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Exercises · Q19

Q.What are the main problems of human capital formation in India?

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India's human capital formation is held back by rising population, inadequate spending on education and health, brain drain, poor-quality facilities and unequal access.

Concept

Human capital formation is the building up of a skilled and healthy population. In India several problems slow this process down.

The main problems

1. Rising population

A large and growing population puts heavy pressure on educational and health facilities and reduces the per-head availability of schools, hospitals and other resources, holding back human capital formation.

2. Insufficient government expenditure

Spending on education and health, as a percentage of total expenditure and of GDP, has remained below the levels needed, so facilities are inadequate.

3. Brain drain

Many highly educated and skilled Indians migrate to other countries in search of better opportunities. The country loses the return on the human capital it has built.

4. Poor quality and weak infrastructure

Many schools and hospitals, especially in rural areas, suffer from shortages of buildings, equipment, teachers and doctors, and from poor quality of service.

5. Inequality of opportunity …

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