Explain any four problems of human capital formation in India. **OR What are the main problems of human capital formation in India?** **OR Indian Government has been taking steps for human capital formation, yet human capital formation is facing problems. Explain such problems.**

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Problems of human capital formation in India are: - i. **Rapidly rising population** adversely affects the quality of human capital formation. It reduces per capita availability of existing facilities. A large population also requires large investment in education and health, diverting scarce funds from physical capital. - ii. **Long term process** — The process of human development is a long period policy because skill formation is time consuming. - iii. **Regional and gender inequality** lowers the human development levels. - iv. **Brain Drain** — Migration of highly skilled labour adversely affects economic development. - v. **Agricultural sector is neglected** — Workers are not given on-the-job training to absorb emerging new technologies. - vi. **High poverty levels** — A large section lives below poverty line and cannot access basic health and educational facilities.