In August 1945, the United States dropped atomic bombs on the Japanese cities of Hiroshima and Nagasaki. This took Japan many years back in terms of development. Everyone thought it would take decades for the country to reach back to its initial state. After the atomic bombing, it was rumored that nothing will grow in these cities for 75 years. Surprisingly, Japan built its economy in no time. The reason? It’s investment in the human resources, especially in the field of education and health. It is one of the countries having very little amount of natural resources but still comes in the list of developed nations. Due to investment in human resources, this country’s people have made efficient use of limited resources like land and capital. This reason, among many, made countries like US and Canada to expend on developing their human capital. India also recognized the importance of human capital in economic growth in one of its five year plans. Investment in human resources becomes all the more important for India, it being a highly populated country. It is pertinent to note that it is important to invest in country’s human resources even if such investments do not result in higher labour productivity. This is where concept of human development steps in. It is based on the idea that it is only when people have the ability to read and write and the ability to lead a long and healthy life that they will be able to make other choices which they value.

Read the following statements - Assertion (A) and Reasoning (R):
Assertion: Increase in human capital causes economic growth.
Reasoning: Human capital investment stimulates discoveries.
From the given alternatives choose the correct one:

Assertion (A) is true but Reasoning (R) is false.

Correct answer is Option 3: Assertion (A) is true, but Reasoning (R) is false.

Assertion (A): Increase in human capital causes economic growth. This statement is true. Human capital, which encompasses the skills, knowledge, and abilities of individuals, is a critical factor in driving economic growth. Investments in education, training, and healthcare improve human capital, leading to increased productivity, innovation, and overall economic development.

Reasoning (R): Human capital investment stimulates discoveries. This statement is not entirely accurate. While investment in human capital can lead to innovation and the development of new ideas, processes, and technologies, it primarily fosters innovation rather than discoveries in the traditional sense. Discoveries typically refer to entirely new findings or breakthroughs in knowledge or understanding, which may not be directly linked to human capital investment.

Therefore, the correct option is: Assertion (A) is true, but Reasoning (R) is false.

"Investment in human resources increases their productivity. This enhanced productivity of human capital contributes substantially not only towards increasing labour productivity but also stimulates innovations and creates ability to absorb new technologies. All this in turn leads to economic growth."