Indian Economy

Group- F Human Capital Human capital refers to the skills and knowledge possessed by an individual. It is viewed in terms of their value and cost to the business organization. Human capital formation can be increased by investing more in education sector and promoting the importance of gaining knowledge and skill. A measure of labour’s capabilities, including skills, working capacity, education, health, and intelligence, is referred to as Human Capital. The concept of human capital emphasises the idea that not every resource is created equal, but that this difference may be covered with the right training and funding.  An educated person makes a greater contribution to economic growth than an illiterate person. Similarly, a healthy person contributes to a longer period of uninterrupted labour supply, which supports economic growth. Thus, a person’s ability to generate income can be increased by different factors like education, health, on-the-job training, job market information, a...

Group E Human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society. Human capital accumulation is one of the key determinants of economic growth, for both developing and advanced countries. Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management, it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which contribute to economic growth. Role of human capital on economic growth i) Inventions, innovations, and technological improvement Human capital leads to more innovations in the areas of production and other related activities. Innovation leads to more growth. Human capital also creates the ability to absorb new technologies. (ii) Higher productivity of physical capital Human capital increases labour productivity...

GROUP D HUMAN CAPITAL Human capital refers to the economic value of a worker's experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality. Human capital can be improved through education and training. This benefits the institutions of society and it benefits the economic development and growth of the entire economy. Investing in human capital increases economic output and an employee’s earning potential.  Role of Human Capital in Economic growth Human capital increases productivity of physical capital as specialised and skilled workers can handle machines or techniques better than the unskilled workers. This increased productivity and production leads to economic growth. Human capital facilitates innovation of new methods and techniques of production and this increases the rate of economic growth in the form of an increase in GDP. Human capital formation leads to a hig...

Group C Human capital on economic growth Human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society. Human capital accumulation is one of the key determinants of economic growth, for both developing and advanced countries. The skills provide economic value since a knowledgeable workforce can lead to increased productivity.  The concept of human capital is the realization that not everyone has the same skill sets or knowledge. Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management, it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which contribute to economic growth. Role of human capital in an economy 1. Improvement in Human Capital Productivity 2. Improvement in Quality of Life  3. Modernisation of...

Group B Human Capital and Economic Growth Human capital or human assets is a concept used by economists to designate personal attributes considered useful in the production process. Human capital is the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country. Human capital has a substantial impact on individual earnings.  Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management, it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which contribute to economic growth. Increases in economic growth tend to improve the quality of life for a population. Role of human capital in economic growth Country develops if the human capital is developed and leads to economic growth by adding to the GDP Knowledgeable and skilled workers can make better use of resources a...

  GROUP A Human Capital Human capital refers to the skills and knowledge possessed by an individual. It is viewed in terms of their value and cost to the business organization. It encompasses employee knowledge, skills, know-how, good health, and education. Human capital has a substantial impact on individual earnings. Human capital and economic growth Human capital influences economic growth and it can generate an economy through knowledge and abilities. Nations require adequate human capital who are educated and qualified as educators and other specialists. In other words, we need great human capital to create other human capital like doctors, engineers, professors, etc., which will later become a human asset and contribute to the economy of the country. Human capital in the economy manages the central portion of the national wealth. Hence, all researchers consider that human capital is the most important resource of the community, which is more powerful than nature or wealth. In...

Economists state that people below these income levels (MPCE) are treated as below the poverty line. A major deficiency of this poverty estimate is that it treats all the poor equally. It does not distinguish between various categories of poor. Although it helps in the identification of the poor as a group, it is difficult to identify the poor amongst the group of poor who need help the most.There are many factors, other than income and assets, which are associated with poverty like accessibility to basic education, health care, drinking water, etc. which have been ignored. Here not consider social factors like illiteracy, lack of access to resources, discrimination, ill health, lack of civil and political freedom, joint family system, etc. Also, the method only categorises the poor as a group which are to be taken care of by the Government. However, it does not identify the poor who needs the help of the Government, the most.

