Education is considered an important input for the development of a nation. How? | Learn NCERT solution | Education portal Class 11 Indian Economic Development | Study online Unit-5 Human Capital Formation In India



Q.8:- Education is considered an important input for the development of a nation. How?

 

Answer:-
Expenditure on education is an important source of capital formation. Education is an important source of human capital formation, because:



  1. It generates technical skills and creates a manpower which is suited for improving labour productivity. It, thus, results in sustained economic development.
  2. It tends to bring down birth rate which, in turn, brings decline in population growth rate. It makes more resources available per person.
  3. It results in social benefits since it spreads to others who may not be skilled. Thus, investment in education leads to higher returns in future.