𝓟𝓮𝓸𝓹𝓵𝓮 𝓪𝓼 𝓻𝓮𝓼𝓸𝓾𝓻𝓬𝓮𝓼
When the existing 'human resource' is further developed by becoming
more educated and healthy,we call it 'human capital formation'
Investment in human capital (through education,training,medical
care)yields a return just like investment in physical capital
Higher productivity More education or the better trained people,as well as the
higher productivity of healthier people.
Not only do the more educated and the healthier people gain through
higher incomes,society also gains in other indirect ways because the
advantages of a more educated or healthier population spreads to those
who themselves were not directly educated or not given health care.
Human resources can make use of land and capital
Land and capital on their own cannot become useful
Investments in human resources(via health and education) can give high
rates of return in future.
This Investment on people is the same as investment in land and capital
Educated parents are found to invest more heavily on the education of
their child.This is because they have realised the importance of
education for themselves.They are also conscious of proper nutrition and
hygiene.They accordingly look after their children's needs for education
at school and good health,
A virtuous cycle is thus created in this case.
In contrast, a vicious cycle may be created by disadvantaged parents who
themselves are uneducated and lack in hygiene and thus keeping their
children in a similarly disadvantaged state
Countries, like Japan, have invested in human resource. They did not
have any natural resource. These countries are developed/rich.
They have invested on people, especially in the field of education and
health. These people have made efficient use of other resources, like
land and capital. Efficiency and the technology evolved by people have
made these countries rich/developed.
, Primary sector includes agriculture, forestry, animal husbandry, fishing,
poultry farming, mining and quarrying. Manufacturing is included in the
secondary sector. Trade, transport, communication, banking, education,
health, tourism, services, insurance, etc. are included in the tertiary sector. The
activities in this sector result in the production of goods and services. These
activities add value to the national income. These activities are called economic
activities. Economic activities have two parts — market activities and non-
market activities. Market activities involve remuneration to anyone who
performs i.e., activity performed for pay or profit. These include production of
goods or services, including government service. Non-market activities are the
production for self-consumption.
The quality of population depends upon the literacy rate, health of a person
life expectancy and skill formation acquired by the people of the country. The
quality of the population ultimately decides the growth rate of the country.
Literate and healthy population are an asset.
There is also an establishment of pace setting of schools like Navodaya
Vidyalaya in each district. Vocational streams have been developed to equip
large number of high school students with occupations related to knowledge
and skills. The plan outlay on education has increased from Rs 151 crore in the
first plan to Rs 99,300 crore in 2020–21. The expenditure on education as a
percentage of GDP rose from 0.64% in 1951–52 to 3.1% in 2019–20 (B.E.) and
has remained stagnant around 3% from past few years.
Reserve Bank of India, the expenditure on education as a percentage of
GDP has declined to 2.8% in 2020–21 (B.E.)
The literacy rates have increased from 18% in 1951 to 85% in 2018.
Literacy is not only a right, it is also needed if the citizens are to perform their
duties and enjoy their rights properly
Literacy among males is nearly 16.1% higher than females and it is about
14.2% higher in urban areas as compared to rural areas. As per 2011 census,
literacy rates varied from 94% in Kerala to 62% in Bihar.
When the existing 'human resource' is further developed by becoming
more educated and healthy,we call it 'human capital formation'
Investment in human capital (through education,training,medical
care)yields a return just like investment in physical capital
Higher productivity More education or the better trained people,as well as the
higher productivity of healthier people.
Not only do the more educated and the healthier people gain through
higher incomes,society also gains in other indirect ways because the
advantages of a more educated or healthier population spreads to those
who themselves were not directly educated or not given health care.
Human resources can make use of land and capital
Land and capital on their own cannot become useful
Investments in human resources(via health and education) can give high
rates of return in future.
This Investment on people is the same as investment in land and capital
Educated parents are found to invest more heavily on the education of
their child.This is because they have realised the importance of
education for themselves.They are also conscious of proper nutrition and
hygiene.They accordingly look after their children's needs for education
at school and good health,
A virtuous cycle is thus created in this case.
In contrast, a vicious cycle may be created by disadvantaged parents who
themselves are uneducated and lack in hygiene and thus keeping their
children in a similarly disadvantaged state
Countries, like Japan, have invested in human resource. They did not
have any natural resource. These countries are developed/rich.
They have invested on people, especially in the field of education and
health. These people have made efficient use of other resources, like
land and capital. Efficiency and the technology evolved by people have
made these countries rich/developed.
, Primary sector includes agriculture, forestry, animal husbandry, fishing,
poultry farming, mining and quarrying. Manufacturing is included in the
secondary sector. Trade, transport, communication, banking, education,
health, tourism, services, insurance, etc. are included in the tertiary sector. The
activities in this sector result in the production of goods and services. These
activities add value to the national income. These activities are called economic
activities. Economic activities have two parts — market activities and non-
market activities. Market activities involve remuneration to anyone who
performs i.e., activity performed for pay or profit. These include production of
goods or services, including government service. Non-market activities are the
production for self-consumption.
The quality of population depends upon the literacy rate, health of a person
life expectancy and skill formation acquired by the people of the country. The
quality of the population ultimately decides the growth rate of the country.
Literate and healthy population are an asset.
There is also an establishment of pace setting of schools like Navodaya
Vidyalaya in each district. Vocational streams have been developed to equip
large number of high school students with occupations related to knowledge
and skills. The plan outlay on education has increased from Rs 151 crore in the
first plan to Rs 99,300 crore in 2020–21. The expenditure on education as a
percentage of GDP rose from 0.64% in 1951–52 to 3.1% in 2019–20 (B.E.) and
has remained stagnant around 3% from past few years.
Reserve Bank of India, the expenditure on education as a percentage of
GDP has declined to 2.8% in 2020–21 (B.E.)
The literacy rates have increased from 18% in 1951 to 85% in 2018.
Literacy is not only a right, it is also needed if the citizens are to perform their
duties and enjoy their rights properly
Literacy among males is nearly 16.1% higher than females and it is about
14.2% higher in urban areas as compared to rural areas. As per 2011 census,
literacy rates varied from 94% in Kerala to 62% in Bihar.
