The Effect of Economic Growth on the Human Capital of BRICS Countries: A Case Study of India and China

This research explored the effect of economic growth on human capital development within BRICS countries, using India and China as comparative case studies. The study was conducted as part of an MSc programme and adopted a quantitative, secondary-data research approach, drawing from authoritative sources including the World Bank, IMF, and international development databases. The research was underpinned by established economic growth theories, with particular emphasis on the Solow Growth Model, alongside comparative analyses of other classical and modern growth models. Key variables examined included GDP per capita growth, human capital accumulation, education, health, population growth, technological progress, employment, trade, and capital stock. Using Stata (version 14) for econometric analysis, the study employed descriptive trend analysis and linear regression models to assess the strength and direction of relationships between economic growth and human capital development. Findings revealed a positive and reciprocal relationship between economic growth and human capital accumulation in both India and China. The results demonstrated that improvements in education, health, and technological capacity were closely linked to sustained GDP growth, while periods of economic downturn, such as recessions and the COVID-19 pandemic had measurable adverse effects on human capital development. The research further highlighted structural differences between the two economies, showing that while China experienced more consistent growth patterns, India demonstrated higher relative increases in certain human capital indicators over time. Policy recommendations were provided, emphasising increased investment in education, health systems, innovation, and workforce productivity to sustain long-term economic development across emerging economies.