Q.19:- What are the main problems of human capital formation in India?
Main problems of human capital formation in India are:
- Rising Population. Rapidly rising population adversely affects the quality of human capital formation in developing countries. It reduces per capita availability of existing facilities. A large population requires huge investment in education and health. This diverts the scarce money to production of human capital at the cost of physical capital.
- Long Term Process. The process of human development is a long term policy because skill formation takes time. The process which produces skilled manpower is thus slow.
- High Regional and Gender Inequality. Regional and gender inequality lowers the human development levels.
- Brain Drain. Migration of highly skilled labour termed as “Brain Drain” adversely affects the economic development.
- Insufficient on-the-job-training in agriculture. Agriculture sector is neglected where the workers are not given on-the-job training to absorb emerging new technologies.
- High Poverty Levels. A large proportion of the population lives below poverty line and do not have access to basic health and educational facilities. A large section of society cannot afford to get higher education or expensive medical treatment for major disease.