{"id":60431,"date":"2023-12-06T15:16:24","date_gmt":"2023-12-06T09:46:24","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=ncert-notes&p=60431"},"modified":"2024-09-25T17:58:37","modified_gmt":"2024-09-25T12:28:37","slug":"human-capital-formation-india","status":"publish","type":"ncert-notes","link":"https:\/\/pwonlyias.com\/stage\/ncert-notes\/human-capital-formation-india","title":{"rendered":"Assessing the Education and Healthcare in India for Comprehensive Human Capital Formation"},"content":{"rendered":"

Exploring the Interplay of Human Capital and Development<\/b><\/span><\/h2>\n

Human capital refers to the <\/span>skills, knowledge, experience, and attributes possessed by individuals<\/b>, contributing\u00a0 to their productivity and economic value. In the context of India’s dynamic landscape, the process of Human development, which involves enhancing well-being and expanding choices, is intrinsically linked to ongoing initiatives in human capital formation.\u00a0 Human Capital Formation approach involves investments in education, health, on-the-job training, migration, and information, collectively shaping the nation’s human capital for sustainable growth and development<\/span><\/p>\n

Exploring Objectives: Contrast Between Human Capital and Human Development<\/b><\/span><\/h2>\n
    \n
  • While the terms human capital and human development may sound alike, they have distinct meanings and implications.\u00a0<\/span><\/li>\n
  • Their differences primarily revolve around the objectives and values associated with education and health.<\/span><\/li>\n<\/ul>\n\n\n\n\n
    Human Capital<\/b><\/span><\/th>\nHuman Development<\/b><\/span><\/th>\n<\/tr>\n
    \n
      \n
    • It<\/span> regards <\/span>education and health <\/b>as tools for increasing <\/span>labour productivity.<\/b><\/li>\n
    • The central objective is to enhance productivity.\u00a0<\/span><\/li>\n
    • Any investment in education and health is deemed <\/span>unproductive<\/b> if it doesn’t augment the output of goods and services.<\/span><\/li>\n
    • It treats <\/span>human beings as means<\/b> to an end, with the end being the increase in productivity.<\/span><\/li>\n<\/ul>\n<\/td>\n
    		\n
      \n
    • It<\/span> views <\/span>education<\/b> and <\/span>health<\/b> as crucial for <\/span>human well-being,<\/b> enabling individuals to make valued life choices.<\/span><\/li>\n
    • The central objective is to augment human welfare.\u00a0<\/span><\/li>\n
    • Investments in education and health are <\/span>valued even if they do not result<\/b> in higher labour productivity.<\/span><\/li>\n
    • It treats <\/span>human beings as ends <\/b>in themselves, emphasising the intrinsic value of education and health.<\/span><\/li>\n
    • Advocates for the right<\/b> of every individual to receive basic education and health care, emphasising literacy and a healthy life as fundamental rights.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Nurturing Human Potential for Human Capital Formation in India\u00a0<\/b><\/span><\/h2>\n
        \n
      • Human capital formation in India is <\/span>primarily driven by investments<\/b> in <\/span>education, health, on-the-job training, migration, and information<\/b>. Among these, education and health are important.<\/span><\/li>\n
      • This section delves into the <\/span>education sector’s state and the necessity<\/b> for government intervention in promoting human capital formation.<\/span><\/li>\n<\/ul>\n

        Examining India’s Multi-Tiered Approach to Education and Healthcare Responsibilities<\/b><\/span><\/h2>\n
          \n
        • Multi-tier Governance Structure in India: <\/b>India, being a federal country, has governance at union, state, and local levels (Municipal Corporations, Municipalities, and Village Panchayats) with distinct functions as outlined in the Constitution.<\/span><\/li>\n
        • Shared Responsibility for Education and Healthcare: <\/b>The responsibility for expenditures on education and health is shared across all three tiers of government, aiming for a holistic development approach.<\/span><\/li>\n<\/ul>\n

          Government’s Vital Role in\u00a0 Human Capital Formation: Balancing Benefits, Quality, and Accessibility in Education and Healthcare Services<\/b><\/span><\/h2>\n
            \n
          • To Maximize Social and Private Benefits: <\/b>Education and health services create <\/span>both private and social benefits,<\/b> necessitating a balance of private and public institutions in these sectors.<\/span><\/li>\n
          • Safeguarding Quality and Accessibility: <\/b>Given the long-term impact and irreversible nature of investments in education and health, government intervention is crucial to ensuring quality and accessibility.<\/span><\/li>\n
          • Risks of Monopoly Power and Exploitation:<\/b>\n
              \n
            • The<\/span> lack of complete information<\/b> about the quality and cost of services can lead to monopoly power and exploitation by service providers.<\/span><\/li>\n
            • This underscores the<\/span> government’s role <\/b>in stipulating and enforcing standards.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

