Human Capital in India: Lenses Old and New

The lecture began with Chandrima Biswas welcoming the dignitaries, followed by an introduction of the Chair and the speaker by Prof. Debashis Acharya. Prof. R. Vijay, Dean of the School of Economics, warmly welcomed the speaker and provided an overview of the School’s activities.

Prof. Mukhopadhyay’s lecture explored the current state of human capital in India, starting with the challenges posed by low learning levels among Indian children and the perceived shortcomings of the public schooling system. He discussed the human capital literature focused on improving educational outcomes and underscored the critical role of education in enhancing human capabilities, productivity, and economic growth.

In his talk, the “old lens” revisited the relationship between human capital and economic development, drawing on Indian evidence from his research and his collaborators. He explored topics such as structural transformation and the role of human capital in rural India. The “new lens” introduced the concept of new skills as part of human capital and the innovative methods for delivering these skills.

Using Indian state-level panel data and district-level analyses, Prof. Abhiroop said, “Higher Education with all the criticisms regarding quality and skills has a positive and somewhat large impact on Economic Development and Growth”.  He highlighted the concept of the “Indian Education Multiplier,” where a substantial portion of tertiary-educated individuals work within the education sector, with the services sector acting as a key channel through which human capital influences state and district-level prosperity. Notably, his research in rural areas revealed that a 1% increase in the share of village populations with tertiary education corresponds to a 4% rise in per capita consumption.

Prof. Mukhopadhyay also addressed methodological concerns relevant to young scholars and discussed innovative interventions like Agastya’s portable science labs. He concluded by emphasizing the growing importance of higher-order cognitive and non-cognitive skills—the “new lens”—and their potential to enhance cognitive abilities as measured by traditional learning assessments, the “old lens.”

In concluding remarks, Prof. B.J. Rao commended the speaker for the insightful presentation and highlighted the need to scale up quality higher education across India beyond the elite institutions like IITs, NITs, and Central Universities. He also stressed the importance of creating gainful employment and high-paying jobs.

Dr. Devesh Nigam, Registrar of the University of Hyderabad, attended the lecture and engaged in discussions with the speaker. The event saw the participation of a significant number of research scholars, students, and faculty members. Dr. Nitin Tagade, Associate Professor at the School of Economics, delivered the vote of thanks.