Describe two revolution taken place in Indian economy which prove that investment in human capital can bring higher position for the country. (5mrk)

Asked by Kanhaiya | 27th Sep, 2015, 10:01: AM

Expert Answer:

A country which has developed the skills and knowledge of its people can exploit natural resources, build social economic and political organisations and can carry forward national development. Human capital is the fundamental source of economic growth. It is a source of both increased productivity and technological advance. India’s Green Revolution is an example which shows the importance of input of greater knowledge leads to improved production technologies rapidly increases the productivity of scarce land resources. Secondly, India’s IT revolution is the major source to acquire high position in a economy.

In fact the major difference between the developed and developing countries is the rate of progress in human capital. The under developed countries need human capital to staff new and expanding government services to introduce new system of land use and new methods of agriculture, to develop new means of communication to carry forward industrialisation and to build the education system. For example, Japan did not have any natural resource. They made investments on their people especially in the fields of education and health. Ultimately, these people made efficient use of other resources such as land and capital and made their country rich and developed.

Investments made in human resource in terms of education lead to development and increase in efficiency of the human resource, which in turn contributes to higher productivity and technological advancement. With increased production and technical advancement the country becomes rich and is able to invest further in harnessing the human resources. Thus, investment in human resource can change the fortunes of any country.  

Answered by Tharageswari S | 28th Sep, 2015, 09:28: AM

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