Introduction:

In this chapter, we explore the powerful concept of ‘People as Resource.’ A growing population might seem like a challenge, but it can actually become a big opportunity for economic growth. Think about it—when we invest in better education, healthcare, and skills, we’re turning people into the most valuable assets of the country. This helps the nation grow stronger and succeed!

Key Points:

• Educated and healthy individuals earn more. They also spread the benefits of education and health to others.
• Human capital uses land and capital effectively. Without it, these resources remain unproductive.
• This chapter challenges the idea of a large population being a burden. It shows how people can become a valuable asset.

Investment in Human Capital:

• Investment in human capital includes spending resources on education, healthcare, vocational training, and scientific research.
  • These investments empower individuals to contribute effectively to the nation’s economic growth.

Case Studies: Sakal and Vilas:

• Sakal’s story illustrates the transformative power of education and skills. He acquires a job, designs software, and increases productivity.
• In contrast, Vilas faces challenges due to lack of education and health. He continues his mother’s work, earning a meager income.

Advantages of Education and Health:

• Education and health investment enhance the quality of labor, increasing total productivity and contributing to economic growth.
  • Investing in education and healthcare is similar to investing in land and buildings.
• Investing in education and healthcare yields high returns in the form of higher earnings and greater societal contributions.
• Educated parents tend to invest more in their children’s education and health, creating a virtuous cycle.
  • Countries like Japan, lacking natural resources, became developed by investing in human resources, particularly education and health.
• Human efficiency and technology utilization make the nations rich and developed.

(Note: A virtuous cycle starts with educated parents passing on knowledge, leading to better opportunities for their children. Over time, this creates a positive effect, where each generation improves. In contrast, a vicious cycle occurs when uneducated parents face struggles, which negatively impact their children’s future and make life harder for their kids.)

Economic Activities by Men and Women:

• People, like Vilas and Sakal, engage in various economic activities, including selling fish and working in a firm.
• Economic activities are classified into three main sectors: primary, secondary, and tertiary.

Three Main Sectors:

• The primary sector involves agriculture, forestry, animal husbandry, fishing, poultry farming, mining, and quarrying.
• Manufacturing falls under the secondary sector.
• The tertiary sector includes trade, transport, communication, banking, education, health, tourism, services, and insurance.

These activities result in the production of goods and services, adding value to the national income.

Market and Non-Market Activities:

• Economic activities are divided into market activities (performed for pay or profit, including government services)
• And non-market activities (production for self-consumption, such as processing primary products and making fixed assets).

Quality of Population:

• The quality of a population relies on literacy rate, health (measured by life expectancy), and skills acquired by the people.
• A healthier and more educated population leads to higher growth rates in a country.

1. Education:

• Education also benefits society by increasing national income, cultural richness, and governance efficiency.
• Efforts are being made to ensure universal access, retention, and quality in education, especially for girls.
• Schools like Navodaya Vidyalaya are set up in every district to promote quality education.
• Vocational streams help equip high school students with job-related skills.

Importance of Education:

• Financial Improvement: Education and skill significantly influence an individual’s earnings in the market.
  • For Example:- Women, on average, have lower education and skill formation, leading to lower pay compared to men.
    • Many women work in sectors with job insecurity and limited legal protection, resulting in irregular and low incomes.
    • Basic facilities like maternity leave and childcare are often lacking.
• Informed Choices: Educated individuals tend to make better decisions when voting.
• Social Benefits: Education helps reduce inequality and offers equal opportunities for families.
• Innovation and Growth: A skilled workforce drives innovation and enhances productivity, fueling economic growth

Education Funding:-

• Education Buget: It grew from Rs 151 crore (in 1st plan) to Rs 99,300 crore (in 2020–21).
• Education Spending: GDP rose from 0.64% (in 1951–52) to 3.1% (in 2019–20) but dropped to 2.8% (in 2020–21).
  • Literacy Rate: It Increased from 18% (in 1951) to 85% (in 2018), but disparities exist.
    • Males are 16.1% more literate than females.
    • Urban areas are 14.2% more literate than rural areas.
    • Literacy rates vary by state: 94% in Kerala vs. 62% in Bihar. [As per N.C.E.R.T.]
  • Dropout Rate: It has decreased but still an issue.
  • Gross Enrollment Ratio (GER): It was 27% (in 2019–20), close to the world average.
    • Note:- It is GER of students of ages 18-23 (in higher Education). [As per N.C.E.R.T.]
• Distance Education: Those who wish to study but forced to work due to financial conditions, get access to distance education.

