The following project ‘Knowledge and Nation’ is a detailed study of higher education with respect to human capital . Human capital development is the process of improving an organization\'s employee performance, capabilities and resources for achieving the objectives of the organisation. \nDevelopment is void if the human development doesn’t take place .Human capital development is vital to the growth and productivity of the organisation. The most effective way of enhancing and enlarging the productive workforce in the country is the expenditure done on strengthening the education system, the root of development starts from education which should be given immensely.It is considered as the best source of human capital formation because ‘ A dull mind cannot lit a bright future ‘ . And it is rightly said that education will always remain the prime factor while considering human capital development.