Subject: Human Resources

India is Fastest Growing Economy in the world (IMF) but low HDI rank (130 out of 193, UNDP 2025) highlight that growth has not translated into inclusive development.

Indicators of human development

Poverty Headcount Ratio – 11.28% (2022-23)

Malnutrition – NFHS-5

35.5% stunting,

19.3% wasting,

32.1% underweight in children under five

Inequality – the richest 1% owning over 40% of the nation’s wealth, while the bottom 50% hold a mere 3-6%.

Issues that make balanced and inclusive development elusive.

Political Factors

Policy Fragmentation: scheme overlaps and lack of convergence dilute impact.

Short-Term Populism: Focus on vote-bank subsidies over long-term human capital investments. Eg- low spending on Health (1.98% of GDP) and Education (2.9% of GDP)

Weak Decentralization: Eg- Only 40% of States have functional District Planning Committees.

Economic Factors

Jobless Growth: Services contribute 55% of GDP but employ less than 30% of workforce.

Agrarian Distress: 42% of workforce in agriculture contributes just 17% to GDP

Social Factors

Gender Inequality: low Female Labour Force Participation due to

Triple Burden – Household, Children, Job

Patriarchal Mindset – Eg- Sarpanch Pati

Law of asset ownership – only 11% land ownership

Education and Health Deficits

High out of pocket expenditure (40%)

Digital Apartheid in education during Covid

Environmental Stress: Unsustainable urbanization, pollution, and water scarcity aggravate human deprivation.

Institutional Factors

Weak Governance Capacity: Poor implementation, leakages, and bureaucratic delays persist. Eg- inclusion-exclusion errors in PDS

Ineffective Targeting: Outdated socio-economic data hinder evidence-based policy (SECC 2011 still in use).

Way Forward

Capability Approach – increase spending on Health (2.5%of GDP) and Education (6% of GDP)

Adopt Best Practices

Kerala’s People’s Plan Campaign

Participatory Budgeting in porto alegre brazil

Decentralized Governance based on principle of subsidiarity.

“Growth becomes meaningful only when it expands human freedom and capability.” – Amartya Sen

Human Resource Development refers to the strategic investment in education, health, and skills to empower individuals, foster productivity, and ensure sustainable national growth.

Inadequate Attention to HRD in India

Stagnant Public Spending: Education spending is ~2.9% of GDP (2024-25), far below the 6% target set by NEP 2020. (Economic Survey 2025-26)

Learning Poverty Paradox: ASER 2024 reports that only ~43% of Class V students can read a Class II-level text.

Acute Skill Mismatch: Only 56.35% of Indian graduates were found employable by industry standards in 2026. (India Skills Report 2026)

Chronic Nutrition Crisis: 35.5% of children under five are stunted, affecting long-term human capital. (NFHS-5)

Gender Participation Gap: Female Labour Force Participation Rate (FLFPR) stands at 32.7% compared to over 75% for males. (PLFS 2024-25)

The Persistence of Digital Divide: Unequal access to tech-enabled learning alienates rural and economically vulnerable students.

Vocational Stigma: Less than 5% of the workforce has formal vocational training. (NSDC 2024)

Healthcare Infrastructure Gaps: Public health spending remains around 2.1% of GDP. (NHP recommended 2.5%)

Mental Health Neglect: Rising student anxiety and workplace burnout are modern HRD barriers.

Brain Drain: Failure to provide high-end research infrastructure leads to the flight of top-tier talent.

Measures to Address HRD Inadequacy

Capability Approach – increase spending on Health (2.5%of GDP) and Education (6% of GDP)

Foundational Literacy Focus: Prioritize the NIPUN Bharat Mission to ensure every child achieves grade-level competency

Vocational-Academic Integration: Mandate vocational training in secondary schools to bridge the gap between schooling and work. (NEP, 2020)

Strengthening Primary Health: Expand the Ayushman Bharat Health and Wellness Centres to ensure preventative care is a “right.”

Bridging the Digital Gap: Use BharatNet Phase-III to provide high-speed fiber connectivity to every rural school.

Empowering Women Workers: Provide safe transport, childcare, and flexible work to boost female participation. Eg: Karnataka’s Shakti Yojan and free higher education for girls.

Institutionalizing Mental Wellness: Make Socio-Emotional Learning (SEL) a core part of the school and office curriculum.

R&D and Innovation Hubs: Establish the National Research Foundation (NRF) to fund deep-tech innovation and retain high-end talent.

By integrating health, education, and skills into a holistic HRD framework, India can achieve inclusive growth and the vision of a developed nation by 2047.

Education, skill, and employment form the triad of human capital formation, driving productivity and inclusive growth.

Education-Skill-Employment Linkages

Education as Foundation: provides cognitive abilities, literacy, and numeracy, forming the base for advanced skill acquisition. Eg- NEP 2020 integrates vocational exposure from Class 6

Formal education develops critical thinking, problem-solving abilities, and soft skills like communication and teamwork, essential for the workplace.

Skill as Bridge: transforms theoretical knowledge into practical competence needed by industries. Schemes like PMKVY and DDU-GKY create job-ready youth.

Employment as Outcome: Skilled and educated individuals meet the sectoral demands in manufacturing, services, and digital sectors, ensuring sustainable livelihoods.

Circular Relationship:

Employment reinforces education and upskilling through continuous learning.

Promotes innovation, productivity, and entrepreneurship, especially in MSME and start-up ecosystems.

Challenges

Mismatch between academic curricula and industry needs.

Regional disparity in training infrastructure.

Lack of soft skills and digital literacy.

Lack of continuous updating of curriculum to match evolving industry needs.

Challenges in ensuring high-quality training and certification aligned with industry standards.

Fragmented implementation (In-silos approach) of schemes like PMKVY, PM-NAPS, and JSS

Low Formal Skill Penetration – Only 4.7% of India’s workforce has received formal vocational training (NSDC, 2025), compared to 52% in the U.S. and 80% in South Korea.

Limited Apprenticeship Penetration – Only ~0.1% of the workforce is engaged in formal apprenticeships, due to low awareness and regulatory burdens for employers.

Way Forward

Evidence-Based Interventions – Enhance skill mapping to align training programs with evolving job market needs.

Adopt Result-Based Financing (RBF) and Skill Impact Bonds to link funds with placement, wage gain, and retention outcomes.

Strengthen industry-academia collaboration through apprenticeship models. Adopt Germany’s dual vocational system.

Align education with the National Skills Qualification Framework (NSQF).

Promote lifelong learning and digital reskilling.

Strengthening this linkage is essential for realizing India’s demographic dividend and building an Atmanirbhar Bharat.