Solution

Problems associated with human capital formation in India are:

1. The ever-increasing population is exerting pressure on the limited resources that is available which in turn is impacting the quality of life and reducing the capacity to acquire new skills and knowledge.

2. Migration plays a serious threat to the formation of human capital as the skilled and knowledgeable population shifts to areas that offer good sources of income. But in doing this it is creating a loss of human capital for developing countries.

3. Lack of manpower planning has resulted in underutilization of skills and there has been no effort to address this issue, which has resulted in unemployment and underemployment.

4. Many institutions are offering an inferior quality of education which is causing unequal distribution of knowledge and lack of required skills. It is one of the significant bottlenecks in forming quality human capital.