Human Capital for Viksit Bharat

• The Conference of Chief Secretaries recently deliberated on the theme “Human Capital for Viksit Bharat”.
• The theme highlights the central role of people in achieving the vision of a developed India (Viksit Bharat).

Understanding Human Capital

• Human capital refers to the stock of knowledge, skills, health, and personal characteristics embodied in individuals.
• According to the Organisation for Economic Co-operation and Development (OECD), human capital enhances an individual’s productive capacity.
  
  

Significance of Human Capital in Becoming a Developed Nation

• Harnessing the Demographic Dividend: About 60% of India’s population is currently in the working-age group (15–59 years).
  • The working-age population is projected to peak at 68.9% by 2030, creating a time-bound opportunity for growth.
• Correlation with Economic Growth: As per Human Capital Theory, investments in education, skills, and health improve workforce efficiency and productivity.
• Innovation Economy: Strong human capital enables research, entrepreneurship, and technology adoption.
  • Human capital supports India’s rise in start-ups and digital public infrastructure such as Aadhaar and UPI.
  • It also facilitates growth in emerging sectors like Artificial Intelligence (AI) and green energy.

Key Challenges in Human Capital Development

• Poor Foundational Literacy and Numeracy: Only 46% proficiency in mathematics at Class V was recorded as per PARAKH 2024, which assesses learning outcomes.
• High Dropout Rates: The secondary-level dropout rate stands at 10.9%, indicating retention challenges.
• Low Expected Years of Schooling (EYS): India’s EYS is 13.3 years, compared to the 18-year benchmark in developed nations.

Way Forward

• Strengthening Foundational Learning: Expand NIPUN Bharat, Balvatikas, and early childhood education to build strong learning foundations.
• Skill Integration and Employability: Align education with the National Education Policy (NEP) 2020, which emphasizes holistic and multidisciplinary learning.
  • Promote vocational education through the National Skills Qualifications Framework (NSQF), which integrates skills with formal education.
  • Encourage innovation through Atal Tinkering Labs, which foster problem-solving and STEM skills.
• Health and Nutritional Support: Strengthen convergence with PM POSHAN, which provides nutritional support to improve learning outcomes.