PPT - Human Capital Formation in India | Indian Economy for UPSC CSE PDF Download

 Page 1


HUMAN CAPITAL 
FORMATION
Page 2


HUMAN CAPITAL 
FORMATION
Page 3


HUMAN CAPITAL 
FORMATION
WHAT IS HUMAN CAPITAL?
• Just as a country can turn physical resources like land into physical capital 
like factories, similarly it can also turn human resources like students 
into engineers and doctors.
• Societies need sufficient human capital in the first place-In the form of 
competent  people who have themselves been educated and trained as 
professors and other professionals. This means that we need investment 
in human capital out of human resources.
Page 4


HUMAN CAPITAL 
FORMATION
WHAT IS HUMAN CAPITAL?
• Just as a country can turn physical resources like land into physical capital 
like factories, similarly it can also turn human resources like students 
into engineers and doctors.
• Societies need sufficient human capital in the first place-In the form of 
competent  people who have themselves been educated and trained as 
professors and other professionals. This means that we need investment 
in human capital out of human resources.
Page 5


HUMAN CAPITAL 
FORMATION
WHAT IS HUMAN CAPITAL?
• Just as a country can turn physical resources like land into physical capital 
like factories, similarly it can also turn human resources like students 
into engineers and doctors.
• Societies need sufficient human capital in the first place-In the form of 
competent  people who have themselves been educated and trained as 
professors and other professionals. This means that we need investment 
in human capital out of human resources.
POINTS OF DIFFERENCE
PHYSICAL CAPITAL HUMAN CAPITAL
?Physical Construction
It has physical  construction. It can be  
seen, touched and easily  sold.
It is intangible and it is not  sold. 
Only its services are  sold.
?Separation
It is separable from its  owners.
It cannot be separated from its 
owners.
?Building
It can be built by imports also. It is built by conscious  policy 
formulation of state and its expenditure.
?Nature of Benefits
It creates private benefit.
It creates both private and social 
benefits.
?Mobility
Completely mobile  subject to 
artificial trade  restriction placed at  
some places.
It is not perfectly mobile.  It is 
restricted by nationality and culture.