Human Capital Formation

(a)
(i) Distinction between human capital and physical capital:

• Human Capital: Refers to the skills, knowledge, and abilities possessed by individuals in an economy. Human capital is developed through education, training, and experience, and contributes to higher productivity.
• Physical Capital: Refers to tangible assets like machinery, buildings, and infrastructure that are used to produce goods and services. Physical capital increases productivity by providing the necessary tools for production.

(ii) Sustainable Development: Sustainable development refers to the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It balances economic, social, and environmental factors, promoting long-term growth without depleting natural resources.
OR
(b)
(i) Importance of micro-credit programmes in Rural India: Micro-credit programmes provide small loans to individuals in rural areas who do not have access to traditional banking services. These loans help improve the livelihoods of the poor, enabling them to start small businesses, improve agricultural productivity, or invest in education and health. Micro-credit empowers women, promotes financial inclusion, and contributes to poverty alleviation in rural areas.
(ii) One Strategy for Attaining Sustainable Development in India: One key strategy for sustainable development in India is the promotion of renewable energy sources like solar and wind power. This reduces dependency on fossil fuels, lowers greenhouse gas emissions, and ensures energy security for future generations.