What do you understand by Human Capital Formation? Highlight two initiatives each of Indian government to enhance health and education facilities.

Human resource refers to the country’s working people in terms of their existing productive skills and abilities. To make use of the land, labour, and physical capital, we will need somebody who acquires knowledge of producing goods and services. Without human capital, Land, labour and physical capital are meaningless. When population acquires knowledge and skills to work, it becomes human capital.

• When we invest in the human capital through education and training, it yields a high return because of higher productivity of more educated people.

• Investment in human capital can also be made by training of industrial and agricultural workers in the use of modern technology. Now, these trained agriculture workers can increase yield.

• Increased utilization of human skills will increase national income of the country and development of the country will be faster.

• When we invest in the human capital through medical care, it yields a high return because of higher productivity of healthier people. As the healthier will be able to utilize their maximum potential in the given time.

The following initiatives were taken by the government to enhance education and health facilities:

• Sarva Sikhsha Abhiyan: It is a government initiative to give free education to the children of age 6 years to 14 years as it is their fundamental right.

• Ayushman Bharat Yojana: It is a government scheme which was started in April 2018. The slogan of the scheme is Health for All. It provides a cover of Rs. 5 Lakhs per family per year for secondary and tertiary care. It will cover 40% of the Indian population and is the world’s largest health scheme.