Government’s initiative for education :- Sarva Siksha Abhiyan (SSA)

• Sarva Shiksha Abhiyan (SSA) is a government initiative.
• SSA aimed at universalizing elementary education in India.
• It established in 2001.
• Its goal is to provide quality education for all children aged 6 to 14 years.
• SSA focuses on improving infrastructure, teacher training, and community participation.
• Furthermore, it emphasizes enrollment, retention, and completion of elementary education.

2. Health:

• Health impacts a person’s ability to reach their potential and contribute to overall productivity.
• Good health is crucial for well-being, so improving health is a national priority.
  • Policies aim to enhance access to healthcare, family welfare, and nutrition, especially for the underprivileged.
  • India has built a large healthcare infrastructure over the past five decades.

Health Improvements:-

• Life Expectancy: It increased to 67.2 years (in 2021).
• Infant mortality rate (IMR): It dropped from 147 (in 1951) to 28 (in 2020).
• Crude birth rates: It fell to 20.0 and death rates to 6 (in 2020). [As per N.C.E.R.T.]
  • Note: India has 542 medical colleges and 313 dental colleges.
  • The highest number of medical colleges is in four states: Andhra Pradesh, Karnataka, Maharashtra, and Tamil Nadu.

Health Sector initiative by Government :- National Health Mission (NHM)

• This initiative, launched in 2013.
• It aims to provide accessible, affordable, and quality healthcare to rural populations, focusing on maternal and child health, immunization, and communicable diseases.

Unemployment:

• Unemployment occurs when individuals who want to work at existing wages cannot find jobs.
  • For Example:
    • Sheela (Sakal’s mother) does not seek outside employment, thus she is not considered unemployed.
    • Jeetu and Seetu are too young (under 15) to be counted as part of the workforce.

Types of Unemployment in India:

1. Rural Unemployment: This type of unemployment occur in villages.
   • Seasonal Unemployment: Common in agriculture; jobs are scarce during off-seasons.
     • Example: Farmers are busy during sowing and harvesting but may struggle in months without crops.
   • Disguised Unemployment: More people work in a job than needed, leading to inefficiency.
     • Example: A family of five only needs five workers on a farm, but if eight work, the three extra are considered disguised unemployed.
2. Urban Unemployment: This type of unemployment occur in cities.
   • Educated Unemployment: Many graduates struggle to find jobs in their fields.
     • Example: Unemployment rates for graduates and post-graduates are rising faster than for those with lower education levels.

Impacts of Unemployment:

• Wastage of Resources: Unemployment means skilled individuals become liabilities instead of assets to the economy.
• Economic Strain: Increased unemployment leads to higher dependency on the working population.
• Quality of Life Decline: Families with low income face health issues and children may drop out of school.

Note:- Employment structure in India shows a shift from agriculture to services. And New jobs are emerging in areas like biotechnology and information technology.

Government’s initiative in skill development :- Skill India Mission (SIM)

• This is a multi-skill development initiative launched in 2015 to create a skilled workforce in India.
• It encompasses various schemes and initiatives, including PMKVY, to train individuals in different sectors and trades.

Impact of Education and Skill On Women:

• Women with high education and skill levels earn on par with men.
• Some women enter sectors like teaching, medicine, and high-tech jobs that demand scientific and technological competence.
• Educated women play a crucial role as an addition to the contributors of the nation, driving economic growth and social development.

Division of Labor:

• Historical and cultural factors lead to a division of labor between men and women in families.
  • Women typically handle domestic chores, while men engage in agricultural work or other employment.
  • The household work done by women is not recognized in the National Income.
  • Women are paid for their work when they enter the labor market, with earnings determined by their education and skills.