Resource Constraint in India
Resource constraint is any limitation or risk related to resources. As we know that resources are limited while human wants are unlimited. Therefore, it is important to understand the constraint or restriction which are put up while dealing with various factors of production to achieve maximum output.
Resource constraint in human labour
In India, we have one the youngest population for a large economy. This means that there is an abundance of cheap labour. But the theoretical construct of resource constraint can be applied in the sense that most of the labour lack the skillset to be used productively in an economic system. Thus, it leads to lower output. Now, other non-economic parameters also pull down the growth prospects of the Indian economy in terms of:
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- Lack of adequate and quality healthcare which reduces the productive years of human labour
- Lack of required exposure in terms of foundational education for better skill development
- Poor aspirational needs because of lack of entrepreneurial character among youth
- Poor access to basic facilities which are needed for quality of life and productivity. These limit the distribution of the growth and increases the chances of concentrated and unequal growth.
All these factors inhibit the thriving that is required and curtails the full economic development of a nation.
Human Capital
Human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society.
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- When a person is given education and skill, he/she transforms into a human resource.
- But, when those persons start contributing productively to the economic process, they become human capital. Thus, transformation of humans to human capital requires investment in education, skill and training.
- Educated and skilled human – Asset for the economy
- Uneducated and unskilled human – Liability for the economy as he/she is neither a part of the production system nor has an income source to support demand in an economy.
Concept of Welfare
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- A type of government support which is aimed to ensure that members of a society can meet basic human needs such as food and shelter.
- A basic level of well-being through subsidized social services such as healthcare, education, infrastructure, vocational training, and public housing which is the responsibility of the Government.
Capability Approach to Economic Development
The Capability Approach was first articulated by the Indian economist and philosopher Dr. Amartya Sen in the 1980s. Capabilities mean what people can do and what they can become.
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- It concentrates on the actual capability of persons to achieve lives they value rather than solely having a right or freedom to do so.
- This approach considers various factors, such as education, health, political participation, and social opportunities, to assess a person’s well-being.
- It looks beyond just financial aspects and aims to understand and enhance the opportunities and choices available to individuals for a more comprehensive evaluation of economic development.
- It goes beyond the concept of economic development towards Human Development.