There are some different ways of in which the poverty line can be estimated If the personal income goes below, this level his or her considered below the poverty line and it is assumed that his income is not enough to fulfill their basic needs. Poverty Line is used for the measurement of the extent of poverty in a country. People who are living or have income below the poverty line are known as Poor. However, people who are living or have income above the poverty line are known as Non-poor.  Poverty line is to determine it by the monetary value (per capita expenditure) of the minimum calorie intake. In India, the minimum calorie intake requirement is 2,400 calories in rural areas and 2,100 calories in urban areas. The calorie limit fixed for rural areas is higher because people engage in heavy work more in rural areas than in urban areas. After fixing the calorie limit, the money expenditure necessary for this calorie intake is calculated. Another way to define the poverty line is ...

Poverty refers to a state in which an individual is unable to fulfil even the basic necessities of life. The minimum requirements include food, clothing, shelter, education, and health facilities. Poverty is a condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can't be met. Dadabhai Naoroji was the first person to highlight the concept of a poverty line.  The poverty line is a cutoff point on the line of distribution, which usually divides the population of the country as poor and non-poor. People having an income below the poverty line are poor and above the poverty line are non-poor. Poverty Line is the amount of money an individual requires to meet his basic needs. Hence, it is defined as the money value of goods and services required by an individual to provide basic welfare. Poverty Line is used for the measurement of the ext...

Poverty Line Estimation or calculating the number of poor in India was done by several committees on basis of calorific consumption or per capita expenditure. VN Dandekar and N Rath They made a systematic study of poverty in 1971. The previous estimation has stressed subsistence living as a criterion of the poverty line, they suggested that the poverty line’s criteria must be based on expenditure that would provide 2250 calories per day in both rural and urban areas. Alagh Committee ( 1979) It constructed a poverty line for rural and urban areas on the basis of nutritional requirements and related consumption expenditure. The estimates in the ensuing years would be adjusted taking into account the price level of inflation. Lakdawala Committee (1993) The Lakdawala Committee is based on assumption that the basket used to calculate the Consumer Price Index- Industrial Workers (CPI-IW) AND the Consumer Price Index- Agricultural Labourers ( CPI-AL) reflected the consumption pattern of the p...

  Dadabhai Naoroji who took concrete steps in identifying the poor in India. He, formulated a poverty line that ranged from Rs 16 to Rs 35 per capita per year, based on 1867-1868.,  The poverty line proposed by him was based on the cost of a, subsistence or minimum basic diet (rice or flour, dal, mutton,, vegetables, ghee, vegetable oil, and salt)., National Planning Committee’s (1938) poverty line (ranging from ₹15 to ₹20, per capita per month) was also based on a minimum standard of, living perspective in which nutritional requirements were implicit., In 1938, the National Planning Committee was set up by Subhash, Chandra Bose under the chairmanship of Jawaharlal Nehru for the, purpose of drawing up an economic plan with the fundamental aim, to ensure an adequate standard of living for the masses., The Bombay Plan (1944) proponents had suggested a poverty line of ₹75 per, capita per year., The Bombay Plan was a set of a proposal of a small group of, and influential business ...

  In India, the most commonly used method to estimate poverty is through the measurement of income and consumption levels and poverty line. A person is considered poor if his/her income level falls below a minimum level that fails to meet his/her basic needs. This minimum level is known as the ‘poverty line’. When the income or consumption of an individual or the household belongs to fall below minimum level then they are designated to be Below the Poverty Line The Poverty Line calculation is now carried out by the NITI Aayog through the calculation of the poverty line based on the data collected by the National Sample Survey Office (NSSO) under the National Bureau Of statistics Implementation to calculate the poverty line (MOSPI). The Planning Commission, which was formerly in charge of establishing the poverty line in India, has been replaced by NITI Aayog as a policy think tank. Importance for Poverty Estimation Poverty estimates are significant not only for academic purposes bu...