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Human capital and economic growth in India

Author: 
Dr. Sushma Shukla
Subject Area: 
Social Sciences and Humanities
Abstract: 

A countries economic growth depends on many factors like Natural resources, human resources, physical capital, technological development, and social and political factors. This paper is investing the role of human capital in the economic growth of India. This study investigates the relationship between the human capital and economic growth in India from -1995 to 2014, Healthcare expenditure has been used as a proxy variable for human capital. This research paper is based on multiple linear regression models, and neo classical Solow production function. This study discovered that there is a strong positive relationship between human capital and economic growth, other variable used in the study Gross capital formation, and secondary School enrollment, also effecting the economic growth of India positively. This study found that secondary School enrollment has the greatest impact on India’s GDP growth. This study concludes that to achieve long-term sustained economic growth policy makers should consider allocating the financial resources towards improving India's human capital, which can be achieved by increased health care expenditure and more funding towards education. India's population can be a mean of economic growth, not a hurdle.

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