ROLE OF HUMAN CAPITAL IN THE ECONOMIC DEVELOPMENT WITH SPECIAL REFERENCE TO NORTH EAST INDIA

Abstract

The significance of human capital as a catalyst for economic development has gained renewed attention in the context of developing regions. This study investigates the role of human capital in shaping the economic trajectory of North East India, a region characterized by its rich cultural diversity yet persistent developmental challenges. Human capital, primarily measured through education, skill development, and healthcare, is a critical determinant of productivity and inclusive growth. The region’s socio-economic constraints, combined with geographic isolation, have limited its capacity to fully harness the benefits of its human potential.

This paper adopts a mixed-method approach, utilizing both secondary data from government reports, NITI Aayog publications, and NSSO surveys, as well as qualitative insights from regional policy frameworks. The focus is on understanding how investments in education and health infrastructure correlate with economic outputs such as employment, entrepreneurship, and regional GDP growth in states like Assam, Manipur, and Tripura.

The findings suggest that while the literacy rates in some North Eastern states are above the national average, there is a significant gap in vocational training, employability, and healthcare accessibility. Moreover, migration of skilled youth to mainland India points to an underutilization of regional human capital. The study recommends targeted policy interventions such as decentralized skill development centres, enhanced digital infrastructure, and better health education to bridge these gaps.

In conclusion, the paper highlights that strategic investment in human capital—tailored to the region’s unique socio-political and economic landscape—can transform the North East into a vibrant contributor to national economic growth.