Amidst the ongoing tensions between India and Pakistan, despite the ceasefire agreement taking effect on Saturday night, we must face a stark reality: India’s true Arsenal is its human capital in war and peace. No friends all-weather. There is no permanent external support system. We are surrounded by rivals, competitors and global alliances and priorities. There is no choice but to pay attention to alarms and equipment. All of this comes down to human capital.
It can be predicted that India’s strategic discourse focuses on diplomacy, defense modernization, border security and military preparation. But under this legitimate concern with foreign policy and conventional deterrence, the quieter, more critical pillar of national security is ignored: the development of human capital. Once war arises, this must be the top priority.
For a country surrounded by hostile neighbors and the looming war clouds of the region, investment in education, healthcare and skills may sound like high school. But this is a serious strategic oversight. In the 21st century, safety is as important as firepower on the ground. The emphasis on human development is not only a domestic necessity, but also a strategy that enhances resilience, promotes innovation and ensures the future of the country.
The UNDP Human Development Report 2025 (a question of choice: people and possibilities in the AI era) released earlier this month highlights the progress in India, but also sheds light on the inequality nature of many aspects of progress. India rose from 133 to 130 Human Development Index (HDI) on HDI between 2022 and 2023. But its HDI score fell by 30.7% due to inequality, one of the highest losses in Asia. While some Indians performed well, there were millions. Life expectancy is at an all-time high, with multidimensional poverty activity plummeting, deprived of 415 million in 15 years due to programs such as Ayushman Bharat and Jal Jeevan Mission.
However, relatively low health spending (below 3% of GDP) and education (below 5% of GDP) have exacerbated the differences, which has prepared India’s young people (of its 1.4 billion population, 65%) for a knowledge-driven world.
India’s demographic dividend is a ticking clock. Without urgent investment in quality education, every Indian’s health care and skills, the country risked wasting this dividend and undermining its strategic advantage. Working-age citizens in India may push the country into global leadership, but millions of modern economies lack the skills needed. An unskilled, frustrated youth cohort is vulnerable to unrest or external operations, especially in areas where fake campaigns are booming.
The UNDP report highlights the change potential of AI and points out that 70% of mid-sized HDI countries such as India expect AI to improve productivity in education, health and work within one year. But access to the gap between power, the internet and digital literacy – threatening to exclusion. India’s digital literacy rate (including cybersecurity awareness, online etiquette and skills) exceeds basic uses at about 37% and covers about 37%.
“Without enough pure science investment, there will be no influential work in STEM (Science, Technology, Engineering and Mathematics).
This investment is essential for training students to have a broad range of abilities and build expertise, which will be valuable in the long run. China has made these investments, which is why it leads the world in basic science and its applications. We will not mistakenly believe that we can bypass this step. Nor should we assume that our current leadership in IT and related services gives us a permanent advantage. The future will be dominated by AI, which will automate many mechanical tasks. The rest will highlight what makes us unique to humanity. Perhaps future work will focus on skills outside STEM, such as those in the social sciences and humanities.
“Developing countries like India can bridge the gap in advanced economies through ongoing reforms, strengthening family demand, increasing competitiveness, increasing human capital and increasing human capital,” ADB Chairman Masato Kanda said in a conversation with reporters at the start of the annual meeting of the Asian Development Bank Annual Council in Milan. He added that while private sector growth will increase work and promote innovation, the government must continue to reform and increase domestic demand by reducing income inequality while opening economies. “The development of human capital is more important than ever, catching up with the global economy and undergoing technological transformation.”
Human capital is the Lynchbin of modern warfare and economic resilience.
China’s advantages in AI, cybersecurity and semiconductors flow from decades of STEM education and R&D, with the $723 billion in 2023 compared to $71 billion in India. A skilled Indian labor force can be “made in India”, thereby reducing reliance on imports from key sectors such as medicines or renewable energy. Healthy citizens ensure a strong Wehrmacht, while education promotes civic awareness and opposes division of disinformation. However, primary and secondary education in India suffers from a long-term underfunded, rural-urban digital divisions that continue to exist, cultural norms for women. Although official data suggests improvements in the workforce of women’s participation, there is still a large gender gap. By comparison, only 42% of women and nearly 79% of men contributed to the workforce in 2023-24. In China, the labor force participation rate of women is 59.6%. According to the World Bank, the corresponding figure for men is 71.1% (2024).
The paradox in India is distinct: the surplus of Grade III graduates coexist with the ongoing illiteracy and low-skill labor in agriculture. Despite the shining of IIT, basic education has wavered in many parts of the country, attracting millions of low-productivity jobs. Inequality along the deep-rooted fault lines further erodes cohesion.
India stands at a crossroads. Its people – young, diverse and vibrant – are the greatest wealth in a rising world. However, potential alone is not enough. Without bold reforms, dividends would become a deficit, weakening India’s confident rivals. In a turbulent and uncertain world, India’s response must be clear: empowering its people to surpass, go out and surpass its competitors.
Now is the time to act. India’s security, economic and global status depend on it. In intellectual warfare, a country’s strength lies not only in its soldiers and arms, but also in its citizens’ capabilities and maturity. By investing in human capital, India can turn challenges into victory, ensuring its position as a global force for resilience, innovation.
