How does investment in human capital contribute to growth?
Human capital and economic growth goes hand in hand. Human capital formation accelerates the economic growth whereas economic growth in turn facilitates human capital formation. The interrelationship between economic growth and human capital formation can be explained with the help of the below mentioned points.
1. Increase in the Productivity of Physical Capital: Physical capital refers to the stock of produced means of production. It consists of machines, production plants, tools and equipments. The skilled workers handle the productive assets in such a manner that these not only enhance their productivity and but also lead to an efficient utilisation of the physical capital. When the productivity increases, the pace of growth is automatically accelerated.
2. Innovation of Skills: An educated person is more productive and skillful. He has the potential to develop new skills and innovate new techniques that can be more efficient and productive. Greater the number of skilled and trained personnel, greater will be probabilities of innovations.
3. High Participation Rate and Equality: Human capital endowed with higher technical skills and innovating power is more productive and efficient. This increases the participation of more people in the process of economic growth and development. Higher the participation rate, higher is the degree of social and economic equality across the country. Thus, we can conclude that human capital and economic growth goes hand in hand. Human capital formation accelerates the economic growth whereas economic growth also facilitates human capital formation.
Match the following:
|
1. Prime Minister 3. Quota 4. Land Reforms 5. HYV Seeds 6. Subsidy |
A. Seeds that give large proportion of output C. Chairperson of the planning commission D. The money value of all the final goods and services produced within the economy in one year. E. Improvements in the field of agriculture to increase its productivity F. The monetary assistance given by government for production activities. |
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
This question is important because it tests key concepts from the NCERT syllabus and is frequently asked in CBSE exams.
This question is based on core NCERT concepts explained in the chapter and should be revised thoroughly before exams.
Students often lose marks by skipping steps, writing incomplete explanations, or misunderstanding keywords used in the question.
Human capital and economic growth goes hand in hand. Human capital formation accelerates the economic growth whereas economic growth in turn facilitates human capital formation. The interrelationship between economic gro...
Step-by-step explanation:
• Human capital and economic growth goes hand in hand
• Human capital formation accelerates the economic growth whereas economic growth in turn facilitates human capital formation
• The interrelationship between economic growth and human capital formation can be explained with the help of the below mentioned points
•
•
Stay updated with our latest educational content and study tips
Interest is one of the most significant ideas in maths and financial calculations. It is very common in banking, loan applications, investments, saving account and competitive exams. Simple Interest and Compound Interest make it easier to find out how much more is earned and/or paid on a principal during the period of time. These Interest … Read more
Read More
In 2026, students, professionals, and job seekers must have a high level of spoken English. Spoken English is a beginner level course to enhance learners’ communication skills in English, their pronunciation, vocabulary, grammar structure and confidence in speaking English fluently. Today, the emphasis of spoken English courses is placed on actual conversations, everyday speech practice … Read more
Read More
Artificial Intelligence (AI) and Machine Learning (ML) are two of the most sought-after technologies in today’s digital era. Although these terms are often used together, they are not the same. Machine Learning is, in fact, a component of Artificial Intelligence that enables systems to learn and enhance on their own, without direct programming. AI is … Read more
Read More
Time, Speed, and Distance are some of the most important concepts in mathematics and aptitude. These are the concepts which are used to calculate the speed of an object, time taken for an object to move and the distance traveled during the motion. Questions from this topic are frequently seen in School Tests, Competitive Tests, … Read more
Read More
Student Discussion
Be the first to comment.
ADD NEW COMMENT