NCERT Solutions Exploring Society: India and Beyond Chapter 7 Challenges to human capital — THINK ABOUT IT

Book page 170 Updated on2026-09-05

Q1.
Harsh, a student at government school in Grade 8, had to drop out of school two years back as his father lost his job. How do you think the loss of schooling years will affect Shivay when he grows up?
Answer

Those two years will follow him into every job he ever applies for. Losing schooling does not simply mean knowing less; it means that the human capital which education and training were supposed to build was never built, and everything that depended on it becomes harder.

What he losesWhat follows from it
Foundational learningGrade 8 onwards is where reading, arithmetic and reasoning become tools for other subjects. Missing it does not cost two years of knowledge — it makes the next years unlearnable, because each year is built on the last
Certificates and eligibilityMost training courses need a school-leaving certificate. Even SWAYAM’s free courses are designed from Grade 9 onwards. Without the certificate, the doors to skilling stay shut
Skill, and therefore earningsHe is likely to be limited to unskilled work — daily-wage labour, helper jobs — which pays less, is insecure, and offers little training on the job
Bargaining power and safetyA worker who cannot read a contract or a safety notice is easier to underpay and likelier to be hurt
The next generationLow earnings make it likelier that his own children are pulled out of school when the family next faces a shock. This is how one job loss becomes a cycle

And the loss is not only his. The chapter says India’s demographic dividend depends on individuals having access to quality education, health, training and skilling. Every dropout is one young person subtracted from that dividend — and India has to multiply that by lakhs.

Why it is not hopeless: human capital can be rebuilt, just more slowly and at higher cost. Open schooling and bridge courses can restore the certificate; the National Career Service can connect him to work; a skill course can give him a trade. The point of the question is not to predict doom but to show why keeping a child in school is cheaper than repairing the damage later.
Note on the question: the textbook names the boy Harsh in the first line and Shivay in the second. It is the same student — a slip in printing. Answer for the boy who dropped out.
Q2.
What problems could businesses face when they do not find workers with the required skills?
Answer

The business is left holding land, capital and technology that nobody can use properly. That is the chapter’s general rule applied to one factor: when a factor is missing or misused, production can become inefficient or can be halted.

  • Output falls or stops. Machines stand idle for want of an operator; orders are delivered late; a whole shift may be cancelled. This is the difference between an inefficient business and a halted one.
  • Quality suffers and waste rises. An untrained worker spoils raw material, damages tools, and produces defective pieces that must be scrapped — so the cost of every good piece rises.
  • Accidents increase. Safety procedures are part of training. Where the training is missing, the risk moves to the workers themselves.
  • Training costs go up. The firm must now do what the education system did not, and pay for it — which is exactly why the chapter lists “skill development and training” among a business’s responsibilities on page 181.
  • Wages for scarce skills are bid up. A few skilled people can demand much more, and may leave for a competitor — so costs rise while the shortage remains.
  • New technology cannot be adopted. There is no point buying a computer-controlled machine that nobody in the district can run. The firm stays stuck with older methods while rivals move ahead.
  • The firm may move away. Businesses locate where the skills are. A district that cannot supply skilled workers loses the investment, and with it the jobs it needed.
The deeper point: a skill shortage is a factor-of-production problem, not a hiring problem. The other three factors are useless without the fourth. This is why a country’s spending on schools, ITIs and health is treated by economists as investment, exactly like spending on machinery — it is building the input without which the machinery cannot run.
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