(i) Distinguish between human capital and physical capital. (ii) Define Sustainable Development. (i) Describe briefly the importance of micro-credit programmes in Rural India. (ii) State any one strategy involved in attaining sustainable development in India.

Question

Accepted Answer

(i) Distinguish between human capital and physical capital:

Human Capital: Knowledge, skills, and health embodied in people. Formed through education, training, and healthcare. Intangible and cannot be separated from owner. Creates both private and social benefits.

Physical Capital: Machinery, buildings, and equipment used in production. Formed through financial investment. Tangible and can be separated from owner. Creates primarily private benefits.

(ii) Sustainable Development:
Sustainable development meets the needs of the present generation without compromising the ability of future generations to meet their own needs. It balances economic growth, social equity, and environmental protection.

(iii) Micro-credit programmes in Rural India:
- Provide small loans to rural entrepreneurs
- Enable self-employment and income generation
- Empower women through financial inclusion
- Reduce dependence on moneylenders
- Promote rural economic development

Micro-credit programmes are essential for poverty alleviation and rural development in India.