The term human capital refers to the economic value of a worker's experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality. Human capital is important because some level of human knowledge and skills is necessary in order for an organization to accomplish anything. Human capital formation is the process of adding to stock of human capital over time. Human capital can be developed through creation of skilled, trained and efficient labour force by providing better education, health care facilities, etc. Further, on-the-job-training helps workers to update skills. Human capital is affected directly and indirectly by education which plays an important role in both accumulating human capital and increasing economic growth. Human Capital Theory is the most influential economic theory of education, and it becomes a key determinant for economic performance.

Abhijith S

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