How does investment in human capital contribute to growth? | Learn NCERT solution | Education portal Class 11 Indian Economic Development | Study online Unit-5 Human Capital Formation In India



Q.11:- How does investment in human capital contribute to growth?

 

Answer

Investment in human capital contribute growth by:

1. Raising productivity: The skilled and healthy labours make utilisation of the material inputs and capital effectively which increases the productivity and ultimately faster the rate of growth.



2. Innovation: An educated person has the ability develop new skills and innovate new techniques that can be more efficient and productive and adds to economic growth.

3. High participation rate: If more people became able to do work through education and health, it will increase the participation rate of people which will accelerate the process of economic growth and development.