Human capital is one of the valuable resources of a country. Without developing human capital a country cannot run well. By Investing in human capital a country can increases people’s productivity capacity and increases the prospect of their employment which in turn raises economic growth. One of the strong pillars of human capital formation is education. A country can develop human capital with the help of education. A country can upgrade the productivity of the workforce with the help of education which not only contributes towards the growth of the individual but also helps in the development of the society as a whole. This study assesses the relationship of education and formation of human capital with the help of indicator like enrollment of education, educational institution and expenditure of education to GDP. It is observed that Govt. of Assam invested in education at an increasing trend and GDP of Assam is also increasing trend during the study period. It is concluded in the paper that to provide significant contribution in the economy of education system should be of high quality to meet the skill needs of the economy. The study may relevant for providing guidelines for research and phosphoric for future manpower planning and human capital formation in Assam.