Published Paper Details:

In the knowledge-based economy, the role of the state and individuals is critical to the human resource development. State intervention, particularly in developing countries, aims at creating an enabling environment for human resource development and improve the competitiveness of human resources in the global market. The less developed countries suffering with low knowledge and skill base have not positioned themselves to integrate effectively with the process of globalization. India has adopted a strategy of inclusive growth and has also witnessed relatively high rates of economic growth during the past few years. With the economy growing at a pace, there are emerging signs that rapid growth can result in shortage of high quality skills needed in knowledge intensive industries. A strategy of inclusiveness also calls for new emphasis on education, health, and other basic public facilities. Inadequate access to these essential services directly limits the welfare of large sections of the population, and also denies them the opportunity to share fully in the benefits of growth. Indeed, inadequate attention to human resource development limits the growth process itself. Is there any relationships between human development and economic growth in India? Is growth resulting into human development? These are some of the questions that the present paper attempts to answer. The effect of human capital development on Indian economy is measured under three different headings i.e., education, health and both components of health and education human capital and economic growth. The econometrics analysis is based on the regression model and estimating correlation coefficients for the period 1995-96 to 2013-14. The OLS method is used to estimate coefficients of proxy variables of human capital. The study found that human capital has positive and significant impact on the growth of Indian economy. Increase in the quality of education and incentives to increase health parameters is strongly recommended.