Human capital formation

Human Capital Formation
Knowledge has played a significant role in the development of mankind. Education, learning, training can be gained and spread through various means like music, books, movies, lectures, etc. It has already been proved that the businesses initiated by the educated and skilled individuals are always productive than that started by the unskilled person. Therefore, the income earned by the skilled person is more than the unskilled person. Similarly, the contribution to the nation’s economy is more from the skilled person than from the latter.
Sources of Human Capital Formation
Education investment is recognised as one of the main sources of human capital, along with other sources like health, migration, on-job training, and information. Let’s decode it one by one.
Investment in Education
The most powerful way to improve and expand the fruitful workforce in the state is by nourishing and building up the education system. It is acknowledged as the root of human capital formation, that is the reason why the parents and also the government spend more on education. Few objectives why individual and state investment in education are.
• To developing their future income
• Build manpower and enhance their technical skills, to improve workers productivity and therefore resulting in economic growth
• To control the population growth rate by reducing the birth rate and making maximum resources available per person
• Knowledge and education can be transferred to others, resulting in social advantages.
Investment in Health
The second major source of human capital formation is the Health sector. A person who is unwell will absolutely influence productivity. Few health-related investments are, providing clean and safe drinking water and therapeutic medicines, etc.
Investment in Education
The most powerful way to improve and expand the fruitful workforce in the state is by nourishing and building up the education system. It is acknowledged as the root of human capital formation, that is the reason why the parents and also the government spend more on education. Few objectives why individual and state investment in education are.
• To developing their future income
• Build manpower and enhance their technical skills, to improve workers productivity and therefore resulting in economic growth
• To control the population growth rate by reducing the birth rate and making maximum resources available per person
• Knowledge and education can be transferred to others, resulting in social advantages.
Investment in Health
The second major source of human capital formation is the Health sector. A person who is unwell will absolutely influence productivity. Few health-related investments are, providing clean and safe drinking water and therapeutic medicines, etc.
Problems of Human Capital Formation
• Growth in Population: The rapid rise of the population can influence the grade of human capital formation, mostly in developing countries. It degrades the per capita availability of the present facility. A large population involves extra investments.
• Long Process: The method applied for human development is a long term process because skill enhancement requires extra time. Therefore, the process becomes very normally slow.
• Gender Inequality and High Regional Disparity: These two factors the human development skill
• Insufficient On-Job training: In the Agriculture sector, on-job training to handle advanced equipment are not provided to the worker.
High Poverty Level: In India, a large portion of the population is below the poverty line. Therefore, they do not have easy access to primary health and education.

SDG 4 Indicator Data Source
Quality Education

 4.a. (Complement of) People per Education Institute (2015 – 16)     Department of Higher Education, Ministry of Human Resource Development & District Information System for Education (DISE), National University of Education Planning and Administration (NUEPA).
4.6. Literacy Rate (2011)   Office of the Registrar General and Census Commissioner, India, Ministry of Home Affairs, Government of India.
4.1. Gross Enrolment Ratio (2015-16) – Primary Education    Ministry of Health & Family Welfare, Government of India (17298).
4.1. Gross Enrolment Ratio (2015-16) – Secondary Education  Rajya Sabha Unstarred Question No. 57, dated 02.02.2017.
4.3. Gross Enrolment Ratio (2015-16) – Higher Education Ministry of Human Resource Development, Government of India (ON1321).
4.c. Student to Teacher Ratio (2015-16)     Unified District Information System for Education.
4.1. (Complement of) Student Dropout (2014-15)  Unified District Information System for Education. (Table 3.20. Annual Average Drop-out Rate by Educational Level: 2014-15)
4.a. Ratio of NAAC Accredited Universities (2018)   Central Universities: UGC 29 June, 2017; State Universities: 6 Oct, 2017; Deemed Universities: 6 Oct, 2017; Private Universities: 6 Oct, 2017; NAAC Accredited Universities: State wise Number of colleges and universities accredited by NAAC, 16.8.2018.

Delhi and the rural-urban divide
The literacy rate of the population is much higher in Delhi than the neighbouring states. ASER 2018 reports indicate that a large section of primary students in rural Haryana, Rajasthan, and UP could not read a grade-2 book. Although there is no comparable data for Delhi, the government’s recent assessments indicate that 63 percent of students from grade III to grade IX can now read their grades’ textbook. For the year 2015-16, the per-child education expenditure by the government of the NCT of Delhi, was higher than the combined per-child education expenditure by the governments of Rajasthan and UP. The differences in the education expenditure outlays between Delhi and its surrounding areas, is a significant factor contributing to the disparity in the quality of public education in the region.
Structure of governance in Delhi
The NCT of Delhi, like other states and Union Territories, is governed by the three-level structure of governance: national, state, and local. However, the roles and responsibilities of each governance level is different in NCT of Delhi from those of other states and Union Territories.
From 1956 to 1992, Delhi was a union territory governed by the GoI, and it did not have a legislative assembly. In 1992, the Government of the National Capital Territory Act (GNCTD Act) came into force, and the Union Territory of Delhi was renamed the National Capital Territory of Delhi. The GNCTD Act also created a state-level legislative assembly for the NCT of Delhi. The members of this legislative assembly were chosen by direct election from territorial constituencies in the NCT of Delhi. Although the GNCTD Act established a legislative assembly for the NCT of Delhi, its provisions limited the power of the legislative assembly in comparison to other states. The elected legislative assembly of Delhi does not have the authority to make laws relating to policing, public order, or land; these areas remain under the purview of the parliament of India.
Different governance agencies, from the central, state and the local governments, are responsible for providing public services in the NCT of Delhi. For public services like healthcare, education, and access to electricity, there are overlaps in the responsibilities of the MCDs and the government of the NCT of Delhi, making coordination in governance essential to ensure good quality of these services. Since the MCDs are not accountable to the government of the NCT of Delhi, the coordination required is between local, state, and the central government agencies. To ensure more efficient coordination for the delivery of public services, the last two state governments of the NCT of Delhi, have demanded full statehood for Delhi. A full statehood will make sure the local bodies are accountable directly to the government of the NCT of Delhi. However, the authority to make the NCT of Delhi a full state of India rests with the parliament of India and not with the state government of the NCT of Delhi or the people of Delhi.

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