Indian Industry is presently on a fast development track, improved technology and techniques are being imported from developed countries. In the context of globalization, human resource development with proper training to the workforce is required to meet the challenges in future and to win the global competitive advantage. Most of the Indian Companies now a day’s rely on training and development to bridge the skill gaps. The role of training is going to be very different from what it was in the past. Intellectual capital is becoming main generator of wealth both for individuals and for the organization, as the economy is shifting towards knowledge economy. Training has become a major tool to retain employees. Well designed training program with clear career path, increases the job satisfaction among the young professionals and help them in becoming efficient and effective at the work place. Companies are now aligning business goals with training costs. But what is more important is the development of the skills of middle management. The objective of the organizational policies, process and programmes for the delivery of training is to achieve its HRD strategies by ensuring the availability of skilled and competent employees to meet its present and future requirements. Training & Development is essential to remove performance deficiencies. There are two ways in which T & D influences performance. First, they improve the skills of the people for specific job requirement and secondly they add to the job satisfaction. Employees have to adapt to technological changes, improve product and service quality and boost productivity to stay in competition. Therefore it is more imperative for the organizations which are adopting proactive HRM approach to display a culture of right attitude and behavior in order to achieve desired goal. Training policies are becoming more sophisticated and comprehensive containing all the ingredient that go in making the organizations world class.

KEYWORDS:  Intellectual Capital, Business Environment, Globalization, Liberalization.