Describe the role of human capital in the production process.

human capital formation implies the development of abilities and skills among the population of the country.

1. In order to develop various sectors of the economy, a country should introduce manpower planning for the development of its human resources.

2. In the absence of investment in human capital, physical capital could not be properly utilized and would lead to a slow pace of development.

3. Most of the underdeveloped countries are suffering from a low rate of economic growth which is a result of lack of investment in human capital.