For All Defence Aspirants India’s Human Capital Index and its Effects

For All Defence Aspirants India’s Human Capital Index and its Effects

For All Defence Aspirants India’s Human Capital Index and its Effects



Human capital index

As part of the human capital project (HCP) the world bank released its first human capital index (HCI).

The world bank group announced the human capital project (HCP) in 2017.

Human capital is the knowledge, skills and health that people accumulate over their lives, enabling them to realise their potential as productive members of society. HCP is a program of advocacy, measurement and analytical work to build human capital.

There are three components of HCP.

A human capital measurement metric called the human capital index HCP.

A research programme to inform policy action and

A programme of support for country strategies towards human capital.

The index seeks to measure how well governments enable their people to reach their full potential.it can be used by countries to guide their policies.

Key highlights

The HCI has been constructed for 157 countries.

The index seeks to measure the amount of human capital that a child born today can except to attain by age 18.the index thus gives an idea about the status of a generation will be as compared to what the status could be.

The HCI has three components:

Survival, as measured by under-five mortality rates;

Expected years of quality-adjusted school which combines information on the quantity (enrolment)and quality of education ;and

Health environment which uses two proxies of adult survival rates and the rate of stunting for children under age 5.

Based on how much each indictor contributes to productivity as an adult, the HCI assigns each country a value ranging from 0 to 1. A country score of 0.5 means that individuals ,and the country ,are foregoing half their future economic potential.

Singapore topped the HCI followed by south Korea , japan , Hong Kong and Finland.

The advanced economics mostly have HCI value of above 0.75, while south asia and sub Saharan Africa have the lowest HCI among the regions.

The HCI awards India 115th position out of 157 countries. Except Pakistan, the rest of our neighbourhood has inched ahead.

HCI and India

The HCI for India has been estimated at 0.44 i.e. A child born in India today will be only 44% as productive when she grows up as the could be if she enjoyed complete education and full health.

96 out of 100 children survive to age 5.

A  child who starts school at age 4 can except to complete 10.2 years of school by her 18th birthday.

Learning-adjusted years of school. Factoring in what children actually learn, excepted years of school is only 5.8 years.

Adult survival rate: across India, 83% of 15 year olds will  survive until age 60.

38 out of children are stunted ,and so at risk of cognitive and physical limitations.


United nation development programme(UNDP) constructs human development index(HDI) ,while HCI is prepared by the world bank.

To measure health, HDI uses life expectancy but HCI uses survival rates and stunting rate.

As a measure of education HDI uses years of schooling while HCI uses quality-adjusted learning.

HCI also excludes per capita income whereas the HDI uses it.

Why India decided to ignore HCI?

The government of India has expressed serious reservations about the exercise of constructing HCI. There are major methodological weaknesses besides substantial data gaps.

For the schooling parameter, the quantity is assessed using enrolment rates reported by UNESCO but quality us gauged by harmonising test scores of major international student achievement testing programs. About nine different test scores have been harmonized of which some have very limited coverage among countries.

The metric of HCI is too simplistic at one level and too ignorant of development realities at another. The differences in development outcomes arising from goverance.issues political systems socio -cultural context, and legacy issues have been totally ignored.

The HCI score for India does not reflect several key initiatives that are being taken for developing human capital in the country.



Er. HartaJ is one of the main Instructors and a part of the team At NCA. He himself has cleared the SSB process thrice, but as per his grandfather's Late Lt. Col H.S.Dhaliwal Wish he is continuing teaching and making officers. Been associated with New Careers Academy for the last 8 years, he also has been succefull in making Second and Third Generation Of officers. Once Taught by his Grandfather and Father Capt. Dhaliwal. He is know all across with students for the way he teaches and he is more of a role model for them .