Human Capital for Viksit Bharat

Context of the Theme

Human Capital for Viksit Bharat: The Conference of Chief Secretaries recently deliberated on the theme Human Capital for Viksit Bharat, placing people at the centre of India’s development vision. The focus reflects the understanding that economic transformation is impossible without strengthening the quality of the workforce.

Human capital refers to the knowledge, skills, health, and abilities embedded in individuals that enhance productivity. It determines how effectively a nation can convert resources into sustainable growth.

Static GK fact: The concept of human capital gained prominence through economists like Theodore Schultz and Gary Becker, linking education and health to economic growth.

Human Capital and the Demographic Advantage

India currently enjoys a strong demographic dividend, with nearly 60% of the population in the working-age group of 15–59 years. This proportion is projected to peak at 68.9% by 2030, offering a narrow but powerful opportunity window.

If adequately skilled and healthy, this workforce can accelerate growth, increase savings, and expand tax capacity. If neglected, the same demographic advantage may turn into unemployment pressure and social stress.

Static GK Tip: A demographic dividend yields benefits only when supported by investments in education, skills, and healthcare.

Link Between Human Capital and Economic Growth

Human capital theory explains that investments in education, skills, and health directly enhance labour productivity. A skilled workforce improves efficiency, raises incomes, and supports higher-value economic activities.

Countries that transitioned into developed economies prioritised schooling, technical training, and universal healthcare before achieving high per capita incomes. India’s growth aspirations are similarly tied to the quality of its human capital base.

Role in Building an Innovation-Driven Economy

Human capital is essential for fostering innovation, entrepreneurship, and technology adoption. India’s expanding start-up ecosystem and digital public infrastructure such as Aadhaar and UPI rely on skilled human resources.

Emerging sectors like artificial intelligence, green energy, and biotechnology demand advanced skills and research capacity. Without sustained human capital development, technological leadership cannot be achieved.

Key Challenges in Human Capital Development

One major concern is poor foundational literacy and numeracy. Recent assessments show that only 46% of Class V students demonstrate proficiency in mathematics, indicating weak early learning outcomes.

High dropout rates, especially at the secondary level at 10.9%, further reduce the effective workforce pool. Many students exit education before acquiring employable skills.

India’s Expected Years of Schooling (EYS) stands at 13.3 years, significantly below the 18-year benchmark of developed nations. This gap directly impacts workforce readiness and productivity.

Static GK fact: Expected Years of Schooling measures the total years of education a child can expect to receive over a lifetime.

Way Forward for Strengthening Human Capital

Improving foundational learning is critical. Expansion of NIPUN Bharat, Balvatikas, and quality early childhood education can ensure strong literacy and numeracy foundations.

Education must align with employability. Implementing NEP 2020, expanding vocational education through NSQF, and promoting innovation via Atal Tinkering Labs can bridge the skills gap.

Health and nutrition are equally important. Strengthening convergence with PM POSHAN ensures better learning outcomes by addressing malnutrition and health-related learning barriers.

Conclusion

Human capital is the most strategic investment for achieving Viksit Bharat. Converting demographic potential into economic strength requires sustained reforms in education, skills, and health. A people-centric growth model will define India’s path to becoming a developed nation.

Static Usthadian Current Affairs Table

Human Capital for Viksit Bharat: