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Human resource is an important factors of economic development.

1.Utilisation of natural resources :The natural resources like mineral,water,oil and forest are utilized by the human resource.The utilisation of natural resources increase the national income.The per capital income and living standards of the people increase.The dearth of proper human resource is one of the causes of non-utilisation of natural resources in world.

2.Compensate the deficiency of natural resources :The utilisation of human resource compensates the deficiency of natural resources.Many countries poor in natural resources have been able to achieve high economic and human development on the basis of the human resources.

3.Utilisation of physical capital :The more existence of physical capital is on guaranteed of development.They should be property utilised.They are utilised by human resource.Human resources is essential to operate machinery and equipment and to run factories and industry.

4.Increase production :The skilled,educated and healthy human resources increase the productivity and production.The production may be done even by the use of unskilled and semiskilled manpower .But the production of goods quality and variety of goods need skilled manpower.

5.Reform in tradition cultural and attitude :The traditional culture,values,intestines and attitude have been inimical to the development of developing countries including world.The educated manpower reforms the traditional cultural and attitude .

6.Increase in managerial capacity and entrepreneurship :Human resources increase the managerial capacity and entrepreneurship.It leads to innovation.The new production technique,new market and new technology are developed.This increase the production and national income.

7.Development of agriculture and industry :The modern and superior technologies should be use for the modernisation of agriculture and rapid industrialisation's.This is made possible only by human resource.Theodore Schultz observes "It is simply not possible to have the fruits of a modern agriculture and the abundance of modern industry without making large investment in human being.

8.Remove economic background :Human resource helps directly to remove the economic backwardness.It increase labour efficiently and specialisation.It increase labour mobility from which the executing resources can be made more productivity.The development of human resources increase the knowledge of natural resources.New production technique,market and opportunities of economic activities.The human resource also help in the proper utilisation of imported capital.These all lead to the increase in production,employment opportunities and levels of living of people.