The investment in human capital contributes to growth in the following manner –

a) A well-educated and healthy work force makes better utilisation of the physical inputs and capital which increases the productivity and ultimately results in an improved growth rate of the nation.

b) An educated workforce is more productive and skilful; they have the potential to develop new skills and innovation of new and modern techniques which can give more efficient and productive results. This is very important for the economic growth of the country.

c) When there is good investment in human capital it gives healthy and educated workforce and the participation rate increases which accelerate the process of economic growth and development of a nation.