Human Capital Development, Health Investment, and Economic Growth in India: An Analytical Study

Good Health is the most fundamental requirement for human wellbeing, a key component of human capital, a fundamental need for a country, and healthy human capital is a strategic determinant of sustainable development. In the most advanced countries, investment in health is considered very important as it enhances labour productivity, improves labour participation, promotes educational attainment, and contributes to the economic development of the country. In the case of India, we want to harness the demographic dividend to achieve the objectives of the Viksit Bharat 2047 vision. Despite an increase in public expenditure on the health sector in India, little research has examined how health investment contributes to human capital formation and long-term economic growth. The paper adopts descriptive and analytical research based on secondary data. obtained from government reports of the Economic Survey, National Health Accounts, World Health Organisation, World Bank, and other official documents. It critically analyses the trends in public health expenditure, health care infrastructure, health outcomes, and policy interventions to assess whether the increased investment has converted into measurable outcomes. The analysis indicates that consistent investment in the health care sector improves health outcomes, improves labour productivity, strengthens human capital, and support to achieve sustainable and inclusive economic growth. The study concludes that an increase in public investment in the health sector, supporting primary health care, preventive health care, digital health reforms, equitable financial protection, and efficient regulations, is essential for harnessing human capital and achieving inclusive and sustainable economic development.