Human Capital Accumulation and Economic Growth in India

Knowledge is our most powerful engine of creation, production, transmission and reception of knowledge- all these require well developed human capacities. Human capital formation plays an important role in economic development in developed world as well as it is playing important role in developing countries like India. The effective use of physical capital itself is dependent upon human capital. Technical, professional and administrative people require physical capital to make effective use of raw material resources. The third world countries have remained underdeveloped want of adequate amount and appropriate quality of human capital. The general population in India is either illiterate or their level of education is very low; most of them are unskilled and untrained and their general health is very poor. Therefore, large ?scale investment in human capital is needed if physical capital available to India or developing countries is to be exploited in a more efficient way.