Human capital formation has helped India grow economically, scientifically, technologically, socially and walk on the path of prosperity. India is one of the world’s largest economies and it would not have been possible without human capital that is trained and educated.
Physical resources like land can be converted into physical capital like factories, industries, etc. Similarly human resources like students can be turned into human capital like doctors or engineers. Any country requires sufficient human capital in the first place.
Human capital will have the ability to absorb technologies, create new innovations, increase labour productivity. Innovations and inventions, scientific advancements, and ability to understand changes in society are facilitated by Education. Hence, new technologies are adopted when there is availability of educated labour force.
The importance of human capital in India was recognised by human capital long ago. The Seventh five year plan lays the importance of human capital in any development strategy, particularly in a large nation like India having a very large population. A large population can itself become an asset and ensure social change in desired directions and accelerate economic growth when the population is educated and trained.