              Key Governance Players in India’s Education and Healthcare Sectors<\/b><\/span><\/h2>\n
                \n
              • Key Players in India’s Education Sector:\u00a0<\/b>\n
                  \n
                • The union and state-level ministries of education, alongside organisations like\u00a0<\/span><\/li>\n
                • The <\/span>National Council of Educational Research and Training (NCERT),\u00a0<\/b><\/li>\n
                • University Grants Commission (UGC), and\u00a0<\/b><\/li>\n
                • The All India Council of Technical Education (AICTE),<\/b> plays significant roles in facilitating the education sector.<\/span><\/li>\n<\/ul>\n<\/li>\n
                • Facilitating India’s Healthcare Sector:\u00a0<\/b>\n
                    \n
                  • Similarly, the health sector is facilitated by the union and state-level <\/span>ministries of health,<\/b> Departments of health, and\u00a0<\/span><\/li>\n
                  • Organizations like the <\/span>National Medical Commission and the Indian Council for Medical Research (ICMR).<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                    Challenges faced during\u00a0 Human Capital Formation<\/b><\/span><\/h2>\n
                      \n
                    • Obstacles to Educational\u00a0 and Health Access:\u00a0<\/b>\n
                        \n
                      • With a significant portion of the <\/span>population living below the poverty line<\/b>, many Indians cannot afford basic education and health care services.<\/span><\/li>\n
                      • The challenge extends to accessing higher education and super-speciality health care, especially for the <\/span>socially oppressed classes.<\/b><\/li>\n<\/ul>\n<\/li>\n
                      • Government Commitment to Human Capital Development:<\/b>\n
                          \n
                        • Both the union and state governments have been increasing expenditures in the education sector over the years.<\/span><\/li>\n
                        • This aim is <\/span>to achieve full literacy <\/b>and elevate the average educational attainment of Indians, reflecting a sustained commitment towards human capital formation.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                          Dynamics of Government Expenditure in India’s Education Sector<\/b><\/span><\/h2>\n

                          Government expenditure on education is a crucial aspect of human capital formation in India, evaluated in terms of its percentage of total government expenditure and its percentage of <\/span>Gross Domestic Product (GDP).<\/b><\/p>\n

                            \n
                          • Government Expenditure Trends:<\/b> The percentage of education expenditure out of total government expenditure reflects the government’s prioritization of education.<\/span>\n
                              \n
                            • While the percentage of <\/span>education expenditure in GDP<\/b> signifies the portion of people’s income dedicated to education development.<\/span><\/li>\n<\/ul>\n<\/li>\n
                            • Historical Trend (1952-2014):<\/b> \u00a0Education expenditure as a percentage of total government expenditure rose from 7.92 to 15.7.<\/span>\n
                                \n
                              • Education expenditure<\/span> as a percentage of GDP<\/b> increased from <\/span>0.64 to 4.13.<\/b><\/li>\n
                              • The increase has been irregular, with periods of rise and fall.<\/span><\/li>\n<\/ul>\n<\/li>\n
                              • Elementary vs Tertiary Education Expenditure:\u00a0 <\/b>Elementary education consumes <\/span>a major share of the total education expenditure<\/b>.<\/span>\n
                                  \n
                                • In contrast, <\/span>the share for higher\/tertiary education is the least<\/b>, though the expenditure per student at this level is higher than that of elementary education.<\/span><\/li>\n<\/ul>\n<\/li>\n
                                • Growing Need for Trained Teachers and Education Investment: <\/b>An expansion in school education necessitates more trained teachers from higher educational institutions.<\/span>\n
                                    \n
                                  • Which advocates for increased expenditure across all education levels.<\/span><\/li>\n<\/ul>\n<\/li>\n
                                  • State-wise Disparity (2014-15): <\/b>Per capita public expenditure on elementary education varied considerably across states, from Rs 34,651 in Himachal Pradesh to Rs 4088 in Bihar.<\/span>\n
                                      \n
                                    • It indicates a disparity in educational opportunities and attainments.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                                      Analysis of Education Expenditure in India and Recommendations for Future Growth<\/b><\/span><\/h2>\n
                                        \n
                                      • Recommending Enhanced Education Expenditure: <\/b>Various commissions recommended education expenditures of <\/span>at least 6% of GDP<\/b> to achieve significant growth in educational achievements.<\/span>\n
                                          \n
                                        • The <\/span>Tapas Majumdar Committee (1999): <\/b>It estimated a need for around Rs 1.37 lakh crore over 10 years (1998-99 to 2006-07) to bring all Indian children aged 6-14 under school education.<\/span><\/li>\n<\/ul>\n<\/li>\n
                                        • Education Expenditure Disparity: <\/b>The current level of education expenditure (a little over 4% of GDP) is inadequate compared to the desired 6% of GDP, which has been accepted as a crucial goal for the upcoming years.<\/span><\/li>\n<\/ul>\n

                                          Fostering Change: Legislative and Fiscal Initiatives Shaping Education in India<\/b><\/span><\/h2>\n
                                            \n
                                          • Right to Education:<\/b> The<\/span> Right of Children to Free and Compulsory Education Act (2009)<\/b> was enacted to make free education a fundamental right for all children aged 6-14.<\/span><\/li>\n
                                          • Education Cess: <\/b>A 2% <\/span>‘education cess’<\/b> on all Union taxes has been initiated to fund elementary education.<\/span><\/li>\n
                                          • Government Initiatives for Higher Education: <\/b>Additionally, the government has sanctioned a large outlay for promoting higher education and introduced new loan schemes for students pursuing higher education.<\/span><\/li>\n<\/ul>\n

                                            Educational Achievements Indicators<\/b><\/span><\/h2>\n
                                              \n
                                            • Educational achievements are usually indicated by<\/span> (Refer to Table)<\/span>\n
                                                \n
                                              • Adult literacy levels,\u00a0<\/b><\/li>\n
                                              • Primary education completion rates, and\u00a0<\/b><\/li>\n
                                              • Youth literacy rates<\/b>.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                                                \"Educational<\/p>\n

                                                Educational Attainment in India<\/b><\/p>\n

                                                \u00a0<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","notes-subjects":[4564],"subject-chapters":[5906],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/ncert-notes\/60431"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/ncert-notes"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/ncert-notes"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=60431"}],"wp:term":[{"taxonomy":"notes-subjects","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/notes-subjects?post=60431"},{"taxonomy":"subject-chapters","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject-chapters?post=60431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}