Importance Of Human Skill Development

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Human Skill Development for Fostering a Regional Competitive Advantage (Theme) Fostering Human Skill Development for a Better Future in India Aditya Gupta, Loyola College, Chennai, India Abstract In a world where countries are striving hard to achieve pre-eminence in economic affairs, skill development demands importance. This paper deals with the role and relevance of skill development in today’s world. And also evaluates the current scenario of India and identifies how human capital formation followed by skill development will help India gain a competitive advantage over other countries of the world. Furthermore, it will give few realistic, workable suggestions to improve the present situation and foster human skill development in the country. Introduction: The principle of “Absolute Advantage” and the principle of “comparative advantage”, in general, are based on the superiority of one country over another country in producing a commodity. Absolute advantage refers to a country having higher productivity or lower cost in producing a commodity or service compared to another countries. However, absolute advantage is neither necessary nor sufficient for mutually beneficial trade. For example, a country may be experiencing disadvantage (absolute)…show more content…
A similar trend can be observed in other south Asian countries as well. The greatest advantage these countries have in common is the population and the availability of cheap labor but the major drawback is unskilled nature of the population. Hence, the greatest available resource is underutilized. A country has a comparative advantage in the production of that commodity which uses the relatively abundant resource in that country more intensively and all the South Asian countries have to do is utilize the abundant resource
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