational (male Research and Training): S| cn remate ie 6 | %4 % ttis basically engaged in i designing text material Spout rte aged 151024) up tothe senior {percent of people 282 esl () Male ue ae ie ad (ii) UGC (University ‘ (i) Female saz | og | €2 0 Grants Commission}: 4 It is primarily the source: NCERT funding authority for 5 eo = “, university education. Education Still a Challenging Proposition tealso enforces the om Focuson ‘education has tremendously increased over time. Itis encouraging rules and regulations ~ tonote that nearly 96.5 per cent children are | now the school goers. Butinthe Saas backdrop of this statistics there is a bitter truth: despite the constitutional Se ee he provision for free and compulsory education forthe children between the jy aicTE (allindia te age group of 6-14 years, quality of education and infrastructure continues Council of Tech to be disappointing. Education): It enforces: iC, rules and regulations , Administrative callousness compounds the problem further. A survey by regarding technical/ the “Child Rights and You" (CRY) finds that children continue to be refused engineering education admission to schools because of the lack of transfer documentation, the couney. ie birth registration and proof of residence. In some cases, parents of Soe ee temed E school-going children are compelled to pay fees. Such instances point toa Research): It enforces serious bottleneck in the education system of the country. rules and regulations a : a ; relating to education MS This along with the following facts and figures makes education still 2 and research in the health sector. challenging proposition in India: (1) Large Number of Illiterates: India harbours the largest ‘number of iliterates in the world. Presently, nearly 36 crore people are estimated to be illiterate. The number exceeds even the total population of most countries in the world, (2) inadequate Vocationalisation: Education continues to be largely degree-oriented throwing millions of educated youths down to the corridors of employment exchanges. Vocationalisation of education’ is still a far cry. As a result, the rate of unemployment among the educated youth is trending up. 15. Prin Perf new entrants in the last grade of primary education, regardless of their age, a ‘oom ance age for the last grade of primary education. tion of. practical knowledge of specific work to enable skill-building in humans. 141 we >= ~~en “te econ NSO dt c | ES ei nirotensns oreo ot ter pase a cent. The situation is more grim incase of female graduate, Sonam peter SEER | a) cender alas: There is still a slenifcont ‘ender a vee a tic ton to al vale children. ght ean ba ‘opportunities of education to male ind fernale ck Sree oes Sesh The enrolment ratio is relatively low forthe female candidates and th, Wvees exten a drop-out rato is considerably high. Education system In India thus neg, Teoontetara S substantial change in the attitudes of the people. as” in offering Dincic easy! Srpony mean itis important to promote education among women t0 improve th, Serer ‘economic independence and social status. Sosce nape are mozrinwsteds (4) Low Rural Access Level: There isa high degree of disparity in access cBemsgence | Seaton. he aces level isconsiderai ow fo ter opt -stemButrn_arpaign=cPP™ ‘compared to the urban population. (5) Privatisation: There isa growing trend towards privatisation of education Being very expensive, private education has tended to widen the gu between access level for the rich and the poor. There is almost a drought of educational opportunities for poorer sections of the society sos matiatonot (6) tow Government Expenditure on Education: The government has — failed to fulfil its commitment of spending nearly 6 per cent of GOP ‘on education: actual expenditure has been around 4-5 per cent onl. This points to the gap between what is intended or desired and what is actually achieved. Given these facts, there follows an obvious inference that education in India has failed to reach the masses, and has also failed to break the vicious circle” iteracy*—illiteracy breeding poverty and poverty breading illiteracy. | ‘public education” MULTIDISCIPLINARY LEARNING Meaning: It refers to a way of learning which involves focusing on diverse perspectives and diferent Uisciplines of learning to address the isue at hand andilustrate a theme or concept Need: It facilitates the management of natural resources in the wake of climate change and resource | depletion. Further, advancement of collaborative research in the wake of emergence of epidernics and pandemics worldwide isthe need ofthe hour Way Ahead: There exists a Large pool of scientific and technical manpower in our country. All we need to | <0 hone/sharpen ther sil in 2 muitgisciptinary manner to usher conditions that facilitate quattave improvement. 17. Gender bias - the tendency to give preferential treatment to one gender over another. 418. Access level in terms of avilabilty of goods and services) - the opportunity or right to own it, use itor seeit 49. Vicious circle - a chain of events wherein one problem leads to another and finally aggravates the ov sitfiulty. 20. Illiteracy - the condition of being unable to read and write. 21. Poverty - the inability to fulfil the basic requirements of life.Human Capital Formation in India ‘1. Why is human capital formation immeasurable? ‘Ans. The large number of factors which impact the productivity of humans are not quantifiable. Examples: (i) Human character, and (ii) Human relations. 2. “Excessive involvement of the private sector in education causes more harm than good.” Comment. ‘Ans. True, as it makes education unaffordable for the people. 3. Which body is responsible for making rules and regulations regarding technical/engineering ‘education in India? ‘Ans. AICTE (All India Council of Technical Education). 4. Why do we say that the education pyramid of india is steep? ,__| Att Lesserand lesser number of people reach higher education level ; 5. What does ‘education expenditure of total government expenditure’ indicate? < Ans, It indicates the importance of education in comparison to other areas of ol expenditure. te “ (eden = Human Resource: Itrefers to abilities (skill and expertise) of human beings to contribute to the process 2 of value-addition in the economy. 18 Human Capital: It refers to the stock of ‘skill and expertise’ of a nation at a point of time. @ Human Capital Formation: It refers to the process of adding to the stock of human capital. & Sources of Human Capital: (i) Expenditure on education, (i) Expenditure on health, (ii) On-the job __training iv) Study programmes for adults (v) Migration, (vi) Expenditure on information. = © Significance of Human Capital Formation: (j) Change in emotional and material environment of fouth, (i Higher productivity of physical capita, i) Innovative skl,(v) Higher rate of participation yj __and equality '© Problems facing Human Capital Formation in india: (i) Rising population, (i) Brain drain, (il) Deficient manpower planning, (iv) Insuficient on-the-job training in primary sector, (v) Low academic standards, 5 Importance and Objectives of Education: (i) Education produces good citizens, (ii) It develops science and technology, (ii) It facilitates use of resources in the country, (jv) it expands mental horizon of the people, (v) It helps in economic development through greater participation of the people in the _RGntss of growth and development, (vi) t promotes cultural standard ofthe citizens, (vi) It develops | __ human personality. © Growth of Education Sector in India: It includes: !) Expenditure incurred on education, (ii) Educational achievements of india. Pe Problems Relating to Ucxclopment of Education in india: (i) Large number of lliterates, Li Inadequate vocationalisation, (ii) Gender bias, (iv) Low rural access level, (v) Privatisation, (vi) Low Eovernment expenditure on education, 143 a