Explain any four problems of human capital formation in India. **OR What are the main problems of human capital formation in India?** **OR Indian Government has been taking steps for human capital formation, yet human capital formation is facing problems. Explain such problems.**

Question

Accepted Answer

Problems of human capital formation in India are:
- i. **Rapidly rising population** adversely affects the quality of human capital formation. It reduces per capita availability of existing facilities. A large population also requires large investment in education and health, diverting scarce funds from physical capital.
- ii. **Long term process** — The process of human development is a long period policy because skill formation is time consuming.
- iii. **Regional and gender inequality** lowers the human development levels.
- iv. **Brain Drain** — Migration of highly skilled labour adversely affects economic development.
- v. **Agricultural sector is neglected** — Workers are not given on-the-job training to absorb emerging new technologies.
- vi. **High poverty levels** — A large section lives below poverty line and cannot access basic health and educational facilities.