Explain how does investment in human capital contribute to growth of an economy

Question Explain how does investment in human capital contribute to growth of an economy.
Chapter Human Capital Formation
Class  Class 12
Subject Economics (Indian Economic Development)
Category Indian Economic Development Class 12 Sandeep Garg Solutions

Question – Explain how does investment in human capital contribute to growth of an economy.

Answer – 

Economic growth can be termed as increase in real national income of the economy. By investing in human capital, an economy can grow. By educating the people and inculcating new skills in them we can increase the productivity which will increase the GDP of the economy.




  • Contribution of an educated person is more in the production process in comparison to uneducated.
  • Similarly, a healthy person will be able to provide uninterrupted labour supply for a longer time.

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