Human Capital Formation In India

Question

Why does the government spend on education?

Answer

Human beings without education have only brutal manpower, that is their physical labour. Investment in education gives them

additional skills to do the many jobs efficiently. It converts human being into human capital. The human capital increases the productivity which is a source of economic growth. Investment in education is considered as one of the sources of human capital. That is why the government makes expenditure on education. Seventh five-year plan says, 'Human resources development or human capital has necessarily to be assigned a key role in any development strategy, particularly in a country with large population. Trained and educated on sound lines, a large population can itself become an asset in accelerating economic growth and in ensuring social change in desired directions.'

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